The Brazilian Institute of Oil and Gas (IBP) held its first pre-COP-30 event on April 2 in Rio de Janeiro, which was attended by industry leaders, authorities, and experts. On the occasion, there was the launch of the study “Transitioning away from fossil fuels in energy systems”. The document was drafted by the consulting firm Catavento in partnership with the IBP and the Climate and Society Institute (iCS) to contribute to a broader and more assertive debate on the actions and role of the O&G segment in the energy transition and decarbonization in the coming decades.

The president of the IBP, Roberto Ardenghy, considers COP30 to be a call to debate these issues. “We have the opportunity to pursue emissions reductions and strengthen our position on decarbonization, as well as generate resources to finance GHG reduction programs and the future replacement of fossil fuels,” says the executive.

According to him, oil and gas are currently responsible for 80% of the energy generated globally. “Energy evolution is a marathon: we need to prepare, find ways forward, and seek strategies. The transition cannot be a process of social imbalance – the 77 million richest people on the planet emit about 16% of GHG. We reject the idea that the oil and gas sector should not participate in public forums, because we have contributions to decarbonization and energy transition,” he concludes.

Regarding the study, Ardenghy comments that “Since the COP28 in Dubai, when our dialogue on the ‘Transitioning Away’ study began, our analysis has had an academic and well-founded profile to promote information for the necessary debate on global energy transition.”
Victoria Santos (ICS energy and industry manager) highlights her full support for the role of biofuels, in addition to more advanced fuels, and how we should expand this platform in the energy chain to support global decarbonization.

Alice Amorim (head of the COP30 special advisory team) noted that “this is the first of many inputs to come, so that we can begin to implement what was agreed at COP28 in Dubai.” She points out that the transition is not yet fully understood. “What scale do we need to achieve? There are several dimensions to the transition process, and we need to understand them in order to proceed in the best possible way,” she added.

A call for energy transition
Clarissa Lins, founding partner of Catavento, presented the study and said that major producers and emitters of greenhouse gases, such as the United States and Russia, are putting US$ 350 billion in assets at risk.

According to the executive, this is due to the risk that the economies of these nations could be severely impacted in a more carbon-restricted environment soon. This scenario generates, in particular, a possible change in the formulation of global public policies and is directly connected to access to domestic savings and global funds, which are essential for the financing of the transition and may be made more expensive in terms of credit by international rating agencies.

“In the study, we evaluated producers and consumers, which led us to the context of 11 countries in seven different regions of the planet, in order to have a balanced and robust sample of the global O&G market related to the energy transition,” says Clarissa. She argues that it is essential to understand supply and demand, in addition to the need for a five-dimensional analysis to understand all energy transition processes: the relevance of oil and gas production (how it contributes to each country’s export agenda, wealth, and GDP), competitiveness, energy security, emissions profile, and social resilience (how changes should be organized and promoted in the long term).

Decarbonization: a commitment by the private sector
Petrobras’ Executive Director of Exploration and Production (E&P), Sylvia Anjos, highlighted the country’s unique position on the global stage. “In Brazil, the energy sector (including transportation and others) accounts for 20% of emissions. When looking more specifically at oil and gas exploration and production, our industry accounts for only 2% of emissions,” the executive pointed out.

Flavio Rodrigues (Vice President of Corporate Relations and Sustainability at Shell) remarked that the company conducted an eight-month study in 2024 and concluded that greater synergy with the Paris Agreement resolutions is necessary. “Brazil could be a leader in the energy transition and be the first to achieve net zero by 2050. We have been discussing the impact of Artificial Intelligence in the coming years due to the increased demand for energy in this field of technology,” he said.

Andres Guevara (President of bp in Brazil) points out that the company is focused on low-carbon solutions — such as ethanol and SAF— that are aligned with the company’s oil operations in the decarbonization stage. “Brazil is a privileged country with very competitive pre-salt oil, renewables, and a clear policy to open up green technology alternatives through the Fuel of the Future program,” he says. Olivier Bahabanian (president of TotalEnergies) believes that we must decarbonize the oil and gas sector on a large scale and at a faster pace.

Viviana Coelho (executive manager of climate change at Petrobras) points out that oil is a commodity that will be present in the net-zero scenario for decades to come. “We must question how we should insert ourselves into the global energy chain and how we can analyze the energy evolution. We need data to assess this whole scenario,” she adds. Paulo Van der Ven (Director of Operations and Logistics at Equinor Brasil) argued that the transition journey must be deepened and aligned with the development of new green technologies and development paths for innovation in decarbonization.

Fernanda Scoponi (Renewable Business Development Manager at TotalEnergies) believes that the corporate portfolio will be more focused on sustainable energy and emphasized that Brazil has well-structured policies for oil production, providing legal certainty for long-term investments. Willian Nozak (executive manager of integrated energy transition management at Petrobras) remarked that the energy transition is a commitment at Petrobras. He recalled that Diesel R, a renewable fuel, has gained scale in the market. Nozak also mentioned that it is essential to model a carbon capture and storage (CCUS) system in dedicated onshore and offshore projects.

