Brazil is implementing a roadmap to increase crude output without boosting net emissions from the sector, a key argument for its claim to leadership on climate issues ahead of the Cop 30 UN summit.
Although Brazil does not plan to phase out fossil fuel use, it is working to reach net zero emissions by 2050, and slashing greenhouse gases from its hydrocarbons production is part of this strategy.
Brazil's oil industry already has a carbon footprint at 14.88kg CO2 equivalent (C02e)/bl of oil equivalent (boe), which is well below the global average of 20kg CO2e/boe, according to the hydrocarbons regulator ANP. But with oil and gas production slated to increase steadily over the next decade, Brazil's government and producers are eyeing a range of options to further slash emissions.
"Brazil can double oil output without increasing net emissions by employing existing technologies," Heloisa Borges, the director of oil, gas and biofuels at the government energy planning and research agency (Epe) said.
As part of these efforts, the government called on Epe, ANP and state-owned company Pre-Sal Petroleo to present a roadmap to decarbonize the sector.
The plan presented in late June outlines options including adopting new technologies and expanding existing emissions reductions techniques, such as leak detection and reducing flaring.
"Expanding methane capture not only reduces emissions, but it allows companies to use this gas to substitute other fuels, such as diesel in their operations," Borges said.
Other fuel substitution operations include using natural gas as fuel for drilling rigs and electrification of production operations, the study said.
State-controlled Petrobras is already advancing its decarbonization strategy. The company's most recent five-year plan earmarks R5.3bn ($950mn) for emissions reductions in its operations as well as $1bn for research and development of new technologies.
Carbon capture, utilization and storage (CCUS) is a key element, according to Lilian Melo, executive director of the Petrobras' research, development and innovation center Cenpes. The company uses high-pressure separation technology to remove CO2 from oil at the mouth of a reservoir and inject it back into the reservoir after the fluids are separated.
This technology significantly reduces emissions, especially because crude produced from pre-salt blocks has high CO2 content, Melo said. The CCUS is used on 23 of Petrobras' offshore platforms in the pre-salt.
Petrobras is also working to expand electrification of its on and offshore platforms. Power generation is responsible for 65pc of Petrobras' production-related emissions, according to Melo. The company announced this week a contract with Hitachi Energy to assess electrification of its offshore oil operations.
Catch and keep
Other oil producers are working to reduce the carbon footprint of their operations, including Eneva, which is also weighing investments in carbon capture and storage. The company is conducting a preliminary study to assess the technical viability of injecting CO2 into fields in the Parnaiba basin in Maranhao state.
The Gaviao Real field has been operating for more than 10 years and is expected to become depleted in coming years, when it could potentially be converted to store CO2.
Eneva is also weighing investments in carbon storage in the Parana basin, where the company has four exploratory blocks. Preliminary seismic data indicates that these blocks also have salt caverns and the company believes that there is significant potential to offer carbon storage to ethanol mills in areas adjacent to the blocks.
Despite Brazil's ambitious emissions reduction plan, it has no intention of pulling back on exploration and production. With few exceptions, the Brazilian government is aligned on developing oil and gas reserves to boost economic growth and energy security and holds that the aim does not hurt its role in climate leadership.
