Brazil’s Oil Riches:
First found in people’s minds, again
Presentation to the
University of Houston
C. T. Bauer College of Business
Global Energy Management Institute
Renato T Bertani
October 2008
The Current Energy Matrix: fossil fuels
are by far the largest source of energy
Total Consumption: 462 quadrillion btu
125
World Energy Consumption Matrix (2005)
Quadrillion btu
Total Consumption:
462 quadrillion btu
100
Other
Nuclear
Coal
N Gas
Liquids
75
50
25
0
a
ric
me
Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains)
Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)
SA
C&
st
Ea
ia
ca
NON OECD
i ca
Afr
M
ia
As
ras
Eu
ia
As
e
ri
me
rop
Eu
NA
OECD
Source: EIA, Sept08
Fossil Fuels will continue as the
main source of energy
World Marketed Energy Use by Fuel Type
Quadrillion btu
250
Liquids
Natural Gas
Coal
Nuclear
Renewables
200
150
Source: EIA, Sept 08
100
50
0
2028
2025
2022
2019
2016
2013
2010
2007
2004
2001
1998
1995
1992
1989
1986
1983
1980
Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains)
Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)
Long Term Price Scenarios
$150??
OIL PRICE
$/BO
VOLATILITY
STABILITY
$80
GAS PRICE
$/BOE
$40
A journey towards the blue waters
(where the big fish roam!!)
Blue water, big fishes
Pre salt source, post salt reservoirs
Source: F. Nepomuceno, 2008
Petrobras
Campos Basin Post Salt Giant Fields
Source: F. Nepomuceno, 2008
Petrobras
Upper Cretaceous Reservoirs
● Turbidites
● High porosity and permeability
● Heavy oil
Tecnologies
● Semi submersibles and FPSOs
● Gravel packing
● Subsea completion
Steady and steep reserves growth
OIL AND GAS RESERVES – SPE CRITERIA
Onshore
Shallow water (0-300m)
Deep water (>300m)
Steady oil production growth
Petrobras Oil Production – kb/day
Lower Aptian Paleogeography (122 m.y.)
Pre Salt Reservoirs and Recent Analog
Source: José Formigli, 2008, Petrobras
Pre Salt: seeing and believing
Pre salt source, pre salt reservoirs
Source: F. Nepomuceno, 2008
Petrobras
The Santos Basin Pre Salt
Cluster
PRE SALT DISCOVERIES OFFSHORE BRAZIL
Source: O Globo Sept 25,08
The Pre Salt Province
Source: José Formigli, 2008, Petrobras
Technologies
Technological Challenges
• Reservoir characterization
• Well Drilling and Completion
• Well deviation in salt zones
• CO2 resistant materials
• Highly deviated wells
• Subsea Engineering
• WD: 2,200m and deeper
• High Pressure, CO2
• Flow assurance and artificial lifting
• Floating Production Units
• Mooring
• Interaction with risers
• Direct access to wells (SPARS, other alternatives
Source: José Formigli, 2008, Petrobras
Logistics Challenge
Source: José Formigli, 2008, Petrobras
Supply Challenges...
...and Opportunities
Petrobras Contracting Program
Tendered
To be tendered
Large Ships
Supply Boats
Production Units (FPSO/SS)
Other (JackUps, TLWP)
TOTAL
Source: José Gabrielli, 2008, Petrobras
Total
Petrobras Technological Programs
The key to success
Many Thanks!