Article Writing Homework Help

Write 8 pages with APA style on Brazil and Argentina: Coffee and Oil. While it is clear that Brazil does have the capacity and possibility to meet its own oil needs it seems that importing oil has become a more favorable option perhaps owing to difficulties along the domestic supply chain. When examined as one market it becomes clear that Brazil’s oil supply is not able to meet its oil demand without looking abroad. It could be argued that the marginal cost for domestic oil may also make importing oil a more favorable option. It could be the case that Brazil is currently producing the most efficient amount of oil given existing technology and equipment. To expand domestic production of oil may prove financially unfeasible owing to additional property, plant and equipment requirements. The&nbsp.decision to source oil from abroad would be logical in this circumstance.

Argentina is unique in that the country has a tremendous amount of proven oil reserves of over 2 billion Barrels and according to the CIA World Factbook (2008) Argentina produced an estimated 730,000 bbl/day in 2007. It was also estimated by the CIA World Factbook that Argentina consumed 480,000 bbl/day, imported 21,650 bbl/day and exported 367,600 bbl/day. The Energy Information Administration (EIA) Country Analysis Brief on Argentina (2008) indicated that the country is a net energy exporter and the main export destination for Argentinean oil in Brazil.&nbsp.&nbsp.It should be reflected on that although the oil production capacity of Brazil far exceeds that of Argentina the consumption patterns for Brazil indicate that even though they have the proven oil reserves they simply cannot extract (Or perhaps even refine) enough oil to meet their growing demand.