Re: Brazilians coming to the rescue
posted on
Apr 25, 2008 09:54AM
There have been articles in the business press that question whether there is enough information at this point to justify the numbers that have been reported. An official in Brazil's energy ministry released the information prematurely. Only one well has been drilled. The field is in deep water and there are technical challenges that indicate that followup drilling will take some time. Putting the field into production would also be a challenge. One comment compared it to Saudi Arabia as being at the other extreme in terms of putting wells on stream quickly and cheaply. There are probably significant reserves in the Brazil field but I doubt that they know the exact potential with any accuracy. It seems to be quite common in the business press and with the general public to view an oil find as being like a giant bowl of liquid only requiring a few straws to drink it dry. Technically it is much more complex than that and getting production from this field will take quite a long time and plenty of money.