Production - Foreign - Oil Possibilities in Brazil

The importation of liquid fuels in Brazil amounts to about 1,300,000 tons; 30 per cent of this total being gasoline for automobiles and airplanes. Statistics show an increasing consumption of gasoline notwithstanding the use, daily greater, of fuel alcohol, a domestic fuel of low cost in the producing areas. The Brazilian market for petroleum products has shown a tendency to grow as the country has steadily developed— expansion of the industries in the areas already developed, and also the recent occupation and population of new zones. The war has brought many difficulties to Brazil. It has limited the importation of petroleum products, which came mostly from the United States, Venezuela and Mexico. During the first days of the present crisis automobile and truck traffic was vastly curtailed; but the national activity in the production of more fuel alcohol, and principally in the development of producer gas, has done much to provide a solution for the transportation crisis threatened at the beginning of the gasoline shortage. Many thousands of cars and trucks in Brazil are now burning producer gas made from charcoal. Producer gas for automobiles has been improved by Brazilian engineers and many new types have appeared. - Production There is only one producing oil field in Brazil—the one in the State of Baia, near the Baia de Todos os Santos. The first producing oil well was drilled in Lobato in 1939 by the Federal Government following studies carried on in that area by Oscar Cordeiro, S. Froes Abreu, G. Paiva and J. Amarai. The field and laboratory work done by these men was published in 1936 in a paper entitled " ContribuicBes para a Geologiado Petroleo no Reconcavo (Baia)," which indicated the potentialities of the area as an oil producer. After the discovery of the first producing well, the Brazilian Government issued a decree establishing an area, 60 km. in radius, as a National Reservation. This first well was drilled in Lobato. In no other locality in Brazil is any petroleum produced. Although many wells have been drilled in the southern part of Brazil, on the northeastern coast and in the Amazon Basin, they yield nothing. Actual production is below 1000 bbl. daily. The producing area covers Itaparica Island, Candeias and Arath, Joanes Island and Lobato. Since very little geological information was available, especially about subsurface structure, it was necessary to drill several wildcats in order to collect the data essential in the choosing of good locations. The United Geophysical Co. was contracted to perform a geophysical survey to clear up the major problems concerning the oil deposits in the Reconcavo beds. The best wells in Reconcavo are on Itaparica Island, where the daily flow amounts to about zoo bbl.; in other sectors production is considerably lower and most of the wells are pumping. In the Aratfi sector, near an area of very light oil, there is an important gas field, with wells producing about I0,000,000 cu. ft. daily.