Oil Makes 10% of Brazil’s GDP, But Country Has to Keep Digging

The oil sector in Brazil already accounts for approximately 9% of the Brazilian Gross Domestic Product (GDP), and should surpass 10% still this year, or in 2007 at most.

The information was presented Tuesday, November 28, in Rio de Janeiro, by the director general of the National Petroleum, Natural Gas and Bio-fuels Agency (ANP), Haroldo Lima, during the launch of the 8th Round of Tenders for oil and natural gas exploration areas in Brazil, with the presence of the Brazilian minister of Mines and Energy, Silas Rondeau.

According to Lima, in the 1970s, the oil sector accounted for 2.79% of the Brazilian GDP. The director general of ANP also said that from 1998 to 2004, the growth rate of the petroleum industry was 272.18%, with total sales going up from US$ 17.70 billion (38.54 billion reais) to US$ 65.89 billion (143.44 billion reais).

In the period, according to the ANP, the GDP varied 26.56%, rising from around US$ 650 billion (1.4 trillion reais) to about US$ 850 billion (1,8 trillion reais).

Proven oil reserves went up from 6.2 billion barrels in 1995 to 11.8 billion last year. Average petroleum production until September was 1.72 million barrels per day – with reserve/production expected to last for 18.8 years.

In Lima’s assessment, the evolution of the oil and natural gas sector in the country attests to the effectiveness of the current model, adopted in the country after the passing of the Law 9,478, from August 1997, known as the Petroleum Law.

In 1997, Brazil imported approximately 47% of the oil and oil products it consumed; last year, Brazilian reliance on foreign petroleum fell to only 3%.

"This year, Brazil attained self-sufficiency in oil, but in order to maintain it, new discoveries must be made, hence the importance of these tenders," says the director general of ANP.

Tags:

Ads

You May Also Like

Despite Doom Predictions Brazil’s Trade Balance Grows 4.2%

Exports from Brazil totaled US$ 3.114 billion in the first week of October, which ...

Experts Afraid Flu Might Wipe Out Tribe of Uncontacted Amazon Indians

Highly vulnerable uncontacted Indians who recently emerged in the Brazil-Peru border region have said ...

Brazil’s Bolsa Família in Northeast Can’t Take People out of Misery

A new study just out by Brazil’s Ministry of Social Development (MDS) has found ...

Land Conflicts Up in Brazil

Last year, 39 people were murdered in land-related conflicts in all Brazilian territory. Although ...

Pile of money: picture was leaked from Brazil's federal police

Leaked Pictures of Piles of Money Might Hurt Brazil Lula’s Reelection Effort

What a series of scandals and a final presidential debate without the presence of ...

Obama Hasn’t Kept Promises on Latin America, Says Brazil’s Lula

Luiz Inácio Lula da Silva, the president of Brazil, claims that his American counterpart, ...

Brazil’s Approach and Help Applauded in Africa

The president of Brazil, Luiz Inácio Lula da Silva, is on a trip to ...

The WTO Battle Lost, Can Brazil Still Win the War?

In a statement made last week by Foreign Minister Celso Amorim, Brazil has withdrawn ...

RAPIDINHAS

If successful, Porto Digital might well serve as a model for revitalizing the rest ...

Street vendors, a common sight of a lively informal economy

GDP – Brazil’s Gross Disappointing Product

GDP growth is a bit of an obsession in Brazil. You can’t attend a ...