History of Oil in Brazil

Petroleum, a short word originating from the Latin petroleum, that is, oil from the stone. Short, but that provide untold riches responsible for substantial conflicts throughout history. The flammable mixture of oily substances is currently the main source of income for many countries, especially in the Middle East.

Petroleum is the basis of the formula for most of the fuels that supply cars around the world, in addition to other products, such as paraffin, kerosene and lubricants. Brazil is today configured as one of the largest oil producers in the world and occupies the position of largest producer in Latin America.

But how was the oil production process in Brazil? Furthermore, as is the history of Petrobras, the largest oil company in Latin America and the fourth largest energy producer in the world? check the chronology of the most important facts involving oil production in the country.

Chronology of the History of Petroleum in Brazil

Petroleum had already been an issue in the country since imperial times, when the Marquis of Olinda ceded it to José Barros de Pimentel the right to extract bitumen (mineral coal) on the banks of the Maraú River, in the state of Bahia. Since then, explorers and scholars have tried to drill for oil, often without success.

The Vargas Era was a period of intense promotion of oil exploration in the country, based on policies of nationalization and rationalization of production processes. In order to better discuss the facts recorded in the History of Petroleum in Brazil, we have drawn up a chronology with detailed explanations of each one:

• 1892: Eugênio Ferreira de Camargo drills the first oil well on his farm, located in Bofete, in the interior of São Paulo. The attempt resulted in finding sulphurous water at a depth of 488 m.
• 1932: installed the first oil refinery in the country, Refinaria Rio-Grandense de Petróleo, in the municipality of Uruguaiana, Rio Grande do Sul. At the time, oil imported from Chile was used.
• 1938: The National Petroleum Council was created, based on discussions on the use and exploration of Brazilian subsoil resources. With it, it was determined that the oil deposits would belong to the Union.
• 1939: discovery of the first commercially exploitable deposit in the neighborhood of Lobato, in the capital of Bahia. The act was the result of the actions of agronomist Manoel Inácio de Basto, who heard reports that, in the neighborhood, residents used black mud as fuel for lamps.
• 1941: announcement of the establishment of the Candeias field, in Bahia.
• 1948: created the Center for Studies and Defense of Petroleum with the objective of coordinating the campaign “The Oil is ours”. The movement supported the nationalization of oil production after World War II.
• 1949: the first Brazilian oil pipeline goes into operation in the Recôncavo Baiano
• 1950: Landulfo Alves refinery is installed in Mataripe, Bahia. In the same year, the first oil tanker in Brazil is launched at sea
• 1953: Petrobrás was founded, more precisely on October 3rd. The state-owned company had a monopoly on oil extraction and refining in the national territory guaranteed by Law 2004/1953.
• 1954: Petrobras enters into operation
• 1968: offshore oil discovery in Sergipe, in the Guaricema field. That same year, the company began exploring the material in deep waters.
• 1974: discovered in the Campos Basin, on the south coast of Espírito Santo
• 1975: risk contracts are signed between Petrobras and private companies in order to encourage research of deposits in Brazilian territory
• 1995: Petrobrás' monopoly is broken through the enactment of a law in the government of Fernando Henrique Cardoso (EC 9/1995), expanding exploration through the entry of private companies
• 2003: discovery of new basins in the Brazilian territory
• 2006: Brazil achieves self-sufficiency in oil exploration
• 2007: pre-salt discovered, new oil exploration field
• 2008: pre-salt production begins in the Campos Basin
• 2009: Petrobras P-51, the first built entirely in Brazil, enters into operation in January
• 2016: Brazil ranks as the largest producer in Latin America with 918.7 million barrels
• 2017: Brazil reaches the index of 2.80 million barrels per day, with Petrobras responsible for the production of 2.15 million barrels (per day)

“Oil is ours”

Mentioned in the chronology above, the campaign “O Petróleo é Nosso” was launched in 1946 and aimed to prevent a project pending before the National Congress. The purpose of the text was to hand over the Brazilian subsoil to foreign capital companies that intended to research the existence of oil in the country.

If found, Brazil could only explore a mineral found in its own territory upon payment of royalties, that is, revenues paid to the holders of the exploration right. The campaign was led by the military and the Brazilian Communist Party who defended oil as one of the key points for development.

What is Petrobras?

Petrobras is a company created on October 3, 1953 by the president at the time, Getúlio Vargas. The objective was to exploit oil for the benefit of the Union, stimulated by the campaign “O Petróleo é Nosso”. It is a state-owned company with a mixed economy, with the Government as the majority shareholder.

Considered the largest in Latin America and one of the largest in the world, Petrobras operates in the oil and natural gas segments (production, exploration, refining, transport and marketing), petrochemicals, distribution of derivatives, biofuels, electricity and other renewable energy sources energy.

What is Pre-Salt?

The Pre-Salt consists of an oil exploration field found at a depth of seven thousand meters. The advantage is to present oil wells with large proportions in addition to an excellent state of conservation. Its discovery in Brazil took place in 2007, generating the expectation of doubling the volume of fuel oil and gas production in the country.

The field extends along 800 km of the Brazilian coast, stretching from Espírito Santo to the state of Santa Catarina. Geologically, the field is located below a thick layer of saline rock and encompasses the sedimentary basins of Espírito Santo, Santos and Campos. The first extraction was made in 2008 and the commercial phase began in 2010.

The largest pre-salt field in Brazil, Campo de Libra, was auctioned in 2013 and it is estimated that recoverable oil in this region ranges from 8 to 12 billion barrels. As of 2010, the annual average extraction increased 12 times, considering the period up to 2014. The expectation is to reach 52% of Petrobras' production in 2018.

What are the biggest oil producers in Brazil?

1st place: Rio de Janeiro, with reserves in the Campos and Santos Basins. Annual production of 568 million barrels, according to 2011 data
2nd place: Espírito Santo, with reserves in the Campos and Espírito Santo Basins. Annual production of 116 million barrels, according to 2011 data
3rd place: Rio Grande do Norte, with land and sea reserves. Annual production of 21.4 million barrels, according to 2011 data
4th place: Bahia, with reserves in the Camamu, Recôncavo Baiano, Tucano Sul and maritime basins. Annual production of 16 million barrels, according to 2011 data
5th place: Sergipe, with reservations on land and at sea. Annual production of 15.3 million barrels, according to 2011 data
6th place: São Paulo, with reservations at sea. Annual production of 13.9 million barrels, according to 2011 data
7th place: Amazonas, with reserves on land and in the basins of the Amazon and Solimões Rivers. Annual production of 12.6 million barrels, according to 2011 data