Brazil’s Oil and Gas Production Sees Significant Growth in June 2024

In June 2024, Brazil’s oil production reached 3.409 million barrels per day (bbl/d). This marked a 2.7% increase from the previous month, according to the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP).

The country’s natural gas production also rose, reaching 150.07 million cubic meters per day (m2/d), a 3.1% increase compared to May.

This resulted in a combined oil and natural gas production of 4.353 million barrels of oil equivalent per day (boe/d) for June.

A significant portion of Brazil’s oil and gas production comes from pre-salt fields. These are deep-water reserves located off the Brazilian coast.

In June, pre-salt production amounted to 3.424 million boe/d, accounting for 78.7% of the country’s total production.

This represents a 3.3% increase from the previous month and a 5.6% increase compared to June 2023.

The Tupi field in the Santos Basin was the largest producer, with 787.08 thousand bbl/d of oil and 39.70 million m3/d of natural gas. Offshore fields produced 97.6% of Brazil’s oil and 86.8% of its natural gas in June.

Petrobras, Brazil’s state-controlled oil company, was responsible for 89.5% of the total production, either alone or in partnership with other firms.

The ANP’s data encompasses 54 companies operating in Brazil, managing 6,551 wells across 275 areas.

Brazil is the largest oil producer in Latin America, with an average output of over 3.4 million barrels per day in 2023.

Mexico follows with around 1.9 million bbl/d. Venezuela, despite having the largest crude oil reserves in the region, produced approximately 751 thousand bbl/d.

Brazil’s production is significantly higher than its regional counterparts, underscoring its leading role in the Latin American oil market.

Brazil’s Oil Production and Ambitious Future Goals

Globally, Brazil ranks as the seventh-largest oil producer, which accounts for 4% of the world’s total oil production.

The country aims to expand its production further, potentially becoming one of the top five oil exporters worldwide.

Brazil’s energy ministry has set an ambitious target to achieve a production of 5.4 million bpd by 2029. This would represent an 80% increase from its 2022 production levels.

Pre-salt fields will contribute nearly 80% of this output. The plan also includes significant investments in oil and gas exploration and production, estimated to range between $428 billion and $474 billion.

Brazil’s oil and gas sector continues to grow, driven by substantial offshore production and significant contributions from pre-salt fields.

While the country is making strides in clean energy, it remains committed to fossil fuel exploration. This supports its energy transition and economic goals.

This dual approach positions Brazil uniquely in the global energy landscape, balancing traditional energy sources with renewable initiatives.

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