Brazil’s energy
Lou Ann Hammond discusses Brazil’s energy with Autoline Detroit John McElroy.
Dec 17, 2007 – Lou Ann Hammond, CEO, www.carlist.com & www.drivingthenation.com discusses Brazil’s energy with Autoline Detroit John McElroy.
Welcome to my talk right now with Lou Ann Hammond, CEO, www.carlist.com & www.drivingthenation.com, great to have your back on the show.
0:07
let’s talk about what’s going on in brazil you’ve just got back from the air
0:10
and they’re going day musters huge or you’ll explore what exploration
0:14
and without a doubt where workers on the latest things that you learned you know
0:17
it’s amazing what you learned about your own country when you get somebody else
0:20
this country
0:21
but for example and learned that in the united states
0:25
that if we happily have almost completely saturated with cars
0:29
so for one person they have about one point two car
0:32
and brazil
0:34
they have for eight people they have one car so a lot of potential in brazil
0:40
the preset rate in the united states
0:42
for gasoline in the in brazil gasoline is always mixed with twenty to
0:47
twenty-five percent alcohol or ethanol as we call it
0:50
and uh… down there’s about six eighteen ninety gallon
0:54
alcohol itself or you one hundred ethanol one hundred is about three
0:58
the eighty-gallon course here at that time gasoline is about three dollars a gallon
1:03
our expired for brazil’s exports
1:07
they don’t pay experiment exporter they’re actually exporting pad ethanol
1:12
now and not importing any oil
1:15
so that we have to be having net trade of zero
1:18
on their trade deficit, we of course are or else cox is about forty percent about
1:23
trade deficit
1:24
huge difference there
1:26
and he just found a bunch of oil here right they doubled their reserves
1:30
it did that they used about eleven billion in reserves eleven billion uh…
1:34
barrels of oil reserves
1:36
right off the coast of Rio de Janeiro, they found that eight they think about
1:40
eight billion me apparel factories survive all your so they’re very happy
1:44
that it’s going to be deep
1:46
it’s going to be about four times
1:47
the cost of x uh… drilling that regular just
1:51
Saudi Arabia oil will be thinking about i dated seventeen to twenty dollars and
1:55
bear uh… a barrel to the for Saudi Arabia oil
1:59
going to be about seventy-two day two dollars a barrel get the set of out of
2:03
the salt and see rock av Rio de Janeiro
2:06
but had to rush says they will do it now but not reporting years
2:10
way different from what Venezuela is doing because Venezuela’s not putting
2:14
money into
2:16
the production of oil
2:17
so here in the united states is
2:20
were actually buying
2:22
or you know of Brandon is Wailea
2:24
with no terrorist
2:26
and word we won’t buy ethanol from brazil can’t out the tariff at fifty
2:30
four cents a gallon
2:32
when I went down there I went down and said okay
2:35
the fifty view some leverage now
2:38
you wouldn’t know that you found a while because we need all the away a week and
2:41
get we need gasoline when ninety six percent
2:44
dependent on gasoline for our vehicles
2:49
and they said
2:51
what about if instead
2:53
we find this ordeal
2:55
in brazil
2:57
make that ten percent with ethanol
3:00
and should be patient
3:01
sell it to them
3:03
that helps their Kyoto protocol turn of the literature because it takes ten
3:07
percent of the carving right out of fuel right-hand jco okay
3:10
why is your
3:12
so I have to do a little bit more digging because
3:14
here I’m thinking
3:15
you know we’ve got a pretty decent
3:17
agreement with brazil on most things except for energy
3:20
and so I find I’d go to a couple of other economists inside what’s going on a white
3:26
ager
3:27
hit well
3:29
in particular japan, Mitsubishi is investing and ethanol production impersonal
3:36
and prisons like it
3:37
when people invest in their country
3:40
poverty and crime still grilled
3:43
real real thick
3:44
in brazil
3:45
they need to be d develop as quickly as they can they need to get some of these
3:49
people often
3:50
out of the corrugated steel homes they live in and they’ve developments
3:55
so they would really neat all that development that they can’t
3:57
and if there are other countries willing to come in and help then they’re going
4:01
to do it
4:02
america’s having problem united states excuse me non-American all united states
4:06
is having problems right now with their sub-prime stuff so they’re saying
4:11
this brazil seems last by pianos
4:14
from united states
4:15
uh… market
4:16
so japan is stepping in with the ethanol production going make a difference
4:22
so uh… and where we think this is all going for brazil it’s going to become a
4:25
net energy exporter or I guess already has
4:28
but using his newfound oilers mix ethanol in with that and use that to
4:33
help get itself in all into world markets I’d think that that was
4:37
going to go I think that uh…
4:39
seeing that has eight timelines of what could happen
4:43
imagine if you instead of attacking
4:45
ethanol from I went down to Miami if we could just put a pipeline from brazil
4:50
and actually, by ten percent Bafana with gasoline, brazil’s also talking about
4:55
taken the technology over new Mexico and this was confirmed by a couple of our
5:00
journalist friends from Mexico that they are um… looking at Brazill fourth the
5:04
the technology of learning how to to create at the mo and their own country as well
5:09
pollutant bristles looking very
5:12
uh… wide globally at effort now
5:15
and that proud
5:16
help people teach them how to to create
5:19
ethanol in a bland with getting with gasoline ash also say that brazil sales
5:25
of flex-fuel vehicles
5:27
have gone from about
5:28
uh… own zero just five or six years ago
5:32
took eighty percent of the market now had split fueled vehicles at their mind
5:36
very interesting watching not possessing all market development other places of
5:40
the world there’s so much focus on it in the u_s_ by
5:43
we tend to ignore the fact that there’s a lot of activity going on elsewhere
5:47
will thanks so much for coming in and bring us up to date on your latest trip
5:50
to brazil and everything you found out about what they’re doing down there
5:53
thank you, John
