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<\/p>\nThe oil and natural gas industry in Brazil is one of the most dynamic production segments of the economy. Today the Brazilian oil and gas industry comprises a vast array of local and foreign firms working in all links of the business production chain (exploration and production, refining and transport, distribution and marketing of petroleum products). At year-end 2020 it accounted for 13% of Brazil\u2019s US$ 1.4 trillion GDP, corresponding to a contribution of US$ 181.5 billion to the nation\u2019s wealth. The industry brings together enormous volumes of intellectual capital (in firms\u2019 stocks of routines, procedures, standards and systems) and a major contingent of highly qualified postgraduate staffs.<\/p>\n
The oil and gas industry in Brazil always poses major technological and financial challenges, \u00a0because Brazil has practically no oil on land. The great majority of its oil production fields lie on the continental shelf in deep and ultra-deep waters (more than 3,000 metres below the surface). Today, considering exploration and production activities on land and at sea, there are 34 operator companies in Brazil (ANP – Jan\/2020 – Relat\u00f3rio da Produ\u00e7\u00e3o Nacional de Petr\u00f3leo e G\u00e1s) and Petrobras (Petr\u00f3leo Brasileiro S.A.) continues to maintain its leading position as the largest oil corporation in the country and one of the largest in the world.<\/p>\n
In 2020 on the last quarter of the year, \u00a0Petrobras recorded a mean output of 2.68 million boe\/day (Petrobras \u2013 Results 2020) \u00a0considering oil, natural gas liquids and natural gas. The Company\u00a0 posted net profit of US$ 7.1 billion and consolidated EBITDA of US$ 27.5 billion, with 10.6% growth over 2019 (Petrobras Results \u2013 2020) as a result of wider margins on domestic sales and exports, in line with the recovery of \u00a0Brent prices and lower operating expenditures.<\/p>\n
The Brazilian oil regulatory agency (Ag\u00eancia Nacional do Petr\u00f3leo, ANP) has held auctions of exploration blocks every year. By the ANP\u2019s own reckoning, more than US$ 300 billion will have been invested in the oil, natural gas and renewable energy production chain in Brazil by 2030.<\/p>\n
In its Energy Scenarios for 2040 \u00a0and \u00a0Strategic Plan 2021-2025, Petrobras took account of major guidelines namely: the COP 21 agreements, now ratified by 179 countries and established the goal of \u00a0reducing the total operational emissions by 25% up to 2030; \u00a0the expectation that\u00a0 electric vehicles for shared use will represent 30% of total sales in the automobile market by 2030; the energy inclusion process, which should benefit one billion people in the period with; the smart grid; and the geopolitical consideration that 42% of crude oil production in the world will be concentrated in areas of conflict.<\/p>\n
In the period from 2021 to 2023 , Petrobras expects to invest US$ 55 billion, of which US$ 46.5 billion will be in exploration and production, US$ 4 billion in refining, US$ 2.0 Billion in commercialization and logistics, US$ 1.0 billion in gas and energy, and US$ 2.0 Billion in Corporate areas (refer to Figure 1). Petrobras investments represent approximately 95% of total investments in oil and gas in Brazil by all 34 operators currently present on the local market.<\/p>\n
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Figure 1<\/strong> – Petrobras\u2019 Investments for the period 2021-2025 Brazil is a very young country in using natural gas as an energy source and industrial input. Although the United States, Canada, Russia and some eastern European countries have realised the value of natural gas since the early twentieth century (imposed by the need for heating fuel to meet the rigorous winter), the history of natural gas in Brazil can be considered to have begun in 1992 when the Ministry of Mines and Energy (MME) reasserted the strategic goal of reconfiguring Brazil\u2019s energy matrix so that natural gas would account for a 12% share in the matrix by 2010 (documents for this citation can be recovered from Minist\u00e9rio das Minas e Energia home page, www,mme.gov.br) . That goal, set earlier by the MME\u2019s former Gas Commission, was later confirmed by the National Energy Policy Council (CNPE), the chief body responsible for setting policy and guidelines for energy matters in Brazil. The goal was partially achieved with a participation of 10.8% in 2010 (Source IBGE Ids 2012). Nowadays the participation of Natural Gas in the Matrix is 12.2% (EPE 2020).