- Brazil is the ninth largest energy consumer in the world and the third largest in the Western Hemisphere, behind the United States and Canada. Total primary energy consumption in Brazil has increased by close to a third in the last decade, due to sustained economic growth.
- In addition, Brazil has made great strides in increasing its total energy production, particularly oil and ethanol.
- Increasing domestic oil production has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world
- 1997 - Petrobras monopoly was ended
- 2013 - Brazil concluded its first presalt licensing round for the Libra field
- The principal government agency charged with regulating and monitoring the oil sector is the the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP), which is responsible for issuing exploration and production licenses and ensuring compliance with relevant regulations.
- The Brazilian government passed legislation instituting a new regulatory framework in 2010 for the presalt reserves that includes four notable attributes: First, the legislation created a new agency, Pré-Sal Petróleo SA, to administer new presalt production and trading contracts in oil and gas industry.
- The second component allowed the government to capitalize Petrobras by granting the company 5 billion barrels of unlicensed pre-salt oil reserves in exchange for larger ownership share.
- The other two components established a new development fund to manage government revenues from presalt oil and lay out a new production-sharing agreement (PSA) system for presalt reserves.
- In contrast to the concession-based framework for non presalt oil projects, where companies are largely uninhibited by the state in exploring and producing, Petrobras will be the sole operator of each PSA and will hold a minimum 30% stake in all pre-salt projects.
- Exploration and Production
- In 2013, Brazil produced 2.7 million barrels per day (bbl/d) of petroleum and other liquids, 2.0 million bbl/d was crude oil, and 527,000 bbl/d was biofuels.
- Petrobras accounted for 1.9 million bbl/d of domestic crude oil and natural gas liquids (NGL) production.
- Of Brazil's crude oil production, more than 91% was produced offshore, of which 79% was developed near the state of Rio De Janeiro, primarily in the Santos and Campos basins. A growing share of production is coming from Brazil's relatively recent discovery of oil deposits in the presalt layer.
- Most Brazilian oil is produced in the southeastern region of the country in Rio de Janeiro and Espírito Santo states.
- Five fields in the Campos Basin (Marlim, Marlim Sul, Marlim Leste, Roncador, and Barracuda) account for more than half of Brazil's crude oil production. These Petrobras-operated fields each produce between 100,000 and 400,000 bbl/d.
- In 2005, Petrobras drilled exploratory wells near the Tupi field and discovered hydrocarbons below the salt layer. In 2007 a consortium of Petrobras, BG Group, and Petrogal drilled in the Tupi field and discovered an estimated 5-8 billion barrels of oil equivalent (boe) resources in a presalt zone 18,000 feet below the ocean surface under a thick layer of salt.
- Further exploration showed that hydrocarbon deposits in the presalt layer extended through the Santos, Campos, and Espirito Santo basins.
- Exploration and Production in Brazil
- Brazil Oil And Gas Licence Blocks
- State-controlled Petróleo Brasileiro S.A.(Petrobras) is the dominant participant in Brazil's oil sector, holding important positions in upstream, midstream, and downstream activities. The company held a monopoly on oil-related activities in Brazil until 1997, when the government opened the sector to competition.
- International oil companies also play a role in Brazilian production. The Shell-operated Parque de Conchas project and the Chevron-operated Frade project are expected to achieve production levels of 100,000 bbl/d and 68,000 bbl/d, respectively.
- Royal Dutch Shell was the first foreign crude oil producer in the country, and it has been joined by Chevron, Repsol, BP, Anadarko, El Paso, Galp Energia, Statoil, BG Group, Sinopec, ONGC, TNK-BP, among others.
- BG Group has interests in five blocks in the Santos Basin, offshore Brazil
- Majority of Brazilian Crudes are heavy and sour
- Petrobras operates Brazil's domestic natural gas transport system through its subsidiary company Transpetro. The network has more than 5,700 miles of natural gas pipelines, predominantly along the country's southeast and northeast areas of the country, from the state of Rio Grande do Sul to Ceara.
- For years these systems were not interconnected, which has hindered the development of domestic production and consumption.
- However, in March 2010, the Southeast Northeast Integration Gas Pipeline (GASENE) linked these two markets for the first time.
- This 860-mile pipeline, which runs from Rio de Janeiro to Bahia, is the longest pipeline ever built in Brazil.
- The other major natural gas market in Brazil is the Amazon region.
- In 2009, Petrobras completed construction of the Urucu pipeline linking Urucu to Manaus, the capital of Amazonas state.
- This project is expected to facilitate development of the Amazon's considerable natural gas reserves.
- Brazil has a large downstream sector, with 14 refineries in operation and a number of projects in the pipeline. Petrobras dominates the sector. Their refineries are as follows:
- Alberto Pasqualini REFAP Refinery, Capuava RECAP Refinery, Paulínia REPLAN Refinery, Henrique Lage REVAP Refinery, Pres. Bernardes RPBC Refinery, Duque de Caxias REDUC Refinery, Issac Sabbá REMAN Refinery, Lubnor Refinery, Gabriel Passos REGAP Refinery, Pres. Getúlio Vargas REPAR Refinery and Landulpho Alves RLAM Refinery
- The other refineries are: Ipiranga Refinery, Manguinhos Refinery and Rio de Janeiro Refinery
- The refinery projects are as follows:
- The 230,000 bpd Abreu e Lima Pernambuco Refinery Project is under construction and will be completed in 2014
- The 150,000 bpd Comperj Refinery Project is under construction and will be completed in 2016
- The 600,000 bpd Premium I Refinery Project is under construction and will be completed in 2016
- The 300,000 bpd Premium II Refinery Project is expected to be completed in 2017
- Construction of the 200,000 bpd Aracaju Sergipe Refinery Project has not started.
- EIA, Brazil
- National Agency of Petroleum, Natural Gas and Biofuels
- Brazil Oil and Gas Licence Blocks