In Brazil, a farmer found oil instead of water
In the fall of 2024, while drilling a well on his farm, 63-year-old Brazilian farmer Sidrônio Moreira unexpectedly discovered not water, but oil at a depth of about 40 meters.
This is reported by Farmer magazine.
The man was trying to solve the problem of water shortages on his farm, but the result turned out to be unexpected and, as it later turned out, more of a problem than a boon for him.
By law, after such a discovery, the farmer was required to notify the authorities. Geologists and mining experts then arrived on site and began surveying the area. The area around the well was fenced off, and the owner was barred from accessing his own land.
Moreover, he was also prohibited from conducting new drilling, which effectively deprived him of the ability to search for water for his farm and only worsened the situation.
It was not until May 19 that the Brazilian National Petroleum Agency (ANP) officially confirmed the existence of a new oil field. At the same time, its economic viability remains in question.
Despite the potential value of the discovery, the situation for the farmer has not improved. The 49-hectare farm is considered small by local standards, and restrictions on land use have effectively paralyzed his operations.
Authorities have also banned the sale or division of the plot until decisions regarding the field’s further development are made. Under Brazilian law, all subsoil resources belong to the state, so the farmer does not own the oil beneath the ground.
As a result, he can only count on compensation in the event of land expropriation if commercial production begins there. Final decisions regarding the development of the field have not yet been made.
As a reminder, global oil prices on Monday, May 25, plummeted by nearly 6% and reached their lowest level in the past two weeks. The reason was growing optimism surrounding a possible peace agreement between the U.S. and Iran, which could help stabilize supplies through the Strait of Hormuz.
On May 22, global oil prices rose, although the market is still on track for a weekly decline. Analysts attribute the situation to uncertainty surrounding negotiations between the U.S. and Iran, as well as risks to shipping through the Strait of Hormuz, which is one of the world’s key oil supply routes.
The market expects oil prices to rise to $100 per barrel, according to Bloomberg.
Global oil prices rose during trading on Thursday, May 21, partially offsetting the sharp drop of the previous day.
Russian oil is on the rise again, shifting the balance of the Russian Federation’s revenues
Oil prices rose amid anticipation of a meeting between Donald Trump and Xi Jinping. Traders are focusing on possible signals regarding a resolution to the conflict with Iran, which has impacted global oil supplies.
