Investor Presentaiton
several aspects given its technical expertise, in addi-
tion to the ability to gather the necessary resources
for the financing of projects focused on low carbon
energies. The International Energy Agency (IEA)
estimates that 50% of the emissions reductions
needed to achieve net-zero emissions by 2050 will
come from technologies that are still under devel-
opment. Without the support of the oil and natu-
ral gas sector, these very important technologies
for reducing emissions may not reach the level of
maturity and supply structure necessary for their
large-scale competitive adoption.
This shows that there is still a long way to go and
the oil and gas sector has a lot to contribute to this
trajectory. This industry also has the expertise and
infrastructure needed to drive other activities. Sev-
eral initiatives for investments in low-carbon tech-
nologies can be observed in oil and natural gas
companies. In line with the Paris Agreement, these
companies have committed to meeting carbon re-
duction targets. Data from Goldman Sachs Global
Investment Research show, for example, that large
companies in the sector allocated, on average, 15%
of their 2021 budgets to low-carbon sources, while
in 2019, this percentage was 4%.
A significant example of synergy between the oil and
gas sector and renewable sources from the perspec-
tive of technological development is offshore wind
energy. Knowledge of the type of environment, instal-
lations on floating bases and the adequacy of ma-
terials and techniques are some of the examples of
synergies between these two sectors. The extensive
expertise in the maritime environment held by the oil
and natural gas sector can be configured as an im-
portant way to reduce expenses and take advantage
of knowledge, especially with regard to the construc-
tion and operation of assets in this environment.
With 7,367 km of coastline and 3.5 million km² of
maritime space, the country is able to be a prom-
ising agent in wind generation also in an offshore
environment, contributing to the consolidation of
its position as one of the leaders in energy transi-
tion. The Brazilian potential has already attracted
the attention of investors. Data from the Brazilian
Institute of Environment and Renewable Natural
Resources (IBAMA) indicate that there are about
177 GW in offshore wind projects with an open en-
vironmental licensing process in the agency, four
projects located on the coast of Espírito Santo to-
taling more than 5 GW in the region.
Thus, Brazil is positioned as a strategic location for
bringing together characteristics that place it in a
privileged position in terms of energy transition, espe-
cially in aspects involving existing synergies with the
O&G sector for decarbonization. The relatively clean
energy matrix gives the country a differentiated pro-
file of its emissions: while in most countries the ener-
gy sector is the largest responsible for emissions, in
Brazil this role is in the agriculture and land use sec-
tor. In addition, the country is also notable for having
an oil production with carbon intensity around 18 kg
CO2eq per barrel, lower than some of the main play-
ers in the Middle East that reach carbon intensities of
the order of 70 kgCO2eq per barrel.
These characteristics make it possible for Brazil to con-
tinue investing in the oil and natural gas sector and reap
the rewards in socioeconomic terms without taking the
country off the path of energy transition and decarbon-
ization. In this way, the construction of a decarbonized
future in the country goes through a path that should be
paved with an important contribution from the oil and
gas sector, especially with the use of the existing syner-
gies between the sector and renewable sources.
This does not mean, however, that there is not
much work to be done ahead nor any challenges.
The oil and natural gas sector is aware of its role
in the process of decarbonizing the economy and
its commitments in the transition. Increasingly, it
will be necessary to invest, innovate, research new
technologies, improve methods and form partner-
ships and the sector has already been directing
efforts to deliver a more resilient barrel of oil with
lower CO2 emission rates. This path has already
begun to be trodden and the willingness of com-
panies in the sector to seek a better future walks in
the same direction as the desires of society.View entire presentation