Oil Production in Brazil

Long gone are the days when Brazil relied on importing oil from the Middle East. Currently considered as the holder of the 23rd largest oil reserve in the world, recent studies show that the reality may be even more promising: with the projection of reserves that would exceed more than 200 billion barrels, the scenario that emerges places Brazil as potentially the third largest power in world oil production.

The facts certainly corroborate the expectations. Since 2007, through directing technical efforts and investments towards the exploration of the pre-salt layer, Brazil has achieved self-sufficiency in oil production, becoming one of the largest exporters of refined fuels in the world.

If it is correct to state that a large part of this success comes from the technology developed by Petrobras, and from its production capacity, it is also true that foreign investors have a large share in the laurels of this victory.

At the end of 2020, Brazil was not only leading oil production in Latin America with an average of 3.03 million barrels daily, but was also the world’s seventh largest producer, behind OPEC member Iraq and ahead of the United Arab Emirates. Brazilian government data project that, by the end of this decade, Brazil will be the fifth largest oil producer in the world, with an average daily production of 5.3 million barrels per day until 2030.

To pursue this ambitious goal, Petrobras plans to invest $17 billion in deepwater exploration between 2021 and 2025. By the year 2030, investments in the current decade are estimated to total $457 billion. In a market with so much potential, opportunities for foreign investors multiply. The very way in which the market is structured, after recent changes in regulatory frameworks in the energy sector, favors the coming of companies from different segments, from drilling wells to the offshore support operation.

Potential to be explored

Estimates from the industrial sector of the state of Rio de Janeiro, home to some of the largest oil and gas reserves in Brazil, show that, until 2023 alone, investments already announced in the state reach the sum of US$ 10 billion. It is a considerable volume, which will move the entire support chain for the exploration, production and refining of oil and gas.

It is also interesting to point out that not only the investment and production levels make the sector particularly attractive to investors from all over the world, but also the quality of the oil from exploration on the Brazilian continental shelf guarantees high return margins for the market.

This is because the oil produced in the Búzios field, for example, has properties that favor refining into high-quality fuels with a low level of polluting emissions. This is due to the low levels of paraffin and heavy components, which makes Brazilian oil particularly attracted to Asian countries such as China. Brazil is currently one of the five largest suppliers of high quality oils to China, a position that should improve in the coming years, with the increase in local production.

To guarantee a privileged position in the Brazilian oil and gas exploration and refining market, count on Gescon’s specialists. Our multidisciplinary team of executives is ready to meet all your needs, from prospecting for new business in Brazil, to the total administration of your operations in our country.

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