Brazil’s state-run oil company Petrobras seeks to become the country’s top producer of energy harnessed by wind. Petrobras has partnered up with WEG SA seeking to develop the world’s most powerful wind turbine. They will invest $26.8 million into WEG which is already working on a new powerful turbine. Petrobras is looking more into greenfield projects and wants to invest more in green energy projects.
This is an interesting move from an oil giant, but an incredibly important move that other oil giants are headed. As the world demands more energy while also calling for more green energy technologies like wind, solar, etc., oil companies will have no choice but to shift to investing in green energy.
Sometimes oil giants tend to forget the industry they are in. Some oil companies feel as if they are competing against each other in the oil industry, while other companies are competing in the energy industry. This perspective is crucial and Petrobras understands that they aren’t in the oil industry, but they are protecting themselves in the energy industry. This is the mentality oil producers are going to need if they are going to survive the slow but eventual shift from fossil fuels to green energy.
Middle Eastern countries which are some of the highest producers, are already making progress towards renewables. UAE targets 44% renewables by 2050 and this year, they plan to invest $54 billion in renewables. Meanwhile, Saudi Arabia is targeting 50% by 2030. Although China, the U.S., and Japan are leading the fight toward green technologies research, top oil-producing countries will not be left behind and are trying to continue to be the top exports of energy.
This competition among energy giants will continue, and Petrobras joining the fight is only going to attract more oil giants to join the shift. Soon enough, selling energy that is produced by renewables will be the next best thing compared to selling oil. But for us to get there, the world cannot rule out oil just yet. The demand for oil will only increase as research and development on renewables continues.
Current grids are still not ready for renewables. Renewables are going to need a lot more work in reliability to avoid grid imbalances and instability. As renewables continue to be improved and sold onto the market, only then can the world begin doubling down on oil while increasing renewables simultaneously.
Petrobras is only one of many that will push oil giants away from oil. Other companies and countries will continue to follow in order to avoid losing out in the energy business.
Author: Aleksandros Spaho
