South America, the new middle east?

Article from Foreign Policy – The Twilight of the Western Oil Majors – massive new oilfields in Brazil mean that the world’s oil interest are moving to South America.  What’s new is that they don’t have to deal with the explosive radical political climate of the Middle East.  The political climate in South America is incredibly stable – the only problem is that it is incredibly stable because it is socialist.  While private oil companies worry about the 100% government owned oil company in Brazil, China has no such concerns.  China is flush with cash – because we are sending it to them by the truckload when we buy their goods.  China can now use this cash to give 10 Billion dollar loans to Brazil (sans the accountability of the private sector) which can repaid in cash, or in oil.  How likely is it that Brazil will side with the US on any large scale political matter when the are in bed with China to such an extent?  

Where did I see that other article about Iran and Venezuela?