Is GOD Brazilian?

Byron W. KingEditor, Outstanding InvestmentsAgora Financial SymposiumVancouver, B.CJuly 23, 2009

How Could You Ask Such a Blasphemous Question?-- Email from a Reader After the Daily Reckoning and 5-Minute Forecast Announced the Title of My Talk

OK, Heres the Rest of the Title:

The Saudi Arabia-- Of The South Atlantic -- And How You Can Profit!

What Do You Need to Know?Brazils Recent Discoveries change the game in world oil.The Perfect Storm For Brazil and for Investors!Brazils offshore oil resources may rival those of the TOTAL for Saudi Arabia.

What Else Do You Need to Know?

History is Being Made in the South Atlantic

Start With 200 Million Years of Geology

Then Add 50 Years of Exploration and Improvements in Technology

What Else?

MASSIVE Capital Flows Into Offshore Development, Leading To

New Investment Opportunities

Federative Republic of Brazil at a GlancePopulation:191M+

GDP:$1.6 trillion;G-20 Member

Govt.Democracy(Stable)Established:1822

Language:Portuguese

Think In Terms of Ocean Basins:NOT Your Fathers World Maps!

Freshman Geology: A Long Time Ago, A Large Land Mass Pangaea Broke UpContinental Drift

-- Continents All Fit Together --Looks Easy, Right?But Nothing Is As Simple As It Seems

Grad School Geology: 200 Million Years AgoThings Were Different

What a Difference 50 Million Years Makes

110 Million Years AgoA Proto-South Atlantic With a Black Sea-Type Environment

Restricted Sea: Stromatolites and Other Inter-layered Shales and Carbonates a/k/a Source Beds!

Restricted Basin Evaporites

65 Million Years AgoCretaceous-Tertiary Division

Passive MarginsTrailing Edges of Moving ContinentsThick accumulations of sediments that Flow off the LandmassUnder the Right Circumstances, You Get Large Hydrocarbon Accumulations Oil Beneath the Salt: Pre-Salt Oil

Passive Margins Hold Much of the Worlds Future Supply of Oil and Gas

Brazil Continental Shelf and Slope:Supergiant Petroleum Systems

Meet the New Kid on the Block Tupi Holds 8 -12 Billion Bbls.

How Big is the Brazilian Pre-Salt Play?Whats Known Off Brazil So FarGhawar, Saudi Arabia, Compared with Louisiana

Pre-Salt in GeneralFar Out Drilling Wells Up to 200 Miles OffshoreWater Depths Up to 12,000 Feet (as deep as the Titanic wreck)Up to 10,000 Feet of RockUp to 15,000 Feet of SaltOil-Bearing Carbonates, with Oil Rich Shales as Source Rocks.

Development and Production Challenges in Deepwater

Making the Cash Register Ring:30 Years of Advancing TechnologyImagery and Geochemical SamplingGravity & Magnetism MeasurementsSeismic, Seismic, SeismicProcessing, Processing, ProcessingDeepwater Technology (REALLY Deep)Big Money Drilling Eg. First Tupi Well About $240 Million!

Finding Oil Seeps With NASAs Terra Satellite:Moderate Resolution Imaging Spectroradiometer (MODIS) 36 Wavelengths Sun-glint

Gravity & Magnetic Mapping

Advances in Seismic Data- Gathering and Use

Visualizing the Rocks in 3D

Advances in Signal Processing

Opening Brazils Treasure Chest:Advances in Drilling Technology

Complex, Expensive, Autonomous Subsea Drilling, Production, Piping and Safety (!) Systems

There is no risk with the pre-salt. Brazilian Energy Minister Edison Lobao July22, 2009

Oil Changes the Game for BrazilBrazils Lula says oil find is the path to end poverty

BRASILIA (Xinhua News) -- Brazil has found a path to eradicate poverty in its recent oil discovery but will not squander money it does not yet have, the countrys president, Luiz Inacio Lula da Silva, said.

Brazil Pres. Lula da SilvaExamines Oil from Tupi FieldTop-Down Political Support for Petrobras and Offshore Development in Brazil

Brazil Pres. Lula da SilvaChristens Petrobras 53 FPSOWould You See This In the U.S.?

A President Standing Next to an Oil Tanker?

Investment: Key Oil PlayersOffshore Exploration & Development:Petroleo Brasileiro (PBR: NYSE)Repsol YPF (REP: NYSE)StatoilHydro (STO: NYSE)Hess (HES: NYSE)Others include Exxon-Mobil (XOM), BP, Chevron (CVX), Shell (RDS-B)

Drillers and Service Cos.Transocean (RIG: NYSE)Diamond Offshore (DO: NYSE) Noble Corp (NE: NYSE)

********************************* Baker Hughes (BHI: NYSE)Halliburton (HAL: NYSE)

Subsea Equipment SuppliersCameron International (CAM: NYSE)FMC Technologies (FTI: NYSE)Dril-Quip, Inc. (DRQ: NYSE)

Back to That Question About GodWhere were you when I laid the foundations of the earth? ... Who shut in the sea and said Thus far shall you come, and no farther, and here shall your proud waves be stayed? Have you walked in the recesses of the deep? Have you seen the gates of deep darkness?Book of Job, 38: 1 - 18

So Is GOD Brazilian?Its Not for Us to Know

But in Brazil They Dance Samba, Praise God, and Drill Oil Wells.

Many Thanks to:NASA Jet Propulsion LaboratoryPetrobrasExxon-Mobil Production CompanyHRT Petroleum (Rio di Janeiro) and Marcio MelloUniversity of Texas, Jackson School of Geosciences