Listen: Carbon advantage: Brazil leverages CO2 in bid to reduce oil emissions intensity

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Sam Humphreys:
Hello, you're listening to Energy Sense by S&P Global Commodity Insight. My name is Sam Humphreys and I'm here with Hill Vaden. Hill, how are you doing?

Hill Vaden:
I'm doing all right. How are you?

Sam Humphreys:

I'm all right. Dying slowly from hay fever, but it's all good. So sorry, people who are going to be listening to this because I do cough quite a lot throughout this episode. But we have just been talking to Chris Kennett and Susana Santos about carbon reduction in offshore Brazil. So, Hill, what are some things that people should be taking away from this?

Hill Vaden:
So this is an interesting case study that they've done or they've led looking at the practical use of CO₂ in oilfield operations. So we talk about how the big challenge for upstream right now is decarbonization. There is a lot of CO₂ coming out of the ground with the oil in Brazil, and Petrobras is using that to enhance oil recovery and has been since Brazil went on its oil boom 20 some years ago or longer than that. So it's not necessarily new, but it's a new application that advantages these barrels relative to other higher carbon intensity barrels. And so it's, I think, a nice case study for us to look at and to see how some of these operators are bringing oilfield technologies into the challenge of decarbonization today. How about you?

Sam Humphreys:
I mean, I think you're spot on there, but I think they go into some of the stats in just how big this operation is and how much CO₂ is being injected and what that looks like when you compare it across the world. I mean, they've done a comparison with Sleipnir in Norway, which has been injecting CO₂ since 1996 I think it was. So it's interesting to just get an idea of scale on what we're talking about here, but it was an excellent episode and I hope everyone enjoys it.

Hill Vaden:
And the comparison, just before we hand off to them, the comparison to Norway is interesting because Norway, of course, has a carbon tax, and so they're doing a lot of leadership on CCS, carbon capture sequestration, but a carbon tax is driving that. There is no carbon tax in Brazil, so this is completely different, it's a horse of a different color.

Sam Humphreys:

It sure is. And it is interesting. It's an interesting one that we're going to watch in the future, and I think we probably should get them back on in a few months' time, next year maybe, and just see if there's any new legislation coming in to address some of those things that we mentioned.

Hill Vaden:
All right.

Sam Humphreys:
Awesome. Well, enjoy everyone. Hello, and welcome to Energy Cents by S&P Global Commodity Insights where we talk all things related to the intersection of energy and finance. Today we're joined by Christopher Kennett and Susana Santos who are experts in emissions from the upstream sector as we are going to talk about offshore Brazilian carbon reduction. My name is Samantha Humphreys, and I am joined as always by Hill Vaden. Hill, how are you doing?

Hill Vaden:
I am doing well. How are you, Sam?

Sam Humphreys:
I'm all right. And apologies to people for listening. I do sound a bit Phoebe Buffay gravelly because it is hayfever season, and, yeah, I sound like this, so there we go. This is going to be a ride. Apologies.

Hill Vaden:
The best play her, right?

Sam Humphreys:
I hope everyone else is all right. Yeah, exactly. Exactly. But hello to Chris and Susanna. How are you guys doing?

Chris Kennett:
Hi, pleasure to be here. Yeah, good, thanks.

Susana Santos:
Good too. Thank you for having us.

Sam Humphreys:
Excellent. Well, thank you for joining us. So as I said, we are going to be talking about Brazilian carbon reduction, particularly carbon capture storage and utilization, or CCUS, today. I did just want to shout out that you guys have both done a fantastic poster that we have on our social media pages that we'll be linking at the end of this episode. So that is where we're going to start. So I think if we start with you, Chris, how are we going to set the scene? What are the key basins and operators in Brazil when we're talking about carbon reduction?

