BRAZILBRAZILRegional Energy LeaderRegional Energy Leader

10th largest energy consumer in the world 10th largest energy consumer in the world

largest in South Americalargest in South America

OutlineOutline

ThesisThesis

Historical overviewHistorical overview

Forms of energy Forms of energy

ConclusionConclusion

ThesisThesis

Through Brazil’s efforts to free themselves Through Brazil’s efforts to free themselves from dependence on foreign energy, they have from dependence on foreign energy, they have revolutionized forms of energy production and revolutionized forms of energy production and are on their way to becoming a regional are on their way to becoming a regional exporter.exporter.

BeginningBeginning

In 1975, Brazil’s military dictatorship launched an ethanol In 1975, Brazil’s military dictatorship launched an ethanol program that included subsidies to farmers and required all program that included subsidies to farmers and required all service stations in towns larger than 1500 people to supply service stations in towns larger than 1500 people to supply ethanolethanol

When the military dictatorship failed, subsidies to farmers were When the military dictatorship failed, subsidies to farmers were cut and with falling prices of oil; ethanol production slowed cut and with falling prices of oil; ethanol production slowed dramaticallydramatically

Research continued though till ethanol was capable of being Research continued though till ethanol was capable of being produced at 20cents a liter.produced at 20cents a liter.

1997- Brazil approved the Brazilian Petroleum Investment Law1997- Brazil approved the Brazilian Petroleum Investment Law

OilOil

Brazil is the world's 19th largest oil producerBrazil is the world's 19th largest oil producer1997 the government opened up oil production to 1997 the government opened up oil production to private companies and also freed oil prices from state private companies and also freed oil prices from state controlcontrol1.1 million barrels a day 1997 1.1 million barrels a day 1997 2.1 million barrels a day 2007 2.1 million barrels a day 2007 13 refiners refine 1.9million bbl/d 13 refiners refine 1.9million bbl/d

Oil

-500000

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

Barr

els

/ d

ay

Exports

produces

consumes

EthanolEthanol

largest producer and exporter of ethanol in largest producer and exporter of ethanol in the world, producing 282,000 bbl/d in 2005 the world, producing 282,000 bbl/d in 2005

over half of all cars in the country are of over half of all cars in the country are of the flex-fuel varietythe flex-fuel variety

ethanol will be cheaper than gasoline as ethanol will be cheaper than gasoline as long as the price of oil is over $45 a barrellong as the price of oil is over $45 a barrel

Natural GasNatural Gas

Substitute for fuel oilSubstitute for fuel oil

11.5 Tcf of reserves11.5 Tcf of reserves

Production slow downProduction slow down

ImportsImports

Infrastructure projectsInfrastructure projects

YearYear 19981998 19991999 20002000 20012001 20022002 20032003 20042004

%total%total >1>1 11 11 33 44 44 55

Natural Gas

-20

-10

0

10

20

30

40

50

60

Brazil Argentina Mexico Colombia Venezuela

bil

lio

n c

ub

ic m

eter

Exports

produces

consumes

CoalCoal

11.1 billion tons of recoverable reserves11.1 billion tons of recoverable reserves

Domestic reservesDomestic reserves

ImportsImports

BNDESBNDES

yearyear 19711971 19801980 19901990 20002000 20012001 20022002 20032003

%total%total 33 22 22 33 33 33 33

ElectricityElectricity

Hydroelectric powerHydroelectric power

One of leading producers in the worldOne of leading producers in the worldDistribution problemsDistribution problemsState and privately owned sectorsState and privately owned sectorsItaipu DamItaipu Dam– World’s largest damWorld’s largest dam– 12.6 GW production capacity12.6 GW production capacity– 20 generators20 generators

yearyear 19701970 19801980 19901990 20002000 20012001 20022002 20032003 20042004

%total%total 8484 9292 9393 8787 8282 8383 8484 8383

bkWhbkWh 43.243.2 128.9128.9 206.7206.7 304.7304.7 267.9267.9 286.1286.1 305.9305.9 320.8320.8

Electricity

-100

0

100

200

300

400

500

600

Brazil Argentina Mexico Colombia Venezuela

Bil

lio

n k

Wh

Exports

produces

consumes

ConclusionConclusion

Brazil has nearly accomplished the goal of Brazil has nearly accomplished the goal of self-efficiency for energy through its efforts to self-efficiency for energy through its efforts to enhance production and develop and enhance production and develop and implement new technologies to their greatest implement new technologies to their greatest potential. Through their efforts in oil, ethanol, potential. Through their efforts in oil, ethanol, natural gas, coal, and electricity, Brazil has natural gas, coal, and electricity, Brazil has been able to become a major consumer and been able to become a major consumer and future exporter of energy.future exporter of energy.

ReferencesReferences

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