The Brazilian Kickoff

On Wednesday, November 30th the Council on Foreign Relations held the Rio de Janeiro Investment Conference in New York City to discuss prospects for Brazilian growth and the role of foreign investment in Brazil’s rapidly growing economy. Much of the discussion centered on challenges and opportunities in the Brazilian energy sector, which will be pivotal in the country’s economic prospects. Development of the enormous crude oil discoveries in Brazil’s pre-salt basins could help to bring the country’s output to up to a projected 8 million barrels per day (mbd) by 2020. This production level would easily put Brazil in the top five of producing countries, with export capacity expected to be around 4.5 mbd over the same time. The technological challenges of developing these reserves have led some to express skepticism about the achievability of Brazil’s ambitious targets. However, there is no denying the massive potential for incremental growth in Brazilian crude oil supply, which is bound to further amplify the importance of Atlantic Basin trades in global tanker demand. Download here