Petrobras defends the use of gas in oil exploration – 06/24/2023 – Panel
[ad_1]
Pressured by the Ministry of Mines and Energy to reduce the volume of gas injected into oil wells to increase supply and reduce the price of the product, Petrobras says that the measure brings benefits to the population.
According to the state-owned company, each 1% increase in oil production can generate up to R$ 400 million more in the amount collected with royalties and special participation.
As shown by the Panel, calculations by the Ministry of Mines and Energy say that today gas for industry is traded in contracts ranging from US$ 13.34/MMBtu (million BTUs) to US$ 18.44/MMBtu.
By partially reducing this insertion and thus increasing supply, the ministry’s accounts bet that the price could reach US$ 7/MMBtu or US$ 8/MMBtu. The reduction in price would therefore range from 40% to 62%.
The state-owned company disputes this reasoning and says that, in order to obtain an increase in oil production, the reinjection of gas into wells is a fundamental technique.
PRESENT LINK: Did you like this text? Subscriber can release five free hits of any link per day. Just click the blue F below.
[ad_2]
Source link
