BrazilWorks
Information and Analysis about United States-Brazil Relations
Information and Analysis about United States-Brazil Relations
Energy
| Brazil and the Pre-Sal Oil Discoveries |
The U.S. Government's International Energy Information Administration (EIA),
citing the Oil and Gas Journal (OGJ), concludes that Brazil had 12.2 billion barrels
of proven oil reserves in 2008, second-largest in South America after Venezuela.
The offshore Campos and Santos Basins, located on the country’s southeast
coast, contain the vast majority of Brazil’s proven reserves. In 2007, Brazil
produced 2.28 million barrels per day (bbl/d) of oil, of which 77 percent was
crude oil. Brazil’s oil production has risen steadily in recent years, with the
country’s oil production in 2007 about 5 percent (or 110,000 bbl/d) higher than
2006. EIA estimates that Brazil’s oil consumption in 2007 averaged 2.37 million
bbl/d. Based on its September 2008 Short Term Energy Outlook, EIA forecasts
Brazilian oil production to reach 2.41 million bbl/d in 2008 and 2.72 million bbl/d
in 2009. As a result of this rising oil production, EIA estimates that Brazil will
become a net oil exporter by 2009 and will rival Venezuela as Latin America's
second largest oil producer. Read more.
citing the Oil and Gas Journal (OGJ), concludes that Brazil had 12.2 billion barrels
of proven oil reserves in 2008, second-largest in South America after Venezuela.
The offshore Campos and Santos Basins, located on the country’s southeast
coast, contain the vast majority of Brazil’s proven reserves. In 2007, Brazil
produced 2.28 million barrels per day (bbl/d) of oil, of which 77 percent was
crude oil. Brazil’s oil production has risen steadily in recent years, with the
country’s oil production in 2007 about 5 percent (or 110,000 bbl/d) higher than
2006. EIA estimates that Brazil’s oil consumption in 2007 averaged 2.37 million
bbl/d. Based on its September 2008 Short Term Energy Outlook, EIA forecasts
Brazilian oil production to reach 2.41 million bbl/d in 2008 and 2.72 million bbl/d
in 2009. As a result of this rising oil production, EIA estimates that Brazil will
become a net oil exporter by 2009 and will rival Venezuela as Latin America's
second largest oil producer. Read more.
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Click here to read The Regulatory Framework
of the Pre-Salt, a report prepared by Brazil's
Ministry of Mines and Energy.
of the Pre-Salt, a report prepared by Brazil's
Ministry of Mines and Energy.
| The Debate on Biofuels |
Renewable Cooperation?
Reflections on United States-Brazil
Cooperation on Biofuels
by Mark S. Langevin, Ph.D.
in American Diplomacy
An initial test of President-Elect Barack Obama’s energy
plan could be his treatment of the Memorandum of
Understanding between the United States and Brazil to
Advance Cooperation on Biofuels. Last year Presidents
George Bush of the U.S. and Luis Inácio Lula da Silva of
Brazil signed the memorandum to sidestep the ongoing
commercial conflict stewing over stiff U.S. tariffs on
Brazilian ethanol imports by agreeing on a host of
initiatives to promote biofuels around the world.
President-Elect Obama has called for a national effort to
reform our energy system and move toward a low-
carbon or “green” economy, including the development
of “the next generation of biofuels.” However, he has
also been a stalwart supporter of corn based ethanol and
argued on the campaign trail that “It does not serve our
national and economic security to replace imported oil
with Brazilian ethanol.” As President, Obama will face
the double edged challenge of a disjointed pattern of
cooperation and conflict with Brazil over ethanol in
particular, and trade in general, and an electorate that
expects immediate action to lessen the price of energy,
and if possible, through renewable sources. With the
bilateral accord already in hand, the Obama
administration must decide to renew the bilateral accord
or simply let it run out of gas. Read more.
Reflections on United States-Brazil
Cooperation on Biofuels
by Mark S. Langevin, Ph.D.
in American Diplomacy
An initial test of President-Elect Barack Obama’s energy
plan could be his treatment of the Memorandum of
Understanding between the United States and Brazil to
Advance Cooperation on Biofuels. Last year Presidents
George Bush of the U.S. and Luis Inácio Lula da Silva of
Brazil signed the memorandum to sidestep the ongoing
commercial conflict stewing over stiff U.S. tariffs on
Brazilian ethanol imports by agreeing on a host of
initiatives to promote biofuels around the world.
