It may seem counterintuitive, but as Petrobras CEO Jean Paul Prates explains, the roadmap to decarbonization and net zero must be supported by a strong collaborative effort between oil and gas producers and government policy makers.
“We need a rational and progressive energy transition [that] leaves no one behind,” Prates told a conference room filled to capacity with offshore energy industry delegates at OTC 2024 in Houston in May.
He explained the Brazilian state energy major’s plans to increase oil production while promoting decarbonization throughout the value chain, and it seeks to collaborate with suppliers to achieve this.
For proof, read OSJ Deputy Editor Martyn Wingrove reports on Petrobras’ recent tenders for offshore support vessels to support its robust plans for field development, decommissioning and drilling activities from 2024 to 2028. The Giant Energy is looking to add new OSVs that are expected to be equipped with emissions-reducing technologies and propulsion such as LNG fuel, energy storage and diesel-electric hybrid propulsion. The use of biofuels will also come into play, with Brazil being the world’s second largest producer of renewable fuels. Indeed, OSV emissions can represent at least 17% of CO2 emissions linked to drilling operations.
Mr Prates urged energy producers to reduce CO2 emissions linked to their fossil fuel production and replace ‘King Oil’ with locally produced low carbon or even no carbon fuels which require less transport over long distances.
“Brazilian energy major plans to increase oil production while promoting decarbonization”
While it still has ambitions to remain one of the world’s largest producers of low-carbon oil and gas, Petrobras’ plans go far beyond simply increasing offshore oil and gas production. , with an eye on solar parks, onshore and offshore wind power, and hydrogen production. , biorefining and carbon capture and storage. Profits from oil will help invest in these alternative energy developments.
Over the next five years, Petrobras plans to invest some $11.5 billion to reduce carbon emissions from its operations, strengthen its biorefinery capacity and expand its low-carbon activities.
With dozens of FPSOs operating offshore, Petrobras has “the largest CO2 injection in the world, and we will now be able to [inject] from the bottom of the sea,” Mr. Prates said.
While renewable energy accounts for half of the country’s energy, including 80% of its electricity generated by hydropower, Brazil has a larger carbon footprint than most of the global community.
With the ambition to achieve carbon neutrality by 2050, Brazil’s progress will be at the forefront when it hosts the United Nations Climate Change Conference (COP 30) in Belém in 2025.
“We are in the middle of the leap,” Mr. Prates said, highlighting the gradual shift away from oil and toward renewable energy. Keen to overcome past scandals that have plagued the country’s oil and gas sector, Mr Prates welcomed the collaboration. “Partnerships will be on the agenda. » Like Petrobras, other oil producers will need to rely on the clean energy transition to succeed.
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