Chris Kennett:
Sure. Yeah. So in terms of, I suppose I could give a bit of the history as well for Brazil and then focus on the basins, operators and projects. So over the last 40 years, many people who are focused on the region will be aware that Brazil has really emerged as a major oil and gas producer. If we go back to the early 1980s, average daily production was less than 300,000 barrels of oil equivalent per day. And that's grown to almost 4 million barrels of oil equivalent per day in 2022. And during the last decade alone, production has grown by over 50%, an average year-on-year rate of 4%. So they're seeing a significant growth in oil and gas production offshore Brazil. In terms of historical production, Campos and Santos basins are by far the country's most prolific. They sit offshore the eastern margin of Brazil, and together they account for over 75% of cumulative oil and gas production through 2022.
Production from Santos, pre-salt fields, so those that are lower deeper than the salt layer that sits in the subsurface, reached almost 3 million barrels of oil equivalent per day in 2022, representing over 70% of total Brazilian production. Offshore production is marked by dominant assets. A couple of the key most notable significant ones are the extra large ultra deep water pre-salt Tupi and Buzios fields, which alone represented 50% of the country's offshore production, so really contributing a lot to the production offshore Brazil there. And in terms of operators, Petrobras holds a dominant position in the Brazilian offshore sector responsible for over 60% of current oil and gas production on an equity basis, over 90% on an operator basis. But international oil and gas companies are a significant presence there as well with operator positions from Shell, Total Energies, and Equinor as well. And in addition to that, Petrobras' divestment program from 2017 to 2023 enabled some new players to enter as well, such as Prio, 3R Petroleum, Trident Energy, and Parenko, and they were able to acquire some mature campus basin assets that have been in the need of revitalization.

Hill Vaden:
All right, so, Susana, I think this may be the first time that we've had a guest on the episode who has the same last name as the most prolific basin within the area that we're covering. So unfortunately Chris' last name is not Campos, and then this would be an absolutely perfect Brazilian conversation. But as we're looking at Brazil, and there's obviously the Santos Basin, the Campos Basin, which I think Chris just said accounts for the huge majority of cumulative production, how should we think about this in terms of the carbon intensity and the things that we're paying attention to on these carbon? This is the big upstream challenge at the moment, right? The upstream industry has responded to challenges, whether that be the complexities of deepwater engineering or the complexities of shale engineering. Now it's a decarbonization challenge. So if we're looking at these assets and looking at these prolific production streams, how should we think about the GHG side, the greenhouse gas emissions side of things?

Susana Santos:
Well, that's a great question, Hill. Chris will shortly give much more information about this definition that we're talking about here when it comes about emissions. But one thing, as you said, Santos is also my name. It's a very common name in Portugal and also by association Brazil. What we see, we have these two most prolific basins as Chris says, but they are in a very different stage in their lifetime. Not only the plays that are currently producing are quite different, but also, as I said, the lifetime of the assets is very different. So naturally we observe quite different trends in terms of carbon intensity for both basins. This reflects not only as Chris will talk more about the absolute carbon emissions, but also what we use as a very important indicator, the carbon intensity in these two cases. So they are the most prolific, but they are very different when we look at them in the emissions or upstream emissions perspective specifically.

Sam Humphreys:
So you've talked there a little bit about the maturity of these two basins, and when we're talking about carbon intensity and if we start thinking about exploration, there's shifts in methods of exploration, they're using different technologies. But can you just give us a brief overview of any key wells? We've talked a little bit about this on the podcast before, high impact wells that may be being drilled in those regions and where are they focused? Are they focused on Campos or Santos? Just give us a little overview just to set the scene a bit. Chris, I think I might ping that over to you.

