Brazil is the 7th largest consumer in the world and the largest in South America. At the same time, it is an important oil and gas producer in the region and the world's second largest ethanol fuel producer. The government agencies responsible for energy policy are the Ministry of Mines and Energy (MME), the National Council for Energy Policy (CNPE), the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and the National Agency of Electricity (ANEEL).OECD/IEA. World Energy Outlook 2006. State-owned companies Petrobras and Eletrobras are the major companies in Brazil's energy sector, as well as Latin America's.Silvestre, B. S., Dalcol, P. R. T. Geographical proximity and innovation: Evidences from the Campos Basin oil & gas industrial agglomeration — Brazil. Technovation (2009),
Overview
In 2020, Brazil derived roughly one third of its total energy supply from oil, and another third from biofuels. Access to electricity across the country is almost universal, making Brazil’s energy sector one of the least carbon-intensive in the world. Denationalized companies and transnational shareholders are significant part of energy corporations in Brazil. + Brazil's place in the world rankings, 2019Data and statistics : Brazil - Electricity 2019, International Energy Agency, retrieved October 2021. Energy source indicator rank year quantity unity % world 'comments' Crude oilProduction 9º 2019p 145 Mt 3.3 %1º : United States (742 Mt), 2º : Russia (560 Mt), 3º : Saudi Arabia (546 Mt) ElectricityProduction 8º 2018 601 TWh 2.3 % 1º : China (7149 TWh), 2º : United States (4434 TWh)Net import 3º 2018 35 TWh 9.3 % 1º : United States (44 TWh), 2º : Italy (44 TWh)Electricity production by sourceRenewables 3º 2018 495 TWh 7.4 % 1º : China (1833 TWh), 2º : United States (743 TWh) HydroelectricityProduction 2º 2018 389 TWh 9.0 % 1º : China (1232 TWh), 3º : Canada (386 TWh)Power installed 2º 2018 105 GW 8.1 % 1º : China (352 GW), 3º : United States (103 GW)% hydro/electric * 2º 2018 64.7 % 1º : Norway (95.0 %) Wind powerElectricity production 7º 2018 48 TWh 3,8 % 1º : China (366 TWh), 2º : United States (276 TWh)Power installed 8º 2018 14.4 GW 2.6 % 1º : China (184.3 GW)% wind/electric * 4º 2018 8.1 % 1º : Spain (18.5 %)BiomassPrimary energy consumption 5º 2019 3915 PJ 6.9 % 1º : India (7998 PJ), 2º : China (5299 PJ), 3º : Nigeria (4929 PJ), 4º : United States (4540 PJ)Electricity production 3º 2019 54.9 TWh 10.1 % 1º : China (111,1 TWh), 2º : United States (56 TWh)* % hydro/electric : share of hydroelectricity in electricity production (ranking on the top 10 producers) 2019p = provisional estimate for 2019.
Energy in Brazil, 2004–2013IEA Key World Energy Statistics Statistics 2015 , 2014 (2012R as in November 2015 + 2012 as in March 2014 is comparable to previous years statistical calculation criteria, 2013 , 2012 , 2011 , 2010 , 2009 , 2006 IEA October, crude oil p.11, coal p. 13 gas p. 15 Capita Prim. energy Production Import Electricity CO2-emission Million TWh TWh TWh TWh Mt 2004 183.9 2,382 2,050 364 360 323 2007 191.6 2,740 2,507 289 413 347 2008 192.0 2,890 2,653 314 429 365 2009 193.7 2,793 2,679 182 426 338 2010 195.0 3,089 2,865 289 465 388 2012 196.7 3,140 2,898 333 480 408 2012R 198.7 3,276 2,930 391 498 440 2013 200.0 3,415 2,941 531 517 5172014203.53,450504 Change 2004-10 6.0% 30% 40% -21% 29% 20% Mtoe = 11.63 TWh, Prim. energy includes energy losses 2012R = CO2 calculation criteria changed, numbers updated
Total energy matrix and electric energy matrix
The main characteristic of the Brazilian energy matrix is that it is much more renewable than that of the world. While in 2019 the world matrix was only 14% made up of renewable energy, Brazil's was at 45%. Petroleum and oil products made up 34.3% of the matrix; sugar cane derivatives, 18%; hydraulic energy, 12.4%; natural gas, 12.2%; firewood and charcoal, 8.8%; varied renewable energies, 7%; mineral coal, 5.3%; nuclear, 1.4%, and other non-renewable energies, 0.6%.Matriz Energética e Elétrica
In the electric energy matrix, the difference between Brazil and the world is even greater: while the world only had 25% of renewable electric energy in 2019, Brazil had 83%. The Brazilian electric matrix is composed of: hydroelectric energy, 64.9%; biomass, 8.4%; wind energy, 8.6%; solar electric, 1%; natural gas, 9.3%; oil products, 2%; nuclear, 2.5%; coal and derivatives, 3.3%.
Energy and electricity mix
Energy In 2021, Brazil's energy consumption comprised a mix of sources, with crude oil and other petroleum liquids making up 44.2%, followed by renewables (including hydro) at 37.5%, natural gas at 11.6%, coal at 5.5%, and nuclear at 1.3%. Brazil's total energy production grew by an average annual rate of 1.5% from 2011 to 2021, primarily fueled by petroleum and other liquids. In 2021, Brazil's energy production accounted for 2.0% of global production and 48.8% of South America's total. Energy consumption in Brazil increased at a slower pace, with an average annual growth rate of 0.5% between 2011 and 2021, compared to 3.3% between 2000 and 2010. Brazil continues to be one of the world's largest energy consumers, accounting for 2.0% of global consumption and 53.3% of South America’s consumption.