President-Elect Obama has called for a national effort to
reform our energy system and move toward a low-
carbon or “green” economy, including the development
of “the next generation of biofuels.” However, he has
also been a stalwart supporter of corn based ethanol and
argued on the campaign trail that “It does not serve our
national and economic security to replace imported oil
with Brazilian ethanol.” As President, Obama will face
the double edged challenge of a disjointed pattern of
cooperation and conflict with Brazil over ethanol in
particular, and trade in general, and an electorate that
expects immediate action to lessen the price of energy,
and if possible, through renewable sources. With the
bilateral accord already in hand, the Obama
administration must decide to renew the bilateral accord
or simply let it run out of gas. Read more.
United States - Brazil
Biofuel Cooperation
Bibliography
Memorandum of Understanding
November 20, 2008 Joint Statement by the United
States and Brazil Announcing the Expansion of
Cooperation on Biofuels to Advance Energy Security and
Promote Sustainable Development
U.S. House of Representatives 2007 US-Brazil Biofuel
Resolution
CRS Report
Ethanol and Other Biofuels: Potential for U.S.-Brazil
Energy Cooperation
Woodrow Wilson Center
Brazil Institute
Biofuel Central
Biofuel Cooperation
Bibliography
Memorandum of Understanding
November 20, 2008 Joint Statement by the United
States and Brazil Announcing the Expansion of
Cooperation on Biofuels to Advance Energy Security and
Promote Sustainable Development
U.S. House of Representatives 2007 US-Brazil Biofuel
Resolution
CRS Report
Ethanol and Other Biofuels: Potential for U.S.-Brazil
Energy Cooperation
Woodrow Wilson Center
Brazil Institute
Biofuel Central
| BrazilWorks P.O. Box 65630 Washington, D.C. 20035 Tel. 202-744-0072 www.brazilworks.org |
Aviation and
Alternative Fuels
Conference
Rio de Janeiro, Brazil
November 16-18,
2009
Sponsored by
International Civilian
Aviation Organization
and Brazil's National
Agency for Civilian
Aviation
ICAO’s work on this
issue responds to
Resolution A36-22:
Consolidated
statement of
continuing ICAO
policies and practices
related to
environmental
protection, which
recognized the urgent
need for more
concerted and
effective action to
reduce the carbon
footprint of
international aviation,
the importance of
research and
development in fuel
efficiency and
alternative fuels.
The Conference is
intended to be a
major event
showcasing the state
of the art in aviation
alternative fuels, and
an event at which a
road map for the
implementation of
aviation alternative
fuels will be
considered.
In preparation for this
Conference, ICAO
held a workshop on
aviation and
alternative fuels in
February 2009. On
the final day of this
workshop, a meeting
was convened to
establish a
Conference
organizing committee
responsible for
developing the
conference
programme.
Read more.
Alternative Fuels
Conference
Rio de Janeiro, Brazil
November 16-18,
2009
Sponsored by
International Civilian
Aviation Organization
and Brazil's National
Agency for Civilian
Aviation
ICAO’s work on this
issue responds to
Resolution A36-22:
Consolidated
statement of
continuing ICAO
policies and practices
related to
environmental
protection, which
recognized the urgent
need for more
concerted and
effective action to
reduce the carbon
footprint of
international aviation,
the importance of
research and
development in fuel
efficiency and
alternative fuels.
The Conference is
intended to be a
major event
showcasing the state
of the art in aviation
alternative fuels, and
an event at which a
road map for the
implementation of
aviation alternative
fuels will be
considered.
In preparation for this
Conference, ICAO
held a workshop on
aviation and
alternative fuels in
February 2009. On
the final day of this
workshop, a meeting
was convened to
establish a
Conference
organizing committee
responsible for
developing the
conference
programme.
Read more.
Brazil: Proposals For A New
Petroleum Regime In Brazil
Article by Ted Rhodes and Ivan Londres, published Sept. 10,
2009 by CMS/Cameron-Mckenna
Ever since the announcement of the Tupi discovery in
November 2007, the eyes of the international oil industry
have been firmly fixed on Brazil. This mega-field of 5 to 8
billion barrels of oil opened up an entirely new petroleum
province, dubbed the "pre-salt" because its reserves are
located beneath a thick layer of salt offshore Brazil. The pre-
salt is widely expected to contain 50 to 100 billion barrels of
oil, and promises to transform Brazil into one of the world's
leading petroleum producing nations.
