Brazil is set to revolutionize its oil and gas sector, expecting over R$500 billion ($101 billion) in investments from 2024 to 2028.
These funds will mainly target the Campos and Santos basins, aiming to elevate Brazil on the global energy stage.
The Santos Basin will receive 61% of the investment, with Campos getting 28%.
This financial boost will likely increase daily production to 4.195 million barrels of oil and 209 million cubic meters of gas.
Beyond drilling, Brazil is also focusing on research and development (R&D). A rule mandates that 1% of all oil and gas investment goes to R&D.
Last year, this meant R$3 billion ($608 million), with R$1.3 billion ($263 million) already spent this year.
The goal is to make Brazil a key exporter of oil and gas technologies. Yet, turning funds into widespread innovation remains a challenge.
Globally, Brazil’s situation is unique. Nations like the USA and South Korea, despite having smaller reserves, lead in R&D.
Brazil’s industry is crucial for the energy transition, investing in renewable energy and carbon capture.
But to seize this chance, Brazil must refine its regulations and R&D spending.
The sector already significantly impacts Brazil’s economy, generating R$104 billion ($21.09 billion) in 2021 from contracts, royalties, and taxes.
A consistent auction schedule could further enhance exploration, boosting jobs and government income.
In summary, Brazil’s potential in the oil and gas industry is vast.
With strategic investments, innovation, and policy improvements, Brazil could reshape its energy sector.
This shift promises economic growth and a move towards sustainable energy, highlighting Brazil’s role in the global energy future.