U.S. Energy Information Agency: Brazil as the ninth largest oil producer in the world
According to data released by the US Energy Information Administration, Brazil's average daily oil and gas production in 2017 was 3.2 million barrels, accounting for 3% of global production. Brazil surpassed Kuwait, the member of the Organization of Petroleum Exporting Countries, and became the ninth largest oil producer in the world.
According to reports, José Mauro Coelho, head of research for oil, natural gas and biofuels at Brazil’s energy research company, stressed that Brazil’s oil production will increase significantly in the coming years. He estimates that by 2026 Brazil's average daily oil and gas production can reach 5.2 million barrels, almost double the 2016 output.
However, Ke Elio said that due to the lack of investment in the refining industry in Brazil, by 2026 Brazil will become one of the countries with the most oil exports worldwide. In other words, although Brazil’s oil production will increase, the refining industry is unable to meet domestic fuel consumption demand and can only export surplus oil while Brazil has to import more oil derivatives.
“Because of this, Brazil’s investment in the refining industry is very low. By 2026, Brazil’s oil exports will reach an average of about 3 million barrels per day. We will become the world’s fifth-largest oil exporter after Saudi Arabia and Russia. Iraq and Canada," he said.
The report pointed out that 98% of Brazil's oil refining industry is controlled by Petrobras and because there is no new investment, Brazil will import a large number of oil derivatives in 2026, which is unfavorable from a strategic point of view because of the international derivatives. The price is higher than the price of crude oil. Brazilian Energy Research Corporation expects Brazil will import 800,000 barrels of fuel per day in 2026.
“We anticipate that if we do not invest in the refining industry, we will import about 800,000 barrels of fuel each day by 2026, especially diesel, including gasoline, liquefied petroleum gas, and aviation fuel,” said Ke Elio.