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

Brazzil Magazine covers

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:

You May Also Like

Brazzil Magazine covers

Copenhagen: What a Farce! Obama Fizzles, China Sulks, Only Lula Shines

The most progressive US president in a generation comes to the most important international ...

Brazzil Magazine covers

Latin American Market Bounces Back Led by Brazil

Latin American markets reversed course and turned broadly positive today, following steep declines yesterday. ...

Brazzil Magazine covers

Two Women UK Lawyers on Vacation in Brazil Jailed with Murderers

After a Brazilian judge refused to grant them bail two British law graduates accused ...

Brazzil Magazine covers

Majority of Brazilians Say No to Lula’s Social Programs

For the first time since taking office in January 2003, an Ibope opinion poll ...

Brazzil Magazine covers

Rescue from Sea

Surveying the panorama, I saw mile after mile of developed beaches fronted by high-rise ...

Brazzil Magazine covers

Light Oil Discovery in Brazil Opens Windows of Opportunity

Tests carried out by Petrobras through vertical well 1-RJS-628A drilled at 2,140 meters (7,021 ...