They may not be. Batista is trying to move his natural-gas production into a company he partially controls, along with Germany's EON. Just before declaring bankruptcy, OGX sold its only producing field.
All this is happening amid the backdrop of an inflationary spiral that is raising Brazilian interest rates and may cause economic collapse. Protests that rocked soccer's Confederations Cup this year could now turn violent as next year's World Cup is played out against the backdrop of national elections.
Brazil's president, Dilma Rousseff, is often called a "leftist." Faced with the Confederation Cup riots, she promised consumers relief. But it's Brazil that ultimately controls the oil, not some speed-boat racer. If Wall Street wants that oil, it needs to be backing stable government institutions, no matter who is running them.
That's unlikely to happen, because Wall Street is more interested in the money it's losing than the lessons of that loss. The impact of South America's largest economy collapsing, and the political storm that unleashes, may have just begun.At the time of publication, the author owned no shares in companies mentioned here Follow @DanaBlankenhorn This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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