A Brazilian Energy Giant Struggles

From MarketWatch

By Claudia Assis

The New York Times has an interesting piece on Petroleo Brasileiro SA, or Petrobras PBR -0.48% , Brazil’s state-controlled energy giant.

The national oil champion is struggling only half a decade after celebrating the discovery of massive ultra-deep oil reserves offshore. Ultra deep reserves are those more than 5,000 feet under water.

Another kind of energy shock is unfolding, The Times said. Petrobras “is losing the race to keep up with the nation’s growing energy demands.”

U.S.-listed shares of Petrobras have lost 14% so far this year, and 39% in the past 12 months. The company has racked up debt and investors have been concerned about the huge amounts of investment needed to coax oil from the ultradeep offshore fields.

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