<\/p>\n In order for natural gas to be internalised as a fuel or industrial input in Brazil, numerous infrastructure projects are necessary, especially as regards expanding the network of large diameter gas transport pipelines. These works entail sizeable investments and are the reason for the new regulatory model approved by the\u00a0 Senate on 12\/10\/2020 (PL 4476\/2020) and finally approved by the Congress on 03\/17\/2021. The main points of this new Law are:<\/p>\n The map in Figure 6 showing Brazil\u2019s gas transport pipeline network gives an idea of what remains to be done. Practically all the pipelines are on the east coast, while inland Brazil is a large empty space. It is exactly that void that offers outstanding opportunities for Brazilian and foreign operators, and goods and service suppliers, wanting to engage in developing this industry, because natural gas is an energy solution that Brazil clearly cannot ignore (see Supplier Chain).<\/p>\n Figure 2<\/strong> \u2013 Natural Gas Transport Pipeline Network in Brazil In December 2020, at Rio Oil and Gas, the largest event of its kind in Latin America, foreign investors agreed that natural gas can play a predominant role in Brazil, but that will require a stable, predictable environment in order to advance with new projects. The passing of Law 4476\/2020 may solve the doubts of investors. As an example, from now until 2030, Equinor plans to invest an important amount \u00a0in the sector, and there was a consensus that the approval of the new regulatory framework the industry will \u00a0foster open access and competition in the gas sector.<\/p>\n Electricity plays an important role in Brazilian Energy Matrix as can be seen in Figure 3.<\/p>\n \u201cThe demand of electricity in Brazil in February 2021 summed to\u00a0 41.214 GWh, an increase of 1,1% relative to February 2020. On the Other hand, the accumulated demand for 12 months was 475.909 GWh, representing a drop of 1,1%, compared to the previous period.<\/p>\n Among the geographic regions Northeast (+3,1%) and Southeast (+2,1%) showed expansin in the consumption of electricity in February 2021 meanwhile North (-2,8%), Center-West (-1,1%) and South (-0,6%) showed a drop in consumption.<\/p>\n The Industrial Class of Voltage (+4,4%) showed the greatest positive rate of change in the consumption for the month (February 2021)\u00a0 since 2011. This class has been increasing \u00a0since August 2020. The increase in industry consumption has been driven by the South \u00a0(+6,0%) and Southeast (+5,2%) regions, what has been happening since December with these two regions alternating in the leadership of the growth indexes.<\/p>\n Figure 3<\/strong> \u2013 Brazilian Energy Matrix in 2017 Since September of last year September, Metallurgy (+208 GWh; +6,6%) and non metallic mineral products (+99 GWh; +9,8%) are the leaders of the expansion but in February 2021, chemical products (+96 GWh; +6,8%). played an important role also.<\/p>\n Residential Voltage Class \u00a0(+3,4%) showed increase also in electricity consumption during February 2021 driven by Northeast (+6,5%) and Southeast regions \u00a0(+5,2%).<\/p>\n On the other side,comercial class (-7,3%) still registers drop in the consumption of electricity although less than the average of the last 12 months. \u00a0Commercial and Services sector continues to be the most affected segment related to the sanitary lockdown imposed by authorities due to COVID 19. All the regions in the country showed a drop in the consumption Regions North (-15,5%) and Center-West (-9,3%) are the regions with the biggest contractions in consumption\u201d.<\/p>\n OBS:<\/strong> (Quotation marks \u00a0is an excerpt from a technical note issued by Empresa de Pesquisa \u00a0Energ\u00e9tica that can be accessed in portuguese at \u00a0Not\u00edcias Resenha Mensal: O consumo de eletricidade no Brasil em fevereiro de 2021 apresentou avan\u00e7o de 1,1% em rela\u00e7\u00e3o ao mesmo m\u00eas de 2020 (epe.gov.br)<\/a>)\u00a0 Epe means\u00a0 Energy Research Company.