Brazil’s oil sector trends and recent developments.

The Covid-19 pandemic had a considerable impact on Brazilian oil and gas demand, affecting investments in the sector. However, the economy has been recovering, with demand coming very close to its previous peaks, even with air transport and mobility still lagging.

Oil and fuel prices have increased considerably in the first half of 2022, mainly due to the ongoing conflict between Russia and Ukraine, but also because of a stronger than forecast global demand growth. Domestically, retail prices also rose significantly. Ultra-low Sulphur diesel oil (ULSD) went through the sharpest increase, with 42%, while gasoline rose 8%, and liquefied petroleum gas (LPG) rose 10%, on average.

The oil sector's mid- and downstream is also undergoing changes. Petrobras' refinery divestments were delayed by the pandemic, but have overcome all the necessary hurdles, resulting in the completion of the sale of four out of eight refineries. Once completed, these divestments are expected to stimulate other market participants to invest in the modernization of these refineries, and also in new maritime terminals, pipelines and railways. This investment is needed to support Brazil's growing fuel demand, as per capita income increases. Players have started committing resources to infrastructure, and even more investments are expected over the next few years.

The natural gas sector is in the midst of a structural transformation and evolved considerably after the promulgation of the New Gas Law. Companies started to become operators and to diversify their activities and investments. This is mainly to progress in the discussions about third-party access to essential facilities, which will stimulate competition and more investments.

Brazilian Oil & Gas Report 2021/2022


Notícias Relacionadas

EPE publishes October 2023 Brazil’s Short-Term Fuel Market Outlook

25/10/2023 - Brazilian liquid fuel demand continues to grow at an accelerated pace, having increased by more than 5% in the last twelve months. Gasoline and diesel are the main drivers of this recent high.

Launch of the Fact Sheet on Bioenergy with Carbon Capture and Storage: BECCS

06/10/2023 - The BECCS Fact Sheet compiles relevant information, in a visual and synthetic way, to introduce concepts on the topic.

Launch of the Fact Sheet on Synthetic Fuels

06/09/2023 - The Fact Sheet on Synthetic Fuels compiles relevant information, in a visual and synthetic way, to introduce concepts on the subject. For the decarbonization of modes of transport that cover long distances (e.g. air, sea and heavy road), it is necessary that energy sources have a high density. Therefore, synthetic fuels are an alternative to fossil analogues.

EPE publishes August 2023 Brazil’s Short-Term Fuel Market Outlook

28/08/2023 - Brazilian liquid fuel demand continues to grow at an accelerated pace, having increased by more than 5% in the last twelve months. Gasoline and diesel are the main drivers of this recent high.

EPE publishes "Fact sheet: Indicative Transmission Gas Pipeline Plan – PIG 2022"

18/08/2023 - The Indicative Transmission Gas Pipeline Plan (PIG 2022) supports the Brazilian natural gas sector´s planning, presenting investment opportunities in transmission natural gas pipelines. In the present document, 5 transmission pipeline alternatives were studied, totaling 1,266 km in length and around BRL 20 billion in estimated costs.