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Brazil energy market to be boosted by latest oil & gas exploration auctions

Press Release   •   Jul 12, 2013 10:21 BST

According to the ten-year Energy Development Plan issued in September 2012, final consumption growth within the Brazilian energy market should reach 4.7% between 2011 and 2021, when it is expected to be nearly 464 Mtoe.

The latest auctions for gas & oil exploration in the Brazil energy market are expected to be held in May and September 2013. These auctions are expected to help increase investment in the industry, and attract a number of new players to Brazil.

According to a new report 'Brazil Energy Report' on companiesandmarkets.com, one of the priorities in Brazil's energy market is to develop the power sector, with significant new transmission and generation projects in the pipeline. These new projects are expected to increase production by over 6 GW between 2012 and 2013.

At the end of the 1990s and the beginning of the 2000s, Brazil's energy sector underwent market liberalisation. In 1997, the Petroleum Investment Law was adopted, establishing a legal and regulatory framework, and liberalizing oil production.

The key objectives of the law were the creation of the CNPE and the ANP, increased use of natural gas, increased competition in the energy market, and investments in power generation.

Brazil is currently the 10th largest energy consumer in the world and the largest in South America. At the same time, it is an important oil and gas producer in the region and the world's second largest ethanol fuel producer.

Gas production reached 19.5 bcm in 2012 (+15% compared to 2011), after falling to 11.7 bcm in 2009 (i.e. 12% decrease compared to 2008). It is expected to continue to follow an upwards trend in the coming years.

In Latin America, the dynamic trend in energy consumption observed in 2010 (+5.1%) stopped in 2011 (+0.8%), following the sharp slowdown in Brazilian energy consumption (+1.4%, from +10% in 2010).

Primary energy increased by 2% (+20 Mtoe, of which +16 Mtoe in Colombia, where crude oil production grew by 18%). In 2011, the energy intensity of the GDP dropped by 3.7% (30% below the world average).

For more information on the Brazilian energy market, see the latest research: Energy Market Research

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