Norway’s lesson for Brazil – 01/10/2024 – Rodrigo Tavares

When we think of oil producing or exporting countries, the countries of the Persian Gulf come to mind. Or Venezuela. Or Iran and Iraq. And the vilification of these countries is immediate.

They are associated with absolutist regimes, social conflicts and ecological unsustainability. In the war of us against them, we know which side the sun shines on.

But one of the largest producers and exporters of oil and gas in the world is Norway, Europe’s preppy. The Nordic country produces more oil than Venezuela, Qatar or Angola, and is by far the largest European gas exporter. If Norway has one of the highest GDP per capita in the world, it owes it entirely to fossil fuels.

At the center of the strategy is Equinor, an energy company founded in the 1970s that operates in more than 30 countries, including Brazil. In 2023, oil and gas production increased by 1.5% compared to 2022.

In March 2023, the company made another oil and gas discovery near the Troll field in the North Sea (estimated production of 84 million barrels) and, a few months later, an Equinor project to explore the Rosebank field was approved , the largest untapped reserve of fossil fuels in the British North Sea.

This month the Norwegian company will begin drilling the first exploratory wells in deep waters offshore Argentina, located 300 km from the city of Mar del Plata.

This week Norway also became the first country to approve the controversial practice of deep-sea mining. Several scientists fear that this type of activity will devastate marine life.

Despite its expertise in fossil fuels, it is one of the countries with the best sustainability indexes in the world (Yale Environmental Performance Index), reputation (World’s Most Reputable Countries) and soft power (Global Soft Power Index). Far above Brazil in these rankings.

It also has one of the most ambitious decarbonization targets (2030) and the highest rate of use of electric cars.

Have more. It is one of the nations with the greatest capacity to export global leaders. Borge Brende (former chancellor) heads the World Economic Forum, which organizes Davos, scheduled to start next week.

Jens Stoltenberg (former prime minister) is the secretary general of NATO. One of the most iconic figures in the history of the UN is Gro Harlem Brundtland (former Prime Minister), author of a historic report on sustainable development.

Norway’s international presence and the contribution of its politicians are not rejected by the fact that the country is an oil-dependent economy.

Norway’s $1.5 trillion sovereign wealth fund, the largest in the world, is fueled by oil resources.

It invests in more than 9,000 companies in 70 countries, including Brazil, with stakes in almost a hundred — banks, airlines, retail, transport and sanitation. The fund is highly recognized in the capital market and its carbonic origins do not cause criticism.

In several public statements, Prime Minister Jonas Gahr Store has explained how the country manages to be both an oil and environmental power.

It reinforces that the transition is a journey, that there is no problem in continuing to invest in oil as long as investments in renewables are higher, and that the energy transition must be stimulated by the demand side and not by cuts in supply.

While Norway has a balanced view on the energy transition, Brazil’s message has become ideological and bipolar.

The recent announcement of investment in a biorefinery in Mataripe in Bahia so that Brazil can become one of the world’s largest exporters of Sustainable Aviation Fuel receives much less attention than Petrobras’ efforts to explore oil in the Amazon basin.

The lack of consistency in the country’s internal and external message pushed it into a clash of interpretations.

The government’s articulation is limited and international events, such as COP28, are a perch for several cocoricars.

As long as Brazil presents itself in a boastful way as a global ecological power, pretending that it is not the seventh largest oil producer in the world or as long as Petrobras does not associate itself with the country’s decarbonization goals, Brazil will continue to be an easy target for those that mine inconsistencies.

Bolsonaro’s environmental position was execrable, but clear. Lula’s is admirable, but inconsistent.

The opportunity to fine-tune the message is at the 2024 World Economic Forum in Davos.

On January 16th, at 8:15 am (local time), Petrobras president Jean Paul Prates will participate in the “Energy amid Rivalry” panel, while at 1 pm Marina Silva will lead the “Brazil’s Sustainable Transformation” panel.

What message will they send? It would have been an achievement for the Brazilian government if both participated in the same panel.

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