BLOOM/ BP's gulf gusher disaster is rapidly pushing-up deepwater costs. The cost for protecting against a default by Petrobras the largest oil producer in waters below 1,000 feet is surging relative to Pemex for fears that deep-water drilling costs will escalate. Credit default swaps that protect against non-payment by Petrobras, over five years cost 187 basis points, or 36 more than its Mexican counterpart, which has no production deeper than 1,000 feet.
