AJOT Digital Edition
Issue #586 | Latin America Trade | Canada Ports

Cover of issue-586.png

Latin America Trade

Canada Ports

View Issue #586 Now!

2014 Media Kit
  • Share this article:

U.S. EIA releases updated analysis brief on Brazil’s energy sector

By: | at 11:48 AM | Channel(s): Breakbulk & Projects  International Trade  

The US EIA (Energy Information Administration) in the new report says, “Brazil has made great strides in increasing its total energy production, particularly oil and ethanol. Increasing domestic oil production has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world….Total primary energy consumption in Brazil has increased by more than one third in the past decade because of sustained economic growth.”-Brazil is the 8th largest total energy consumer and 10th largest producer in the world.

The latest complete EIA statistics for all countries (2010) indicate Brazil is the 8th largest energy consumer in the world and the third largest in the Americas, behind the United States and Canada. Total primary energy consumption in Brazil has increased by more than one third in the past decade because of sustained economic growth. EIA 2010 statistics show Brazil is the 10th largest energy producer in the world. In addition, Brazil has made great strides in increasing its total energy production, particularly oil and ethanol. Increasing domestic oil production has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world.

T


Total Brazilian energy consumption grew to 11.7 quadrillion British thermal units (Btu) in 2011. The largest share of Brazil’s total energy consumption comes from oil and other liquid fuels (47%), followed by hydroelectricity (35%) and natural gas (8%). Additionally, Brazil is consuming increasing amounts of biomass in both the residential and industrial sectors.

According to the ANP, Brazil exported nearly 550,000 bbl/d of crude oil in 2012. The United States imported 187,000 bbl/d in 2012 and has been Brazil’s largest crude oil export destination for the past decade. According to customs data, China was the second largest customer, at over 121,000 bbl/d, followed by India at over 91,000 bbl/d in 2012.

In 2011, Brazil’s liquid fuels consumption surpassed its liquid fuels production for the first time since 2007. Brazil’s economy grew rapidly in 2011, driving up fuel demand. At the same time, reduced ethanol production and rising ethanol prices caused Brazil to import additional supplies of refined products from the United States. EIA projects that consumption will continue to be greater than production up through 2014. According to the ANP, Brazil imported nearly 470,000 bbl/d of refined product in 2012 of which 166,000 bbl/d came from the United States. Brazil’s imports of product from the United States rose 6% from the previous year and increased 219% compared with the level five years earlier. According to customs data, Argentina was the number one exporter of products to Brazil in 2012, followed by the United States and Algeria.

Today, Brazil is the second largest producer and consumer of ethanol in the world after the United States. According to the ANP, in 2012, Brazil produced 405,000 bbl/d of ethanol, matching the declined 2011 levels. A combination of high world sugar prices, a poor sugar cane harvest, and underinvestment resulted in a precipitous decline in ethanol production in 2011. This shortage forced Brazil to import corn ethanol from the United States.

The Brazilian government has taken measures to prevent future ethanol supply shortages and increase government involvement in the sector. In May 2013, the government raised the blend requirement in gasoline back to 25%. Most of Brazil’s cars are capable of running on pure ethanol or gasoline that is blended with 20% to 25% ethanol by volume. It also brought regulation of the ethanol sector under the jurisdiction of the ANP and announced plans to expand Petrobras’ presence in the ethanol market. In the medium term, Brazil plans to export ethanol to the United States, which recently removed tariffs on Brazilian sugar cane ethanol.

See full report for more details.