Cautioned by BP oil spill, Brazil continues deep-sea drilling

Lessons from BP spill

Still, many say the BP oil spill will strengthen Brazil's safety regulations even more as it draws lessons in best practices and contingency plans.

"Brazil ... can learn a heck of a lot," says Jeremy Martin, director of the energy program at the Institute of the Americas in La Jolla, Calif. "They have had experts in the Gulf, observing what has been going on there."

Wagner Victor, the former secretary of oil and gas with the Rio de Janeiro state government, says changes will include more rigorous security systems and sophisticated equipment, more emphasis on training professionals, and higher insurance costs as companies demand more oversight. All of this will increase the cost of exploration.

"The BP accident will result in a series of modifications to international rules and regulations and that will have a knock-on effect in Brazilian legislation," says Mr. Victor.

Brazil's National Petroleum Agency (ANP), which, like Petrobras, sent a team to the Gulf to monitor BP's efforts, is reviewing its regulatory framework to decide if enhancements are needed. It has asked all companies drilling in Brazilian waters to inform them of the control systems in place and requested documentation to review their response systems.

But the Gulf spill has some urging Brazil reconsider deep-water plans.

In June, the Global Renewable Fuels Alliance (GRFA) issued a Top 10 list of offshore oil sites at risk today, and placed Brazil's pre-salt as No. 9.

But Brazil is ready, insists Mr. Antoun. "You can't compare Brazil in 2000 and 2010. Brazil has changed hugely over the last 10 years thanks to legislation," he says. "Now there is a critical mass of people who are qualified to deal with problems."

IN PICTURES: Destructive Oil Spills

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