In addition, oilfield decommissioning will generate R$ 2.4 billion in business. The data are part of the 5th edition of the Oil and Natural Gas Industry Yearbook in Espírito Santo, produced by the Findes Industry Observatory
The Federation of Industries of Espírito Santo (Findes) launched this Friday (29) the 5th edition of the Yearbook of the Oil and Natural Gas Industry in ES. The document brings together the most important data and analysis of the sector, in addition to presenting a projection of oil and gas production until 2025.
According to the study, it is estimated that Espírito Santo will receive, in four years, a total of R$ 8.1 billion in investments in the oil and gas sector, with projects from companies such as Petrobras, Karavan Oil, Shell, PetroRio, Imetame and ES Gas. The decommissioning of 680 oil wells in ES should generate R$ 2.4 billion in business between 2022 and 2026.
The material also provides information such as oil and gas production, number of wells drilled in the state, details of planned investments, collection of royalties and special participations, among other figures.
The publication's launch took place at Findes' headquarters, in Vitória/ES, and brought together experts and authorities. On the occasion, the Federation president, Cris Samorini, stated that the Yearbook – produced by the Industry Observatory, with the support of Sebrae and the Espírito Santo Forum of Oil, Gas and Energy – is an important tool for tracing an x-ray of a of the main economic segments of the State.
“In the national ranking, Espírito Santo is the third largest producer of oil and the fourth largest producer of natural gas. The sector has the highest representation in the added value of the general industry in ES, at 25.4%. The Yearbook is very relevant since, in addition to reinforcing the importance of the sector through data, it guides strategies and planning, especially in favor of generating opportunities and developing Espírito Santo.”
The chief economist at Findes and executive manager of the Observatório da Indústria, Marília Silva, highlighted that knowing the current scenario of oil and gas exploration in Espírito Santo, in the country and in the world is also essential to understand the transition context of the matrix energy, which has been gaining more and more strength across the planet.
“There is no question about the benefits generated by the transition from an energy matrix currently intensive in fossil fuels to a matrix with low or zero carbon emissions. The doubts about this transition lie in the speed with which it will occur, given the need for energy security and financial, technological and regulatory stimuli, to be promoted by global leaders”, emphasized Marília.
The Undersecretary of State for Attracting Investments and International Business, Christiane Vargas Menezes, stressed that Espírito Santo stands out in the production of oil on the national scene and is the only state in the federation with a Sovereign Fund, which allocates resources for structuring investments that make Espírito Santo is increasingly competitive and attractive to new businesses.
“The ES Oil and Gas Yearbook is an important document for the State, since, through technical and accurate information, it can assertively indicate the elaboration of new strategies and investments by the State Government that can best support the segment”, he said.
The technical director of Sebrae, Luiz Toniato, recalled the importance of the oil and gas sector for the State. “Sebrae is a partner in this chain and is committed to doing its best to prepare micro and small entrepreneurs to take advantage of the opportunities that arise in the production and exploration of oil and natural gas”, he commented.
The manager of Resource Availability Management and Services at Petrobras, Hudson Gomes Carvalho, mentioned that the company manages operations in the state that represent approximately 14% of national oil and gas production. He also reinforced the partnership that Petrobras has with Findes. “This partnership is very strategic for us. After all, this way, we get closer to the local industry, stimulate the supply chain and encourage the development of innovation and technology”, he emphasized.
During the event, the Mec Show was also launched, one of the main fairs in the metalworking sector, which brings the latest trends and cutting-edge technology to the industry. The president of the Union of Metallurgical and Electrical Material Industries of the State (Sindifer), Luis Cordeiro Soares, said that this will be a great fair.
“After two years in the virtual editions, we hope to offer many attractions of products, services and technologies applicable to the metalworking and oil and gas segments. A lot of news can be expected”, he emphasized.
The roundtable on the theme “Oil and natural gas facing the transition to new energy sources: opportunities and challenges” also took place at the Yearbook launch event, with the participation of Equinor Brasil’s Director of Procurement and Supplies, Rafael Tristão, from Equinor Brasil. director of the UnIBP, Karen Cubas, the lawyer specializing in Social and Environmental Law, Samanta Pineda, and the executive secretary of the ABPIP, Anabal Santos.
