On March 11, 2020 the World Health Organization (WHO) raised the contamination state Covid 19 to the pandemic. The disease caused by the new coronavirus (Sars-Cov-2), forced governments, scientific communities and business leaders from around the world to come together in order to implement measures that would help to preserve people's lives in a very fast and also safe way . These measures have radically impacted the way we work, consume products and services and live in society, bringing some themes to the center of attention, which despite being a part of the global oil and gas industry for a long time, such as the safety of people and operational, care for the environment and the health of employees (SMS), were amplified with the arrival of this pandemic. Finally, in the economy, according to a UN report, the impact was brutal. The world economy shrank 4.3% last year, more than double that during the 2008-2009 financial crisis.

And today, 14 months after the start of the pandemic, despite the development and application of vaccines, we still do not have much clarity on how and when we will see a recovery from normality. But, one thing is already certain: the world has awakened to the discussion about the sustainability of the planet and the appetite to decarbonize the economy has grown by entering the agenda of institutions, companies, and a large part of the world population taking the oil industry in full force. and gas to get some spotlight on her on that issue.

What is the world demanding of the industry?

The aspiration of those who fight climate change is to zero the net emissions on the planet and make the world energy matrix greener. And supporters of this agenda believe that the global oil and gas industry needs to be committed to this goal.

But, unfortunately what echoes on the subject is often partial and does not contemplate clearly that decarbonizing the planet is something very grandiose, which goes beyond the diversification of the energy matrix of countries. Decarbonize needs to contemplate initiatives that certainly go beyond numbers, essentially need actions. The energy transition is a concept adopted and accepted worldwide, which is sometimes forgotten in the discourse, that the transition is a process that needs time to change from one state or condition to another.

Thus, we are not just talking about diversifying the matrix. The energy transition also requires reflection and analysis on the effects that these changes in energy generation and consumption bring to the environment and to society. Of course, it takes time.

Structural changes in countries' energy matrices need to be made with intelligence, strategy and technologies.

Cooperation is the key to advancement

Nobody does anything alone. Changing the way energy is generated, delivered and consumed is not a task for some. Companies, investors, governments, education and research institutions and society need to do this together.

According to the World Bank, more than 800 million people in the world still do not have access to electricity. So, how to make this transition fair and effective?

The path of solution passes through all and should be for everyone.

With this vision, the President of the United States, Joe Biden, convened on April 22nd and 23rd, the countries to participate in the 2021 World Summit of Climate Leaders. The event was attended by 40 heads of state and representatives of the 17 economies responsible for 80% of greenhouse gas emissions on the planet. The meeting was a preparatory to the United Nations Conference on Climate Change (COP26), which will take place in November in Glasgow, UK.

Commitments of countries at the 2021 Leaders Summit

United States

Cut emissions by 50% until 2030 compared to 2005 and zero emissions until 2050.

Brazil

Reduction of total net emissions by 43% until 2030 and Neutrality until 2050.

China

Reduce the use of coal from 2021 to 2025 and stop using coal as a source of energy by 2030

European Union

The countries of the European Union have announced emission reduction targets of around half by 2030, and neutrality by 2050.

United Kingdom

Reduction of emissions: 78% by 2035 compared to 1990.

Spain

By 2022, Spain will no longer have 85% of coal generation.

We cannot talk of consensus in a different world with each country and region with its peculiarities trying to fit in and survive the moment. But we can talk about effort and companies are also looking to do their part.

The world’s leading industry players have revised or launched their goals for decarbonisation by placing the topic at the heart of their strategies.

Some numbers and actions:

Exxon Mobil 

ExxonMobil announced the creation of a new business – ExxonMobil Low Carbon Solutions – to commercialize and deploy emission-reduction technologies. It will initially focus on carbon capture and storage, one of the critical technologies required to achieve net zero emissions and the climate goals outlined in the Paris Agreement.

ExxonMobil Low Carbon Solutions is advancing plans for more than 20 new carbon capture and storage opportunities around the world to enable large-scale emission reductions. ExxonMobil plans to invest $3 billion on lower emission energy solutions through 2025.

Petrobras

Reduction of total operational absolute emissions by 25% by 2030 and

32% reduction in carbon intensity in E&P until 2025(15kgCO2e/ good, maintained until 2023

Equinor

Carbon neutrality in global operations by 2030 and reduction of absolute greenhouse gas (GHG) emissions in Norway to practically zero by 2050. The Norwegian elected Brazil for its first solar project, the Apodi Park (CE), and evaluates new investments in the country in photovoltaic solar and offshore wind generation.

Shell

A major challenge for Shell, industry and society is to find ways to provide much more energy with less carbon dioxide (CO2) emissions.

Brazil is in the ambition of the company to become a company with zero net emissions by 2050.

BP

Net zero by 2050. 50% cut, by 2050 or earlier, of the carbon emission factor of the products that BP sells. Install methane measurement at all major BP oil and gas processing sites by 2023 and reduce the methane emission factor of operations by 50%.

Transition: far beyond challenges, opportunities

The challenges of transition are many as we have seen, but it also brings opportunities for the future of professions, companies and society.

Fatih Birol, head of the IEA stated that about half of the reductions for nations to achieve neutrality by 2050 will need to come from technologies that are not yet ready for the market to consume them. They need to be enhanced and even developed. This boosts jobs and business.

According to a PWC report to meet the demand for decarbonisation “companies will need to react quickly, transforming their strategies, operations and supply chains as quickly as possible into a path of zero net emissions, and investors will need to incorporate the theme in their risk management and in the allocation of portfolios. ” And this generates demand for new technologies, products and services in the wake of green businesses.

And so, we arrived in 2021 with all the challenges imposed by the moment and with the oil and gas industry seeking to fulfill its part in these changes that the world asks for.

 Lia Medeiros  is Director of Communication, Sustainability and People at TN Petróleo.