Chris Kennett:
Yeah, I think there's probably a good way to tackle this. Susana can certainly go into some of the details on the growth trends and high impact wells, and maybe I can touch on some of the broad aspects that are good to know before then going into that detail. So just a few definitions maybe to start with if that's okay just so your listeners are up to speed with some of the things that we'll mention, I suppose if we elaborate on this significantly. So first of all, when we're looking at upstream emissions, we'll look at the different scopes that they fall into. Many of your listeners will be familiar with these, but some may not. So I'll just define them. So scope one emissions, they consist of direct emissions to the atmosphere within the system boundaries that we use for our data and studies, which we include emissions related to oil and gas production, initial processing to the point of offloading to shuttle tank and export via pipeline, so we don't include the emissions for transportation. Upstream scope one emissions typically include fuel combustion, gas flaring, gas venting, and fugitive emissions with significant variation occurring in those sources at the asset level, depending on the basin in the world, the country basin, and the individual asset as well.
When estimating greenhouse gas emissions, we account for three main greenhouse gases, so carbon dioxide, methane, nitrous oxides, and we convert the methane nitrous oxide using global warming potentials in their CO2 equivalent. As Susanna mentioned, the key indicator is emissions intensity, which is where we take those emissions in an absolute sense, and then we divide those by the production. So then you get a unit of kilograms of CO2 equivalent per barrel of oil equivalent. Now, scope two emissions, they are defined as indirect emissions typically from purchase to electricity. Overall, scope two emissions have a negligible contribution to upstream emissions in Brazil. Also, Norway, however, is an example where significant emissions reductions have been achieved by power from shore projects such as Johan Sverdrup. Low grid intensity due to the predominance of hydropower in Norway has enabled the switching off of gas turbines on the Norwegian continental shelf fields such as Johan Sverdrup and several others as well.
And using imported power, meaning that scope one emissions are reduced significantly while only adding small quantity of scope two emissions. Scope three emissions, they're also in direct emissions predominantly from the combustion of hydrocarbons downstream. They also include emissions from the production of materials such as steel and cement and construction fabrication and installation when completed by third parties. So those are some of the key definitions there. In terms of what's been going on offshore Brazil, it might be good to hand over to Susanna to talk about the growth and the high impact wealth.

Hill Vaden:
Before we get there. You mentioned the scope two emissions in Norway as being advantaged by the reduction, and I think you said hydropower perhaps, and I know Brazil has a lot of hydropower as well. Is that a positive within the Brazilian carbon intensity of its oilfield operations as well because of that hydropower?

Susana Santos:
Not yet, I would say. Certainly Brazil benefits in terms of where it stands today because of its energy mix. It's very clean, and hydropower also plays a very important. But unlike what we've seen in Norway, the Norwegian Continental Shelf as Chris was talking about, we do not still see that reflection into upstream. We are talking about ultra-deep waters where there's very limited infrastructure as we'll discuss more later on in this podcast. Gas transportation is still a huge challenge. So bringing infrastructure to these assets, not only the water depth, but the distance from the shore, it's something that will require much more investment to bring this clean power generated or cleaner power, I would say, generated from hydro as is happening in Norway. Electrification is something that Brazil is moving in this direction for upstream, and we can talk more about that when we tackle the abatement strategies, but still, that's still something very new in Brazil.

Hill Vaden:
All right. Well, go ahead then with the high impact oil discussion that Chris was flagging.

