According to Oil and Gas Journal (OGJ), Brazil had 12.2 billion barrels of proven oil reserves in 2008, second-largest in South America after Venezuela. The offshore Campos and Santos Basins, located on the country’s southeast coast, contain the vast majority of Brazil’s proven reserves. In 2007, Brazil produced 2.28 million barrels per day (bbl/d) of oil, of which 77 percent was crude oil. Brazil’s oil production has risen steadily in recent years, with the country’s oil production in 2007 about 5 percent (or 110,000 bbl/d) higher than 2006. EIA estimates that Brazil’s oil consumption in 2007 averaged 2.37 million bbl/d. Based on its September 2008 Short Term Energy Outlook, EIA forecasts Brazilian oil production to reach 2.41 million bbl/d in 2008 and 2.72 million bbl/d in 2009. As a result of this rising oil production, EIA estimates that Brazil will become a net oil exporter by 2009.
ERH Price at posting:
24.5¢ Sentiment: ST Buy Disclosure: Held
