Lou Ann Hammond discusses Brazil’s energy with Autoline Detroit John McElroy

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.

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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.
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let’s talk about what’s going on in brazil you’ve just got back from the air
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and they’re going day musters huge or you’ll explore what exploration
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and without a doubt where workers on the latest things that you learned you know
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it’s amazing what you learned about your own country when you get somebody else
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this country
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but for example and learned that in the united states
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that if we happily have almost completely saturated with cars
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so four one person they have about one point two car
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and brazil
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they have for eight people they have one car so a lot of potential in brazil
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preset rate in united states
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for gasoline in the in brazil gasoline is always mixed with twenty to
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twenty-five percent alcohol or ethanol as we call it
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and uh… down there’s about six eighteen ninety gallon
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alcohol it’self or you one hundred ethanol one hundred is about three
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eighty gallon course here at that time gasoline is about three dollars a gallon
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our expired for brazil’s exports
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they don’t pay experiment exporter they’re actually exporting pad ethanol
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now and not importing any oil
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so that we have to be having net trade of zero
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on their trade deficit we of course are or else cox is about forty percent about
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trade deficit
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huge difference there
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and he just found a bunch of oil here right they doubled their reserves
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it did that they used about eleven billion in reserves eleven billion uh…
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barrels of oil reserves
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right off the coast of rio de janeiro they found that eight they think about
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eight billion me apparel factories survive all your so they’re very happy
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that it’s it’s going to be deep
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it’s going to be about four times
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the cost of x uh… drilling that regular just
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saudi arabia oil will be thinking about i dated seventeen to twenty dollars and
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bear uh… a barrel to the for saudi arabia oil
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going to be about seventy two day two dollars a barrel get the set of out of
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the salt and see rock av rio de janeiro
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but had to rush says they will do it now but not reporting years
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way different from what venezuela is doing because venezuela’s not putting
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money into
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the production of oil
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so here in the united states is
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were actually buying
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or you know of brandon is wailea
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with no terrorist
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and word we won’t buy ethanol from brazil can’t out the tariff at fifty
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four cents a gallon
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when i went down there i went down and said okay
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the fifty view some leverage now
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you wouldn’t know that you found a while because we need all the away a week and
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get we need gasoline when ninety six percent
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dependent on gasoline for our vehicles
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and they said
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what about if instead
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we we find this ordeal
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in brazil
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make that ten percent with ethanol
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and should be patient
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sell it to them
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that helps their kyoto protocol turn of the literature because it takes ten
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percent of the carving right out of fuel right-hand jco okay
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why is your
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so i have to do a little bit more digging because
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here i’m thinking
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you know we’ve got a pretty decent
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agreement with brazil on most things except for energy
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and so i i find i’d go to a couple other economist inside what’s going on white
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ager
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hit well
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in particular japan mit’sui is investing and ethanol production impersonal
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and prisons like it
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when people invest in their country
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poverty and crime still grilled
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real real thick
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in brazil
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they need to be d develop as quickly as they can they need to get some of these
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people often
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out of the corrugated steel homes they live in and they’ve developments
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so they would really neat all that development that they can’t
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and if there are other countries willing to come in and help then they’re going
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to do it
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america’s having problem united states excuse me non-american all united states
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is having problems right now with their sub-prime stuff so they’re saying
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this brazil seem last by pianos
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from united states
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uh… market
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so japan is stepping in with the ethanol production going make a difference
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so uh… and where we think this is all going for brazil it’s going to become a
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net energy exporter or or i guess already has
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but using his newfound oilers mix ethanol in with that and and use that to
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help get it’self in all into world markets i’d i do think that that was
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going to go i think that uh…
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seeing that has eight timeline of what could happen
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imagine if you instead attacking
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ethanol from i went down to miami if we could just put a pipeline from brazil
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and actually by ten percent bafna with gasoline brazil’s also talking about
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taken the technology over new mexico and this was confirmed by a couple of our
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journalist friends from mexico that they are um… looking at brizill fourth the
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technology of learning how to to create at the mo and their own country as well
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pollutant bristles looking very
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uh… wide globally at effort now
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and that proud
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help people teach them how to to create
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ethanol in a bland with get with gasoline ash also say that brazil sales
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of flex fuel vehicles
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have gone from about
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uh… own zero just five or six years ago
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took eighty percent of the market now had split fueled vehicles at their mind
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very interesting watching not possessing all market development other places of
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the world there’s so much focus on it in the u_s_ by
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we tend to ignore the fact that there’s a lot of activity going on elsewhere
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will thanks so much for coming in and and bring us up to date on your latest trip
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to brazil and everything you found out about what they’re doing down there
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thank you John

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About the Author:

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a member of the North American Car and Truck of the Year (NACTOY), Women's World Car of the Year (WWCOTY), and the Concept Car of the Year.