Brazil's largest oil and gas company,
Petrobras, is looking to make some solid Philadelphia connections. Last Thursday, Petrobras, along with a consortium of sponsors including
HSBC,
Select Greater Philadelphia, the
US Department of Commerce and the
State of Delaware, hosted lunch at Brazilian steakhouse
Fogo de Chao for local leaders in finance, transportation, economic development, drilling and trade. The Delaware Valley is home to major global logistics players like BDP International, a busy international port, and headquarters to financial institutions in Philadelphia and Wilmington.
For most in Greater Philadelphia, Petrobras is not yet a household name. Listed as the largest company in Latin America by market cap and revenue, PFC Energy ranked Petrobras at the end of 2010 as the third largest energy company in the world by market value. Thursday's luncheon was also timed to highlight President Obama's upcoming state visit to Brazil.
Speakers included Maria Izabel Ramos, Investor Relations Manager for Petrobras, who provided a company overview, as well as the Honorable Branko Terzic, Executive Director of the
Deloitte Center for Energy Solutions, who took the podium to provide an overall look at the future of energy consumption. Terzic, who chaired a United Nations commission on Clean Energy, said that 40-50 percent of the world still relies on wood for fuel. That statistic is changing, with increasing incomes and increasing demand. "Seven hundred million people will enter the middle class in the next decade, primarily in India and China," said Terzic. "Fossil fuel, oil and gas will be their primary energy source."
Terzic pointed out that there are hard truths where global energy needs are concerned. While the use of electric cars is on the rise, he reminded the audience that fossil fuel powers 70 percent of the electric grid. In the total electric mix, only 1.6 percent now comes from renewable, clean resources like wind and solar, and we have a long way to go. With political uncertainty in the Middle East, Terzic said we can look to Brazil's Petrobras, for the dual benefits of a diversity of supply and a stable democracy.
Attendee Paul Ellenberg, Business Development Manager for global logistics company
BDP International, said he now understands that "for the world to get away from bio fuels, it will take us at least 100 years." Petrobras is newly on Ellenberg's radar, and as far as next steps, he says, "BDP Projects will reach out to become their transportation vendor for equipment from around the world to Brazil."
Source: Branko Terzic, Deloitte, Maria Izabel Ramos, Petrobras, Paul Ellenberg, BDP International
Writer: Sue Spolan