Industry showed resilience in the midst of the crisis, but needs to remain competitive, says IBP president

At the opening of Rio Oil & Gas 2020, Clarissa Lins said that the industry ensured operations and supply even with a pandemic; Minister Bento Albuquerque stressed the importance of opening markets and attracting investments.

At the opening of Rio Oil & Gas 2020, IBP President Clarissa Lins highlighted the resilience and adaptability of the industry in the midst of the crisis caused by Covid-19, which had a strong impact on the oil and gas industry in Brazil and in the world. “This year has been especially challenging, but we have maintained operations and guaranteed the necessary supply. We show everyone that the essentials cannot come short,” he said.

The executive stressed that the industry faces “challenging numbers”, but it is committed to overcoming the current situation. To illustrate the more hostile environment, IBP president highlighted the projection of a 6% drop in demand for energy and a 30% drop in investments, both data from the International Energy Agency, and a 5% recession in world GDP – forecast by IMF.

To face this scenario, said Clarissa Lins, Brazil needs to remain open and competitive, always guided by the ongoing energy transition towards a low carbon economy.

Minister Bento Albuquerque, on the other hand, listed the recent advances in regulation and the successful block auctions in 2019, with a collection of BRL 84 billion in signature bonuses alone, which “will leverage much higher investments” in the coming years. Looking forward, the minister stated that the challenges are to promote and consolidate the opening of the natural gas and refining markets, which will bring investments to the country and opening of which leads to the possibility of more competitive prices.

The acting governor of Rio de Janeiro, Claudio Castro, highlighted the importance of Rio Oil&Gas to draw attention to the industry and help attract investment to the state. Castro also reinforced the relevance of the oil and gas industry to Rio de Janeiro.  “The industry is one of the main sectors for the social and economic development of our state. In addition to moving the economy, it generates jobs and income. And we remain optimistic. The year 2021 will be one of great challenges and we already have good projections.”

The acting governor also recalled that, according to Firjan’s projections, the industry will generate 26 thousand direct jobs for Rio de Janeiro by 2024.

The acting general director of the ANP, Raphael Moura, highlighted the strength of the industry in this moment of crisis and the need for the country to remain competitive in order to attract investments in this more challenging scenario. “The pandemic has affected the industry more than any other recent event in our history. There are many uncertainties, which point to the need to be more competitive. We must focus on the sustainability and efficiency of our operations. There is no other way for the oil and gas industry.”

According to Moura, “not only will companies need to be more efficient, but regulatory frameworks must also adapt and improve” in this new environment, in order to help reduce costs and mitigate risks, in an effort to increase attractiveness of the country. “We need to act quickly and efficiently”, he stressed.

Raphael Moura also pointed out that, even in the face of uncertainties, the export of Brazilian oil this year reached a record, and national production should exceed 5 million barrels/day in 10 years. “As a regulatory body, we have to ensure that these changes will take place effectively, thus resulting in a diverse, competitive market environment, capable of attracting investments and, mainly, benefiting the final consumer, without neglecting, of course, national supply”, completed the acting director general of the ANP.

Innovation – 100% digital Rio Oil & Gas

Cristina Pinho, corporate executive director of IBP and chairman of Rio Oil & Gas, stressed that the pandemic allowed “a leap of innovation” to the event. “This is the most innovative edition ever held by IBP in its history”. This year, the event is, for the first time, 100% digital, with debates on upstream, downstream, energy transition, diversity, female leadership, among other topics.

Clarissa Lins, president of IBP, highlighted the renewal and strategic reorientation of IBP, which now represents all the links in the sector chain through the creation of an association for the downstream, going through an important phase of opening the segment.

Rio Oil & Gas 2020 is sponsored by Petrobras, Equinor, Shell, BR Distribuidora, Ipiranga, BR, Chevron, ExxonMobil, Raízen, Total, Petrogal, Repsol Sinopec Brasil, Siemens Energy, Braskem, Enauta, PetroRio, Salesforce, Dow, Oracle, Solvay, TBG, Techint, United Airlines, Vallourec and Wintershall DEA.