Brazil on its way to become an oil giant by 2025

Global Sustainable Energy Brazil

Brazil is on its way to become an oil giant by 2025, and to deliver almost 25% of the world’s oil output, as top oil companies are seizing the momentum in the Latin American country; experts like the editor of explained in a column.

Firstly, as to now, Brazil has become the fifth largest oil exporter; and has kept an astonishing resilience, in the face of the pandemic; while the world’s economy was plunging, and OPEC+ decreased its production; Brazil actually increased its output.

Secondly, If the country keeps its pace, it will double its output by 2030. Its low-cost production and high-quality oil gives the country a substantial competitive advantage over most OPEC+ countries.

Thirdly, according to the column, Brazil could contribute as much as 23%, around 1.3 billion bpd of oil, by 2025, if its ambitious new oil projects go as planned. In fact, around 29 crude developments will begin operations between the reminder of 2021 and 2025; including key projects in Bacalhau, Buzios V (Franco), and Lula Oeste.

Moreover, as the government in Brazil strongly supports the exploitation of its natural resources; the country is leveraging the opportunity from the fading demand in top oil producing countries, like the U.S.; specially as renewable energy begins to displace oil.

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Big oil company’s betting on Brazil’s pre salt fields

In addition, several oil majors are taking this bet as TotalEnergies and Chevron both announce plans to ramp up their operations in the country.  In fact, this week, TotalEnergies announced that it expects to triple its oil production in Brazil by 2025; investing in its stake in several pre-salt oil developments in the country.

While Shell-operated Gato do Mato, a pre-salt development is also expecting its first oil production in 2024. Same happens with the national company, Petrobras, which is also hoping for production to commence in a similar time frame in its Iara cluster; which consists of the Berbigao, Sururu, and Atapu pre-salt fields.

On the other hand, Chevron also voiced its interest in developing its pre-salt oil discoveries in Brazil at the Offshore Technology Conference; the company’s country manager said that the company wants a piece of the Brazilian market, in reference to Brazil’s pre-salt oil finds. Indeed, since 2018, Chevron has held interests in 11 deep-water projects in the country’s Campos and Santos basins.

Finally, the government of Brazil is expected to hold an auction in December; for licenses in two blocks of the pre-salt area, showing the potential for further growth in this sector.

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