<\/strong><\/p>\n \u201dHidroelectricity has been the main source of generation in the Brazilian electrical system for many decades. both for its economic competitiveness and for the abundance of this energy resource at a national level. Brazil has a generator system with an installed capacity of more than 150 GW, with hydroelectric predominance. This predominance stems from the country’s extensive territorial surface, with many plateaus and large rivers. The Brazilian hydroelectric potential is estimated at 172 GW, of which more than 60% have already been used. Approximately 70% of the untapped potential is located in the Amazon and Tocantins – Araguaia hydrographic basins. It is a mature and reliable technology that, in the context of greater concern with greenhouse gas emissions, has the additional advantage of being a renewable source of generation\u201d.<\/p>\n (Quotation marks\u00a0 is an excerpt from the site of Empresa de Pesquisa Energ\u00e9tica\u00a0 (Epe -Energy Research Company) Energia El\u00e9trica Expans\u00e3o da Gera\u00e7\u00e3o (epe.gov.br)<\/a>).<\/p>\n \u201cThermoelectric generation can be promoted through different fuels: natural gas, biomass, mineral coal, nuclear, fuel oil, among others. The definition of fuel for generation, especially for large plants, is related to meeting technical, economic, logistical, environmental criteria and, in some cases, energy policies\u201d.<\/p>\n (Quotation marks\u00a0 is an excerpt from the site of Empresa de Pesquisa Energ\u00e9tica (Epe \u2013 Energy Research Company) Energia El\u00e9trica Expans\u00e3o da Gera\u00e7\u00e3o (epe.gov.br)<\/a>).<\/p>\n The stratification of the industrial energy \u00a0consumption in Brazil is shown in Figure 4.<\/p>\n Figure 4 \u2013<\/strong> Stratification of industrial energy consumption in Brazil, several sources About 70% of the electricity supply in Brazil is water-based, therefore renewable. The rest is supplied by natural gas thermoelectric plants and wind farms. Very little is thermally based on diesel or other fuels.<\/p>\n From 2000 to 2010, Petrobras maintained groups of experts at its R&D centre to study the various forms of alternative energy and the scope for applying them in Brazil. The energy sources studied were wind, solar, ground (geysers), oceans and biofuels. After discovery of the pre-salt oil deposits and in view of the need to develop the fields, where activities were new and expensive, Petrobras gradually shifted its focus away from renewable alternatives until, by 2010, the portfolio was limited to biofuels. Now that the technical and cost challenges of developing the pre-salt deposits have been met, Petrobras has decided gradually to resume its activities in renewables, focusing on Bio Refining and biofuels. That was the most logical decision in view of the drivers of the Strategic Plan and the movements of other operators around the world, who are investing heavily in this area.<\/p>\n However, there is a great deal of activity in investment in renewable energies by other operators and even small companies focused on services in the energy area. The main focus is Solar Energy, since the wind farm is already well developed and Brazil is a country of great average sunshine in all geographic regions, particularly in the Northeast. More details on initiatives aimed at Renewable Energies in Brazil can be obtained on the home pages of the Ministry of Mines and Energy (https:\/\/www.mme.gov.br) or the Energy Research Company (www.epe.gov.br).<\/p>\n Petrobras\u2019 Strategical Plan <\/p>\n Empresa de Pesquisa Energ\u00e9tica \u2013 EPE (Energy Research Company) www.epe.gov.br<\/a><\/p>\n Energia El\u00e9trica Expans\u00e3o da Gera\u00e7\u00e3o (epe.gov.br)<\/a><\/p>\n Not\u00edcias Resenha Mensal: O consumo de eletricidade no Brasil em fevereiro de 2021 apresentou avan\u00e7o de 1,1% em rela\u00e7\u00e3o ao mesmo m\u00eas de 2020 (epe.gov.br)<\/a><\/p>\n Not\u00edcias Relat\u00f3rio S\u00edntese do Balan\u00e7o Energ\u00e9tico Nacional 2019 \u2013 Ano base 2018 (epe.gov.br)<\/a><\/p>\n
\nSource: Petrobras\u2019 Strategic Plan 2021-2025<\/p>\nNatural Gas <\/em><\/h3>\n
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\nSource: National Petroleum Agency – ANP<\/p>\nElectricity<\/h3>\n
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\n(Source: EPE 2019)<\/p>\n![\"\"](\"https:\/\/astrotecnologia.net\/en\/wp-content\/uploads\/2019\/04\/img_4.jpg\")
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\nSource: PDE 2027 (EPE 2018)<\/p>\nRenewables<\/h2>\n
References<\/h3>\n
\n<\/strong>https:\/\/www.investidorpetrobras.com.br\/resultados-e-comunicados\/apresentacoes\/<\/a><\/p>\n
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