Transitioning away from fossil fuels in energy systems
• Full Study
• Fact sheet

Meeting the targets set out in climate agreements is a collective responsibility, and the oil and gas sector has contributed to this process by reducing its emissions through increasingly robust investments in innovation, technology, energy efficiency, renewable energy, and nature-based solutions. To assist the sector in making decisions aimed at accelerating this process, the study “Transitioning away from fossil fuels in energy systems” – conducted by the consulting firm Catavento in partnership with the IBP and the Climate and Society Institute (iCS) – will be launched on April 2, at the first preparatory event for COP-30, in Rio de Janeiro.

The study aims to help companies and governments define criteria and improve efforts that enable actions to ensure energy security and reduce emissions, in addition to providing society with reflections on how the oil and gas sector can contribute to a fair, balanced, and equitable energy transition.
“We want to show that we are also part of the solution to achieve emission reduction targets and discuss with all public and private actors the best way to conduct the transition process. One of the reflections brought up by the study is to reduce the supply of oil and gas simultaneously with demand to avoid economic, social, and to secure energy supply impacts. In that way, we will make an energy transition that is fair for everyone,” emphasized Roberto Ardenghy, president of the IBP.

Economic impacts
The survey evaluated eleven countries from seven different regions, considering five criteria categories to provide a broad overview of the oil and gas industry and its contribution to global development. One of the indicators that reinforces the relevance of O&G activity is its socioeconomic role. Between 2018 and 2022, for example, about 50% of the sector’s revenue (US$ 8.5 trillion) went to governments, mainly in the form of taxes.
The industry is also a major employer. In 2023 alone, employment in O&G supply reached 12.4 million people (18% of the energy sector), with 8.2 million in oil and 4.2 million in natural gas. In the same year, the oil and gas sector accounted for 51% of the global energy mix and around 60% of global electricity generation.

Decarbonization
The assessed scenarios also point to considerable demand for oil and gas, with their share in the global energy mix remaining at current levels over the coming decades. As a way of reducing greenhouse gas emissions during periods of high demand, the industry’s strategy is to invest increasingly in projects to improve energy efficiency in operations and implement large-scale carbon capture, utilization, and storage (CCUS) technologies. In this context, countries and companies that produce oil with lower carbon intensity, such as Brazil, will be better positioned in the global energy market.

“We’re holding an event that doesn’t just belong to the Oil and gas sector but to the Energy sector. Cross-sectionality and integration are on the horizon in the event market, which brings together the best ideas from the sector’s players. Here, the public can access cases on the future of energy developed by partners such as TotalEnergies, Porto do Açu, ExxonMobil, bp, Ambipar, Repsol Sinopec and many others,” says Roberto Ardenghy, president of IBP.

Thanks to the Institute’s expertise, the public is in for a robust international meeting of the sector: in the first two days of the OTC alone, more than 15,000 people were welcomed – the equivalent of the total number for the 2019 edition – with another 6,000 expected by the time it closes. There will be participants from 69 countries and 114 national and international speakers, highlighting the increasing diversification of market players and a focus on sustainable resources. Below we have some of the highlights of the fair in this 2023 edition:

IBP

With a focus on broadening the debate on decarbonization, IBP has launched the Decarbonization and Technology Arena, a space that showcases current initiatives and inspires the creation and acceleration of programs in this context. “We designed this area to share what the industry is already doing to contribute to an increasingly decarbonized energy grid, leading concrete and impactful projects,” explains Victor Montenegro, executive manager of Events and New Business at IBP.

The schedule of the Arena includes topics such as Norway’s contributions to decarbonization for the maritime sector in Brazil, the Net Zero journey in the O&G sector and the future of offshore wind energy.

Ambipar

Ambipar Group, a leading Brazilian multinational in environmental management, is sharing with the public its commitment to the sustainable development of the economy and the continuous improvement of its clients’ ESG indicators. Through the Ambipar Response vertical, the company operates in crisis management, industrial services, and emergency response with a team of specialists internationally certified to act in a simultaneous, scalable, and standardized manner.

For the CEO of Ambipar Response, Rafael Espírito Santo, being present at OTC Brazil is a unique opportunity to showcase the company’s varied portfolio of solutions to the global market. “We have maritime support resources to tackle oil spills, teams made up of biologists, oceanographers, geologists, and engineers for fauna and flora restoration, licensing, risk studies, environmental monitoring programs, and emergency response. Our solutions complement each other to protect and preserve the environment,” he says. In addition to Ambipar Group’s sponsorship of OTC Brazil, the company is offsetting carbon emissions from the entire event through Ambify.

bp

In Brazil for 50 years with a diversified portfolio that includes biofuels, aviation and marine fuels, upstream exploration, natural gas, trading, and solar energy, distributed between its own operations and joint ventures, bp reinforced to the congresspeople that it believes in the great Brazilian potential to be explored with the energy transition. “Our Upstream strategy is to produce what we call resilient hydrocarbons, and our vision is that we need to focus on high-quality oil and gas production with reduced emissions and, at the same time, look for new opportunities in low-carbon businesses,” says Angelica Ruiz, Senior Vice President for Latin America, and President of bp in Brazil.

