Espirito Santo Oil & Natural Gas Yearbook 2021
CHAPTER 5 OPPORTUNITIES FOR ESPÍRITO SANTO
Chapter 5
OPPORTUNITIES
FOR ESPÍRITO
SANTO
The scenario for the next few
years for the oil and gas sector will
be marked by the drop in global
investments and the maintenance
of production in priority areas by
the large oil companies. Notwith-
standing, this new background
requires greater adaptability and
predictability of the concerned
players. Espírito Santo will be im-
pacted by the priority projects of
the large oil companies and also by
the new market of small and me-
dium-sized companies operating
in new areas of the industry. The
opportunities can be summarized
into four groups: i) Announced In-
vestments ii) Permanent Offer iii)
Petrobras Divestment Plan and iv)
Decommissioning of facilities.
79
26.5%
was the average annual
drop in global investment
flow according to the FDI
Markets platform, reaching
$536 billion
4.1%
is the expected growth
of the global economy
for 2022 according to the
World Bank projections
5.1. Announced investments
According to the FDI Markets plat-
form, between 2018 and 2020, the
global investment flow recorded
an average annual drop of 26.5%,
reaching US$ 536 billion in 2020.
The level recorded was the lowest
in the historical series, which began
in 2003. The unsatisfactory perfor-
mance is largely explained by the
outbreak of the new Coronavirus
global pandemic in 2020, which
postponed investment decisions
on a global basis. An unfavorable
macroeconomic scenario of the
main economies in the world also
contributes to a drop in invest-
ments in traditional sectors such
as oil and gas, coal, real estate, and
the chemical sector.
In the coming years, the trend is for
the flow of global investments to re-
turn to more substantial amounts.
The basis for this statement lies in
the projection of 4.3% growth of the
global economy for 2022, signaled
by the World Bank. According to
the institution, the world will grow
at a faster pace after the recession
caused by the Covid-19 health cri-
sis. Upon the advance of vaccina-
tion against the disease, there will
be a greater need for investments
to return the level of global activity
to the levels existing before the re-
cession.
The main sectors responsible for
global investments in the period
between 2018 and 2020 were the
renewable energy sector (10.1%)
and the oil and natural gas sector
(9.3%). The oil and gas sector re-
corded an average annual drop of
31.2% in the three years of analy-
sis and, even with the expressive
drop, it remained with a significant
amount of investments in the glob-
al scenario. In contrast, the renew-
able energy sector recorded an
average annual increase of 4.7% in
the same period (chart 47).
The main oil companies in the oilView entire presentation