Electricity In 2021, Brazil's electricity generation was primarily driven by renewables, accounting for 75.9% of the total electricity produced, with hydro contributing 54.8% and other renewables making up 21.1%. Following renewables, natural gas contributed 14.5%, while coal and nuclear energy each contributed 4.0% and 2.2%, respectively. Crude oil and other petroleum liquids contributed 3.4%. Brazil ranks as the world's third-largest hydropower producer, following China and Canada. In 2021, Brazil's hydroelectricity generation amounted to 363 terawatt-hours, representing 9% of global hydropower output.
Energy sector reforms At the end of the 1990s and the beginning of the 2000s, Brazil's energy sector underwent market liberalization. In 1997, the Petroleum Investment Law was adopted, establishing a legal and regulatory framework, and liberalizing oil production. It created the CNPE and the ANP, increased use of natural gas, increased competition in the energy market, and increased investment in power generation. The state monopoly on oil and gas exploration ended, and energy subsidies were reduced. However, the government retained monopoly control of key energy complexes and regulated the price of certain energy products.
Current government policies concentrate mainly on improving energy efficiency in both residential and industrial sectors, as well as increasing use of renewable energy. Further restructuring of the energy sector will be one of the key issues for ensuring sufficient energy investments to meet the rising need for fuel and electricity.
The expansion of Brazil's LNG market is attributed to increased domestic usage, developments in infrastructure, and reforms within the market. In 2021, natural gas represented 7% of Brazil's total energy production, up from 5% in 2011, and constituted 12% of total energy consumption, up from 8% in 2011. The New Gas Law, approved in 2020, aims to foster a more competitive market, facilitate third-party access to infrastructure, and attract private investment.
Energy sources
Oil
Brazil is the world's 8th-largest oil producer. Up to 1997, the government-owned Petróleo Brasileiro S.A. (Petrobras) had a monopoly on oil. More than 50 oil companies were engaged in oil exploration by 2006. The only global oil producer is Petrobras, with an output of more than of oil equivalent per day. It is also a major distributor of oil products, and owns oil refineries and oil tankers.
In 2006, Brazil had the second-largest proven oil reserves in South America after Venezuela. The vast majority of proven reserves were located in the Campos and Santos offshore basins off the southeast coast of Brazil.Country Analysis Brief. Brazil, US Energy Information Agency, August 2006 In November 2007, Petrobras announced that it believed the offshore Tupi oil field had between 5 and of recoverable light oil and neighbouring fields may even contain more, which all in all could result in Brazil becoming one of the largest producers of oil in the world.
Brazil has been a net exporter of oil since 2011. However, the country still imports some light oil from the Middle East, because several refineries, built in the 1960s and 1970s under the military government, are not suited to process the heavy oil in Brazilian reserves, discovered decades later.
Transpetro, a wholly owned subsidiary of Petrobras, operates a crude oil transport network. The system consists of of crude oil pipelines, coastal import terminals, and inland storage facilities.
In 2022, Brazil ranked second in Central and South America for crude oil reserves, with approximately 13.24 billion barrels, behind Venezuela.
Oil shale
Brazil has the world's second largest known oil shale (the Irati shale and lacustrine deposits) resources and has second largest shale oil production after Estonia. Oil shale resources lie in São Mateus do Sul, Paraná, and in Vale do Paraíba. Brazil has developed the world's largest surface oil shale pyrolysis retort Petrosix, operated by Petrobras. Production in 1999 was about 200,000 tonnes.Review on oil shale data , by Jean Laherrere, September 2005
Natural gas
As of January 2023, Brazil possesses natural gas reserves totaling approximately 13.4 trillion cubic feet (Tcf), placing it fourth among Central and South American nations. These reserves primarily consist of associated gas from oil fields, notably within the pre-salt reserves. Approximately 76% of these reserves are located offshore in the Santos Basin, with the remaining 24% situated onshore, primarily in the Solimões Basin and Paranaíba Basin.
At the end of 2017, the proven reserves of Brazil's natural gas were 369 × 109 m3, with possible reserves expected to be 2 times higher. Petrobras controls over 90 percent of Brazil's natural gas reserves.
Brazil's inland gas pipeline systems are operated by Petrobras subsidiary Transpetro. In 2005, construction began on the Gas Unificação (Gasun pipeline) which will link Mato Grosso do Sul in southwest Brazil, to Maranhão in the northeast. China's Sinopec is a contractor for the Gasene pipeline, which will link the northeast and southeast networks. Petrobras is also constructing the Urucu-Manaus pipeline, which will link the Urucu gas reserves to power plants in the state of Amazonas. In 2015 the sale of 255 parcels for fracking was opposed with protest actions during and at the auction.
In 2005, the gas production was 18.7 × 109 m3, which is less than the natural gas consumption of Brazil. Gas imports come mainly from Bolivia's Rio Grande basin through the Bolivia-Brazil gas pipeline (Gasbol pipeline), from Argentina through the Transportadora de Gas de Mercosur pipeline (Paraná-Uruguaiana pipeline), and from LNG imports. Brazil has held talks with Venezuela and Argentina about building a new pipeline system Gran Gasoducto del Sur linking the three countries; however, the plan has not moved beyond the planning stages.
Coal In 2004, Brazil had total coal reserves of about 30 billion tonnes, but the deposits vary by the quality and quantity. The proved recoverable reserves were approximately 10 billion tonnes. In 2004 Brazil produced 5.4 million tonnes of coal, while coal consumption reached 21.9 million tonnes. Almost all of Brazil's coal output is steam coal, of which about 85% is fired in power stations. Reserves of sub-bituminous coal are located mostly in the states of Rio Grande do Sul, Santa Catarina and Paraná.
Nuclear