Petrobras CEO Says Brazil the New North Sea
Brazil’s economy has remained relatively stable amidst a worldwide recession, and the main driver has been the discovery of plentiful offshore oil and gas reserves. The country’s state-owned oil giant Petrobras has spearheaded offshore exploration and production in Brazil, and the company’s CEO Jose Sergio Gabrielli is bullish on Brazil’s oil output.
Brazil’s oil production has place the country “at the same slope of production as in the first 10 years of the North Sea,” claims Gabrielli. He adds that Petrobras is growing faster than “Exxon, Shell, Saudi Aramco, Gazprom… you name it!” Gabriellie eyes the title of world’s top producer by 2020, however, he recognizes that will depend “on the speed of the others.”
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North Sea production by both the U.K. and Norway reached peak production in 1999 of 6 million barrels per day (bpd). By comparison, Petrobras has thus far discovered 15 billion barrels of proven reserves in pre-salt seabed layers off the coasts of Brazil. It is estimated that the region could contain as much as 50 billion barrels of oil. Petrobras is forecasting daily production of 6.42 million bpd of oil equivalent (which includes natural gas) by 2020, slightly more than the North Sea at its peak.
Petrobras expects to round out 2011 with an average production of 2.77 million barrels of oil equivalent per day. The company plans to invest $224.7 billion between 2011 and 2015, with 57 percent going to exploration and production. With a break even price of $45 a barrel, and world market price for crude still hovering above $100 a barrel, Petrobras is ideally positioned to take the lead in global production from a profits perspective as well.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.