Which in Brazil means "below the salt" - - the deep Cretaceous salts which trap oil in rocks off Brazil's coast. The November 5, 2011 issue of The Economist covers Brazil's oil growth in the context of the pre-sal - - Filling up the future.
Key points in the article are outlined below:
- Total recoverable pre-sal is estimated at 50 billion barrels (all in the waters of one country).
- The probability of a drilling success in the pre-sal is estimated at 87% - - the world average is 20% to 25%.
- Petrobras is currently producing 100,000 barrels a day in the pre-sal.
- By 2020, Petrobras expects 4.9 million barrels a day - - 40% from pre-sal. This would push Brazil into the top five of oil producers.
- The pre-sal should give Petrobras the know-how to become the world leader in "ultra-deep drilling."
- Apollo cost the U.S. less than $200 billion in today's dollar - - pre-sal development over a 10-year period will cost a trillion dollars.
- Petrobras is currently engaged in 700 projects costing more than $25 million each.
- Look for the oil service industry to establish high-tech and service centers close to the pre-sal area.