Petrobras And The Climate Crisis

By N. Moreau

Petrobras is Brazil’s largest oil company, as well as the world’s fourth largest oil producer. Formally known as Petróleo Brasileiro S/A, in 2019, the company was cited by the American organization ‘Climate Accountability Institute’ in a study on the 20 companies that have emitted the most greenhouse gases in the world since 1965. Petrobras is a world player in the oil and gas stage, as well as a key actor in efforts for sustainability, but how is Brazil’s largest state-controlled company dealing with the climate crisis, and does it even care about its role?

The world has been faced with a choice: change or catastrophe. As the world turns hotter every year because of high carbon emissions, one of the main challenges facing Petrobras is the need to reduce its own carbon footprint. As the largest emitter of greenhouse gases in Brazil, the company is under pressure from both the public as well as investors to align the company’s actions with the country's climate goals. In its latest plan, released in 2021, the company announced that it intends to inaugurate 15 new oil platforms by 2026, which are expected to increase the company’s oil production from the current 2.2 million barrels per day to 3.2 million; an increase of 45%. This announcement stands in stark contrast to global demands to decrease oil production and consumption, posing as a risky strategy to take as the global energy landscape turns increasingly greener.

Another challenge for Petrobras is the need to adapt its infrastructure to be able to invest more on renewable energy sources. In an ever changing environment, many oil refinery companies have started to invest in cleaner energy sources, such as solar, wind, and hydro electricity. Petrobras had taken a different approach, reducing its investments in such projects. In 2019, the then president of the company, Roberto Castello Branco, said that Petrobras would no longer invest in renewables "because it is a business that requires different skills from the oil and gas business". Due to the growing demand for clean energy, Petrobras still had a chance to diversify its energy portfolio and reduce its reliance on fossil fuels.

Despite the shift in direction, Petrobras has already made some changes to prevent global warming. One of Petrobras' main climate initiatives is the goal of cutting its operational emissions during the refining process by 25% by 2030, based on the year 2015. The company plans on doing this by “the reduction of torch gas burning, increasing energy efficiency and improving the capture, use and geological storage of CO2”.

As the flames of global warming rise with the sun each day, oil production and consumption only help feed the blaze. Brazil finds itself in a position in which it must choose between its economic development and global preservation; will its biggest business survive the green wave for change or sink under the demand for clean energy?


Source: https://www.bbc.com/portuguese/brasil-61075607.amp