The words OPEC and Brazil are not the usual combination you think of when talking oil, but that has all changed with the gigantic oil Tupi oil field discovered off its shores recently.
Just last week Brazil officials confirmed they had discovered a gargantuan oil field off the coast.
While they can't confirm exact number yet, the state-run Petroleo Brasileiro SA, or Petrobras, says at this time there could be as much as 8 billion barrels of oil equivalent in the new field. At this time they're estimating a minimum of 100,000 barrels daily as production begins, with most thinking it'll grow quickly from there.
The ambassador to Saudi Arabia said on Friday he was attending the OPEC summit and would talk with officials there, saying "a membership decision will come after we know what our export capacity will be and we think this will be good."
Although it's exciting to all those involved, it will take until 2010 or 2011 to start pilot pumping, and several years before full production will be operational - probably in 2013.
The ambassador said it will take about a year before they'll know the export capacity they can reach.
Another aspect of the discovery is the depths of the oil will make recovery expensive, as it's pretty far below the earth's surface.
When you consider that Brazil doesn't export oil at this time, this is the type of thing that could change the world in ways unforeseen at this time. It's really extraordinary when you think of it and the possibilities.
The reason the discovery was made now, is that thick salt layers weren't able to be penetrated by the techniques formerly used. Now that they've been improved upon, oil companies are able to "see" through the salt deposits.
This isn't a financial advice column or blog, but it's worth considering that CGG-Veritas is the largest seismic imaging company in the world. The discovery of the Tupi oil field shows it's worth the expense and time to search across the oceans of the world for new reserves.
It's listed on a number of exchanges.
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» Petrobras Claims Another Huge Offshore Gas Discovery from ManagersRealm
The state-controlled oil company of Brazil, Petroleo Brasileiro SA or Petrobras, claims to have made another huge energy discovery, this time a natural gas field that may be similar in size to the Tupi oil field, discovered late last year.... [Read More]
Tracked on: January 21, 2008 6:08 PM | Permalink to Trackback