Sustainable innovations: The future of the oil and gas sector in Brazil

By Bradlei Moretti, CEO of Berkan Consultoria e Auditoria, specialized in regulated sectors

The oil and gas industry plays a strategic role in Brazil, not only because of its energy importance, but also because of the economic benefits it provides to society, such as attracting investment, creating jobs and increasing revenue. The sector represents 15% of the country's industrial Gross Domestic Product (GDP), with planned investments in exploration and production of approximately US$180 billion by 2031, according to the Brazilian Institute of Oil and Gas.

However, the expectation is that production growth in this industry will occur at a slower pace than in previous years, as pointed out by S&P Global. Its report indicates that the increase will be driven mainly by two new floating storage and offloading units (FPSOs) in the pre-salt Santos Basin. Petrobrás' original plan included two more FPSOs, which were postponed.

The sector's future prospects are being shaped by a range of factors, from environmental pressures to regulatory changes and growing demand for clean energy.

In a recent report, the Brazilian Oil and Gas Institute (IBP) noted that the sector is increasingly turning to low-carbon solutions and sustainable technologies. This shift is driven by a combination of factors, including growing environmental concerns, stricter regulations and investor pressure for more responsible practices.

The downward trend in demand for oil is leading oil companies to gradually transform into energy companies. Therefore, companies need to redefine their production processes and take advantage of advantages such as their knowledge in offshore operations for the production of wind energy, in addition to using the existing gas pipeline network to transport hydrogen. Another strategy adopted by oil companies is heavy investment in research, development and innovation (RD&I) in alternative energy sources, with the aim of diversifying the portfolio and reducing greenhouse gas emissions.

The regulatory environment is complex and constantly evolving, requiring continuous adaptation and strict compliance. Regulation covers a wide range of issues, from environmental licensing and operational safety to taxation and corporate governance. Navigating this maze requires expertise and an in-depth understanding of applicable laws and regulations.

In this context, having the support of consultants and auditors specialized in regulated sectors is essential. These professionals bring the specialized knowledge and experience necessary to help companies navigate the complex regulatory environment, identify risks and opportunities, and implement compliance best practices.

Taking a proactive approach can prepare companies to deal with challenges and thrive in an ever-evolving environment. The future of the oil and gas sector will be shaped by companies' ability to adapt and become more resilient in the face of change. Those who can keep pace with change and embrace sustainability and regulatory compliance will emerge as leaders in the new global energy landscape.

Source: Bradlei Moretti, CEO of Berkan Consultoria e Auditoria | Via Trevo Comunicação