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With Production Falling and Reserves Cut in Half, Espírito Santo Faces Challenge to Reinvent Its Energy Industry After Decades of Protagonism in Oil
Espírito Santo is facing an important challenge: dealing with the consistent decline in oil production and exploration. Data from the National Agency of Petroleum (ANP), gathered in the Oil Industry Yearbook and Natural Gas 2025 from Findes, reveal a significant slowdown of activities in the state.
The sector still holds substantial weight in the local economy—accounting for about 25% of the local industry—but shows clear signs of weakening.
Decline in Drilling and Discoveries
Between 1998 and 2014, Espírito Santo used to record more than 20 exploratory wells drilled per year. Most of these activities took place offshore, where the largest share of state production is concentrated.
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However, this scenario has changed. Since 2015, no year has seen more than five drillings. In 2016 and 2017, there were simply none.
The immediate consequence has been a reduction in notifications of hydrocarbon discoveries. While between 2000 and 2014 it was common to have more than 15 notifications per year—with a peak exceeding 30 in 2010—in the following years, the number dropped drastically.
From 2016 to 2024, notifications remained below five per year and, in most cases, were in land areas.
Oil Reserves Have Halved
Without new discoveries and with fewer wells being drilled, reserves have also fallen. In 2013, Espírito Santo had 2.516 billion barrels of oil in reserves.
In 2023, the volume was 1.2 billion—a decrease of 52.3%. In the case of natural gas, the drop was even greater: from 92.3 billion cubic meters to 32 billion m³, a reduction of 65.3%.
Records of Commerciality Declarations, which mark the end of the exploration phase and the start of production, have also plummeted. Since 1999, there have been 64 declarations. Of these, only 16 occurred after 2013. At sea, there was a single recent declaration: the Wahoo field, made by the company Prio in 2021.
Oil Production in Decline
The total oil production in Espírito Santo follows this trend. In 2014, the average was 367,000 barrels per day. By 2024, it dropped to 154,900 barrels per day—a reduction of 57.8% over ten years. There was a slight increase in the last two years, but the long-term trend is negative.
For the coming years, there is a specific expectation of growth. The arrival of the Maria Quitéria platform from Petrobras and the advancement of the Wahoo field could increase production to over 200,000 barrels per day by 2027. After that, however, the trend is of decline.
Lack of Investment and Crisis in Land Operations
The low volume of recent exploration investments is one of the main issues. The current focus of the industry—especially Petrobras—is on the pre-salt and the Equatorial Margin, in the North and Northeast regions. This makes it difficult to regain dynamism in Espírito Santo.
Another obstacle lies in the land fields. The Norwegian company Seacrest, which took over the main onshore fields in the Northern region of Espírito Santo, faces financial difficulties and has not managed to boost production as expected.
Currently, production hovers around 7,000 barrels per day. The goal was to reach 14,000. Although land production weighs less in the total extracted, it is essential to keep the regional supplier chain active.
Preparing for the Future: Wind Energy, Hydrogen, and Decommissioning
In light of the decline in oil production, Espírito Santo is beginning to look to the future. The global energy transition is a reality, and the state already has competitive conditions for other sources. One path is offshore wind energy production, as well as large-scale green hydrogen.
The state can also take advantage of the existing gas infrastructure. One example is the Anchieta Gas Treatment Unit, currently inactive. It can be adapted for activities such as carbon gas capture.
In addition, local companies can still act as suppliers in the national oil and gas chain. Shipyards like Seatrium Aracruz and units focused on decommissioning platforms are examples of activities that can maintain jobs and stimulate the economy.
The oil cycle, which gained significant strength in Espírito Santo starting from the 1990s, seems to be entering a new phase. Preparing for this “landing” with planning is essential to avoid greater impacts on the economy and local communities.
With information from A Gazeta.
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