Huge offshore oil discovery (updated)

Bloomberg brings news of a huge new oil field discovered off Brazil in the Santos Basin. Petrobras, the Brazilian oil company says that tests indicate a size of between 5 and 8 billion barrels of oil and gas. At current prices, that amounts to a large fraction of a trillion dollars' worth of oil.Hugo Chavez will not like this news. Nor will others who benefit from high oil prices. Nor will fans of the "peak oil" theory, which holds that all the good discoveries have been made and oil production is doomed to decline. This find was deep, in the subsalt layers, and best of all, Petrobras is encouraged at the potential of other parts of the Espirito Santo, Santos and Campos basins, in their subsalt layers. The new field joins the discovery last year in the Gulf of Mexico of another huge deep-lying field by the "Jack 2" oil drilling rig, estimated to contain between 3 and 15 billion barrels of oil and gas. The technological advances in drilling deep offshore (and...(Read Full Post)