John Batchelor talks to Lou Ann Hammond, CEO, www.carlist.com from Sao Paulo, Brazil. Brazil has announced a new oil field, Tupi, that holds 5-8 billion barrels of oil and natural gas.

Brazil makes alcohol out of sugar cane. Brazil is off the dependence of foreign oil. 75-80 percent of Brazilian cars are flex-fuel. Alcohol is mandated by the government to be in gas stations, as well as having alcohol in gasoline.

In US dollars a gallon of gasoline in Brazil will cost $6.70 and alcohol costs $3.80 a gallon.

How much will it cost to produce this oil and does Brazil have other energy problems?