Brazil's oil industry chain has broad prospects

The 15th Rio Oil and Gas Exhibition was held from the 13th to the 19th. About 1,300 exhibitors from 26 countries and regions in the world including China, the United States, Argentina, and Germany exhibited the latest products and services in the oil and gas industry. The theme of this year's exhibition is "from oil to biofuels: knowledge fusion, continuous innovation." According to a series of data released by relevant agencies during the exhibition, Brazil’s oil and gas industry chain has huge room for growth in the future and has broad prospects.

At present, the output value of Brazil’s oil and gas industry accounts for 12% of GDP. The Brazilian Petroleum Association predicts that this proportion will jump to 20% in 2020. In the next few years, 2.5 million jobs will be created in the industry chain, which will require additional More than $400 billion worth of related equipment and services.

According to Coutinho, President of Brazil’s National Development Bank, the oil industry will change the overall outlook of the country’s industry. “The supply chain for exploration, refining and petrochemicals will grow rapidly in the future.”

According to data from the Organization of the Petroleum Exporting Countries (OPEC), Brazil’s current proven reserves of sea oil are approximately 14 billion barrels equivalent. Research from the Rio Federal University pointed out that thanks to the promotion of oil exploration and development in the subsurface of the deep sea, Brazil’s proven oil and natural gas reserves are expected to increase by 55 billion barrels by 2020, making it among the world’s major oil producers.

At present, the total daily production of oil and natural gas in Brazil is about 2.5 million barrels per day. Research shows that this figure is expected to reach 4 million barrels per equivalent by 2020. However, the researchers also pointed out that the actual conversion of proved reserves into oil production depends on various factors such as equipment, technology, labor, and the international crude oil market price trend.

In Brazil, exploration and development of oil and natural gas began in the 1950s. Currently, the proven sedimentary basin area is 7.5 million square kilometers, but the area of ​​oil fields under exploration at present is only 7% of the total area, and the actual area of ​​exploitation is only accounting for only 5%.

Brazil broke the pattern of a monopolistic industry of Brazilian oil companies in the late 1990s, allowing foreign oil companies to participate in operations, but so far both the geological research and the issuance of mining licenses have been slow, especially since 2008. New block tender.

However, the various international oil giants have never looked away from Brazil's "Sweet Potatoes" and do everything possible to gain access. According to materials from the Brazilian Petroleum Administration, there are currently 11 foreign-capitalized operators that are currently extracting oil from Brazil. At least nine of them plan to invest US$30 billion in Brazil by 2020.