ABESPetro Predicts R$ 102 Billion Investment in Oil and Natural Gas Sector and Creation of 500,000 Jobs by 2025

With the strong growth in exploratory campaigns and the arrival of new companies in the national territory, ABESPetro’s projections indicate that the oil and natural gas sector should receive up to R$ 102 million in investment and generate 500 thousand jobs by 2025.

In its report on the oil and gas sector in Brazil, published this Tuesday (02/08), the Brazilian Association of Oil Service Companies (ABESPetro) projects an investment of more than R$ 102 billion in the Brazilian oil and natural gas sector by 2025. Furthermore, the socioeconomic development of the country will also be a major highlight in the sector, as projections point to the creation of more than 500 thousand jobs.

ABESPetro Projections Regarding Total Investment and Job Creation in the Oil and Natural Gas Sector in Brazil Are Very Optimistic

The Brazilian oil and natural gas landscape is increasingly on the rise this year 2022, with the arrival of industry giants in Brazil and the expansion of exploratory campaigns by companies such as Petrobras, Shell, and Galp.

Thus, ABESPetro released a report indicating that by the end of 2025, the sector is expected to receive a total of R$ 102 billion in investment and generate more than 500 thousand direct and indirect jobs in Brazil.

According to the consulting firm Deloitte, there are currently about 340 thousand jobs in this area, and the sector generated revenues of R$ 104 billion last year, considering the payment of bonuses for the hiring of exploratory blocks, royalties, special participations, taxes, and dividends distributed by Petrobras.

In this way, the country continues to demonstrate itself as a global benchmark in job creation and investment in the oil and natural gas sector, and ABESPetro expects these numbers to continue to expand.

ABESPetro’s document regarding future projections for oil and natural gas production and exploration in the country will be delivered to the candidates for the presidency in the 2022 electoral campaign. Thus, the association hopes there will be an incentive for investment in the country so that this sector can be expanded in a safe, controlled manner, and, above all, with benefits to the national market, especially regarding job creation for the population, one of the main issues of the current government.

The Association’s Document on the Future of the Oil and Gas Sector in Brazil Suggests New Solutions to Encourage Growth in the Industry

ABESPetro’s report also includes suggestions for instruments to fully utilize the resources produced in the oil and natural gas sector, such as promoting the energy transition through incentives for gas production, as well as ensuring more support for research and innovation projects in the sector, which ensure greater operational quality and safety in fuel exploration.

Thus, Rodrigo Ribeiro, president of ABESPetro, commented on what can be done to expand the sector and said: “An immediate acceleration of the auction calendar, with the offering of attractive blocks and competitive contracts, would provide a more effective utilization of the wealth of the pre-salt and new frontiers, such as the equatorial margin. A proactive agenda for the exploration and production segment should be considered by the candidates in the October elections.”

With this, the association will be able to deliver viable alternatives for the predicted investment expansion in the sector by the end of 2025, and with the appropriate incentives from the Federal Government, job creation and the circulation of the Brazilian economy could become even greater by the end of the analyzed period.