Brazil is the 10th largest energy consumer in the world and the 3rd largest in the Western Hemisphere, behind the United States and Canada. Total primary energy consumption in Brazil has increased significantly in recent years, due to sustained economic growth. In addition, Brazil has made great strides in increasing its total energy production, particularly oil, over the past decade. Increasing domestic oil production has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world.

The largest share of Brazil’s total energy consumption comes from oil (49 percent, including ethanol), followed by hydroelectricity (36 percent) and natural gas (7 percent). The large share of hydroelectricity in Brazil’s energy mix represents the dependence of electricity generation on hydroelectric dams. Natural gas is currently a small share of total energy consumption, but attempts to diversify electricity generation from hydropower to gas-fired power plants should cause natural gas consumption to grow in coming years.