First of all, I would like to convey to you Mr Chakib Khelil's sincere regrets for not being able to be here today. Mr. Khelil who was planning to address this session this morning was held back by an urgent commitment. He wishes you all the success at this conference.
For me, it is a great pleasure to be back in Rio and to have the chance to talk to you this morning.
It is also a pleasure to see so many colleagues and partners in the audience today.
The last time I was here in November 95 during the 8th International Deep Offshore Technology Conference the Topic was "Subsea Developments in Ultra Deep Water".
Since then a whole series of technological innovations have been taking place in Brazil, especially in Campos basin. These technological changes have transformed the efficiency of the way in which we can recover and produce oil from ultra deep waters.
Petrobras has played a leading role in research to develop and apply new subsea technologies and continue to do so through the Deep Water Technologies Program Procap 3000.
I would like to take this opportunity to pay tribute to Brazil and Petrobras for their technological contributions to our industry.
Today, I would like to share my thoughts with you on the outlook of the Gas industry and the risks and opportunities facing this sector.
The growth in demand for natural gas has risen at almost double the rate for oil by more than 20% since 1990. Gas has become the fuel of choice, mainly at the expense of coal.
Most forecasters see gas demand rising significantly for the next 10 years. It is expected that consumption for gas will increase by another 25% by 2010.
One important factor which is reshaping the energy business is the long term shift toward cleaner, less carbon intensive fuels.
Among other factors which are helping natural gas to capture a growing share of world's energy market is the existence of plentiful reserves around the world.
Based on current estimates total proved world gas reserves amount to 5000 + trillion cubic feet that is the equivalent of roughly 70 years supply of gas at current rates of consumption.
The challenge today is that while there is a general agreement that huge reserves remain in many different parts of the world, bringing these supplies in the amounts needed to the market cannot be taken for granted.
As we know nature did not always put gas where it is easy to find and produce. Often gas is available in areas of the world where the operating environment is difficult and the technological and logistical requirements are daunting.
Equally important are the political, financial, regulatory and environmental issues that need to be addressed to br