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With production falling and reserves halved, Espírito Santo faces the challenge of reinventing its energy industry after decades of leading the oil industry
Espírito Santo is facing a major challenge: dealing with the consistent decline in oil production and exploration. Data from the National Petroleum Agency (ANP), compiled in the Oil and Gas Industry Yearbook Natural gas 2025 from Findes, reveal a significant slowdown in activities in the state.
The sector still has significant weight in the economy of Espírito Santo — accounting for around 25% of local industry — but shows clear signs of weakening.
Drop in drilling and discoveries
Between 1998 and 2014, Espírito Santo usually recorded 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 exceeded five drillings. In 2016 and 2017, there were simply none.
The immediate consequence was a reduction in the number of reports of discoveries of hydrocarbons. While between 2000 and 2014 it was common to have more than 15 reports per year — with a peak of over 30 in 2010 — in the following years the number fell drastically.
From 2016 to 2024, notifications were below five per year and in most cases in terrestrial areas.
Oil reserves halved
With no new discoveries and 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 52,3% drop. 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%.
The number of Declarations of Commerciality, which mark the end of the exploration phase and the start of production, also plummeted. Since 1999, there have been 64 declarations. Of these, only 16 occurred after 2013. At sea, there was only one recent declaration: the Wahoo field, made by the company Prio in 2021.
Oil production in decline
Total oil production in Espírito Santo follows this trend. In 2014, the average was 367 barrels per day. In 2024, it fell to 154,9 barrels per day — a reduction of 57,8% in ten years. There has been a slight increase in the last two years, but the long-term trend is negative.
There is a specific expectation of growth in the coming years. The arrival of Petrobras' Maria Quitéria platform and the advancement of the Wahoo field could increase production to more than 200 barrels per day by 2027. After that, however, the trend is downward.
Lack of investment and crisis in land operations
The low volume of investment in recent exploration is one of the main problems. The current focus of the industry — especially Petrobras — is on the pre-salt layer and the Equatorial Margin, in the North and Northeast regions. This makes it difficult to resume dynamism in Espírito Santo.
Another obstacle is in the onshore fields. The Norwegian company Seacrest, which took over the main onshore fields in northern Espírito Santo, is facing financial difficulties and has not been able to increase production as expected.
Today, production is around 7 barrels per day. The goal was to reach 14. Although onshore production accounts for less of the total extracted, it is essential to keep the regional supply chain active.
Preparing for the future: wind, hydrogen and decommissioning
Faced with the decline in oil production, Espírito Santo is starting to look to the future. The global energy transition is a reality, and the state is already competitive with other sources. One of the paths is the production of offshore wind energy, in addition to large-scale green hydrogen.
The state can also take advantage of existing gas infrastructure. One example is the Anchieta Gas Treatment Unit, which is currently inactive. It can be adapted for activities such as carbon capture.
In addition, local companies can still act as suppliers to the national oil and gas chain. Shipyards such as Seatrium Aracruz and units focused on decommissioning platforms are examples of activities that can maintain jobs and boost the economy.
The oil boom, which was very strong in Espírito Santo from the 1990s onwards, now appears to be entering a new phase. And preparing for this “landing” with planning is essential to avoid greater impacts on the economy and local communities.
With information from A Gazeta.
