"Huge" new oil discovery in Brazil...

I know you've done the arithmatic on this subject. That "huge" discovery is actually quite small and will not last long with our growth in consuption.

 

<div class='quotetop'>QUOTE(TimBikes @ Nov 9 2007, 01:50 PM) [snapback]537365[/snapback]</div>

http://news.bbc.co.uk/2/shared/spl/hi/midd.../oil_fields.stm

That's not enough to invade Brazil.

 

Consider its location: just off the coast of Rio de Janeiro. It could wind up being just an enormous decomposing pile of discarded suntan lotion bottles

 

The rate of production will be the most important factor. 8 billion barrels is a joke, however. As Tim points out, that's a wee l'il pool. Any comments on the kind of oil it is (lsweet/sour)? It's light oil, which is a plus. However, by the time it's up an running it will simply offset declines in other places. I don't see this field producing more than 500K barrels a day.

 

<div class='quotetop'>QUOTE(tripp @ Nov 9 2007, 03:04 PM) [snapback]537384[/snapback]</div>

http://www.cnn.com/2007/WORLD/americas/11/...l.ap/index.html

Unlike Brazil's other oil, it is light.

The government-run oil company Petroleo Brasileiro SA, or Petrobras, said the new "ultra-deep" Tupi field could hold as much as 8 billion barrels of recoverable light crude, sending Petrobras shares soaring and prompting predictions that Brazil could join the world's "top 10" oil producers.

It is also deep, very deep, in over 7,000 feet of water!

The Tupi field lies under 2,140 meters (7,060 feet) of water, more than 3,000 meters (almost 10,000 feet) of sand and rocks, and then another 2,000-meter (6,600-foot) thick layer of salt. The company drilled test wells that lie under 2,166 meters (7,100 feet) of water, 286 kilometers (177 miles) south of Rio de Janeiro.

Getting that oil out of the Earth's crust is a formidable challenge, but most of Brazil's oil lies off its Atlantic coast, and Petrobras has become a global leader in ultradeep offshore oil extraction.

I imagine it will be 2 or 3 years before it goes into full production. I'm baffled how they can drill that deep, and the seafloor is 7,000 feet down! Oil in this difficult a location has to be priced high to make it worthwhile to attempt production.

Harry

 

In other words, extracting this oil won't be easy or economical. It'll be a while before we see any of this oil.

In the meantime, Brazil should protect its sugar-cane biofuel program from foreign predators.

 

<div class='quotetop'>QUOTE(Earthling @ Nov 9 2007, 12:29 PM) [snapback]537393[/snapback]</div>

I know it's light, I read the article too. But they didn't say anything about the sulfur content (sweet/sour). I'd be surprised if it was in production at all in 2 years. My understanding is that it takes time to develop a field and this one is going to be a particularly tough nut to crack for the reasons that you stated.

 

<div class='quotetop'>QUOTE(Earthling @ Nov 9 2007, 01:29 PM) [snapback]537393[/snapback]</div>

I used to live in a town called Angra dos Reis in the state of Rio de Janeiro (I've also lived in the city itself). In Angra, Petrobrás has 2 sites that build and refurbish deep sea drilling ships and platforms. When I was there, they finished a huge, sea-going drilling ship and 2 days later they were working on yet another platform in that once open berth. Petrobrás certainly has the expertise and equipment to get this oil.

(No, I didn't go down for Carnival, I made sure to avoid it!!! And, I didn't go to the beaches. I was an LDS missionary.)

 

<div class='quotetop'>QUOTE(smithBYU @ Nov 10 2007, 08:28 PM) [snapback]537876[/snapback]</div>

Damn, I was hoping for video. :lol:

 

It looks like the media is trying to save energy by recycling the news.

Alternative energy powerhouse Brazil finds big oil - Yahoo! Finance

Here's my thinking on this subject: Brazilian oil could be good if it is sold domestically because it will reduce clear cutting of the Amazon. Currently, bioethanol and biodiesel are Brazil's main domestic fuel for powering their own automobiles. To meet such a high demand for biofuels, Brazilians burn acres and acres of the Amazon every year to grow crops. Switching Brazil from biofuels to oil (and hybrids soon) would help to slow down the clear cutting of the Amazon, and save what many refer to as "the lungs of the planet." The trade off is that we have just converted a nation using biofuels back to oil. But at the same time, we must consider whether their farming is sustainable. When the Amazon is gone and they have no where to clear cut, they will not be able to sustain the growth of crops for their biofuels. I think we should keep the Amazon now, and Brazil can catch up when the rest of the world is using electric cars.

 

Brazil baby oil...on the beautiful women