Susana Santos:
Sure. So when you think about the growth that we can see in Brazil when you talk about offshore is certainly what plays the most important role. We could divide these into very important regions. One is the results that we see in the southeast basins, Santos and Campos as we have been discussed. And the other one is a much recent discussion is the equatorial margin. Now in the Equatorial Margin, I can start there. Well after the discoveries that we've seen in the neighboring regions such as in Guyana, French Guiana and Suriname. So Brazil and especially Petrobras is planning to invest heavily on the region. So in the strategic plan for 2024 and 2028 that Petrobras has released, they are planning to invest in exploration 3.1 billion U.S dollars in the Brazilian Equatorial Margin. But it's still moving quite slow, especially because of environmental concerns. So in the short term, we plan and we expect to see, as long as the environmental permits are approved, we expect to see a lot of exploration activity.
And the first well within this new phase of exploration in that region is expected to be drilled by Petrobras by the end of this year. So they were expecting to drill a well last year. They even deployed a drill ship to the region, but the permits didn't go through, so they had to move the vessel to other operations in the southeast. So this region is still something that all of us is keeping an eye on, but still more on the long term. On the short term, we are seeing a lot of both developed and expression activities on the southeast basin. So Campos and Santos, pre-salt play. So in terms of by 2025, we are seeing five companies, so no longer Petrobras alone, planning to drill five impact wells. This shows how the exploration is still ongoing and similar amount of investment. Also roughly $3 billion US dollars are also planned to be invested by Petrobras in exploration in this southeast basins but in terms of development, which is also what we'll see in the short term growth in production.
So it's worth mentioning that Petrobras will add 14 FPSOs between this time period of 2024 to 2028. And out of these 14 that Petrobras mentions, 10 have already been contracted. So we have a certainty that the pre-salt production will continue to ramp up in the next years, and it is expected to ramp up by 2035. So only after that we'll start to see some decline in production from this asset. Finally, I would like to mention that the redevelopment or revitalization of Campos Basin post-salt, it's something that is also contributing to the production of the region. We don't expect a long-term sustained increase, but it's something that these new players that Chris mentioned in the beginning of this podcast will certainly be having strong activities trying to bring and will basically add to do the reserves of the country and also securing energy to the country.

Sam Humphreys:
So that leads on quite nicely to my question. Exploration in this area, is this focused on oil, and what is the makeup within that, any associated gases, the CO2 content? Is this a particularly high CO2 content region or is it quite low? Can you just give us a little frame of that please?

Susana Santos:
Yeah, sure. So Brazil traditionally is a country that looks for oil reserves. Historically, in Campos Basin, we have seen oil reservoirs even tending to be heavy oil reservoirs. So it was the expertise that we had before. When we discovered, I mean we, not myself, I'm just saying when Brazil Petrobras and other partners and operators discovered the pre-salt, so this was a very big news to them. When they saw, "Okay, we have very good oil," light oil with very much more interesting than what today would see in the post-salt. But they had actually this challenge that this oil was not only benefits, but it came along with high volumes of associated gas. And as you mentioned in this case, there's a high CO2 content. Petrobras last month attended a conference, and they mentioned that they estimate that the average content is 20% of the CO₂ within this gas. It tends to vary between eight to 40%.
This is not for all cases. So we have cases where there is no CO₂ content. There's cases where it does below 40%, but for the majority of the fields, this will be a range that characterizes them well. So this is actually a two-folded challenge. So on the one hand, Petrobras, and actually after Brazil lacked gas transport infrastructure, and on top of that we have the CO₂. So this became actually a very big challenge for Brazil operators, but also the regulators and the government agencies to see how can we produce these all reserves, and how can we deal with these associated gas, the contaminant the CO2? not only CO2, but CO2 by far is one of the most significant when we talk about emissions.

Hill Vaden:
So, yeah, that would seem to be, we started out the podcast talking about carbon intensity and potentially the advantage of some of these Brazilian barrels as having lower carbon intensity scores than other barrels on the planet. Chris, what was the number? Is that a 20% CO₂ content or something within the soil? That would seem to be working.

Susana Santos:
Yeah, on average.

Hill Vaden:
On average. That would seem to be working against these assets. So, Chris, can you help us understand how that's being managed and how the story from an emissions perspective is a positive story when there's so much CO₂ coming out of the ground with the soil?

Chris Kennett:

