Exploration and Production Are Crucial to Brazil’s Energy Transition

Meeting sustainable development and energy transition goals set by North American and European countries can be a challenge for developing nations who are working to build their economies and meet energy demand, and who often have very different carbon footprints than those who set the standards.

Such is the case for Brazil, the largest economy in South America, and the fifth largest country in the world. Home to a growing population, massive pre-salt reservoirs and the Amazon rainforest, Brazil is an ideal setting for addressing the dual priorities of developing a healthy energy sector while protecting the environment.

Balancing energy security and the energy transition were key topics discussed at “The Importance of E&P During the Energy Transition,” Geoscience Technology Workshop organized by the AAPG’s Latin America and Caribbean Region and the Brazilian Association of Petroleum Geologists (ABGP) in Rio de Janeiro last month.

The two-day event drew attendees representing 46 companies and 12 countries and received sponsorship from Brazil national oil company Petrobras and nine international companies.

Defining the Energy Transition

GTW Brazil General Co-Chair Sylvia Anjos, ABGP director and current adviser to the Petrobras CEO, noted that “energy transition” is nothing new.

“The transition has been going on for a long time. We transitioned from wood, to coal, from coal to oil,” she said. “We can thank coal for saving our forests. We can thank oil for saving our lungs,” she said.

Anjos affirmed that adopting a new source of energy does not imply ceasing to use others.

“Instead of ‘energy transition,’ I prefer ‘energy addition,’” she said. “We have many energy sources available, and we need all of them.”

Anjos argued that, while Brazilian oil and gas companies should monitor emissions and work to reduce their carbon footprint, the global community should understand that not all countries should be measured equally.

Anjos also cited the Union of Concerned Scientists 2020 report that Brazil produces one percent of overall global emissions. The same report showed China emits 28 percent, the United States 15 percent and India 7 percent.

“Yes, we are top in the region in terms of emissions, but the magnitude is different,” she said.

Anjos also emphasized the importance of understanding regional differences related to CO2 levels.

She showed a graph illustrating that in Latin America and the Caribbean, like Africa, southeast Asia and the Pacific, where the CO2 emissions from land use, land use change and forestry more than double the emissions from fossil fuels and heavy industry.

Anjos argued that, instead of putting the entire burden on the oil and gas industry, governments should focus on land use and protecting forests.

She contended that in Brazil, energy per capita is too low and will require a mix of energy that includes a strong oil and gas component, which can not only provide energy security but also be a strong support to protect forest, reforestation and land use to drastically reduce CO2 emissions.

“What we really need to do is focus on deforestation,” she said. “Taking care of the Amazon forest and other threatened biomes has a much greater impact in helping the environment at the same time we provide the mix of energy the Brazilian population needs.”

Anjos concluded her remarks with her own formula.

“Energy transition plus energy addition equals energy security,” she said.

Government Commitment to Emission Reduction

Ronan Ávila, deputy superintendent of geological and economic assessment at the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) echoed Anjos’s remarks in his keynote address.

“In order to avoid costly consequences for the energy transition and competitiveness, it is crucial to address deforestation and land use change emissions by 2040” he said. “Additionally, we need to find ways to address emissions from challenging sectors such as freight transport and industrial processes.”