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Brazil’s Message To Obama-Pelosi And The Don’t Drill Democrats: Keep Inflating Those Tires While We Find More Oil

Friday, August 8, 2008  |  posted by Hugh Hewitt

The news surge of the week has obscured another huge increase in offshore oil reserves discovered by Brazil:

Estimated Reserves

“Given the discovery, recoverable reserves on block BM-S- 11 could increase to 10 billion barrels from currently 5 billion to 8 billion barrels,” Kapadia said.

Iara is in Brazil’s “pre-salt” offshore region, a new oil province that may contain about 50 billion barrels of oil according to Peter Wells, a director at U.K. research company Neftex Petroleum Consultants Ltd. The Iara well, which has yet to be declared commercially viable, is still being drilled in the hope of finding more oil at greater depths….

BG Chief Executive Office Frank Chapman today described Iara as a “material discovery.” The well “is the sixth consecutive drilling success in the deep water pre-salt Santos Basin since BG and its partners began their drilling program in 2005,” Reading, England-based BG said today in a statement.

Some oil industry analysts, including David Thomas from Citigroup Global Markets Inc., have said that Tupi, Tupi Sul and Iara may be linked as part of a larger offshore deposit.

Petrobras in January said that a gas and oil discovery known as Jupiter, in the Santos Basin’s BM-S-24 block, could be as big as Tupi. Petrobras owns 80 percent of Jupiter and operates the well. Galp has 20 percent of Jupiter.

Amazing what you can find –when you look for it. Imagine what is over the horizon off California’s beaches –far beyond what anyone can see from the shore– where no serious exploration using new technology has been done for more than 30 years.

The incredible reserves off the coast of Brazil also underscore the absurdity of the Gang of 10’s “compromise,” one which if adopted will continue the crippling impact on gas prices of the drilling ban on most of the U.S. coastline. After Rush tore into the five Senate GOPers involved in the proposed compromise, the vast, bipartisan coalition of voters in favor of ending the exploration ban on the outer continental shelf began to make its voice heard. The GOP senators should quickly realize that their proposed compromise was at best ill-timed and at worst poorly thought through, and announce publicly and quickly that they are withdrawing from the deal in light of new developments. (More background here from Kimberley Strassel in the WSJ.)

And as we head into the Obama vacation season, take a moment to order a copy of Letter To A Young Obama Supporter for the son or daughter, nephew or neice or sibling in your life who is under 25 and leaning Obama. After two weeks of pratfalls and broken promises, inflated tires and deflating rhetoric about America —the subject of my new column— Obama was already losing a great deal of his novelty. Now with a serious conflict breaking out in Georgia, even the starry-eyed may be reachable. (And if you need three copies, you can get them for free with a subscription to Townhall Magazine.)

Obama’s just not a serious candidate for the presidency. The world is a dangerous place, and coherent energy and economic policies can’t be invented from wishes and dreams.

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