Yeah, that's a really key question, isn't it? And I'm happy to dive into that, and then perhaps Susanna might want to add a bit more detail in as she's focused on the CCUS storage strategies or CCS projects offshore Brazil and compare those to other projects globally. Arguably, we call them CCUS EOR. But we can get into the details in a little bit. But if we take a step back and look at this challenge that I suppose that's faced with the petroleum geology, offshore Brazil, high reservoirs of CO₂ content in many cases. But when you look at the emission intensity of production offshore Brazil and compare that against some other significant producing regions globally, it's in and around some of the other values that we've seen in some of the areas that we've completed a detailed analysis of. So, for example, the UK average, we released a couple of blogs looking at that for the year 2021, 2022. The UK emission intensity for upstream operations was just slightly above 20 kilograms of CO2 equivalent per barrel of oil equivalent.
Norway, on the Norwegian side, as we've mentioned, some of the advantages there, production being one of the key advantages. Also electrification, reduced flaring, which there's been a zero routine flaring ban in place in the 1970s. It means that Norway is significantly lower, so Norway averaging around seven or eight kilograms of CO2 equivalent per BOE. Brazil sits somewhere in the middle. So even though it's got the CO₂ challenge, the intensity still sits within a range of other basins we've seen globally.
So for the study that we did looking at production in 2022, the emission intensity value that we had for offshore Brazil was 14. That was including Campos, Santos and other basins as well. We also looked at offshore US Gulf of Mexico, which was slightly lower. So that, again, was similar to Norway. So despite this challenge, the things that have been put in place, and I'll hand over to Susanna to go into detail on those, have still meant that the carbon intensity of oil that's being produced offshore Brazil is still comparing to significant other producing areas globally that we've studied. And we'll have more studies coming out on that as time goes on. But I'll pass over to Susanna for some of the detail on that and the technologies being used.

Sam Humphreys:
Yeah, Susanna, before you start talking about this, I did just want to draw people's attention back to this poster that I will be putting out for everyone to have a look at, but CCS is probably the largest component. I could be completely wrong on this, and it would be quite good if you could give us a little update on what Petrobras is doing in particular and how these projects compare globally, what scale are we talking with, some of the CCS projects that are being carried out at the moment, and then I'll probably come back with some more questions. Actually, I'll let you just start with that.

Susana Santos:
Sure. Basically coming back to the CO2 issue, so basically at the time, it was the 2010, around 2010, that Petrobras, basically they came up with this very innovative solution at the time was the decision was that we need to produce this oil, we need to be carbon competitive, as Chris has mentioned in the other examples. So what to do with the CO². So the strategy that they implemented was to reinject into the producing reservoir. So they reinjected back the CO² along with a significant share of the natural gas mainly due to two reasons, the limited gas transport infrastructure as we have mentioned, but also the for EOR purposes.

Sam Humphreys:
EOR is what, sorry?
Susana Santos:
Enhanced oil recovery. So as we mentioned earlier in this podcast to our listeners, oil is still a very important commodity for Brazil. So the main target is still to enhance the recovery of oil or petroleum. So for these enhanced oil recovery operations, they still need to be optimized. So operators inject not only the CO² back into the reservoir for environmental purposes, but also to help sweep the oil in the reservoir along with water and also natural gas into the reservoir. And the decision was that while there was still in the beginning, Tupi was the first field to actually be developed, and it's the case study that we presented in the poster that you mentioned, Sam.
And the idea was there was still a lot of uncertainty on the CO₂ content of this giant reservoir. So the samples were very limited, and there was very uncertainty. So Petrobras decided at the time to deploy all the FPSOs with capacity to treat, process, compress and re-inject back into the reservoir all the CO₂ and gas if needed. So in some cases, there is not even gas being transported to shore. All gas is being injected back into the reservoir.

Hill Vaden:
I'm going to interrupt you just for one second. The FPSO has come up a couple times. That's floating production storage offloader?

Susana Santos:
Yes. Offloading unit.

Hill Vaden:
That's a ship?

Susana Santos:
The type of vessel, yes, a ship. There's different kind of platforms that exist in ultra-deep waters and were more distant to shore this kind of vessel where they accommodate almost all of the equipment. And so it's one of the most frequent today development plan is off for Brazil. And that unit, that vessel, that hosts the majority of the topside equipment, and then we have some sub-sea equipment as well. So this ship hosts all these gas treatment compression and injection systems to bring back into the reservoir not only the CO₂, but also the natural gas that is produced along with the oil.

Hill Vaden:
The emissions that come from this FPSO vessel or vehicle would be part of the scope too that Chris was talking about earlier.

Susana Santos:
Scope one, actually.

