Expanding onshore sector in Brazil

Onshore is the name used for the practice of production and service provided on land, from the petroleum industry. It differs from the offshore (on the high seas) mainly by the origin of where oil is extracted. Despite being less complex in terms of technology, it presents significant accumulation of exploration, development and production opportunities.

According to EIA (U. S Energy Information Administration), the onshore segment has the terrestrial production corresponding to more than 70% of the total in the world. However, in Brazil, the vast oil reserve is located mostly off the coast. Still, the expectations are that the country invests in exploration and production activities in the sector.

The Ministry of Mines and Energy (MME) instituted the revitalization program for exploration and production of oil and Natural gas in terrestrial areas, called reate. The program aims to propose and monitor actions, projects and policies aimed at increasing the activities of exploration and production of oil and natural gas on land.

Investments in the onshore market tend to be less costly. It is not necessary, for example, the use of platforms vessels for the production and nor of special equipment to operate. In addition, of course, the expenses related to logistics, which differ due to the distinction of environments between land and sea.

Because it is less complex, the onshore branch has the potential to provide opportunity for the national suppliers of goods and services, mainly for medium and small companies, which with the advent of small independent producers, can access greater Number of operators with a correlated financial profile.

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