Oil and gas boost 18,6% in ES industry

Espírito Santo started the year 2023 with positive results in its industry, growing 18,6% in January, compared to the previous month.

This increase is attributed to the good performance of the extractive industry, which has been registering an increase in the production of oil and natural gas. According to National Petroleum Agency, oil production grew by 31,9% and natural gas by 20,4% in this period.

However, in the comparison of January 2023 with the same month of 2022, the general industry of Espírito Santo decreased by 6,5%, with emphasis on the extractive and transformation industries. All activities showed a decline in this interannual comparison. Despite this, there was an increase in the production of certain products from these industrial activities in Espírito Santo, such as pelletizing iron ore, production of beef and coconut milk, and productive advances in steel ingots and blocks and in flexible iron and steel tubes.

For this year, the market expects an appreciation in the price of metallic and energy commodities, mainly from the second half. Already in the accumulated in 12 months, the industry of the Espírito Santo dropped by 9,7%, under the influence of lower production in the extractive industry, food products, non-metallic mineral products and metallurgy. On the other hand, the manufacture of cellulose, paper and paper products increased 4,4% in this period, benefiting from the world demand for short and long fiber.

BABY Items on Mercado Livre

In addition, the first survey of the year brought news with the review of its methodology. In case of Espírito Santo, the IBGE reduced the number of products it analyses, from 30 to 29. The update increased the weight of the extractive industry and reduced that of the manufacturing industry in determining the result of general industry.

Impact of oil and gas on the Espírito Santo industry

O oil and gas industry plays a key role in the economy of the Espírito Santo. The state is the fourth largest oil producer of the country, being responsible for about 13% of the national production, and for 32% of the production of natural gas. The productive chain of these sectors is very important for the generation of jobs and income, in addition to being responsible for increasing the state's exports.

According to Cris Samorini, president of Findes, the appreciation of the price of metal and energy commodities benefits the production and industrial exports of Espírito Santo. Furthermore, oil prices are already on a recovery path and should accelerate even more from the middle of this year, which increases the value of our exports.

industry challenges capixaba

Despite the good performance of the extractive industry, which has been driving the industry in Espírito Santo in recent months, there are still challenges to be overcome so that the industry can grow sustainably. One of the main challenges is the labor qualification, which is essential for technological development and competitiveness.
Another challenge is the modernization of state infrastructure, which is essential for attracting new investments and for improving the flow logistics of the industrial production. In addition, it is necessary to encourage innovation and entrepreneurship in the industrial sector, so that companies can adapt to changes in the market and develop products and services with greater added value.

O Oil and Gas have a fundamental role in the industry and economy of Espírito Santo, being responsible for most of the positive results recorded in recent months. However, challenges must be overcome so that the industry can grow sustainably and adapt to market changes. A labor qualification, infrastructure modernization and incentive to innovation and entrepreneurship are some of the necessary measures to promote the development of the industry in Espírito Santo.