Brazil to account for 30% of Latin American oil demand by 2013
Wednesday, May 20, 2009
Brazil will account for 31.80% of Latin American regional oil demand by 2013, while providing 27.36% of supply, according to a new report.
According to the Brazil Oil and Gas Report Q2 2009 by Business Monitor International forecasts, Demand from foreign buyers for oil exports is currently exceeding the pace of supply expansion and Brazil will account for over 30 per cent of Latin America's regional fuel demand by 2013.
The 2009 BMI gas oil forecast is for an average price of US$67 per barrel (bbl), assuming a monthly high of US$77.30/bbl in December which will be a 45% downturn from the 2008 level. This could see a significant amount of income generated for the Brazilian economy by oil sales meaning property investors in could benefit.
With Oil consumption between 2007 and 2018 is set to increase by 41%, Experts are forecasting an increase in Brazilian oil production of 135%, with crude volumes rising steadily to 4.3mn b/d by 2018. Gas production is expected to rise gradually, from an estimated 12.5bcm in 2008 to 35.0bcm by 2018. As a result of this, Brazilian real GDP growth is now predicted by BMI at 2.3% for 2009, followed by a 2.6% growth in 2010, 4.3% in 2011, followed by 4.5% in 2012 and 4.1% in 2013.
Recently, evidence of oil was found in the Santos Basin and the C-M-401 block in the Campos Basin off the coast off Rio de Janeiro. Paulo Wrobel, representative from the economic and trade sector of the Brazilian embassy commented: "There is a consensus now, not only in Brazil but amongst other countries, that they represent probably the largest discovery of oil of the last 25 to 30 years. It is quite a large deposit of oil and gas there; it is a boom area in Brazil and attracting a lot of interest from foreign investors because most of it is under control of the Brazil's state-controlled energy company Petrobras."
Petrobras announced plans to build five new oil refineries at a cost of more than £60 billion in Brazil by 2017. The refineries are likely to fuel demand in parts of the Brazilian property market, as they will lead to thousands of jobs being created both at the sites themselves and in support industries.
Social BookmarkingAccording to the Brazil Oil and Gas Report Q2 2009 by Business Monitor International forecasts, Demand from foreign buyers for oil exports is currently exceeding the pace of supply expansion and Brazil will account for over 30 per cent of Latin America's regional fuel demand by 2013.
The 2009 BMI gas oil forecast is for an average price of US$67 per barrel (bbl), assuming a monthly high of US$77.30/bbl in December which will be a 45% downturn from the 2008 level. This could see a significant amount of income generated for the Brazilian economy by oil sales meaning property investors in could benefit.
With Oil consumption between 2007 and 2018 is set to increase by 41%, Experts are forecasting an increase in Brazilian oil production of 135%, with crude volumes rising steadily to 4.3mn b/d by 2018. Gas production is expected to rise gradually, from an estimated 12.5bcm in 2008 to 35.0bcm by 2018. As a result of this, Brazilian real GDP growth is now predicted by BMI at 2.3% for 2009, followed by a 2.6% growth in 2010, 4.3% in 2011, followed by 4.5% in 2012 and 4.1% in 2013.
Recently, evidence of oil was found in the Santos Basin and the C-M-401 block in the Campos Basin off the coast off Rio de Janeiro. Paulo Wrobel, representative from the economic and trade sector of the Brazilian embassy commented: "There is a consensus now, not only in Brazil but amongst other countries, that they represent probably the largest discovery of oil of the last 25 to 30 years. It is quite a large deposit of oil and gas there; it is a boom area in Brazil and attracting a lot of interest from foreign investors because most of it is under control of the Brazil's state-controlled energy company Petrobras."
Petrobras announced plans to build five new oil refineries at a cost of more than £60 billion in Brazil by 2017. The refineries are likely to fuel demand in parts of the Brazilian property market, as they will lead to thousands of jobs being created both at the sites themselves and in support industries.
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