NEWS

01The Ethos Conference, which took place in June of 2016 in Rio de Janeiro, discussed the relevance of the oil sector for the state economy during the global oil crisis, local additional challenges due to Petrobras’s financial condition, and pressures from the climate commitments proposed by the Brazilian government during COP21 .The panel discussion with FIRJAN (Federation of the Industries of Rio de Janeiro) and private companies representatives, was moderated by Celina Carpi, member of the Ethos Institute Board of Directors.

Data compiled by FIRJAN in 2014 shows a concentration of 80% of the oil reserves and 55% of the gas reserves in Rio de Janeiro. Acknowledging the oil and gas sector importance for the Rio de Janeiro state, Clarissa argued that the transition agenda for a low carbon economy faces challenges that should be addressed now.

Among these challenges is the definition of a time horizon to guide the actions, as well as the strategy to deal with the existent infrastructure base. This way, the O&G industry could have an important contribution in the process, due to its huge know how in terms of technology, P&D and innovation, besides an expertise to relate with different stakeholders, such as governments, regulators, local communities and investors.

On the other hand, the oil & gas companies should contribute in several ways to this long-term planning through: continuous focus on operational excellence and socio-environmental impact reduction; use of its capabilities for the development of new and less carbon intensive technologies; or even portfolio diversification to include renewable energy investments. Some global companies are already preparing for that.

For a transition with a higher level of efficiency and predictability in resource allocation, an important factor would be the establishment of carbon pricing process mechanisms. Clarissa endorsed the importance of a conscious debate in Brazil, including the oil and gas players on the debate.