Brazil: Energy

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Brazil Energy Profile 2012

Though a comprehensive geological survey has yet to be completed, Brazil is known to have enormous mineral resources. The chief mining areas are in the state of Minas Gerais (whose name is Portuguese for "general mines") and in the Amazon Basin, particularly Pará state. In value of production, petroleum is the leading product. Production, however, is too small to meet domestic needs. Brazil is the world's leading exporter of iron ore. The country is also one of the world's leading producers of tin. Other minerals produced in large amounts include coal, copper, limestone and marble, phosphate rock, natural gas, bauxite, magnesium, manganese, and gold.

Brazil is the 10th largest energy consumer in the world and the largest in South America. At the same time, it is an important oil and gas producer in the region and the world's second largest ethanol fuel producer.

The governmental agencies responsible for energy policy are the Ministry of Mines and Energy (Ministério de Minas e Energia), the National Council for Energy Policy (CNPE), the National Agency of Petroleum, Natural Gas and Biofuels (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis - ANP), and the National Agency of Electricity (Agência Nacional de Energia Elétrica - ANEEL)

Reforms of the energy sector

At the end of the 1990s and the beginning of the 2000s, Brazil's energy sector underwent market liberalization. In 1997, the Petroleum Investment Law was adopted, establishing a legal and regulatory framework, and liberalizing oil production. The key objectives of the law were the creation of the CNPE and the ANP, increased use of natural gas, increased competition in the energy market, and investments in power generation. The state monopoly of oil and gas exploration was ended, and energy subsidies were reduced. However, the government retained monopoly control of key energy complexes and administered the price of certain energy products.

Current government policies concentrate mainly on the improvement of energy efficiency, in both residential and industrial sectors, as well as increasing renewable energy. Further restructuring of the energy sector will be one of the key issues for ensuring sufficient energy investments to meet the rising need for fuel and electricit

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