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Brazil Business Location Essay

1224 words - 5 pages

Jeff Garcia
10 AM

Product/Service of Business:
Petrobras is the fourth largest company in the world and the largest in the Southern Hemisphere. It has control over significant oil and energy assets in 18 countries in Africa, North America, South America, Europe and Asia. It carries 11.7 billion barrels of oil making it the fourth biggest oil reserves among petrochemical companies. This is before the recent discoveries in four new locations. Petrobras sponsors a few things: The Ministry of Mines and Energy's National Program for the Oil Products and Natural Gas Use Rationalization. These programs promote the development of a no waste culture in the use of ...view middle of the document...

Its operations were saved nationwide the following year by finding a huge oil field and investing in offshore explorations. The crisis spawned the National Ethanol Program since Brazil had to reduce oil product consumption and increase the internal supply of oil. Unfortunately a second oil crisis came only 6 years after the first one. The only upside to it was that it wasn’t nearly as bad. The company later became interested in concern with the community so some investments were put into the community. The Child Program has been active since 1983. In 2006 Petrobras achieved Brazilian self-sufficiency in oil. Previously, imports for oil needs were at 70%. At the time of achieving self-sufficiency, there was a daily production of more than 1.9 million barrels per day. More exporting than there is importing for oil and oil products occurred. Now Petrobras is focusing on new forms of energy. Biodiesel is the new main interest that is going to take place in 2013.

Description of Business:
Petrobras was founded in 1953 to operate in the Brazilian oil sector. Over the course of more than four decades, the company has become the country's leader in the distribution of oil products and is now one of the largest major oil companies in the world today. It leads the sector in the implementation of the most advanced deep-water technology for oil production. The Exploration & Production part of Petrobras is responsible for research, location, identification, development, production and incorporation of oil and natural gas reserves in Brazil. Exploration &Production is structured on Business Units. Each Business Unit is responsible for managing groups such as exploration and production concessions, operational and administrative facilities, with own revenues and costs and liable for the results. Business Units organization was based on criteria such as geographical location, similar geology and stage of development of the concessions, plus available infrastructure and size. Exploration &Production have raised Petrobras to top world ranking in development and usage of deepwater exploration and production technology.

Business Producing/Selling Domestically and/or Internationally:
They have something called the Petrobras Distribuidora. There are more than 7,000 service stations that can be found on roads and cities all over Brazil. The operations it has outside of Brazil extend to 27 countries. The production of the oil is mainly in South America. Brazil mainly holds the production of oil and gas, especially with the new fields discovered, but there’s some in the sea and Chile. And they even have some of its important operations in Turkey, Nigeria, and India. Petrobras holds commercial agreements in major countries like Japan, United Kingdom, and China. Recently Petrobras finalized a $10...

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