Petrobras to double size of reserves by 2020
BY ALISON SIDER
BRAZIL -- Petrobras CEO Maria das Gracas Silva Foster said that the company's reserves will double in size by 2020, strengthening Brazil's role as an energy powerhouse.
Petrobras has been criticized by analysts and investors because it's hefty investments. The spending has resulted in a less than expected increase in crude production, despite finding some of the world's largest oil discoveries in 20 years. Petrobras has said it plans to invest $236.7 billion over the next five years, maintaining spending and production targets at the same levels as last year's plan.
Ms. Foster said offshore production will result in Brazil having plenty of crude available for export at the end of this decade, despite Brazil's rapidly growing demand for fuel.
Oil production will grow faster than refining capacity and product demand Ms. Foster said in a panel at the Offshore Technology Conference (OTC) in Houston.
Petrobras has launched a program to investigate the possibilities of onshore natural gas production in Brazil, including the possibility of tapping shale formations, Ms. Foster said, However she added producing oil from its bountiful sea beds and developing the technologies to do that more cheaply and efficiently is still the company's focus.
Our priority is to continue doing what we are doing; looking for oil, offshore she said.
Ms. Foster also defended Brazil's social policies, which she said have boosted demand for petroleum based products.
Government policies of social inclusion have created millions of new consumers she said, citing increased demand for gasoline, diesel and jet fuel in Brazil, which she said has outpaced global demand growth.
Dow Jones Newswires