Written by: Karim Hammam
Brazil is adopting a dual strategy in the energy sector, seeking to consolidate its position as a global leader in clean energy while simultaneously insisting on expanding oil and gas exploration and production. These trends come in light of declining production in older basins such as Campos and Espírito Santo, which has pushed the government to search for new reserves to avoid shifting from an exporter to an importer of hydrocarbons.
Production challenges and the necessity of exploration
The Equatorial Margin region is a key focus for future exploration, with projections indicating it contains more than 30 billion barrels of oil. Since 2025, these areas have seen intensive bidding processes that have attracted major global companies such as Chevron, ExxonMobil, Equinor, and Shell, alongside the national company Petrobras. The Brazilian government emphasizes that these expansions do not conflict with energy transition goals, but rather provide the necessary revenue to fund investments in green energy and strengthen the country's national security.
Economic opportunities and geopolitical bets
Brazil is banking on the oil and gas sector to contribute to creating hundreds of thousands of jobs, especially in less developed regions that rely economically on this industry. From a geopolitical perspective, Brazil sees a strategic opportunity to strengthen its position in global energy supply chains, especially in light of the disruptions occurring in vital areas such as the Strait of Hormuz, which increases the attractiveness of Brazilian oil to Asian and European markets.
The future of refining and sustainability
Despite the expansion in exploration activities, Brazil does not plan to build new oil refineries, as Petrobras's investments in the refining sector are focusing on sustainable aviation fuel and green diesel, anticipating future requirements. The Brazilian leadership stresses that locally extracted oil has a carbon footprint about 40% lower than the global average, thanks to advanced technologies in high-productivity wells and carbon capture operations, which allows the country to balance economic growth and environmental sustainability commitments in the medium term.
