Brazil is marching towards becoming the biggest supplier of offshore oil globally, contributing some 1.3 million BPD in 2025, World Oil reports. Brazil share of the global offshore oil output will come in at 23%.The United States will be a distant second, with 655,000 BPD in offshore oil production in 2025, or 11% of the global total. GlobalData senior oil and gas analyst Effuah Alleyne said that Saudi Arabia dominates liquids production globally, mostly from already producing projects, Brazil leads crude and condensates production from upcoming/new projects.
Alleyne added that Brazil prolific pre-salt layer in the Santos Basin has produced a strong portfolio of offshore projects. These projects have shown robust economics, such as development breakeven oil prices averaging US$40 per barrel and have significantly contributed to South America’s trend of surpassing North America’s offshore production by 2023.
Brazil is one of the hottest oil exploration locations globally precisely because of the low cost of its reserves. Some offshore projects in can break even at $35 per barrel and are prone to drop further to less than $30 per barrel in the future.
Despite the energy transition push and the devastation that the pandemic wrought on the industry, pre-salt zone remains an attractive investment destination. This year, one large-scale project in the Santos Basin got its final investment decision, and another saw its expansion approved.Earlier this year, National Petroleum Agency, ANP, forecast investment in oil exploration and production this year could reach $13 billion. Last year, some 1 billion barrels of oil equivalent of reserves were discovered in the region, with Mexico and Brazil is accounting for more than 90% of these volumes.