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More Good News for Brazil. And Obama.

oil-drilling-giants-expect-brazil-to-boost-deepwarter-demand

Rob Long

It seems that Brazil’s offshore oil reserves are greater than anyone expected.  From pennenergy.com:

Brazil had another reason to celebrate its May 1 national Labor Day bash. The new reason was the start-up of first oil at the mega Tupi field in the Santos basin. This first extended well test (EWT) of the subsalt formations began producing at a rate of 14,000 b/d of oil and should peak around 30,000 b/d, operator Petrobras says.

Petrobras has not reckoned the size of the BM-S-11 reserves beyond its initial estimates of 5-8 Bbbl of recoverable light oil. The amount, however, was considered staggering enough to inspire President Luiz Inacio Lula da Silva to declare that “God is Brazilian.”

God is Brazillian.  But then, our president is a big fan of Brazil, too.  Especially its offshore oil reserves.  As he said a few months ago in Brazil:

…with a seven-year offshore drilling ban in effect off of both coasts, on Alaska’s continental shelf and in much of the Gulf of Mexico — and a de facto moratorium covering the rest — Obama tells the Brazilians:

“We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers.”

Obama wants to develop Brazilian offshore oil to help the Brazilian economy create jobs for Brazilian workers while Americans are left unemployed in the face of skyrocketing energy prices by an administration that despises fossil fuels as a threat to the environment and wants to increase our dependency on foreign oil.

We have a lot of oil off our shores, too.  The politically correct position goes something like this:  sure, we’ve got huge reserves.  But we have no idea if we have enough to make a difference.

But as the Brazillians have taught us, you don’t know for sure until you drill.  Meanwhile:

Original Article

Petrobras Sells First Cargo of Deepwater Lula Oil to Chile

Apr 19, 2011 10:17 AM CT

By Peter Millard

Santos Basin

Petroleo Brasileiro SA (PETR4), Brazil’s state-controlled oil producer, will export its first cargo from the country’s second-largest crude field to Chile in mid-May.

Petrobras agreed to sell 1 million barrels of oil from the offshore Lula field in the so-called pre-salt area to Chile’s Empresa Nacional de Petroleo, or Enap, the Rio de Janeiro-based producer said today in an e-mailed statement.

Petrobras aims to double production by 2020 as it develops Lula and other deepwater oil discoveries lying two miles below the ocean surface and another two to four miles beneath the seabed. The field, with recoverable reserves of 6.5 billion barrels, trails the Brazilian government’s nearby Libra field that may hold as much as 15 billion barrels.

“The company has a lot of potential to become a major world exporter,” said Max Bueno, an analyst at Spinelli in Sao Paulo. Demand growth in Brazil’s domestic market is unlikely to outpace production increases, he said.

Original Article

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