Western Hemisphere 2021 Energy Landscape and Outlook

of production, as well as by market trends and environmental requirements.

Brazil Outlook: Pre-Salt Layer Remains Immune to the Pandemic By Nelson Narciso Despite boasting one of the generated from renewable sources, Brazil maintains the Pre-Salt layer at the forefront of its energy trends for 2021, with the prolific oil and gas area accounting for 68% of domestic oil production, a figure that is expected to rise in the foreseeable future. In 2020, Brazil also registered record numbers for oil exports and the trend is expected to continue on this path this year, since around 60% of the exported volume is absorbed by the Chinese market to supply the Asian country's economic recovery. Despite the effects imposed by the global pandemic, the Pre-Salt oil remains highly valued in the international market, as it has benefitted from the new specifications for marine fuels with low sulfur content set by the International Maritime Organization (IMO), as well as displaying good acceptance by Asian refineries. Therefore, the Pre-Salt's competitiveness can be explained by the high productivity of its wells and its decreasing costs cleanest energy matrices on the planet, with over 46% of energy

The Brazilian government has already confirmed it will hold new bidding rounds for oil and gas exploration blocks in 2021, which continues the multiannual calendar of new offered areas that has been in place over the last three years. Another highlight promoted by the Brazilian government for this year’s oil and gas calendar is the enactment of the New Gas Law. The regulatory framework was approved at both houses of Congress – Chamber of Deputies and Senate – late last year, and it should be ratified as law by the Executive Power by the end of the first semester. The approval of the new regulatory framework for the natural gas market is essential to attract investments in the sector, thus creating competitive conditions for the monetization of gas reserves associated with pre-salt oil, as well as bringing new players, such as producing companies of different sizes and transport companies to a new market that needs to operate independently from the oil segment. With regards to Petrobras, the company's divestment program should remain successful for 2021, with an emphasis on the sale of assets in the natural gas and refining segments. After being sanctioned by regulators,

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