The Opportunities and Risks Associated with Exploitation of New Oilfields in Brazil

Abstract

Brazil’s domestic energy production has risen in recent years, particularly since the discovery in 2007 of large oil and gas deposits in its pre-salt oilfields. This was an important event in the history of the energy sector in Brazil. The discovery of the new oil fields may be an opportunity for Brazil to improve its energy security and strengthen its position in the international arena. But the future of energy security of Brazil may be threatened by a recent scandal with country’s biggest energy company, Petrobras, mired in national debt, low oil prices, and the potential hazards of the oil industry for the environment. This article reviews the potential benefits and risks of exploitation of Brazil’s new oil deposits.