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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: the navigator who wrote (7030)	2/7/2008 3:56:19 AM
From: Wharf Rat	Respond to of 24228

Brazil’s Recent Oil Discovery by minsley ~ February 4, 2008 The world’s oil patch has gotten a little bigger, as Brazil’s national oil company Petroleo Brasileiro SA, or Petrobras, announced that its new “ultra-deep” Tupi field could hold as much as 8 billion barrels of recoverable light crude. Petrobras shares soared $24 on the news, to $116. Instant speculation focused on Brazil joining the ranks of the world’s “top 10? oil producers. We asked our resident oil man Byron King what he thought. “Not so fast,” said Byron, who pointed out that the Tupi field is 286 kilometers (177 miles) offshore in the South Atlantic Ocean. Tupi 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. “You can look this up,” added Byron. Getting that oil out of the crust will be a formidable challenge and require many years of expensive investment. Most of Brazil’s oil-bearing potential lies off its Atlantic coast. Byron noted, however, that he has long admired Petrobras for its outstanding technical competence. Byron told us that Petrobras is a global leader in ultradeep offshore oil extraction. “Plus,” added Byron, “by the time that Brazil’s oil comes on line in any significant way, many other oil provinces of the world will be producing less.” So congratulations to Petrobras, but don’t use this news as an excuse to buy a new gas-guzzling Hummer. One more item from your resident oil man: “A discovery of 8 billion barrels is in the same class as Prudhoe Bay. ARCO and BP have spent over 30 years drilling and extracting oil from Prudhoe Bay. So it is not as if all 8 billion barrels from Tupi will see the light of day any time soon. Petrobras has a very long-term program in front of it.” cnn.com energyandoil.com