Oil palm is a widely cultivated palm tree, whose oil is ranked first in supply and export among all vegetable oils in the world. Despite being a minor producer and major importer of palm oil, Embrapa, Brazil's leading agricultural research agency, has identified deforested land with soil and climate suitable for oil palm cultivation whose combined area is twice that currently being employed throughout the world, most of which located in the Brazilian Amazon. This region, characterized by low socioeconomic indicators, as well as precarious access to energy, has recently become the focus of Brazilian Government policies whose aim is to ensure that the observed expansion of oil palm occurs in an orderly manner, within the precepts of the region's environmental and economic zoning, currently in deployment. With a doubling of its cultivated area between 2004 and 2010 and an even faster projected growth in 2015, the rapid expansion of oil palm in the Brazilian Amazon presents great potential to influence the development of the region. This article provides an updated picture of the palm oil sector in Brazil, its prospects, opportunities and challenges, with a particular focus on the Amazon region and the rising use of palm oil as biodiesel. (C) 2014 Elsevier Ltd. All rights reserved.