Oil and Gas sector will require USD 17.4 trillion in investments by 2050
The Organization of the Petroleum Exporting Countries (OPEC) launched the World Oil Outlook 2024 for the first time outside its headquarters (Vienna, Austria), at a special panel on Tuesday afternoon (24), during ROG.e, in Rio de Janeiro. According to the study, primary energy consumption will increase by 24% by 2050, driven by developing regions.
In this scenario, the oil and gas sector alone will require investments of USD 17.4 trillion by 2050 to meet the demand for oil, gas and other energies. “Our outlook aims to shed light on this issue to meet the growth in energy consumption. The world will need all types of energy. We must invest properly today, tomorrow and many decades into the future to see what each energy source can offer,” said OPEC Secretary General Haitham Al-Ghais.
The IBP President Roberto Ardenghy highlighted the historic moment that was Outlook launch at one of the world’s leading energy events, ROG.e, and the importance of the study for the sector, a reference for the energy market. On the occasion, IBP and OPEC signed a cooperation agreement to exchange information, databases and studies. “The purpose is to develop studies, exchange information, hold training sessions at OPEC headquarters and open up data sources between the organizations.”
Geopolitics in the energy world
On another agenda at the event, as a mediator on the Geopolitics of Energy panel, the IBP president said that geopolitical events affect our daily lives and the viability of long-term projects. “Anyone who does risk analysis needs the right tools. This discussion is crucial”.
Graham G. Henley, CEO of IOGP, the International Association of Oil and Gas Producers, explained how the institution seeks to help stabilize the gas market in the geopolitical context. “This year we have published over 100 technical documents that help show the interconnectedness of the energy supply market with geopolitics.
Carlos Pascual, president of S&P Global, brought up geopolitical aspects that directly affect the energy market. “In addition to traditional conflicts, we have a movement towards trade wars and tariffs. This is a reality that we must deal with. This scenario of a fragmented global order undermines confidence in long-term investments in infrastructure, for example.”
Thiago Barral, the MME’s national secretary for energy transition, reinforced the country’s position as a climate and energy transition leader. “Brazil has all it takes for this to happen, with advances in wind and solar energy, and the weight of bioenergy in our energy grid. Another positive factor is that Brazil is a major oil producer in the global market,” he said, pointing out that the combination of a leading role in the energy transition and oil production is an opportunity for the country to position itself and face uncertainties in the global market.”
Irregular market worries the lubricants sector
Alexandre Bassaneze, president of ICONIC, pointed out in a panel on the second day of ROG.e that 10% of the global lubricants market is out of specification. “When it is used in machinery or vehicles, it can damage the asset. Working on irregularities leads to high profits. A truck can have up to BRL 500,000 worth of synthetic and semi-synthetic lubricants and we’re seeing more and more thefts of trucks with these products”.
Carlo Faccio, director of the Combustível Legal Institute (ICL), analyzed that tax losses in the lubricants sector amount to BRL 1 billion and there are a further BRL 400 million in operating losses per year. ICL is working with the authorities and the private sector to find best practices and punish groups that promote unlawful acts in the sector.
Júlio Cesar Nishida, Superintendent at the ANP, says that more than 20,000 inspections are carried out every year. According to Nishida, around 191,000 liters of lubricants were seized between January and August 2024. “In many cases, there is a serious problem with false labeling, adulteration of the expiry date and origin of the purchase, which leads to low-quality lubricants reaching consumers,” he says.
Green hydrogen market
Ítalo Freitas, Eletrobras’ executive vice-president for commercialization and energy solutions, said during a debate at ROG.e that Brazil is ready to help decarbonize the global economy. According to the executive, the world has its eyes on the Brazilian electricity grid, which will give the country unique conditions to produce green hydrogen.
In this transition scenario, Eletrobras has the great advantage of being “one of the largest hydraulic generators in the world”, says Ítalo. Eletrobras currently has 43 GW of installed capacity, 98% of which comes from renewable sources with 24-hour production capacity, thanks to the large presence of hydroelectric generation in the company’s portfolio. For the executive, Brazil’s great potential for fuel production will allow the country to export green hydrogen or bring in production chains from other regions.
Young Summit
In the Young Summit program, a side event at ROG.e, the highlight was two panels focusing on the role of young people in the professional market. On the panel ‘The role of young professionals as drivers of cultural and organizational transformation’, Karen Couto, sector manager for Communication Management Support at Petrobras, stressed the importance of young people seeking allies who can defend their ideas and help shape them for the organizational environment.
Marcus Vinícius Mariath, from YPP, pointed out two common barriers: distrust of the quality of ideas coming from young people and leadership difficulties, especially when it comes to leading people of the same age or older. Karoline Rodrigues, from Halliburton, added that KPIs should be analyzed with a human approach, as they reflect people’s behaviors. According to her, leaders need to have the humility to learn from young people and recognize each individual’s potential.
On the panel “Is there still room for young talent in the oil & gas industry?”, Petrobras’ Recruitment and Selection Manager, Danilo Garbazza, said that the company intends to attract more and more young people, women, people with disabilities and black people. “That’s why we have increased our participation in contacts with universities and job fairs,” he said.
PRIO’s People and Performance Manager, Élida Gurgel, recalled the importance of the values of the institution and the employees being in harmony.
Energy and social mobility
At the end of the day, at the ROG.e conference, TV presenter and founder of Instituto Criar, Luciano Huck, highlighted the private sector’s capacity for transformation and innovation, including the oil, gas and other energy industries. “Success is the enemy of innovation. This industry will transform itself because this is a need for all of us,” he said.
Huck praised the private sector hand in hand with the third sector but warned that what actually changes the ‘inequality pointer’ is the government. “That’s why we need new leaders, who truly generate change for people, regardless of where they were born,” he said.
Also taking part in the panel were the president of Shell, Cristiano Pinto da Costa; the country manager of Petronas, Suhana Sudik; and the executive director of Corporate Affairs at Petrobras, Clarice Coppetti. The head of Social Impact at Galp Brasil, Cristiane Coelho, moderated the discussion.
About ROG.e
ROG.e is one of the world’s leading energy events. Organized by the IBP, it is expected to welcome more than 70,000 visitors from 65 different countries, including industry leaders, authorities, investors, academics and others. There will be 8 warehouses occupied with more than 550 exhibitors, 7 parallel events and the conference.
ROG. e 2024 is sponsored by Petrobras, Shell, TotalEnergies, Equinor, Galp, Origem, Brava, Petronas, Prio, bp, Chevron, ExxonMobil, Modec, Repsol Sinopec Brasil, SBM Offshore, Acelen, Eletrobras, Excelerate Energy, Ipiranga, Pan American Energy, Vibra, Dell, Nvidia, Naturgy, TechnipFMC, TBG, Trident Energy, ABB, Construtora Elevação, Compass, Foresea, Huawei, Karoon Energy, OceanPact, Perbras, Subsea7, TAG, Transpetro, Vallourec, Renave, with the participation of the Federal Government.