5 Comments

How does getting oil from Venezuela or Saudi Arabia make things any better? Seems like a lateral move to me.

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I would be interested to read a similar analysis of Brazil vis-a-vis the last two paragraphs. Petrobras is also trying to overcome the reputational blow caused by past mistakes and the current political environment presents a different kind of obstacle to investment. Nevertheless, they have a strong ESG focus and are sitting on some of the most impressive assets in the world,

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I used to cover PBR at GS…back when Gabrielli was CEO and pre-salt was just emerging. They were and I am sure still are a premier deepwater E&P. But it has been quite a few years for me and will need to spend some time re-ramping on PBR. Obviously some issues gave arisen but the technical talent must still be there.

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I do not see why would points 2,3 and 4 bellow bear any benefit for foreign buyers of its oil. Besides that, second point is very questionable in light of the "truckers' " issu?!:

Cost/benefit analysis of Canadian crude oil

Benefits:

Canada is a democratic, geopolitically friendly country that, to the best of my knowledge, has never invaded another country.

Canada respects western values, such as freedom and liberty.

Canada respects the ideas of gender equality and the right to live openly and happily with whomever you desire.

Canada welcomes immigrants and refugees from other countries.

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Thank you for your comment. You are 100% correct that from a pure crude oil trading standpoint, the points are not relevant. I think they are relevant in terms of describing Canada as a country with "western" values. But, of course, not everyone shares those values. And I certainly respect the view that how Trudeau dealt with the truckers situation was not exactly consistent with the 2nd point.

The reason I included all of those was that I do not agree with US and Canadian gov't policies that have, at times, sought to limit/restrict/impede domestic supply growth, mostly via hurdles created with pipeline infrastructure regulatory hurdles. If we don't get oil from Canada/USA, we get it from Russia and Middle East. That is why I include those "benefits" which otherwise are unrelated to oil trading.

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