Big oil find off Brazil

spinoza

33 billion barrels, unconfirmed except that private exploration in adjoining blocks has been stopped.

Added together with the 10-15 billion barrels that they already have, that's more than Nigeria.

Giggsy PO

How many barrels are in Canada?

spinoza

And probably about half as much as Venezuela, and Brazil has the technology to keep looking and find more.

Good for them. They've repaired their country and their economy, plus they have great food and play fantastic football.

EspadaYdaga

i reckon the usa will 'discover' that brazil has weapons of mass destruction pretty soon

spinoza

150+ billion, but in oil sands.

Mihajlovic

Geologists say the discoveries challenge one of the notions of the peak oil theory, which claims oil companies already have found nearly all of the world's usable oil.

http://www.businessweek.com/bwdaily/...eek+exclusives

I remember reading something about it, how we're gonna run out of oil in a few years. What a load of crap that was.

lynchie

What form is the oil in? Sands? Shale? Or is it actually a big pool of good old crude that no one noticed before?

lynchie

We haven't reached the date of even the most pessimistic prediction for a peak date that I've read. Importantly, the peak date is not the point where oil runs out completely, but where it starts to diminish, causing prices to escalate. It's unlikely that reserves will ever completely run out, for economic reasons.

Mihajlovic

The oil lies some 4.5 miles beneath the ocean's surface. To reach it, Petrobras will have to run lines through 7,000 feet of water and then drill up to 17,000 feet through sand, rock, and a massive salt layer.

Plechazunga

Nice one, Brazil

Everybody loves Brazil

Mihajlovic

True that.

lynchie

The energy balance on that's going to be fantastic then eh? Sounds like expensive oil to me.

Mihajlovic

They already have some pretty good exports.

Mihajlovic

They say they need to drill 100 wells and the whole project would cost between $50 billion and $100 billion to develop. But how's that calculation going to work out in future nobody even dares to estimate

Plechazunga

50-100bn isn't very much for 100 wells

spinoza

It's cheap. Say you assume a long term price of $50 a barrel, assume they extract about half of their reserves, or 16bn barrels, and you still get revenue of $800bn...

Raising capital isn't a problem for Brazil either, in the same way it is for Venezuela, because the Brazilians don't have an idiot for a dictator. And if the oil from the current Tupi field is anything to go by, the new field will be lighter and sweeter than the Venezuelan heavy crude too.

Plechazunga

They'll be dancing in the streets of Rio tonight

Nowt to do with the oil, but they will

AdZzUtd

MrMarcello

Isn't there some large oil reserve in some part of Alaska that is being haggled in court by those attempting to protect mother earth and nature?

CnutOfAllCnuts

Spin, do you know what oil companies are in there?

spinoza

Repsol, Petrobras, BG Group

Plechazunga

Repsol sounds like a headache pill

spinoza

Well, Petrobras sounds like a heavy duty condom and BG Group sounds like a hoolie firm...

Plechazunga

true

Texaco sound like the Christian name of an American football player

utdalltheway

you're probably not far off the truth. if they turn commie they better get ready for an invasion.

Bush was told recently that Brazilian soldiers were killed in Iraq last week. he almost fainted and had to sit down. he was deathly pale and one of his advisers asked him why he was so upset.
shaking, he asked "how many is a brazilian?".

Plechazunga

spinoza

w'or bobby

On the contrary, it doesn't challenge Hubbert's peak oil theory at all.
In fact, it is precisely what he predicted - sourcing in deep waters and other difficult to extract locations as rarity increases it's value.

To put a little context on it, global oil consumption is over 30 billion barrels a year and rising.
This find is significant but a mere drop in the ocean of needs unless something changes.

EspadaYdaga

The Hairdryer

The oil companies/APEC love peak oil as it gives them an excuse to keep prices high.

cockneyred

i found some oil in my garage i didnt start a thread about it though

lynchie