Firjan published on Friday (3/20) the technical note "Assessment of the impacts of the new coronavirus on the oil and gas market", where it analyzes the photograph of the current moment of the variation of demand and supply in the world oil market and Brazilian against COVID-19.

According to the study of the Federation's Oil, Gas and Naval management, the main impact will occur in the reduction of oil demand worldwide. Considering only the world transport segment, it is estimated a drop of 1.7 MMbpd in the world demand for oil.

"Less economic activity means less demand for oil products, such as essential fuels for the transportation of cargo and passengers, or as a source for energy generation, which supports productive activity, or as an input for other derivatives," he says Karine Fragoso (photo), Oil, Gas and Naval manager at Firjan.

The document warns of the urgency of creating strategies for maintaining offshore production in Brazil, especially in Rio de Janeiro, such as longer work shifts and tests for coronavirus before workers embark, in order to prevent the spread of the virus on platforms and maritime support vessels, which could culminate in technical stops at the production units.

Regarding the reduction in the price of a barrel of oil, the study points out that at least 30% of national oil production (1 MMbpd) is at risk. This portion is not derived from the pre-salt mega fields and, therefore, has lower productivity and higher production costs, a value slightly lower than the average volume exported in 2019 (1.2 MMbpd).

The technical note also highlights the importance of strengthening the refining to the maximum with national oil, as a way to maintain the activities of the national refinery and reduce the exposure of the Brazilian economy and jobs to the international market.

Access the Technical Note Evaluation of the impacts of the new coronavirus on the oil and gas market at the link https://firjan.com.br/publicacoes/publicacoes-de-economia/avaliacao-dos-impactos-do-novo-coronavirus-no- oil-market-and-gas-1.htm