Massive oil reservoirs off the coast of Brazil promise profitability and opportunity in the coming years. With a proven 8.3 billion barrels of oil equivalent (BOE) along the Atlantic coast, oil producers are pursuing plans to ramp up exploration and production over the next ten years. The oil fields are over four miles below the ocean surface, buried beneath water, rock, sand and a layer of salt nearly a mile thick.
Accessing this total estimated 80 billion BOE requires materials and equipment for drilling deep underwater, and by consequence, there has been a marked increase in shipments to Brazil to support this need.
The oil companies working in the region value a competitive cost for the shipments they require, but expediency is also essential. A fully operational rig can produce millions of dollars worth of oil a day, and those shippers and forwarders able to expedite products to Brazil will have a strong competitive advantage. The challenge is that cargo arriving at government-owned airports can be stalled by customs, warehousing and other clearance matters, and while private airports offer a quicker transition from airplane to oil rig, most carriers offer limited service to these ports.
Companies able to overcome these challenges can find great opportunity in meeting the demand for oil extraction and production materials, particularly at a time when Brazil's economy (already the largest in South America) is on the rise. Barclays Capital suggests the Brazilian economy will grow nearly eight per cent this year. Trade between the United States and Brazil is also on the rise.
(aircargoinsights.com)