August 29, 2019
A new survey by EY and the Brazilian Petroleum Institute (IBP) provided an updated overview of the importance of the oil and gas sector for the Brazilian economy. Currently, the oil industry occupies the third place in the ranking of the main economic activities and is fourth in relation to exports. Research shows that the country has abundant reserves, but still underutilized. Despite the discovery of pre-salt, only 7% of the entire length of Brazilian sedimentary basins is explored.
The study reveals that the oil and gas sector has significant impact on the national labor market. Today, 99% of professionals working in the segment are Brazilian and there is a forecast that the job offer will double by 2022, reaching a total of 873 thousand working professionals. The research also underlines the factor of income generation. The jobs created by the oil market provide wages, on average, 3.8 times higher than the average wage of the Brazilian industry. For 2022, the forecast of income generation is $ 65 billion.
“The survey aims to summarize a long study done by EY in collaboration with IBP from different databases available and, with that, we hope that it materially improves knowledge about the industry in Brazil,” said IBP President José Firmo.
The segment is also important with regard to federal tax collection. From 2007 to 2017, the sector was responsible for generating over R $ 1.4 trillion in revenue. In the estimates presented in the study, the expectation is that in the next decade, another trillion will be collected through taxes, special participation, bonuses and royalties.
The research traces the role of oil in the energy transition scenario, when renewable energy sources should represent 46% of the Brazilian energy matrix in 2040. In the view of IBP and EY, natural gas will have a key role to play. The entities also believe that the Oil and Gas sector is aware that it will play a key role in the energy transition to renewable arrays.