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

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Presentation on theme: "Is GOD Brazilian? Byron W. King Editor, Outstanding Investments Agora Financial Symposium Vancouver, B.C July 23, 2009."— Presentation transcript:

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

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

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

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

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

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 Silva Examines Oil from Tupi Field Top-Down Political Support for Petrobras and Offshore Development in Brazil

34 Brazil Pres. Lula da Silva Christens “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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