PBR Best Stocks to Buy for the Coming South American Oil Boom By THE MOTLEY FOOL iJuly 5, 2013 at 12:42 pm
Petroleo Brasileiro Petrobras SA (PBR): Best Stocks to Buy for the Coming South American Oil Boom
By THE MOTLEY FOOL in News
Published: July 5, 2013 at 12:42 pm
0 2 0
Page 1 of 2Next See All
"Recent oil discoveries in South America have put that continent on the map for investors looking to profit from the development of these resources. While there are many companies that will be operating in the region over the years, these five are among the first movers. That makes these stocks the five best to play this coming oil production boom.
It's well known that Brazil is blessed with massive oil reserves. The discovery of the pre-salt reserves has added nearly 100 billion barrels of oil equivalent reserves to Brazil's total estimated reserves. The problem for investors is that the country is keeping those reserves for itself.
That makes Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) one of the best pure-play stocks to buy if you want to invest in the growth of oil production. The company is investing heavily to explore and develop these massive oil fields with a goal to produce 1 million barrels of oil per day by 2016. But it's not the only company operating offshore: Seadrill Ltd (NYSE:SDRL) is another potential stock play here. One of the interesting things it's doing is looking at spinning off part its Brazilian business. This will help the company navigate the country's regulations while retaining upside as offshore oil production grows. It will also help the company to continue producing income to keep its top-tier dividend flowing back to investors."