Hill Vaden:
Scope one, yes. So that's where our system boundaries ends. So we account for everything that's happening on the vessel. So fuel, gas or diesel or other kind of liquid oil or something that is being combusted to generate power, what is being flared or vented, some fugitive, which is a challenge to measure. But everything that it's being, all the operation that occurs at the vessel, we account for all those emissions in our estimates, and this is what composes scope one emissions.
The enhanced oil recovery that we're talking about, what has that done to the recoveries versus non-enhanced oil recovery within these basins?

Susana Santos:
I don't have actually a figure if that's what you're asking me to give you because there's actually value in the natural gas, especially to support this energy transition. So there is still, the question is that we will enter into some reservoir engineering studies, how this would diminish the oil recovery, but how much natural gas instead would have. But then, again, we are limited by the infrastructure that is in place. So we can still have studies on this, but we still need to face with the infrastructure that exists. So it's not just a question of enhancing the recover of hydrocarbons as a whole but to deal with the situation that exists offshore Brazil, if that answers your question, Hill.

Hill Vaden:
It does, yes. Thank you.

Sam Humphreys:
Yeah, and just one very quick question for me. I'm just watching the clock before we start wrapping up. How much CO₂ injection capacity is there available in either Brazil or the offshore Brazil or just the Santos Basin compared to the rest of the world? Are we talking a small insignificant figure or is this a substantial area that we should be looking at?

Susana Santos:
So as I was saying, Petrobras and then the other operators follow with this strategy to deploy the FPSO vessels with all these capacity. So as of 2022, we had 21 FPSOs with a combined capacity of over 10 million metric tons of CO₂ injection capacity. So when you look at these and compare worldwide, these make up 25% of the world CO₂ injection capacity. But, however, it's worth noting that we're talking about CO₂ that is coming from the reservoir. So this formation CO₂ is not industrial. So we need to compare with caution with other regions because this CO₂ capacity is not currently available for industrial CO₂ that may be captured in some onshore industrial plants, but it's again, as I mentioned, 14 additional FPSOs are planned for the next four years. So this capacity is expected to continue growing. So Brazil will still keep being an important player and look at the CO₂ injection capacity worldwide.

Chris Kennett:
Well, Sleipnir CCS project is close to my heart as I was part of the asset subsurface team early in my career when I worked for it was StatoilHydro back then and they became Stato, and now, of course, the Equinor. And I also completed my master's project by analyzing the reservoir geology of the Yetzirah formation, which is the storage reservoir at Sleipnir, and the migration of the injected CO₂ plume there using for the seismic data. It is really interesting to work on that, it's a privilege to be able to do that. But looking at some of the details of Sleipnir as Susanna said, there are significant differences there. And you can see these in the poster that we've got and where we compare one against the other. But for some of the details for Sleipnir, Sleipnir is a pure CCS project.
It was a real breakthrough project in the industry given that it started way back in 1996 in light of the 1990 carbon tax in Norway as a way to reduce that liability, the carbon cost, if that CO₂ coming from the reservoirs were to be vented into the atmosphere, and at the time became the world's first and now the world's longest running offshore CCS project. The project itself has just one injection well with a capacity of over 1 million tons of CO₂ per year. And the CO₂ is stored in the reservoir formation I've mentioned so far, the Yetzirah formation, which is a saline aquifer that sits above the Sleipnir east main hydrocarbon bearing reservoirs. As of 2022, about 19 million tons of CO₂ were injected and stored in the Atzirah formation Formation over that 26 year period. We've done some numbers just to compare that to the emissions of cars in the UK. So typical emission for a car based in the UK is about half of that of the US.
That would be about 9 million cars worth of CO₂ that's been stored in that time period. Compared to Tupi, which is about 16 million tons has been injected over the 13 year periods equivalent to about eight million cars in the UK. So, yeah, so some facts there that make Sleipner interesting and different, that's difficult to compare the cost between the two projects. Susana has highlighted some of the key features of Tupi versus Sleipner, but fascinating to look at both, and I'd urge people listening in to go and check out our poster to find out more.

