• 11 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 13 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 15 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 16 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 18 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 19 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 8 days The Capital Of Coal Is Looking For Other Options
Alt Text

Is The War On Coal Really Over?

Even if the EPA manages…

Alt Text

Saudi Arabia Looks To Shelve Aramco IPO

Saudi sources have confirmed that…

Alt Text

Rising OPEC Production Weighs On Oil Prices

After seeing a slight drop…

Brazil’s Massive Oil Upside Explained In One Chart

Offshore platform

As I’m writing this, I’ve got maps of four different continents open on my desktop.

It’s been a busy week. With projects advancing in all these far-flung locales, for gold, diamonds, copper, platinum and oil.

Given such, I’m sneaking away from geology for a brief moment to share one chart in regards to that last commodity. A small but critical bit of information released this week — which underscores exactly why the last item above on Brazil may be so important for the global oil and gas sector.

Here it is: a plot of global offshore liquids (oil and condensate) discoveries globally since 2010. Compiled by Norway’s Rystad Energy, one of the keenest observers in the global offshore space.

 

(Click to enlarge)

Rystad noted in an accompanying report this week that offshore liquids discoveries hit a seven-year low in 2016. With discovered volumes down a stunning 90% from 2010 levels. You can clearly see the damage lower commodity prices have wrought on industry activity.

But aside from overall discoveries, there’s an even more critical point here for oil and gas developers. Namely, the green segments in the bars above — representing liquids finds in offshore Brazil, including the prolific subsalt and presalt plays.

The massive upside from the Brazil offshore is clear from the 2010 discovery bar — when nearly 20 billion barrels of oil were found within presalt superfields like Tupi, Libra and Buzios.

The following few years also saw major finds in Brazil (the green sections at the bottoms of the bars in 2011 and 2012). But you can see how things fell off after that, driven by a lack of new Brazil auctions since 2013. Related: Saudi Oil Minister Shrugs At U.S. Shale Recovery

That makes this week’s announcement of not one, but two bid rounds in Brazil this year very important. Even though these will be subsalt rather than presalt projects, this is undeniably one of the highest-impact exploration terrains on the planet.

There simply aren’t many places on Earth yielding multi-billion barrel discoveries these days. Meaning Brazil will definitely on the radar for the world’s majors and beyond, despite all the economic and political problems prevailing in the country right now.

The fact that E&Ps will be able to bid for 100% ownership of projects this year adds an intriguing twist. And Brazil’s government has promised reforms to oil and gas taxes, which would make things even more attractive for new projects.

Subsalt projects are also on a scale that smaller companies might be able to handle. Developers in the offshore space thus may want to consider the upcoming bid rounds, with details on the first auction (expected during the first half of 2017) likely to be released very soon.

Here’s to going nuts in Brazil.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Bill Simpson on January 23 2017 said:
    See any trend in that discovery graph? Peak oil is closer than you think. Without horizontal drilling, fracking, and sand propping, we would already be close to the peak, if not at it already.
    Those drilling advances pushed back the peak between by about a decade. But since oil in a finite resource, no amount of investment can stop the peak. Money thrown at exploration can delay the peak a few years, but not much longer than that. And the world can't ever afford oil that gets too expensive. Oil costing $250 a barrel would destroy demand for everything else. The economy would collapse from the unemployment that lack of demand would create.
  • Ruan on February 02 2017 said:
    We've been hearing about "peak oil" since 1895. In 1970 some said that it would be over by 2005.

    This week BP said that peak oil will not come before 2040.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News