Brazils real estate market is set for huge growth in the wake of the country's latest oil finds, as the positive effects of a thriving oil market are felt throughout the Brazilian economy.
By 2014 Brazil is set to be one of the worlds oil superpowers and based on current projections, it has sufficient crude oil reserves to export for at least the next half a century. This will underpin the BRIC nations evolution into a leading world political player
The Finance Minister went on to say that Brazil will be producing 3.6 million barrels a day by 2017. Domestic demand in Brazil is projected at 2.6 million barrels, which would leave Brazil with a substantial surplus for export. The Government is also planning to invest in the petrochemical arena so that oil derivatives can be sold and not just crude.
Petrobras, the country's leading manager of oil and gas exploration, has grown exponentially in the last 12 months in the wake of the continued oil finds. A recent survey by Ernst & Young ranked it as the worlds eighth biggest company in market value.
With the recent huge finds and massive leaps forward in technology accomplished by Petrobas, its market value has risen from $95.9 billion just over a year ago to $164.8 billion.
The discovery of another huge oil find this September in Brazils Santos Basin, Petrobas in conjunction with the United Kingdoms BG Group and Spain's Repsol was the result of a fourth well was drilled in the BM-S-9 block off the country's south-eastern coast.
This was the second find in less than a week in the Santos region and adds to the previous deposit that holds the equivalent of 1.2 to 2bn barrels of recoverable oil and gas. A company statement did not say how much larger the new discovery would make the reserves.
Petrobras CEO Jose Sergio Gabrielli said that the company will no longer invest overseas as the company will concentrate on its primary role to develop all of the recently discovered offshore oil reserves.
President Lula da Silvas government is proposing assigning the dominant role in Brazils petroleum industry to Petrobras in a move to increase control over the energy sector. This is currently being debated in Congress.
The company will be given operator status for all the finds and will also serve as the commercial outlet for the government's oil take, refining the crude oil at several planned refineries for sale both here and abroad. A new state-owned company, Petrosal will be created to manage the government's precious assets. Petrosal could eventually overshadow Petrobras, according to some analysts.
The latest developments in the petroleum sector have provided a huge boost to Brazils prospects of becoming a leading oil producer. We are in a fantastic moment, Jose Sergio Gabrielli, Petrobras chief executive, said on Monday.
By 2014 Brazil is set to be one of the worlds oil superpowers and based on current projections, it has sufficient crude oil reserves to export for at least the next half a century. This will underpin the BRIC nations evolution into a leading world political player
The Finance Minister went on to say that Brazil will be producing 3.6 million barrels a day by 2017. Domestic demand in Brazil is projected at 2.6 million barrels, which would leave Brazil with a substantial surplus for export. The Government is also planning to invest in the petrochemical arena so that oil derivatives can be sold and not just crude.
Petrobras, the country's leading manager of oil and gas exploration, has grown exponentially in the last 12 months in the wake of the continued oil finds. A recent survey by Ernst & Young ranked it as the worlds eighth biggest company in market value.
With the recent huge finds and massive leaps forward in technology accomplished by Petrobas, its market value has risen from $95.9 billion just over a year ago to $164.8 billion.
The discovery of another huge oil find this September in Brazils Santos Basin, Petrobas in conjunction with the United Kingdoms BG Group and Spain's Repsol was the result of a fourth well was drilled in the BM-S-9 block off the country's south-eastern coast.
This was the second find in less than a week in the Santos region and adds to the previous deposit that holds the equivalent of 1.2 to 2bn barrels of recoverable oil and gas. A company statement did not say how much larger the new discovery would make the reserves.
Petrobras CEO Jose Sergio Gabrielli said that the company will no longer invest overseas as the company will concentrate on its primary role to develop all of the recently discovered offshore oil reserves.
President Lula da Silvas government is proposing assigning the dominant role in Brazils petroleum industry to Petrobras in a move to increase control over the energy sector. This is currently being debated in Congress.
The company will be given operator status for all the finds and will also serve as the commercial outlet for the government's oil take, refining the crude oil at several planned refineries for sale both here and abroad. A new state-owned company, Petrosal will be created to manage the government's precious assets. Petrosal could eventually overshadow Petrobras, according to some analysts.
The latest developments in the petroleum sector have provided a huge boost to Brazils prospects of becoming a leading oil producer. We are in a fantastic moment, Jose Sergio Gabrielli, Petrobras chief executive, said on Monday.
About the Author:
This piece was written by Ginny Naish the Marketing Director of Property Dreams Brazil, a Brazilian real estate consultancy based in Joao Pessoa, Paraiba. Property Dreams Brazil can provide consultancy services with regard to property investment, land, re-location and real estate marketing. Please visit Property Dreams Brazil for additional information.
