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Investor Presentaiton

20 20 YEARBOOK OF THE OIL AND NATURAL GAS INDUSTRY IN ESPÍRITO SANTO 2022 1.4. Global Oil Capacity and Refining The world's installed refining ca- pacity was 101.9 million barrels per day in 2021. There was a reduction America (6.3%) and Africa (3.2%). The United States, China and Rus- sia concentrate 41.0% of oil refining Oil refining capaci- of 419,500 barrels per day, repre- capacity worldwide. Brazil is the ty in the world senting 0.41% less than in the pre- 9th country with the highest refin- vious year. Asia 35.8% North America World oil refining was 79.2 million 21.1% barrels per day in 2021. There was Europe 14.8% Middle East 10.6% CEI: 8.3% South and Central America: 6.3% Africa: 3.2% an increase of 3.6 million barrels re- fined per day refined in the world, 4.8% higher than in the previous year (chart 7). The refining capacity among the regions in the world were: Asia (35.8%), North America (21.1%), Eu- rope (14.8%), Middle East (10.6%), Commonwealth of Independent States (8.3%), South and Central Chart 7- Oil Capacity and Refining in the world (thousand barrels/day) 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 | Production Consumption Source: BP Statistical Review of World Energy | Elaboration: Industry Observatory/Findes. ing capacity in the world, with 2.3 million barrels per day. Oil refining was divided as follows among the regions of the world: Asia (37.3%), North America (22.1%), Eu- rope (14.5%), Middle East (10.8%), Commonwealth of Independent States (8.5%), South and Central America (4.5%) and Africa (2.3%). The United States, China and Russia account for 44.6% of the world's oil refining. Brazil is the 9th country with the largest oil refining in the world, with 1.8 million barrels per day. 2016 2017 2018 2019 OIL AND GAS INDUSTRY PAYS ATTENTION AND INVESTS IN ENERGY TRANSITION ibp INSTITUTO BRASILEIRO DE PETRÓLEO E GÁS Roberto Ardenghy | Chairperson of the Brazilian Institute of Oil and Gas (IBP) Fernanda Delgado | Corporate Executive Director of the Brazilian Institute of Oil and Gas (IBP) In a scenario where climate change is increasingly demanding solutions, the energy sector is moving in line with global efforts for a low-carbon econ- omy. This is certainly one of the sectors that can contribute the most to achieving the goals of re- ducing greenhouse gas emissions. The energy transition is a path of no return, but it is a complex process and surrounded by challenges. In view of this context, it is of great importance to highlight that the oil and natural gas sector, con- trary to what is often suggested by common sense, can be configured as an important ally for the en- ergy transition process. This is because the most current approaches to this process must cover not only the issue of decarbonization, but also aspects related to the security of energy supply and eco- nomic and social development. Therefore, the contribution of the oil and natural gas sector to the energy transition process can take place from different perspectives, including technological development and technical expertise, the use of infrastructure, the financing capacity of projects focused on low carbon energies and also aspects related to energy security and economic and social development. Energy security is an issue that has been gaining in- creasing importance due to the recent energy crisis caused by the conflict between Russia and Ukraine and its striking effects, especially for the European continent that has lived for months with fears related to energy supply during the winter. This issue also be- comes especially sensitive in the midst of the quest for decarbonization. The wind and solar photovolta- ic source lead the energy transition process, but are subject to generation variability due to climatic con- ditions such as low incidence of solar rays or the ab- sence of winds. Thus, the performance of the oil and natural gas sector remains necessary to guarantee the supply of energy to the population. The importance of these sources is necessary even in the case of Brazil, which stands out for its energy matrix with a participation of more than 40% from renewable sources, with great emphasis on hydro- electric plants. In times of unfavorable weather condi- tions as observed in 2021 during the period of water scarcity, the activation of thermoelectric plants was fundamental to ensure that electricity reached the consuming units. Another important contribution of the oil and natural gas sector concerns its developments in socioeco- nomic terms. According to the Brazilian Institute of Oil and Gas (IBP), the sector will attract another USD 180 billion, from 2022 to 2031 in Exploration & Pro- duction (E&P) activities. With this, it can generate a collection of more than USD 600 billion for govern- ments, in addition to providing 400,000 more jobs on average per year. With more than 800 million barrels of proven oil reserves and about 20 billion m³ of prov- en natural gas reserves, Espírito Santo also has the potential to enjoy the socioeconomic benefits asso- ciated with investments in oil and natural gas E&P activities. From the point of view of decarbonization, the per- formance of the oil and gas sector can be decisive in
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