Oil Production in Brazil
Oil Exports
Brazil’s Energy Mix
-
Crude Oil and Petroleum Liquids: 44.2% of total energy consumption, dominating the industrial and transportation sectors.
-
Renewables (including hydropower): 37.5%, with hydropower alone contributing ~64.9% of electricity generation, making Brazil’s electricity mix one of the cleanest globally.
-
Natural Gas: 11.6%, with growing domestic production (153 million cubic meters per day in 2024) and imports from Bolivia and LNG, primarily from the U.S.
-
Coal: 5.5%, mainly used in industry and some power generation, with a declining trend (-5%/year from 2015–2020).
-
Nuclear: 1.3%, from two operational reactors.
-
Biofuels (e.g., ethanol, biodiesel): Significant in transportation, with ethanol powering ~27 million vehicles. Ethanol supply is projected to reach 660,000 bbl/d by 2026. Brazil is the world’s second-largest ethanol producer.
-
Hydroelectric: 64.9%
-
Biomass: 8.4%
-
Wind: 8.6%
-
Solar: 1%
-
Natural Gas: 9.3%
-
Oil Products: 2%
-
Nuclear: 2.5%
-
Coal and Derivatives: 3.3%
-
Production Trends: Petrobras dominates, producing 87% of oil and 91% of gas in 2023, but new players like Brava Energia and PRIO are increasing output. Pre-salt fields, contributing 75–78% of production, are less carbon-intensive, with Petrobras reinjecting 80 million tons of CO2 by 2025.
-
Energy Policy: Brazil’s policies promote renewables (targeting 45–50% by 2030) and foreign investment in oil and gas. The Pró-Álcool program has reduced fossil fuel dependence via ethanol, and offshore wind and sustainable aviation fuel projects are emerging.
-
Challenges: High CO2 content in gas, limited pipeline infrastructure, and environmental concerns (e.g., equatorial margin exploration) pose risks. However, technological advancements and regulatory reforms attract international oil companies like Shell, TotalEnergies, and Equinor.
Update on PetroBras
Portuguese engineering and construction company Mota-Engil has, through its subsidiary, won two contracts with Brazilian state-owned giant Petrobras.
The company’s Brazilian subsidiary, Empresa Constructora do Brasil, won a deal worth 1.56bn reais ($274m) for an estimated term of 60 months, comprising recovery and final removal services of 420 km of flexible lines at the Marlim, Marlim Sul, and Marlim Leste offshore oil fields. The new contract also includes the execution of engineering, preparation, recovery, and final removal services.
This entails offshore collection, transportation, dismantling, and collection of leftovers from the pipelines, hydraulic umbilicals, and electrical cables, as well as subsea components and equipment, at the three fields. Work on the project will be done in depths between 700 and 2,000 m.
The second deal with Petrobras is worth approximately 1.61bn reais ($283m). The agreement will last for 48 months and involves the execution of a series of maintenance, construction, and assembly services on offshore oil platforms.
The work includes the installation of pipelines, fabrication and installation of metal structures, boilermaking services such as opening and closing vessels, filters, tanks, towers and heat exchangers, as well as scaffolding assembly, painting, electrical maintenance, instrumentation, and automation.
These two latest deals increase Mota-Engil’s backlog in Brazil, which already amounts to over $1bn.
We give you energy news and help invest in energy projects too, click here to learn more
