Oil And Gas Companies Expected To Generate Around $1.38 Trillion In 10 Years

Considering Future Growth, Companies Will Heavily Invest in Oil and Gas with Support from Government Agencies

With investments for the next 10 years, the oil and natural gas industry will generate around R$1.38 trillion, according to the Energy Research Company (EPE), which is responsible for sector planning. The exploration and production segment of oil and natural gas will account for 76% of the total, with a focus on the pre-salt.

The total of R$1.8 trillion is the sum of the electricity sector (R$393 billion) and the liquid biofuels sector (R$41 billion), according to the Ten-Year Energy Expansion Plan. The intention is for oil production in Brazil to double in the next 10 years, reaching 5 million barrels per day (bpd), with over 70% extracted from the pre-salt, where demand is expected to be 2.5 million bpd, estimating that the other 2.5 million will be sold abroad.

Continuing with EPE’s studies, the forecast indicates that the focus will remain on crude oil extraction rather than the more valuable derivatives. The projected investment for this segment during the period is R$34 million, the same amount will be allocated to ethanol production in the plants. By 2027, domestic ethanol production is expected to rise to 45 billion liters. Regarding natural gas, an increase in production from 65 million m³ per day to 111 million m³ per day is anticipated.

Alert About Risks of Break in Petrobras SA Policy in the New Government