(U) US supermajor ExxonMobil expects oil and natural gas will remain an important part of the energy mix in the decades to come, in order to meet an expected rise in energy demand around the world.
Third-party studies estimate that $13 trillion of new oil and gas investments will be required by 2050 to meet the world’s projected energy demand, said Alberto Ferrin, ExxonMobil’s Brazil president.
“That is about half a trillion dollars per year,” Ferrin told an audience on the first day of the Rio Oil & Gas 2022 conference.
He mentioned the company’s big developments in Guyana – which so far include the installation of six large floating production, storage and offloading vessels to exploit hydrocarbon resources in the prolific Stabroek block – as examples of projects that will be needed as the population grows.
“Over the coming decades, we expect to see the world’s population increasing, and access to affordable, reliable and secure energy will be a key enabler for those aspirations to materialise,” Ferrin said.
“There is a broad range of perspectives on how we are going to meet that increase in energy demand while reducing emissions. In many scenarios, oil and gas will remain a very important part of the energy mix.”
Attending the same panel discussion, Equinor’s Brazil country manager Veronica Coelho said climate change represents a challenge for society and the oil industry, with both having important roles to play.
Even though Equinor is making plans to invest half of its capital expenditure in renewable energy projects by 2030, Coelho explained oil and gas will continue to be in the company’s portfolio for a lot longer.
“We have 12 key projects in five countries outside Norway, and Brazil is by far our largest market,” she said.
She highlighted the Bacalhau, BM-C-33 and Peregrino developments as world-class projects that will produce hydrocarbons efficiently and with low carbon emissions.
Cristiano Pinto da Costa, Shell’s Brazil president, said oil and gas still have a long road ahead in Brazil but warned the time of the big pre-salt auctions is now history.
“The geo-hazard profile of new opportunities is becoming increasingly challenging and we need to adjust to the new reality,” he said.
“We need to have more competitive terms, as well as regulatory, tax and licensing predictability so that opportunities can maintain their attractiveness.”