Oil and gas reaches record productivity in 2023 and continues to grow rapidly in 2024

Brazil reaches a record 4,344 million barrels of oil equivalent per day in 2023, an increase of 11,69% compared to the previous year.

A production de oil and gas is one of the main sectors of the Brazilian economy. In 2023, the country reached the record de 4,344 million barrels of oil equivalent per day (boe/d). This increase of 11,69% compared to the previous year is a reflection of the continued growth of the oil and gas production.

A Oil extraction e gas production These are fundamental activities for Brazil's economic development. O record de 4,344 million barrels of oil equivalent per day (boe/d) in 2023 demonstrates the importance of this sector for the country, and the expectation is that the production continue to grow in the coming years, boosting the national economy.

Oil and gas production on the rise

– Last year, the country stood out with an incredible daily production of 3,402 million barrels of oil, which represents a considerable increase of 12,57%. In addition oil extraction resulted in growth of 8,7%, reaching 150 million cubic meters per day of natural gas.

The advancement in oil production was driven by the entry into operation of four FPSOs, that is, the floating oil production, storage and transfer platforms: Almirante Barroso, Anna Nery, Anita Garibaldi and Sepetiba.

the field of pre-salt was responsible for 75,18% of the country's total production, reaching 3,304 million boe/d.

Also noteworthy was the field of Mere, where the FPSO Guanabara achieved the highest daily production, reaching a total of 226 thousand bpd.

Estimated growth for 2024

– Projections point to continued growth in oil and gas production throughout the year, albeit at a more moderate pace, according to S&P Global.

– The expectation is that this expansion will be driven by the entry into operation of the FPSO Marechal Duque de Caxias and FPSO Sepetiba, both located in the Mere, in the Libra block, in the pre-salt of the Santos Basin.

• These platforms have the capacity to produce 180 bpd of oil and compress up to 12 million m³/d of gas.

Expected decline in 2027

– On the other hand, it is estimated that the national oil and gas production decline from 2027 onwards, if there are no new discoveries and additional reserves, according to the ANP.

• In an interview during week last time, the general director of the ANP, Rodolfo Saboia, highlighted the need to accelerate exploration in the country to avoid a drop in production.
• However, he also highlighted that, despite this scenario, the production will continue to grow in the medium term with the entry into operation of 20 new units production between 2023 and 2027, but will begin to decline towards the end of that period.

Instability in the Middle East and impacts on production

– In the Middle East, United States and the United Kingdom carried out a series of attacks in response to attacks on ships in the Red Sea and a drone attack in Jordan, which generated instability in the region. However, conflicts in this area have failed to stabilize oil prices, which fell by 7% last year. semana.

• This reduction is mainly attributed to the prospect of weak demand, influenced by the maintenance of high interest rates in the USA.

– Furthermore, another event that had an impact on production was a series of forest fires in Chile, which resulted in the closure of the Aconcagua refinery, the second largest in the country, with capacity to process 102.000 barrels per day (bpd) of crude oil.

– There was also reinforcement at the borders, as in Brazil, where the Armed Forces sent vehicles and soldiers to reinforce the border with Venezuela in response to threats of annexation of the territory of Essequibo.

– Meanwhile, in the United States, the Joe Biden government announced a moratorium on new liquefied natural gas (LNG) export projects, which could cause worldwide impacts, including in Brazil if maintained in the long term.

– Dialogues on the energy transition and investments in renewable energy are also on the agenda in current discussions.

• An example of this is the acquisition of the first commercial cargo of bioGLP produced at the Riograndense Refinery by Ultragaz, with the aim of evaluating the performance of the least polluting product on the market.
• Furthermore, Brazil beat record na renewable energy generation, representing 93,1% of all electricity produced in the country, and there are also proposals to facilitate financing for the green hydrogen.

Implications and investments in sustainable mobility

– In the automotive sector, Volkswagen announced investments of R$9 billion to manufacture new vehicle models, including hybrids and fully electric vehicles, in a strategic move towards sustainable transition in the automotive industry.

– Another highlight was the agreement signed between the Brazilian Raízen and the Chinese BYD to create solutions for recharge in eight Brazilian capitals, aiming to make access to refills more accessible and economically viable.

– Finally, the Amazon Fund there was a significant increase in approvals for public call projects, reaching R$1,3 billion in 2023, becoming a crucial mechanism for preserving the region.

Source: EPBR