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Is GOD Brazilian?

Byron W. King Editor, Outstanding Investments Agora Financial Symposium Vancouver, B.C July 23, 2009. Is GOD Brazilian?. “How Could You Ask Such a Blasphemous Question?”. -- Email from a Reader – After the Daily Reckoning and 5-Minute Forecast Announced the Title of My Talk.

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Is GOD Brazilian?

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  1. Byron W. King Editor, Outstanding Investments Agora Financial Symposium Vancouver, B.C July 23, 2009 Is GOD Brazilian?

  2. “How Could You Ask Such a Blasphemous Question?” -- Email from a Reader – After the Daily Reckoning and 5-Minute Forecast Announced the Title of My Talk

  3. OK, Here’s the Rest of the Title: The Saudi Arabia -- Of The South Atlantic -- And How You Can Profit!

  4. What Do You Need to Know? • Brazil’s Recent Discoveries “change the game” in world oil. • The Perfect Storm – For Brazil and for Investors! • Brazil’s offshore oil resources may rival those of the TOTAL for Saudi Arabia.

  5. What Else Do You Need to Know? History is Being Made in the South Atlantic Start With 200 Million Years of Geology Then Add 50 Years of Exploration and Improvements in Technology

  6. What Else? MASSIVE Capital Flows Into Offshore Development, Leading To… New Investment Opportunities

  7. Population: 191M+ GDP: $1.6 trillion; G-20 Member Govt. Democracy (Stable) Established: 1822 Language: Portuguese “Federative Republic of Brazil” at a Glance…

  8. Think In Terms of Ocean Basins:NOT Your Father’s World Maps!

  9. Freshman Geology: A Long Time Ago, A Large Land Mass – Pangaea – Broke Up Continental Drift

  10. -- Continents All Fit Together --Looks Easy, Right? But Nothing Is As Simple As It Seems

  11. Grad School Geology:200 Million Years Ago…Things Were Different

  12. What a Difference 50 Million Years Makes…

  13. 110 Million Years Ago…A Proto-South Atlantic With a “Black Sea”-Type Environment

  14. Restricted Sea: Stromatolites and Other Inter-layered Shales and Carbonates… a/k/a Source Beds!

  15. Restricted Basin Evaporites

  16. 65 Million Years Ago…Cretaceous-Tertiary Division

  17. Passive Margins • Trailing Edges of Moving Continents • Thick accumulations of sediments that Flow off the Landmass • Under the Right Circumstances, You Get Large Hydrocarbon Accumulations • Oil Beneath the Salt: Pre-Salt Oil • Passive Margins Hold Much of the World’s Future Supply of Oil and Gas

  18. Brazil Continental Shelf and Slope:Supergiant Petroleum Systems

  19. Meet the New Kid on the Block – Tupi Holds 8 -12 Billion Bbls.

  20. What’s Known Off Brazil – So Far… Ghawar, Saudi Arabia, Compared with Louisiana How Big is the Brazilian Pre-Salt Play?

  21. Pre-Salt in General • Far Out – Drilling Wells Up to 200 Miles Offshore • Water Depths – Up to 12,000 Feet (as deep as the Titanic wreck) • Up to 10,000 Feet of Rock • Up to 15,000 Feet of Salt • Oil-Bearing Carbonates, with Oil Rich Shales as Source Rocks.

  22. Development and Production Challenges in Deepwater

  23. Making the Cash Register Ring:30 Years of Advancing Technology • Imagery and Geochemical Sampling • Gravity & Magnetism Measurements • Seismic, Seismic, Seismic • Processing, Processing, Processing • Deepwater Technology (REALLY Deep) • Big Money Drilling • Eg. First Tupi Well – About $240 Million!

  24. Finding Oil Seeps With NASA’s Terra Satellite:Moderate Resolution Imaging Spectroradiometer (MODIS) – 36 Wavelengths – “Sun-glint”

  25. Gravity & Magnetic Mapping

  26. Advances in Seismic Data- Gathering and Use

  27. Visualizing the Rocks in 3D

  28. Advances in Signal Processing

  29. Opening Brazil’s Treasure Chest:Advances in Drilling Technology

  30. Complex, Expensive, Autonomous Subsea Drilling, Production, Piping and Safety (!) Systems

  31. “There is no risk with the pre-salt.” Brazilian Energy Minister Edison Lobao July22, 2009

  32. Oil Changes the Game for Brazil • Brazil’s Lula says oil find is the path to end poverty BRASILIA (Xinhua News) -- Brazil has found a path to eradicate poverty in its recent oil discovery but will not squander money it does not yet have, the country’s president, Luiz Inacio Lula da Silva, said.

  33. Brazil Pres. Lula da SilvaExamines Oil from Tupi Field • Top-Down Political Support for Petrobras and Offshore Development in Brazil

  34. Brazil Pres. Lula da SilvaChristens “Petrobras 53” FPSO • Would You See This In the U.S.? • A President Standing Next to an Oil Tanker?

  35. Investment: Key Oil Players • Offshore Exploration & Development: • Petroleo Brasileiro (PBR: NYSE) • Repsol YPF (REP: NYSE) • StatoilHydro (STO: NYSE) • Hess (HES: NYSE) • Others include Exxon-Mobil (XOM), BP, Chevron (CVX), Shell (RDS-B)

  36. Drillers and Service Cos. • Transocean (RIG: NYSE) • Diamond Offshore (DO: NYSE) • Noble Corp (NE: NYSE) ********************************* • Baker Hughes (BHI: NYSE) • Halliburton (HAL: NYSE)

  37. Subsea Equipment Suppliers • Cameron International (CAM: NYSE) • FMC Technologies (FTI: NYSE) • Dril-Quip, Inc. (DRQ: NYSE)

  38. Back to That Question About God… “Where were you when I laid the foundations of the earth? ... Who shut in the sea … and said ‘Thus far shall you come, and no farther, and here shall your proud waves be stayed?’ … Have you walked in the recesses of the deep? … Have you seen the gates of deep darkness?” Book of Job, 38: 1 - 18

  39. So… Is GOD Brazilian? • It’s Not for Us to Know… • But in Brazil They Dance Samba, Praise God, and Drill Oil Wells.

  40. Many Thanks to: • NASA Jet Propulsion Laboratory • Petrobras • Exxon-Mobil Production Company • HRT Petroleum (Rio di Janeiro) and Marcio Mello • University of Texas, Jackson School of Geosciences

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