Oil Industry Multinationals Meet at Avant Premiére Event

Event Leading Up to Brazil Offshore 2017 Brought Together Major Multinational Companies in the Oil Sector to Reach a Final Conclusion

With absolute exclusivity, the Click Oil and Gas page was invited to the great pre-launch event of Brazil Offshore 2017, the Avant Premiére.

We were with the largest companies and authorities of the planet from the oil industry, who are fighting relentlessly to make this sector attract investments and generate jobs again. In the following paragraphs, you will learn what the main representatives of the oil industry think about the crisis, possible solutions, and the economic recovery.

In the first part of the event, the famous journalist and anchor of Jornal O Globo William Waack was responsible for presiding over the lecture and managing the debates and clashes of the entities represented there. He began his speech focusing on the premise that everything said in his words would be free and entirely his responsibility, and that his purpose of being there was only as a speaker and not as a representative of the company he works for (Globo).

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In his words, he stated that the crisis is a reflection of governmental disservice over the years, simply because social spending is greater than what the government can collect. Ironically, he dubbed this moment as “The Moment Of Truth.” We all knew this moment would come sooner or later, but not this soon, right?

Waack showed himself to be a declared opponent of the PT government, speaking harshly and without concern for who it might hurt! With harsh words and criticism towards our managers, he said that other countries see our situation as depressing due to semi-literate managers (should I name names?) who are not informed about the economic issues the country is facing.

Shortly after, the vice president of Reed Exhibitions, Paulo Octávio, who is responsible for organizing Brazil Offshore 2017, expressed his happiness because, despite the inglorious moment the country is experiencing, Macaé is still at the center of business projections in the oil and gas sector for many years to come. In the 40 years of exploration and production in the Campos Basin, 20 Brazil Offshore events have been held to date, organized by Reed.

The president of the Brazilian Institute of Oil, Gas, and Biofuels (IBP) stated in the lecture that Brazil is very favorable geologically in the oil sector and said the problem is not the lack of oil, but rather external factors. In various conversations and meetings with executives abroad, he asserts that Brazil is still highly sought after worldwide because few countries can produce 50,000 barrels of oil per day from individual wells, and in terms of foreign interest, we rank 5th. The IBP reports that preliminary studies indicate that Brazil’s oil reserves could reach an incredible 200 billion barrels. Using a bit of sarcasm, he said that the “era of oil” will come to an end due to alternative energy sources, and that we will not be able to produce all the fossil fuel available in our reserves.

When questioned about having so many oil reserves and no investments, the president of the IBP claims that the government has many high taxes and that we need more independent operators besides Petrobras; only this way can we maximize business in this industry. Companies want to invest but are hesitant to make additional investments because Rio de Janeiro, which holds most of the business, constantly imposes new and unconstitutional taxes.

To conclude the session, the main representative of Abaspetro, José Firmo, who manages over 50 oil companies, emphasizes that the level of technical training is key for those wishing to enter this field. He says that if no action is taken now, about 500,000 jobs will cease to exist or be lost. It will be necessary to change local content rules to ensure future investments.

Dr. Aluízio, the mayor of the National Capital of Oil, was a bit more direct and incisive in stating that the population (the common people) does not understand and does not want to know the technical details; they simply want to see these projects and economic misadventures materialize in the form of jobs, security, and economic stability. William Waack asked the mayor if he wins elections with this discourse, and he replied without blinking, “YES.” His efforts to balance the city’s accounts, despite much criticism, resulted in his re-election for 2017.
Many multinational companies with their respective representatives who were there enjoyed the event and showed great optimism and eagerness for Brazil to return to being a country of joy and wealth. I don’t remember all of them, but the companies that were present included Baker Hughes, Cameron, Chevron, Shell, Engevix, Technip, Odebrecht, Modec, FMC, Petrobras, and many more that I didn’t have time to note. In other words, “only big players”!

As you can see, dear readers, there is a true task force dedicated to revitalizing the economy in the sector; what is lacking is political will to be more flexible with local content needs and to tax companies less, because despite the abundance of oil, exploring it in deep waters is expensive and requires a lot of technology, unlike the Arab Emirates, where you can find oil just a foot underground.