Porto do Açu

Mauro Andrade, Director of New Businesses at the Port of Açu, emphasizes how the oil and offshore sector plays a key role in ensuring the transition. “In our area here at OTC, we work on a wide range of topics, in addition to oil and gas. We’re talking about intelligent electrical systems, renewable energies, about synergies between future offshore wind projects and the oil and gas area,” says Mauro, defending the expansion of the scope during OTC. He explains that over the next 10 years, R$20 billion will be invested in innovative projects, half of which should go to transition-related projects such as green hydrogen, manufactured products and decarbonization of the steel industry.

The executive also shared where the company is headed. “We’re still an oil and gas and mining hub, but our ambition, which is already very detailed, is to be an energy transition port industry,” he said. To achieve this goal, Porto do Açu is relying on concrete actions such as, for example, a photovoltaic solar generation plant within the port; studies to build green hydrogen generation pilot projects and others.

Innovation Norway

Raquel Filgueiras, Latin America advisor for the O&G and Naval sectors at Innovation Norway, which is the Norwegian government agency dedicated to promoting exports, explains that the institution is presenting initiatives aimed at innovation and sustainable business practices at the OTC through seven companies that are present at the organization’s stand. “Technical and scientific cooperation between Brazil and Norway can contribute to the development and research of technologies related to green marine fuels, fostering the exchange of knowledge and experiences, and promoting joint advances in the field of clean energy in the naval sector,” she says.

In addition, based on its offshore know-how, Innovation Norway promoted a panel in the IBP Decarbonization Arena to debate the study on “Decarbonization Alternatives in the Maritime Sector in Brazil: Contributions from Norway”, which was moderated by IBP’s Downstream Executive Director, Valéria Lima, and featured panelists such as the Executive Director for Brazil of the Norwegian Shipowners’ Association (ABRAM), Ricardo Fernandes; DNV’s New Business Development Manager for Latin America, Jonas Mattos, and CEBRI’s Senior Fellow, Rafaella Guedes. They discussed the investments in innovation and technology, support policies and collaboration along the value chain that will be essential to drive the adoption of low-emission solutions for ships.

TotalEnergies

The French company TotalEnergies is presenting its multi-energy portfolio and technologies for Brazil and worldwide, aimed at new energies and reducing emissions, at the OTC trade fair. “The fair allows us to discuss paths towards a sustainable energy transition, showing how focused we are on developing technologies that allow us to increase production and reduce costs and emissions,” says Charles Fernandes, General Director of TotalEnergies in Brazil. “Every year, we dedicate around US$ 1 billion to Research and development and innovation worldwide. In Brazil alone, we invest more than R$400 million in 80 research, development, and innovation projects, almost 50% of which is directed towards new energies and reducing emissions,” he adds.

Repsol Sinopec

Another major player in the sector, the company is taking advantage of OTC to publicize its decarbonization project, based on research and development. “We want to implement a hub of technologies in Brazil to reduce emissions. We are investing in the direct capture of carbon from the atmosphere, with the implementation, still unprecedented in Latin America, of the first equipment for the direct capture of CO2 from the air, through projects conducted in partnership with the Catholic University of Rio Grande do Sul and Senai Cimatec,” explains Cassiane Nunes, Support and Research Portfolio Manager at Repsol Sinopec.

OTC Brasil runs until Thursday in Rio de Janeiro. The 2023 edition has master sponsorship from Petrobras; platinum sponsorship from Shell and TotalEnergies; gold sponsorship from Ambipar, bp, Chevron, Equinor, ExxonMobil, Prio and RepsolSinopec Brasil; silver sponsorship from Enauta, Porto do Açu and TechnipFMC; bronze sponsorship from Corio Generation, Perbras, SBM Offshore, Tenaris, Tivit, Quorum Software and OceanPact; Decarbonization & Technology Arena sponsorship from Radix, ASME, TESS, GE, Huisman, Innovation Norway, PPSA, Bratecc, Shape and Wams; support as official airline operator from United Airlines; official carbon offset partnership from AMBIFY; ApexBrasil as the International Business partner; Blumar as the official tourism agency; B&T as the official foreign exchange broker; and partners such as Abimaq, Brazil-Texas Chamber of Commerce, RedePetro ES, SPE UNIFEI and Norwegian Energy Partners. The event also has the support of the Federal Government.

Service: OTC Brasil 2023

Date: October 24 to 26, 2023

Venue: ExpoMag, Rio de Janeiro

Information on the last available tickets here.