Sunday, March 04, 2012

Explosion in Gasoline Sales in Brazil after Obama Encourages Brazilian Oil Drilling

A $2 billion U.S. loan in 2009 and President Obama's encouragement of Brazilian oil drilling a year ago (see video below), seem to be sending Brazilians back to buying gas (up 39%) and not ethanol (down 35%) and gas powered cars over hybrids.

From O Estado de São Paulo (via Google translate):
"Future. The projection of the ministry that the cars would run flex fuel switching at a rate close to 50% also run the risk of not sustaining. The use of ethanol is no longer advantageous compared to gasoline when its price exceeds 70% of the gas at the pump. The consumer chooses the cheaper price at the time of supply, an equation is unfavorable to ethanol."
. . .
"Data from the National Petroleum Agency (ANP) show an explosion in gasoline consumption from 2010. In two years, while sales fell 35% ethanol, gasoline sales rose more than 39%. Since 2005, gasoline sales recorded an increase of 2% per year. In 2010, they grew 17.45%. In 2011, 18.79%, reaching 35.4 billion liters, compared to 10.7 billion liters of ethanol sold in the same year."

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