BYKI Web List and Podcast audio included below

JACKPOT!

You know that feeling when you find a $20 bill on the street? Pretty great, right? Ok now imagine finding a hundred billion dollars.

That is essentially what happened to Brazil last week, when the national oil company Petrobras stumbled upon an undiscovered underwater oil reserve holding between 5 and 8 billion barrels of oil by their estimation. This find alone equals about 40% of the total volume of oil ever found in the entire country.

This addition to Brazil’s oil reserves will catapult the country to the top ten oil producers in the world, somewhere around number 8.

The Tupi oil field discovery sent the price of Petrobras’ ADR rocketing from $26.03 to $116.77 for a whopping 386% gain in the New York Stock Exchange. The closing price was (surprise surprise) a 52-week high.

The oil itself lies some 17,000 feet below sea level; 7,000+ feet of water and 10,000+ feet of the Earth’s crust separate dry land from the find. Since most of Brazil’s oil reserves lie under the Atlantic Brazil has become a global leader in ultradeep offshore drilling, and expects to be able to tap the reserve without major issues.

The one unfortunate reality is that the cost of attaining the Tupi oil will reportedly approach four times that of other offshore reserves. Given the unlikelihood of the global price of oil falling below $60 USD, Petrobras plans to go ahead with plans to drill in the Tupi field. According to geologist Giuseppe Bacoccolli,

“Pelos recentes valores contratados pela indústria do petróleo, uma plataforma não sai por menos de US$ 1,5 bilhão, mais os cerca de US$ 500 milhões em poços e outros US$ 500 milhões em equipamentos para dar a infra-estrutura necessária para a operação desta unidade. Estamos falando de um investimento médio em torno de US$ 3 bilhões por unidade de produção, que responde por algo em torno de 100 mil a, no máximo, 150 mil barris de óleo por dia”

Thanks to Linny Orlando (from the state of São Paulo) for the audio

By the recent oil industry contract values, an [oil] platform would not be available for less than $1.5 billion US, plus around $500 million in wells and another $500 million in equipment in order to create the infrastructure necessary for the operation of such a unit. We are talking about an investment in the neighborhood of $3 billion US per production unit, which would supply somewhere between 100 thousand and, at the high end, 150 thousand barrels of oil a day.

The Associated Press reports that Brazil has announced plans to build a nuclear submarine to protect the Tupi field. Lula has announced $540 million dollars in funding for the sub program and the uranium enrichment necessary for the project.

Free BYKI List

Petróleo Free BYKI Web List		13 cards Native Speaker Sound
		Use Online Download Windows Mac
List Contents
poço	well	perfurar	penetrate
gás	gas	Bovespa	São Paulo stock exchange
petrolífera	containing or producing oil	descoberta	discovery
petróleo	gasoline	recuperável	recuperable
valorizar	to be worth	biocombustíveis	biocombustibles
profundidade	depth	Petrobras	Brazilian national oil company
reserva	reserve

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