Industry Observatory Projection: Oil production is expected to fall by 2.7% per year until 2025
Since the 2000s, Espírito Santo has gone from being a supporting player to being a national protagonist in the production of oil and natural gas.
While in 2000, Espírito Santo's share in the national production of oil and gas represented 1.0% and 2.8%, respectively, occupying the seventh position in both inputs. Now, the State occupies the 3rd position in the production of oil, with 8.4% in the share of national production, and the fourth position in the production of natural gas, corresponding to 4.9% of the national production.
But, even with the relevance, since 2014, Espírito Santo started to record successive drops in production, reaching in 2021 the lowest contribution to national production in the last 12 years, of 7.3% for oil and 4.1% for gas Natural.
According to the chief economist at Findes and executive manager of the Observatório da Indústria, Marília Silva, the retraction in oil activity is linked to factors such as the less favorable international environment and the lack of interest from oil companies in the new frontier areas (areas to be explored) of oil and gas production.
“In addition, producing fields lost space within the investment portfolio of large oil companies, being maintained with production below capacity. This scenario, coupled with the phases of natural decline in production in most producing fields, provided a scenario of a drop in the level of activity in the sector in Espírito Santo”, he justified.
Marília explained that, according to the projection brought by the Yearbook of the Oil and Natural Gas Industry in Espírito Santo, this scenario of falling production should not be reversed in the coming years.
It is expected that by 2025 the production of oil at sea (offshore) has an average annual drop of 2.70%, reaching a production of 64.4 million barrels. For natural gas, an average annual increase of 1.02% is projected until 2025, reaching a production of 2.1 billion cubic meters (m³).
In the environment onshore (onshore), by 2025 oil production is expected to have an average annual decline of 3.58%, reaching 2.5 million barrels. In relation to natural gas, the input is expected to have an average annual drop in production of 3,62% by 2025, reaching 21.7 million m³.
“The Yearbook helps us to understand the perspectives for the coming years and this is essential for the government, the private sector and society to plan the future of the sector and the most efficient way of applying the resources generated from this production chain” , highlighted the president of Findes, Cris Samorini.
About the Yearbook
In its 5th edition, the Oil and Natural Gas Industry Yearbook in Espírito Santo brings together the most important data and analysis variables in the sector for Espírito Santo.
Produced by the Findes Industry Observatory, the document provides information about the world and Espírito Santo oil and natural gas industry, presents the reflexes of the sector's activities, with emphasis on government participation, ️ addresses the incentive mechanism of the oil sector and gas to research, development and innovation, in addition to citing new opportunities in oil and natural gas exploration and production for Espírito Santo.
With technical information and analysis, the Yearbook is an excellent tool for, especially public managers, to plan the future of the sector and the resources it generates for ES.
In addition, the content presents the official map of the sector, in partnership with the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
- Available in: http://findes.online/anuariopeg
- Watch the event live: https://www.youtube.com/watch?v=NFGahsr-dU0
Data and impacts of the oil and gas industry for ES
- Oil production: 3rd place in the country, with 8.4% in the share of national production.
- Natural gas production: 4th place in the country, corresponding to 4.9% of national production.
- Expected investments in the oil and natural gas sector in ES until 2025: R$ 8.1 billion.
- Decommissioning projects approved for the Espírito Santo Basin: 19, of which 18 on land and one (01) at sea.
- Investments planned for the decommissioning of 680 wells from 2022 to 2026: R$ 2.4 billion.
- Economy: the sector represents 25.4% in the added value of the general industry of ES.
- 2021 Royalty Collection: R$ 1.6 billion.
- 2021 Special Participation Collection: R$ 1.9 billion
- Labor Market (2020): 11,600 formal jobs.
- Average remuneration (2020): R$ 6,622.79.
- Exports (2020): US$ 599 million.
Sources: ANP, RAIS and MDIC | Prepared by: Findes Industry Observatory