Brazil 4 Business

Oil, gas and biofuels

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Largest automobile markets in 2014 (Thousand car sold)

Brazil is the 4th world's largest automobile market. This is reflected directly in the fuel production need and the entire chain associated with the topic. According to data from the National Petroleum Agency, the increasing demand, coupled with reduced production, dangled the Brazilian trade balance for imports.
In response, the infrastructure related to oil promises to receive, by 2017, nearly R$ 500 billion in investments with the intention of developing the potential of the pre-salt, aiming to put Brazil in the group of the largest exporters in the world. The strategy has a front related to the volume, building and installing new production facilities, especially in the region of Santos, and another focused on developing new technologies to lower costs and make the Brazilian oil internationally competitive. The oil refinery is located essentially in the states of São Paulo, Bahia and Rio de Janeiro. 

In 2nd place, amongst the largest producers in the world of ethanol, sugar and alcohol sector was awarded in 2014 for the inclusion into Reintegra [Reintegration]- an Incentive Program for exports in which the government returns up to 3% of the tariff costs on exports - Favouring the margin of producers who can invest this working capital in improvements to reduce production and other costs. Currently, ethanol production is concentrated essentially in the Southeast and Central-West regions since the main raw material for Brazilian fuel is sugarcane and these regions have the ideal climate for growing the same.
According to the National Electric Energy Agency (ANEEL), thermoelectric plants represent 28.25% of the national energy matrix. Therefore, the Natural Gas production and distribution market is critical in Brazil. Like all previous products, the influence of fuels is not only in the production activity, but also in the related basic resources. The entire chain of associated suppliers is very sensitive to heating of the sector, especially Machines and Equipment and Electrical Equipment.


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