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1 Michael Orion Powell  Sun, Oct 31, 2010 9:24:24pm

Does this just add to the economic boom that Brazil is enjoying?

2 freetoken  Sun, Oct 31, 2010 9:58:54pm

re: #1 OrionXP

Probably not a whole lot. These deep water deposits will be costly to develop and that will make them less profitable unless oil prices are high... and high oil prices are shown to be a drag on economic growth.

I was waiting for someone to post this news - it seems that whenever someplace in the world a press release is put out about a "big" or "huge" petroleum discovery that certain vested political interests will do what they can to make hay of it.

Yet here is the truth: the amount of oil actually recovered is a function of oil prices and geology, and annual production from Brazil's deep water Atlantic basin may not be enough to ever make Brazil a non-importer or oil. So far actual production from these so called "big" discoveries in Brazil's deep water is zilch, and will not be significant for years to come.

On top of all of that, beware of figures like "billions" of barrels. What matters is what can be produced, and how quickly.

3 Bob Dillon  Sun, Oct 31, 2010 11:04:03pm

re: #1 OrionXP

When developmental drilling starts - if and when they can get some rigs scheduled to come in and do the drilling - the jobs created locally for rig hands (roughnecks, mudmen, etc.) and support vessels and crews as well as increased land side operations will be quite a boom no matter how deep the drilling is.

I speak from first hand experience based on the discoveries and expansion of the oil fields in Indonesia and the Indian Ocean in the 70s and its impact on local economies. Not from my armchair.


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