Hill Vaden:
All right. We're driving a lot of attention to this poster. We've got to remember to put this link in the must do, otherwise we're going to have some angry people. As Sam mentioned, we're at the top of the call, so we're going to ask both of you, and Susana, we can start with you. But as we're thinking about Brazil and carbon intensity of oil, what are some things that we should watch over the next six to 12 months in terms of signposts of where things are going?

Susana Santos:
Well, there's certainly a lot of carbon abatement strategies being either steady or already deployed but starting to come in line in this period that you have mentioned. I would like to highlight two cases really that will be deployed that I think that are very worth keeping an eye on. One is the deployment of the Hisap technology. So this technology consists instead of treating the gas at the top site, so the CO₂ is separated on the seabed and then re-injected it back into the reservoir. This has enormous potential to reduce the infrastructure needed at top site. So this will free up space at top sites, this meaning at the vessel, the FPSO vessel. So this has a lot of potential to enable to increase our production. Also, if you have a smaller vessel, this will diminish the requirements for power generation. So, again, as Chris has mentioned, fuel gas is certainly the most important contributor to the carbon emission.
So this deployment of this technology, which will be in Mero 3 projects in the Libra assets is expected to come online in the second half of 2024. So this is a very much anticipated deployment of a technology that has a huge potential as a new way to deal with CO₂. The second thing that I would like, I think it's worth keeping an eye on, is the deployment of electrification. So we have the FPSO called Maria Quitéria, which is going to the pre-salting campus basin expected to come into production in the first quarter of 2025. So it's already on its way to the field at this moment. And for the electrification part, it has a combined cycle power generation system. So it's not full electrification, it's not in the scale that we see in Norway, but Petrobras estimates that we'll have an emission reduction by 20%, which is very significant. So I think that these are two projects. So Mero 3 in terms of Hisap and FPSO Maria Quitéria in the Parque das Baleias in Campos basin are two cases that are worth keeping an eye on in this upcoming future.

Hill Vaden:
All right, same question to you Chris. Different answer.

Chris Kennett:
Yeah, one thing that we didn't touch on so much during our chat was flaring emissions and the significance of those offshore Brazil. So predominantly emissions, as we have mentioned, are coming from fuel gas combustion, but there's also a reasonably significant proportion coming from flaring emissions. And what we expect to see over the coming years is the overall aim is to reduce or to remove routine flaring by 2030. So we'd expect over the coming years that flaring percentage to come down significantly. Also, on the methane side of things, again significant on the global perspective when we look at emissions from upstream oil and gas activities from methane, it's one of the known unknowns really in terms of the absolute quantities that are being released into the atmosphere. But it's well accepted and well known that they are significant offshore Brazil, not as significant in some other parts of the world, but as Susana mentioned, there are some interesting technologies coming in.
Brazil in many ways is at the forefront of implementing these technologies. So, again, in the emission space, we'd expect to see those taking effect and improvement on those technologies through time. And also for Brazil to be helping to push forward the world of upstream oil and gas in terms of methane reduction. So I'd urge people to keep an eye on that. And then also in terms of what your listeners could potentially stay tuned to, if they're interested in what they've heard during our conversation today is just staying tuned to Commodity Insights as the upstream international emissions team will be producing more material blogs in particular coming up in the next six to 12 months as well. So if they keep up with those, they'll be keeping up with some of the latest insights that we have coming out of our team.

Sam Humphreys:
Brilliant. Thank you very much. Thank you Chris and Susana. Hill, have you got any other comments that you wanted to make before we wrap up?

Hill Vaden:
No, not right now.

Sam Humphreys:
Awesome. Well, just a reminder for people listening, do go ahead and like, share and follow Energy Sense, and if you want any more information you can reach out to s&pglobalcommodityinsights.com. But thank you everyone and have a lovely day.

Hill Vaden:
Thanks guys.