SWOTrowhead |
Strengths |
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Lower implementation price compared to hydroelectric plants
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Non-dependence on drought cycles
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Inputs do not depend on imports
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Growing demand for both natural population growth and economic growth
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Know-how of the expansion of installed capacity
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Possibility of state investment through Petrobras
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High ability to attract private investment to expand installed capacity.
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Lower greenhouse gas emissions when compared to oil and coal.
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Proximity to consumer centres, including the possibility of being accessible to places isolated from the national system
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Weaknesses |
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non-renewable source
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Increased emissions when compared to renewable sources
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Gas pipeline distribution infrastructure still does not cover most of the national territory.
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No possibility of distributing LNG in systems isolated from the national system.
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Infrastructure for export unable to respond to external demand
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Opportunities |
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Use of surplus gas production associated with oil in the pre-salt layer.
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Avoid reinjection of gas in production fields
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Give economic value to gas associated with oil.
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Be a factor that helps make the expansion of LNG terminals and gas pipelines viable.
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Increase energy security through the variety of available sources.
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Production does not depend on climatic factors
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Productive association with other industrial and fertilizer sectors.
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Threats |
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Decreased partitioning of renewable sources in the electrical matrix
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Investments and state subsidies could be directed towards wind and solar sources.
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The international oil price can influence cost in an international parity policy (IPP) scenario
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Natural gas leaks and flaring gas.
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Difficulties in obtaining environmental licenses.
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Legal Uncertainty in Brazil
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PESTELrowhead |
Political |
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Brazil offers a general scenario of institutional instability
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Impacts from the political alternation in the federal government and the economic development model through private or State investment
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Scenario of public debt or the NOC can intervene in state investment
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Investment priority of the state-owned company can be changed by the presidency appointed by the federal government
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Parliament can enact laws that favour or inhibit the industry
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Economic |
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Security of energy supply due to the variety of sources
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Impact by the international price of oil and cost of production
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Investments can be impacted by energy demand.
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The growth of the national economy impacts energy demand.
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Abundance of natural resources
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Brazil's political, economic and social instability can negatively impact GDP growth and forecast demand.
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Social |
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Using natural gas can increase the value and availability of energy, impacting the number of jobs and income.
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The industrial chain linked to natural gas and energy can generate jobs and income and reduce poverty.
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Technology |
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The country has enough technology for the deployment of thermoelectric plants
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Research can develop ways to reduce pollutants or accidents and leaks.
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Research tends to reduce the cost of implementing installed capacity and production from renewable sources such as wind and solar.
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Environment |
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Impacted by the gas emission targets agreed upon by Brazil
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Negatively impacts emissions when compared to renewable sources
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Risk of gas leaks and work accidents.
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Decrease in the share of renewable sources in the Brazilian electricity matrix
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Climatic cycles can increase demand from this source.
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Legal |
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Brazil offers a general scenario of legal instability in labour relations, extraction of natural resources, logistics, and the environment.
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Impact the environmental licensing of power plants and natural gas or electricity distribution infrastructure
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Impact the price of production through subsidies or tariff increases
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Impact the entry of private agents in the sector
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