One of the world’s largest offshore technology fairs in the oil and gas sector has had a 40% increase in the number of delegates

This year’s edition of OTC Brasil hosted 21,000 attendees from October 24 to 26, a 40% increase from the previous edition held in 2019. Overall, the conference brought together people from 69 countries, 114 speakers and more than 180 exhibitors over the three days of the event.

Brazil in the forefront of the energy transition

The final day of the event reinforced the market’s view of Brazil’s leading role in the energy transition process. In the closing panel, moderated by Roberto Ardenghy, president of IBP, the Chairman of OTC Brazil, Juliano de Carvalho Dantas highlighted the country’s ability to contribute to the global transition. “We have many ways to help with the diversity of sources. But we also have many challenges, such as integrating the different energy grids”.

Wafik Beydoun, Americas Director at the International Association of Oil and Gas Producers, said that Brazil is ready to lead the transition process. “Brazil is certainly more than ready for the energy transition due to its high renewable energy content.”

José Firmo, CEO of the Port of Açu, said that the current challenge lies in enabling a low-carbon business integration model aligned with competitive costs. “We also need to create ecosystems to use these renewable energies as a vehicle for industrializing the economy”.

The director of engineering, technology and innovation at Petrobras, Carlos Travassos, believes that the energy transition is made possible by investments in infrastructure, education, the creation of regulatory frameworks and innovation.

Angelica Ruiz, Head of Country at bp Brazil, highlighted Brazil in the energy transition for the company. “We see Brazil as a mix of opportunities for bp. The oil in the country has low carbon intensity, renewable energies”.

Brazil, Guyana and Mozambique emerge as energy giants by 2035

“Who would have thought that Mozambique, Guyana, and Brazil would be offshore giants nowadays? Guyana is a case in point. In the last five years, production has skyrocketed to 400,000 barrels/day,” said Nelson Narciso, President of NNF Energy Consultoria, who took part in the panel “Emerging Offshore Giants to Meet Energy Global Demand”.

In the 2022 Top 15 offshore producers list, Brazil is in second place. Guyana, which appears in 17th place on the list, will jump to 4th place in 2035, according to the consultancy firm Rystad Energy. By 2050, the world will have an additional demand for oil and gas, but the window for exploration is starting to close, due to the urgency of the energy transition and the search for more sustainable and cleaner energy sources. “Brazil holds a privileged position as it has a more diversified and competitive energy mix, with lower carbon emissions in industry,” said Daniel Lepper, Head of Global Research at consultancy Rystad Energy.

Regulatory environment needed to stimulate production

Currently ranked as the 9th largest oil producer in the world, Brazil has the potential to reach the 5th place in the global ranking in the next ten years. To achieve this, it is necessary to create a regulatory environment that meets the sector’s distinct needs and stimulates the attraction of new investments, said the CEO of Enauta, Décio Oddone.

“If we want to increase reserves and keep producing, we have to face up to the challenges that lie ahead so that exploration increases and other areas can be tapped. We need a set of measures to help create a favorable business environment and attract investment,” said the executive.

The role of ANP

In a panel celebrating its 25th anniversary, Brazil’s National Agency for Petroleum, Natural Gas and Biofuels (ANP) debated the investment clause for research and development in oil and gas exploration and production contracts. All the participants in the debate stressed that the clause has guaranteed the development of new technologies that go beyond exploration and production. “We are focusing on investments that also include renewable energy, green hydrogen and decarbonization. By 2022, more than US$ 1 billion were invested in research and development,” said Daniel Maia, Director of the ANP.

The ANP also held the XI Operational Safety and Environment Workshop (SOMA), which presented the operational safety performance analysis of oil and natural gas exploration and production (E&P) activities, according to the 2022 Annual Operational Safety Report.

A regulatory framework for the CCUS is crucial

The panel “CCUS and Initiatives to Achieve Net Zero” addressed the importance of the activity’s regulatory framework to prepare the Oil and Gas sector for Net Zero. “In an optimistic estimate, the revenue potential for Brazil with CCUS is U$ 20 billion per year. In order to develop this market and have these investments, it is essential to have the regulatory framework,” said Nathália Weber, co-founder of CCS Brazil.

The impacts of the energy transition in the offshore sector up to 2050 are still uncertain

The scale of the impacts on the energy industry by 2050 is still unknown, despite so much talk about the energy transition. “However, there is one certainty: solar and wind energy will play a more significant role in the future, as the electrification of final energy consumption increases,” said Clarissa Lins, founding partner of Catavento consultancy, on the panel “Global Energy Scenarios: Impacts for the Offshore Industry”.  According to Lins, by 2023 alone, investments in renewable energy in the world should total US$ 1.8 trillion, comprising US$ 770 billion in emerging countries, of which three quarters are being made in three countries – China, Brazil, and India.

Rafaela Guedes, Senior Fellow at the Brazilian Center for International Relations (CEBRI), said that renewable sources will grow in all scenarios, exceeding primary demand by 70%, which will jump from 268Mtoe to 400 MToe.

iUP Inovathon

The final round of the iUP Inovathon, a student competition promoted by the IBP hub with a focus on innovation in the energy industry, awarded R$15,000 to the ZeroNova team, which created the fix2zero solution, a hybrid green methanol plant that utilizes CO2 from the biomass industry to produce methanol for ships.

Melissa Fernandez, IBP’s technology and innovation manager, pointed out that only 20 of the 80 students who applied made it to the end of the competition. “There were four finalist groups who made their way here with training, getting to know the diversified portfolios of the big companies. I think the winner’s differential was their commitment,” she said.

Decommissioning demands increasingly sustainable practices

The adoption of more sustainable practices is a matter of urgency in the decommissioning of ships and platforms and the final disposal of these structures. Data from the IOGP (International Association of Oil and Gas Producers) indicates that, by 2030, US$ 100 million will be invested globally in this activity. Despite technological advances in recent years, the challenges of disposing of this equipment remain.

General overview of the oil and gas sector

The president of IBP, Roberto Ardenghy, also hosted a presentation at the Institute’s stand about the oil and gas sector in Brazil in the context of energy security and transition. Check out the full presentation here.

Distinguished Achievement Awards Ceremony

At the closing ceremony of OTC Brasil 2023, the most recent and relevant innovations in the sector were honored. The oil companies Petrobras and Enauta were acknowledged for the innovative projects they have been developing in the Brazilian oil and gas market.

OTC Brasil 2023 has master sponsorship from Petrobras; platinum sponsorship from Shell and TotalEnergies; gold sponsorship from Ambipar, bp, Chevron, Equinor, ExxonMobil, Prio and RepsolSinopec Brasil; silver sponsorship from Enauta, Porto do Açu and TechnipFMC; bronze sponsorship from Corio Generation, Perbras, SBM Offshore, Tenaris, Tivit, Quorum Software and OceanPact; Decarbonization & Technology Arena sponsorship from Radix, ASME, TESS, GE, Huisman, Innovation Norway, PPSA, Bratecc, Shape and Wams; support as official airline operator from United Airlines; official carbon offset partnership from AMBIFY; ApexBrasil as the International Business partner; Blumar as the official tourism agency; B&T as the official foreign exchange broker; and partners such as Abimaq, Brazil-Texas Chamber of Commerce, RedePetro ES, SPE UNIFEI and Norwegian Energy Partners. The event also has the support of the Federal Government.