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Today is Friday - December/14/2018
Brazil becomes largest oil producer in Latin America

Brazil becomes largest oil producer in Latin America

Incentives to competition, strengthening of Petrobras and changes in the regulatory framework of the pre-salt were some of the measures that contributed to increased production

The federal government's reforms in the energy sector, ranging from the strengthening of Petrobras to changes in the pre-salt regulatory framework, have helped Brazil become the largest oil producer in Latin America, ahead of major producers such as Mexico and Venezuela.
Data from the National Oil, Gas and Biofuels Agency (ANP) shows that oil production in Brazil increased by 3.2%. This is the same rate as OPEC countries, including global oil giants like Saudi Arabia and the United Arab Emirates.
Experts assess that the investments made by Petrobras in recent years, especially in the pre-salt area, have contributed to the increase in output. They point out that measures taken to strengthen the sector, such as the framework that exempts the State oil company from being the sole operator of the pre-salt, can generate more competition and increase investments.
"What is expected is that, in theory, Brazil’s potential for investments in the oil field in will be leveraged. With more than one company investing, there is a greater possibility of investments by companies," said Walter de Vitto, an oil and gas analyst at Tendências Consultoria.