Brazilian oil production has been increasing rapidly
since 1996 as deep water developments in the Campos basin off Rio de
Janeiro State have proceeded. Despite the need for pioneering
technologies and some setbacks, deep waters are now fundamental to the
Brazilian oil industry. Growth is expected to continue as new fields
here and - discovered more recently - sub-salt fields in the Santos
Basin, largely in Espirito Santos State, south of Campos, come onstream.
Gas production is also on the increase. Not only is there growing output
from Campos, as flaring is reduced, but the Santos basin has seen large
gas discoveries, which will progressively come onstream over the next
Brazil is a big oil consumer, with its large population,
and is still a net importer. Higher prices have kept demand growth low
since 1999 and Brazil has, for many years, been actively pursuing
alternative energy sources such as biomass to make ethanol.
However growth in indigenous oil output will soon convert the country
into a net exporter, which is encouraging more oil consumption in the
country and a some stronger growth in oil use in transport is forecast.
Brazil also imports a modest amount of gas from neighbouring countries.
New gas production should allow the country to commence gas exports