Industry Observatory
O&G sector Overview
The oil and natural gas sector is a strategic pillar of the Brazilian economy, contributing to economic growth, job creation, and tax revenue. Accounting for approximately 17% of the industrial GDP, the sector attracts investment and reinforces the country's energy security, currently producing more than 4.3 million barrels of oil and gas per day. Brazil is the eighth largest oil producer and consumer in the world and has the ninth largest refining park. Domestic production and exports of derivatives consolidate the country as a major global player, while the sector delivers efficiency, safety, and environmental awareness at every stage of the chain.
Balance of Trade
The export of oil and derivatives is a highlight in Brazil's balance of trade, generating revenues of over US$ 57 billion in 2024 and a surplus of over US$ 110 billion since 2020. Brazil remains a net exporter, with a balance of over 1 million barrels per day, the result of decades of opening the Exploration & Production (E&P), natural gas, and refining markets, attracting new players and investments.
Job Creation
The O&G sector is also a major employer, with 1.6 million direct and indirect jobs. In upstream alone, production is expected to maintain an annual average of 344,000 jobs through 2033. In addition to boosting the economy, the sector contributes to investments in education, health, and social policies, reinforcing its importance for the country's development.
Energy Evolution
Brazil stands out globally for its diversified energy mix, with 49% coming from renewable sources, and its strategic role in the energy transition. The O&G sector invests in low-carbon energies (i.e., wind, solar, and green hydrogen), as well as carbon capture and storage (CCUS) technologies. The transition is understood as an energy evolution, which must be gradual and just, balancing emissions reduction, energy security, and economic development.
The IBP emphasizes that the energy transition must be planned and fair, considering social, economic, and regional impacts.
The institute highlights the importance of innovation and technological development, as well as the strategic role of oil and natural gas in non-energy uses. The IBP's approach emphasizes that the sector is an essential ally in achieving a low-carbon economy safely and sustainably.
To read the full statement on the energy transition, click here and for more content on the topic, access Beyond the Surface.