Brazil May Have Huge Oil Reserves But Not How to Reach Them

Petrobras platform The Brazilian plan to make Brazil one of the world's biggest oil exporters hinges on exploiting crude 6 miles below the ocean surface in deposits so hot they can melt the metal used to carry uranium to nuclear plants, reports Bloomberg.

Tapping what may be the biggest oil finds in the Western Hemisphere in three decades will require equipment that can withstand 18,000 pounds per square inch of pressure, enough to crush a pickup truck, pipes that can carry oil at temperatures above 500 degrees Fahrenheit (260 Celsius) and drill bits that can penetrate layers of salt more than one mile thick.

Petrobras is betting on the Tupi and Carioca fields to become one of the world's seven biggest crude exporters but until the tools needed to exploit the reservoirs are invented, the crude will remain locked under the sea, according to Matt Cline, a US Energy Department economist.

"This is a very, very technically challenging environment where no one's ever done this", said Cline, who tracks the Latin American oil industry. "These discoveries are in very deep water, and once you get to the seabed they are very deep under the floor, with a layer of salt that is definitely a difficult barrier."

Brazil's oil will be harder to develop than the Gulf of Mexico, where the deepest wells are now in production, Cline said. Exxon Mobil Corp. and Chevron Corporation, the two biggest U.S. oil companies, saw diamond-crusted drill bits disintegrate and steel pipes crumple when they attempted to tap deposits beneath the Gulf's seafloor two years ago.

Pumping oil from the Brazilian finds, parts of which are 10,000 meters below the ocean's surface, will require boring almost twice as far down as the world's deepest producing offshore well.

Engineers will have to overcome temperatures that range from near freezing above the ocean floor to temperatures that can melt bismuth, used for transporting uranium rods and for shotgun shells. Layers of salt will also increase the challenge because the crystals absorb seismic waves used to pinpoint oil deposits.

"The seismic issue is important because if you don't identify the location of the oil properly, you're going to waste a lot of money when you drill the hole in the wrong spot" said Vital, a former Exxon engineer.

Brazil pumped 2.13 million barrels of oil a day in the last three months of 2007, more than OPEC members Angola, Libya and Algeria.

Tupi, 250 kilometers off Brazil's coast, may begin production by 2012, according to consulting firm Strategic Forecasting in Austin, Texas. The field may have 8 billion barrels of recoverable oil.

No start date has been set for Carioca, which Petrobras said will take at least three months to evaluate. A Brazilian regulator said this month the reservoir may have 33 billion barrels. If confirmed by further drilling the reserves will be triple the size of Alaska's Prudhoe Bay, the largest US field.

The ocean-depth record for production was set last year by Anadarko Petroleum Corp extracting natural gas from beneath 8,960 feet of water in the Gulf of Mexico, where pressure measures 3,069 pounds per square inch, squeezing joints and tearing at seals.

"What we do at that water depth in the ocean is similar to NASA's space program, but they get to do it without any pressure trying to attack them", Kevin Renfro, production engineering manager at Woodlands, Texas-based Anadarko, said in a November interview.

Petrobras hasn't said how much it spent to sink wells at Tupi and Carioca. Similar drilling by Exxon and Chevron Corp. in the Gulf of Mexico cost 180 million to 200 million US dollars for each well.

Chevron, which has the deepest Gulf of Mexico exploration well, including distance below the seafloor, destroyed as many as a dozen 50,000 US dollars drill bits at each of the 14 wells in its 4.7 billion US dollar Tahiti project.

Exxon Mobil abandoned a Gulf project that would have been the deepest well after pressure and heat shut down the venture in August 2006. The Irving, Texas-based company developed pipes tough enough to withstand temperatures that would shatter regular steel at its Sakhalin-1 project in Russia. The metal may help make Brazil's offshore fields accessible, Vital said.

"These challenges in the Brazilian offshore area are too great for any one company or even country to be able to digest themselves," insists Vital.



  • Show Comments (7)

  • ..

    [quote]You are so right…..that even your “Energy” Minister…doesnt know what HE is talking about. [/quote]

    Our “Energy” Minister was appointed to his post just a few months ago without knowing what “Energy” is all about. But he seems to be getting on the job training and we expect him to do a splendid job. It is also possible that he does not understand the difference between a “Foot” and “Meter”; Give him some time.Eventually he will find the oil!

  • ch.c.

    Hi….Hi….Hi !
    “just have to copie the north sea and gulf of mexico . “

    Sorry Forrest……I suggest you re-read the article. NOOOOOOOOO pumping around the world, including in North Seas or Mexico…go as deep as 10’000 meters !

    “Haroldo,LobÀƒ£o and Co will find a way by 2010.If they don’t do it, they are fired.
    This will not add….ONE LITER…whatever way you look at it.

    “He (I) should start paying more attention to Haroldo LimaÀ‚´s statements as well as that of our energy minster.”
    You are so right…..that even your “Energy” Minister…doesnt know what HE is talking about.

    You and HIM should better read the Brazilian news from PETROBRAS….confirming …..NOTHING IS CONFIRMED YET (for the Carioca Field) …..and MORE DRILLING MUST FIRST TAKE PLACE !
    YOU confirmed that you are an average BRAZILIAN IDIOT !

    In the USA they have ONE TRILLION BARRELS of oil…. ALREADY PROVEN !!!!!
    Called the….OIL SHALE….from rocks mainly in Utah and Colorado.
    Their problem is how to extract oil……a) PROFITABLY b) TECHNICALLY IN LARGE SCALE !


    And Brazil faces a similar problem : you found some oil but a) at a depth of world record….creating a lot of technical barriers b) have Nooooo idea of the extraction costs….. thus if it will be profitable or not !

    And for Your own education : “Petrobras engineers said they could not yet say whether extraction would be profitable.”

    😀 😉 😀 😉

  • ..

    [quote]Statements Are not going to help much. [/quote]

    Yes they are, with the gullible public to catch votes! Never mind about the depth of 10.000 Meters. Haroldo,LobÀƒ£o and Co will find a way by 2010.If they don’t do it, they are fired.

  • Ric

    Are not going to help much. The fact is that ChevronÀ‚´s Jack Number Two, in 7,000 feet of water, seems to be the technical limit or close to it with current technology. Talking about crude, not natural gas.

  • ..

    [quote]Another Brazilian Fairy Tale…that ALL of you trusted ? [/quote]

    This commentator is obviously unaware of the intricacies of the domestic politics and got carried away by the Bloomberg report. He should start paying more attention to Haroldo LimaÀ‚´s statements as well as that of our energy minster.

  • forrest allen brown

    what you have to look at it is cheeper to get oil on land so that is where they are drilling now .

    when the oil on land slows down then offshore starts up .

    if gas goes over $5.50 a gallon they will start drilling , just have to copie the north sea and gulf of mexico .

    then watch out for your big oil spill

  • ch.c.

    Tupi and Carioca Oil Fields could remain…..
    ….another FAIRY TALE !!!!!

    If you want the full Bloomberg report :

    Ohhhhhh and what about your marvelous oil pipeline from Venezuela ???????
    No longer…a simple word or comment ?
    A lot of talks and writings…..for nothing ?
    Another Brazilian Fairy Tale…that ALL of you trusted ?

    Laugh….laugh….laugh !

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