Final answer:
BP's $7 billion deal to explore oil in Brazil represents a significant business move within the energy sector, with wide-reaching economic and political implications. The expansion, and redefinition, of oil to include biofuels like ethanol reflects strategic decisions that impact global energy markets and national economies, exemplified by Brazil's own economic data and exchange rates.
Step-by-step explanation:
The news about BP (British Petroleum) entering a $7 billion deal to explore for oil in Brazil ties into discussions on energy economics and its impact on national economies. This deal suggests BP's investment in expanding its operations to take advantage of Brazil's oil potential, as highlighted by the significant petroleum and gas reserves in the country's Recôncavo basin. The economic implications of such a deal are multi-faceted, affecting local economies, influencing global energy markets, and potentially having political repercussions due to the sizeable role energy corporations play within developed countries.
Referring to the 'Energy Outlook' report by BP, there’s mention of the company’s intention to continue burning fossil fuels in large quantities. The redefinition of 'oil' to include tar sands and biofuels, such as ethanol—which is especially relevant in Brazil due to its sugarcane ethanol production—shows the lengths to which companies go to expand the umbrella of what is considered oil, bringing both environmental and economic policy considerations into play. The backdrop for this economic activity is highlighted by Brazil's GDP figures and exchange rates, providing a sense of Brazil's economic stature on the global stage.