Oil Refining Will Remain Relevant Despite Pressure to Reduce Fossil Fuels and Transition to Renewable Energies in the Coming Decades.
The refinery market is facing significant challenges as the world moves towards cleaner energy sources. Refineries will need to adapt and invest in more sustainable technologies to reduce their carbon emissions and continue to play a relevant role in the global energy supply.
Refining plants, refinery yards, and other refining facilities will have to find ways to become more efficient and environmentally friendly as the world seeks to reduce its dependence on fossil fuels. The transition to renewable energy sources presents challenges but also opportunities for the refining industry to reinvent itself and play a vital role in the planet’s energy future.
Refineries and Climate Change
According to the International Energy Agency (IEA), the consumption of fossil fuels, such as diesel and gasoline, for instance, has not even peaked yet, which is expected to happen in 2026.
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Petrobras completes 1,300 hours of work and 15 km of subsea lines to connect the Búzios 90 well to the P-79 — the platform is ready to produce 180,000 barrels per day and is just awaiting ANP approval.
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Iran declares the Strait of Hormuz completely open this Friday, and the price of oil plummets nearly 10% in a few hours — the largest drop since the beginning of the conflict.
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While the world was paying more for fuel, the 100 largest oil companies on the planet raked in an extra $23 billion in just 30 days of blockage in the Strait of Hormuz.
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Petrobras buys 75% of Oranto and becomes the operator of block 3 in São Tomé and Príncipe, resuming its strategy in Africa to diversify its portfolio and replenish oil and gas reserves.
As demand is not declining, but climate change imposes a push to cut greenhouse gas emissions, it becomes even more important to reduce the carbon intensity of oil refining and the production of fuels.
Learn how this is possible and what has been done in Brazil.
- When will the world stop using fossil fuels?
- Why not end fossil production all at once?
- How do refineries decide what to do to reduce environmental impacts?
- What is already underway in Brazil
- What more can be done
- How far is it possible to decarbonize traditional oil refining?
- How will this industry adapt in the long term?
Energy Transition and Environmental Commitments
At the last United Nations Climate Change Conference (COP28) in Dubai, the final declaration of the countries was the first to include a ‘transition away‘ from fossil fuels, but did not bring any specific goal for phasing out coal, oil, and gas.
Most countries still do not have a clear goal for ending the use of these products and prefer to focus on achieving net-zero emissions, which does not necessarily mean the end of fossils, as it opens room for continued emissions, provided they are offset.
Brazil, for instance, aims to achieve net-zero emissions by 2050. As part of Brazil’s contribution to the Paris Agreement, it is expected to increase the share of bioenergy in the energy matrix to 18% by 2030, the year when the country expects to reach an estimated 45% share of renewable energies in the matrix.
In other words, there is still no concrete perspective for ending the use of fossil fuels in the coming decades.
As demand continues to exist, stopping the production of fuels without replacing them with another energy source will create scarcity and increase prices.
Reducing the supply of products like diesel, gasoline, and liquefied petroleum gas (LPG) without other alternatives being available on the same scale may lead to increased inflation and energy poverty.
Source: EPBR

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