The Banking Executive Magazine - August 2021

duction, put it on route to double its output by 2030, making it the world’s fifth-largest exporter, a target that appears realistic thanks to its low cost-oil giving the country a compet- itive advantage over many OPEC+ states. In fact, Brazil could contribute as much as 23 percent, around 1.3 bil- lion bpd of oil, by 2025 if its ambi- tious new oil projects go as planned. At present, 29 crude developments are expected to commence opera- tions between 2021 and 2025, in- cluding key projects in Bacalhau, Buzios V (Franco), and Lula Oeste. As the rest of the world speaks of en- ergy transitions, from fossil fuels to renewable alternatives, Brazil is steadfast in its position on the black gold, it will drill for as long as there is demand. Experts point to the not-so-distant fu- ture in which oil and gas demand will diminish as renewable energy production becomes more main- stream. Meanwhile, Brazil is pump- ing money and labor into its already well-established oil industry, with a government that strongly supports the exploitation of the country’s nat- ural resources in support of the na- tional economy. While oil majors may no longer be pursuing huge expansion projects like those seen in Brazil in a decade or so, and demand remains high, Big Oil is looking to the Latin giant to propel the industry forward before this momentum is halted. With Venezuela looking to put itself back on the map as an oil giant, pending the easing of U.S. sanctions, and Big Oil is investing heavily in significant offshore projects in Guyana and Surinam, Latin America appears to be committed to pursuing its oil future. As European powers and the U.S. push for greener poli- cies and a gradual movement away from fossil fuels, Latin America and the Caribbean are finally seeing it is time to shine as the world still needs oil to survive during this long transi- tion period. While the push for greater explo- ration is strong, leading the govern- ment to predict another oil boom in the coming years, experts are less ISSUE 152 AUGUST 2021 the BANKING EXECUTIVE 21 A Promising Future for Brazil’s Oil Production