The Brazilian Government responded quickly to the Tupi
discovery by withdrawing a number of blocks in the pre-salt
region from its ninth licensing round which was held in
December 2007. Shortly afterwards, it announced a major
review of Brazil's petroleum licensing regime. After almost
two years of deliberations, President Lula announced on 31
August 2009 his Government's proposals for major changes
to the country's petroleum laws.
It was decided early on that Brazil would not seek to
renegotiate existing petroleum concessions, even in the most
prolific regions. The new regime will only apply to unlicensed
acreage in the pre-salt region and other areas that may be
classified as strategic by the Federal Government.
The Government has put forward a suite of four proposals:
Read the entire article here.
Petroleum Regime In Brazil
Article by Ted Rhodes and Ivan Londres, published Sept. 10,
2009 by CMS/Cameron-Mckenna
Ever since the announcement of the Tupi discovery in
November 2007, the eyes of the international oil industry
have been firmly fixed on Brazil. This mega-field of 5 to 8
billion barrels of oil opened up an entirely new petroleum
province, dubbed the "pre-salt" because its reserves are
located beneath a thick layer of salt offshore Brazil. The pre-
salt is widely expected to contain 50 to 100 billion barrels of
oil, and promises to transform Brazil into one of the world's
leading petroleum producing nations.
The Brazilian Government responded quickly to the Tupi
discovery by withdrawing a number of blocks in the pre-salt
region from its ninth licensing round which was held in
December 2007. Shortly afterwards, it announced a major
review of Brazil's petroleum licensing regime. After almost
two years of deliberations, President Lula announced on 31
August 2009 his Government's proposals for major changes
to the country's petroleum laws.
It was decided early on that Brazil would not seek to
renegotiate existing petroleum concessions, even in the most
prolific regions. The new regime will only apply to unlicensed
acreage in the pre-salt region and other areas that may be
classified as strategic by the Federal Government.
The Government has put forward a suite of four proposals:
- Use of production sharing contracts (PSCs), rather
than the existing concessionary regime, in the pre-
salt and other strategic areas. Petrobras, the State
controlled oil company, will be granted operatorship
and a participating interest of at least 30% in all PSCs.
- Creation of a new State oil company, dubbed Petro-
Sal, to manage the State's interests in the PSCs and
the hydrocarbons produced.
- Grant of certain unlicensed pre-salt acreage to
Petrobras in consideration for the State's
subscription for additional Petrobras shares.
- Creation of a federal social fund to manage the
nation's revenues from PSCs.
Read the entire article here.
Petrobras to use
Cane Ethanol at
Thermoelectric Plant
Posted on December 8, 2009 by sugarcaneblog
Brazil’s Petrobras will be the first company to generate
electricity from ethanol, the
company’s Director of Gas and Energy said Tuesday.
Petrobras will use ethanol for
one 45 megawatt turbine at one of its power plant on
December 21, Petrobras Graca
Foster told Dow Jones. “It’s one more alternative (for
power generation) and is
especially interesting from an environmental point of
view,” Foster said. According to
other reports, Petrobras will use sugarcane ethanol in a
GE aeroderivative turbine at
the Juiz de Fora Thermoelectric Power Plant currently
running on diesel fuel. Read more at the Sugarcane Blog
Cane Ethanol at
Thermoelectric Plant
Posted on December 8, 2009 by sugarcaneblog
Brazil’s Petrobras will be the first company to generate
electricity from ethanol, the
company’s Director of Gas and Energy said Tuesday.
Petrobras will use ethanol for
one 45 megawatt turbine at one of its power plant on
December 21, Petrobras Graca
Foster told Dow Jones. “It’s one more alternative (for
power generation) and is
especially interesting from an environmental point of
view,” Foster said. According to
other reports, Petrobras will use sugarcane ethanol in a
GE aeroderivative turbine at
the Juiz de Fora Thermoelectric Power Plant currently
running on diesel fuel. Read more at the Sugarcane Blog
