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3 July 2023
In this edition of State of the Market, we explore significant opportunities and developments in the Brazilian Energy industry, including the potential of pre-salt reserves, technological advancements, local content requirements, regulatory challenges, offshore production expertise, and the growing focus on sustainability. Without further ado, let’s explore this month’s State of the Market article with insights from Thaís Tavares, Commercial Manager!
Brazil, being a cultural and economic powerhouse, attracts numerous investments and dollars every year. The energy industry, in particular, garners significant attention as Brazil possesses vast offshore oil reserves, particularly in the pre-salt layer, which are estimated to contain billions of barrels of oil. The pre-salt reserves alone are projected to account for more than 70% of Brazil's total oil production by 2030. This abundance of reserves has attracted significant investments, with Brazil's National Petroleum Agency (ANP) estimating that around $300 billion will be invested in the country's oil and gas sector over the next decade.
It's not just traditional energy sources too, as Brazil continues to ramp up its Renewables game as well, especially when it comes to Wind industry and Hydro-energy. For example, the installed capacity of wind power in Brazil has surpassed 20 gigawatts, making it one of the top ten countries in the world for wind energy capacity. Similarly, solar power capacity has been rapidly expanding, reaching over 20 gigawatts with both numbers increasing with each passing year.
Even though almost all Brazilian industries are experiencing a steady increase in business, Energy & Marine surpass most. Thais argues this is because the industry is rapidly maturing: “We can see that Brazilian Energy industry can increasingly tap into local talent and companies, investments to further elevate country’s potential. Coupled with incoming foreign investment and increase in demand both from domestic and international consumers, the Energy industry is on the right track to realise its full potential and provide more opportunities for all involved.”
6 Crucial Details on the Brazilian Energy Market
Virtually every angle regarding Energy, Marine & Renewables industries in Brazil are seeing drastic developments – but some are arguably more prominent than others. Here are 6 developments that might be of interest to anyone operating in the industry:
1. Pre-salt reserves: Brazil’s waters hold an astounding amount of untapped potential. That is because Brazil is home to significant pre-salt oil reserves, which are located deep beneath the ocean floor. These reserves present vast potential for Oil & Gas production and have attracted considerable investment from both domestic and international companies, generating thousands of jobs for Brazilian talent.
2. Technological expertise: Brazil’s Oil & Gas and Marine industry has developed advanced technological capabilities to explore and extract resources from challenging offshore environments. This includes deepwater drilling techniques, subsea infrastructure, and advanced floating production systems.
3. Local content requirements: Brazil has implemented local content requirements that mandate a certain percentage of equipment, services, and personnel to be sourced locally. This policy aims to promote the development of domestic industries, create jobs, and foster technology transfer.
4. Regulatory framework: The Brazilian Oil & Gas and Marine market operates within a complex regulatory framework. It includes licensing, environmental regulations, safety standards, and local content requirements. Understanding and complying with these regulations is crucial for companies operating in the sector.
5. Offshore production expertise: Brazil has gained expertise in offshore production, particularly in deepwater and ultra-deepwater environments. This expertise has been developed through partnerships and collaborations with international companies and has positioned Brazil as a global player in offshore operations.
6. Growing focus on sustainability: There is an increasing emphasis on sustainability and environmental stewardship within the Brazilian Oil & Gas and Marine industry. This includes initiatives to reduce carbon emissions, promote renewable energy sources, and adopt environmentally friendly practices.
With all these exciting developments, Brazil is an exciting place to be for professionals working in Energy, Marine & Renewables industries. Atlas Professionals continues to support Professionals ready and able to provide their skills and expertise. You can check out this link to browse our vacancies and to explore what our industries have in store.
