Shell sees its operations and industrial areas business in Brazil extending even beyond the deep water era
The dominance of renewables in Brazil's current energy consumption mix also means that Shell, the hydrocarbon giant, has a role to play in helping the oil and gas industry reach the two degrees Celsius target set out in the Paris. "It's not just about surviving through the energy transition, it's about thriving in the energy transition," Shell managing director Andy Brown said at Rio Oil & Gas in Rio de Janeiro on Monday. Like Shell, many other multinationals want to operate in Brazil bringing technology and innovations, mainly to the Oil & Gas sector.
The European giant and its relationship with Brazil
The European giant is a major player in Brazil's deepwater sector, currently with stakes in 13 floating production, storage, offloading units and stakes in eight pre-salt licenses. Shell's current global deepwater production is approaching 900.000 barrels of oil equivalent per day and, the Shell director said as the company is committed to the Brazilian offshore, he can see opportunities beyond the pre-salt. “Shell and Brazil have been working together for 105 years. Deepwater has become a very important part of Shell globally, but I think the relationship between Shell and Brazil will continue for many, many decades, even beyond the deepwater era,” he said.
Shell's future in Brazil
"We're going to have a shift to more natural gas over time," Brown said of shifting energy into Shell's portfolio going forward. “We see an emerging gas business in Brazil,” he said, adding that the fact that 45% of Brazil's primary energy is from renewable sources, there is also room for an increase in bioethanol in the country. Brown also said the oil industry "will have to unlock the potential" of carbon capture and storage (CCS), warning: "There will be no 2nd degree scenario without CCS." The Shell executive also urged industry participants gathered at the biennial event in Brazil's oil capital to keep a lid on costs as the industry continues to recover from a prolonged slump following the oil price crash in 2014. the Executive ends by saying “Resilience is so important to us, not only to take advantage of the positive side and be able to resist the negative side, but also because we are entering a world where there will be an energy transition”.
