Rigzone Ranks the Top 10 Oil & Gas Cities in the World
Rio de Janeiro, Brazil's second urban and economic center after Sao Paulo, is the continent's center for oil and gas exploration, driving business opportunities. Last year, the city received $7.3 billion in foreign direct investment, estimated to be seven times more than the year before, and more than twice as much as Sao Paulo, the state's capital.
Increasing domestic oil production, which is predominantly produced offshore Rio de Janeiro, has been a long-term goal of the Brazilian government. Brazil holds roughly 14 billion barrels of proven oil reserves and holds the second-largest net amount in South America after Venezuela, according to the U.S. Energy Information Administration (EIA). The offshore Campos and Santos Basins hold the vast majority of the country's proven reserves with oil production to reach 3 million barrels of oil per day in 2013, according to EIA.
Petroleo Brasileiro S.A. or Petrobras, Brazil's leading integrated oil and gas company, is headquartered in Rio de Janeiro. Considered the world's largest deep water operator, Petrobras reported that its crude reserves reached 12.88 billion barrels of oil and natural gas equivalent in 2012 and is a major distributor of oil products.
Energy Impact
Due to its resource-rich economy and booming oil and gas sectors, many businesses have opened offices in Rio causing prime office rent to skyrocket higher than anywhere else in the Americas, according to property-consultants Cushman and Wakefield.
Until recently, Petrobras held a monopoly on most oil-related activities in the country, but the city is now home to many Brazilian branches of oil and gas companies, such as Royal Dutch Shell plc, EBX Group, Anadarko Petroleum Corp. and Exxon Mobil Corp. Today, only 2 percent of oil exploration in Brazil is conducted by foreign companies with an estimated research and development budget of $500 million in 2011, according to Forbes magazine. This number is expected to increase 25 percent, attracting investments from Chevron Corp., Repsol S.A., BP plc and a few other O&G companies. The total amount of foreign research and development investment is forecasted to hit $7 billion by 2017, said Forbes. With more and more foreign investment, there is an extensive range of job opportunities for expats moving or relocating to Brazil.
City Highlights
With a strong presence in the energy industry, Rio de Janeiro is known for much more than its thriving energy businesses. The 2014 FIFA World Cup and the 2016 Summer Olympics are coming to the city soon, showcasing what many Cariocas, as the people of Rio are called, already know – just how beautiful this city really is. Most visitors opt to stay in the Zona Sul, the Southern Zone beach areas of Copacabana, Ipanema and Leblon, which boast some of the world's most pristine beaches.
With breathtaking views from Corcovado Mountain, which houses Brazil's best-known image, the 2,329-foot tall famous Christ the Redeemer statue, the mountain represents the highest peak in Brazil and the world's largest urban forest – the Tijuca forest. The mountain offers 360-degree panoramic views and the Christ the Redeemer statue, elected as one of the New Seven Wonders of the World, crowns its peak.
Rio de Janeiro is also well-known for its annual Rio Carnivale. Although Carnivale, or Carnaval in Portuguese, is celebrated in towns and villages throughout Brazil and other Catholic countries, Rio de Janeiro is regarded as the Carnivale capital of the world. The festival draws in roughly 500,000 tourists each year for its four-day celebration 40 days before Easter.
Author: Robin Dupre
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