OIL & GAS PRODUCTION IN BRAZIL WAS STABLE IN MARCH WHILE DEMAND FOR FUELS FALLS

Apr 24, 2020

The monthly bulletin on oil and gas production shows stability in volumes extracted in March compared to the previous month. According to data from the National Petroleum Agency (ANP), oil production in the period was 2.968 million barrels per day, a slight decrease of 0.12% compared to February. It is worth remembering that only as of April, the numbers should suffer the expected drop, due to the reduction in production announced by Petrobras at the beginning of the month.

In relation to natural gas, production in March was 121.7 million cubic meters per day, a decrease of 5.6% in relation to February. Production in the pre-salt layer was also practically stagnant during the period, totaling 2.49 million barrels of oil equivalent during the interval – retraction of 0.17 using the same basis of comparison.

While the March figures do not yet reflect the impacts of the coronavirus pandemic, the Ministry of Mines and Energy (MME) is already accounting for the damage caused by the disease in the search for oil products. A little more than a month after the beginning of the circulation restriction measures in Brazil, the demand for derivatives in the country plummeted, as expected. The most considerable fall was in aviation kerosene, which fell by 85%.

The second most affected fuel to appear on the list is ethanol, with a drop in demand of 44%. In the case of gasoline, the decrease was 33%. The portfolio also mentions reductions in demand for natural gas and diesel, of 20% and 18.6%, respectively. The only exception was liquefied petroleum gas (LPG), which saw an increase in demand of 16.6%.

Reflections also knocked on the electric sector door. According to data from the MME Executive Committee Report, the reduction in the country’s load in this first month of social distance measures reached 15.5 GW (-22%). This volume is greater than all consumption in the South under normal conditions. The drop also represents consumption in the entire Northeast region plus a third of the North region.

Source: PetroNoticias

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