Oil production in Brazil is expected to double by 2023.
The Ten-Year Energy Plan released this Wednesday, the 10th, by the Energy Research Company (EPE), indicates that Brazil's oil production will reach approximately 5 million barrels per day by 2023; two-thirds of this total should be extracted from the pre-salt layer; according to the new ten-year plan, Brazil's oil demand in 2023 will reach 3,5 million bpd, with a surplus of 1,5 million bpd for export; ethanol production will grow less than oil production, but will still increase by 71,4%.
SAO PAULO (Reuters) - Brazil's oil production will reach approximately 5 million barrels per day (bpd) by 2023, with two-thirds expected to be extracted from the pre-salt layer, according to the Ten-Year Energy Plan released this Wednesday, the 10th, by the Energy Research Company (EPE).
Despite representing more than double Brazil's current oil production of approximately 2,2 million bpd, EPE's forecast is about 500 barrels/day lower than the total projected in the previous ten-year plan for 2022, released in December of last year.
EPE did not release comparative data, nor did it present any reasons for the revised projection on Wednesday.
According to the new ten-year plan, Brazil's oil demand in 2023 will reach 3,5 million barrels per day (bpd), with a surplus of 1,5 million bpd for export.
Ethanol production will grow less than oil production, but will still increase by 71,4 percent.
"The growing demand for fuel by vehicles... will also lead to a significant increase in the supply of hydrous ethanol fuel at an average rate of 7,6 percent per year," EPE said in a statement.
Thus, EPE added, domestic ethanol production is expected to grow from the current 28 billion liters to 48 billion liters in 2023.
The previous forecast, for 2022, was for a national ethanol supply of 53,8 billion liters.
TRILLION DOLLAR INVESTMENTS
The volume of investments associated with the expansion projected in the 2023 PDE reaches 1,26 trillion reais over the next 10 years.
Investments planned for oil and natural gas exploration and production should represent approximately 62 percent of the total expected, with the electricity sector accounting for approximately 24 percent, while the sum of total investments in petroleum derivatives and biofuels should represent 14 percent of the total volume expected for the period.
In its 2022 plan, EPE projected total investments of around 1,2 trillion reais, of which 22,6 percent were directed to electricity; 72,5 percent to oil and natural gas; and 4,9 percent to biofuels.
(By Roberto Samora)