The Ministry of Mines and Energy (MME) hosted the event "Just, Inclusive, and Balanced Energy Transition: Pathways for the Oil and Gas Sector to Enable the New Green Economy" on Wednesday, April 24. During the debate, representatives from MME, the Energy Research Company (EPE), and Pre-Salt Petroleum S.A (PPSA) emphasized the importance of these resources for energy transition, national sovereignty, and self-sufficiency in fuel production.

This is because even in a scenario where emissions are zeroed, the world will still consume oil. The strategy for this is to find other ways to offset the greenhouse gases emitted into the atmosphere by fossil fuels, as highlighted by the National Secretary for Oil, Natural Gas, and Biofuels of MME, Pietro Mendes, at the event.

"The oil produced in Brazil has a lower carbon footprint than the world average, and if we were to stop production, we would have to import petroleum derivatives with a much higher carbon footprint. Oil is and will continue to be important in the coming decades, being an important vector of technological development and innovation, as well as promoting economic and social development and generating employment and income," explained the secretary.

The solution to the climate problem includes the oil and gas industry, ensuring not only energy security but also economic development and quality of life in a people-centered transition. The sector also ensures investment and innovation capacity, providing new decarbonization technologies and financing for the energy transition to renewable sources. Finally, technical expertise and infrastructure can also be leveraged to enable the transport of hydrogen and CO2, for example, in addition to the use of LNG terminals for hydrogen and ammonia trade, according to EPE projections.

According to the National Secretary for Energy Transition and Planning, Thiago Barral, these and other strategies are outlined in the National Energy Transition Plan, developed by MME. "We are proposing a plan that brings together, in a more structured and transparent manner, this set of measures, to organize all the efforts we need to make to ensure that the energy sector contributes to mitigating emissions, achieving carbon neutrality, and meeting the country's economic and social development goals," he said.

According to Heloísa Borges, Director of Oil, Gas, and Biofuel at EPE, ceasing oil production would not imply a drastic reduction in national emissions since domestic consumption of derivatives would continue to exist, necessitating imports to meet demand.

For the EPE director, exploring and developing undiscovered resources in the country would unlock investments of around R$ 5 trillion between 2031 and 2050. On the other hand, interrupting investments in E&P in Brazil could mean revenue losses of around R$ 4 trillion, not considering the losses resulting from impacts on the trade balance and other macroeconomic effects.

Panel Discussion

During the event, Tabita Loureiro, Technical Director and Acting President of PPSA, moderated a panel discussion to discuss the role of the oil and natural gas sector in energy transition with data and facts about production, revenue, decarbonization, and other important indicators.

Tabita emphasized the importance of the country maintaining investments in the oil and gas sector, ensuring Brazil's energy security. She highlighted the number shown by EPE that upstream emissions represent only 1% of Brazil's total GHG emissions. Nevertheless, she emphasized that the industry has been working to continue decarbonizing its activities and reminded that Brazil's oil, particularly from the pre-salt, is differentiated, known for its triple resilience (technical, economic, and environmental).

PPSA Directors Evamar Santos and Samir Awad attended the event, which was attended by various energy sector leaders.