ENERGY VI meeTIng - midias.cebri.org - Energy Program - IV Meeting... · Julia Dias Leite COORDINATION. 5 TOPICS ADDRESSED REPORT 06 VI MEETING REPORT 08 aPPEndix PARTICIPANTS OF

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ENERGYPROGRAM

Technology and digitalization in the energy sector

BRAZILIAN CENTER FOR INTERNATIONAL RELATIONS | 20 YEARS energy program, VI MEETING, YEAR I

RIO DE JANEIRO, AUGUST 14th, 2018

Panelists: Prof. Dr.-Ing. Armin Schnettler; José Formigli

VI meeTIng

Authors: Clarissa Lins, Guilherme Ferreira and Bruna Mascotte

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BRAZILIAN CENTER FOR INTERNATIONAL RELATIONS

Independent, nonpartisan, and multidisciplinary, the Brazilian Center for International Relations (CEBRI) is a non-profit institution that acts to have a positive influence on the construction of the country’s international agenda.

Founded nearly 20 years ago by a group of business leaders, diplomats, and academics, CEBRI has the ability to engage the public and private sectors, academia, and civil society in its work plan. In addition, it counts on an engaged Board of Trustees formed by prominent figures and on a diverse network of sponsors made up of institutions from multiple sectors.

#2 Think tank in Brasil#3 Think tank in américa LatinaUniversity of Pennsylvania’s Think Tanks and Civil Societies Program Index

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www.cebri.org

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3

ENERGYPROGRAM

Technology and digitalization in the energy sector

BRAZILIAN CENTER FOR INTERNATIONAL RELATIONS | 20 YEARS energy program, VI MEETING, YEAR I

RIO DE JANEIRO, AUGUST 14th, 2018

Cooperation:

VI meeTIng

Sponsorship:

Panelists: Prof. Dr.-Ing. Armin Schnettler; José Formigli

Authors: Clarissa Lins, Guilherme Ferreira and Bruna Mascotte

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ENERGYPROGRAM

The Energy Program’s general objective is (i) to stimulate the discussion of issues related to the energy and the Oil & Gas (O&G) sector with the potential to leverage the insertion of the Brazilian industry into global chains; and (ii) to influence the formulation of public policies in creating a competitive and attractive investment environment, considering global energy trends (technological innovations, energy and climate policies, regulation, geopolitics, management etc.).

Jorge Camargo

TRUSTEE

Clarissa Lins

President of the Brazilian Petroleum, Gas and Biofuels Institute (IBP) and senior advisor at McKinsey‎& Company. Previously, he worked for Statoil, as senior vice-president in Norway and later as president of Statoil in Brazil. He is also a member of the Board of Directors at Ultrapar Group and at Prumo Logistics.

Clarissa is a founding partner at Catavento, a consulting firm that specializes in strategy and sustainability. She is the executive director at the Brazilian Petroleum, Gas and Biofuels Institute (IBP) and a member of the Sustainability Committee at Vale. Clarissa has also worked for Petrobras and BNDES.

Julia is CEBRI’s executive director since 2015. Previously, she worked for 10 years in the Brazil-China Business Council, where she occupied the position of executive secretary. Recently, she was chosen by the U.S. State Department to participate in the Young World Leaders program.

SENIOR FELLOw

Julia Dias Leite

COORDINATION

5

TOPICS ADDRESSED

REPORT

06

VI MEETING REPORT 08

aPPEndix

PARTICIPANTS OF ThE VI MEETING 24

Table of Contents

Executive SummaryContextTechnology and the power sectorO&G and new digital opportunitiesThe increased relevance of cybersecurityFinal remarksReferences

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PANELISTS 07

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TopICS aDDreSSeD

Technology and the power sector

O&G and new digital opportunities

The increased relevance of cybersecurity

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Senior Vice President Corporate Technology, Research in Energy and Electronics, Siemens AG

Prof. Dr.-Ing. Schnettler studied Electrical Engineering at the University of Technology in Dortmund/Germany. Having previously worked at ABB, RWTH Aachen University and FGH e.V., he joined Siemens in 2013 as Head of New Technology Fields. Prof. Dr.-Ing. Schnettler is also a scientific advisor and member of many German and international organizations and committees and Editor-in-Chief of “Archiv für Elektrotechnik–Electrical Engineering“, Springer Press, Heidelberg. Prof. Dr.-Ing. Schnettler’s research interests reside on energy transition & decarbonization, mainly the integration of renewable energy sources in power systems and markets, storage systems, electrification of all sectors and rupture of manufacturing.

VI meeTIng paneLISTS

prof. Dr.-Ing. armin Schnettler

José Formigli

CEO, Forsea Engenharia

José Formigli has been working for more than 35 years as petroleum engineer. He worked in Petrobras Exploration & Production area, having been responsible for Pre-salt projects implementation, as well as E&P Managing Director till beginning of 2015, when retired from the company. Since then he has been working as a consultant, through his own company Forsea Engenharia and as senior advisor of BCG, as well as a member of some Boards, like Aker Solutions Innovation Board among others. Formigli has/is graduated from Instituto Militar de Engenharia–IME, MBA from UFRJCOPPEAD, Doutor Honoris Causa from Universidadede Aveiros/Portugal, management course in INSEAD/France, registered Subsea Engineer by Society of Underwater Technology – UK and member of Society of Petroleum Engineers/SPE.

8 CEBRi - EnERGy PROGRaM

T he meeting was organized by CEBRI – Brazilian Center for International Relations – on August 14, 2018, on behalf of its Energy Program. The event was conducted by Jorge Camargo and Clarissa Lins. Participants included industry experts and execu-

tives, as well as CEBRI associates and trustees.

Jorge Camargo, member of CEBRI’s Board of Trustees and the Energy Program’s coordina-tor, opened the seminar highlighting the main aspects of the current industrial revolution and its impacts on different sectors, and emphasizing Brazil’s potential to become a global powerhouse. Following Mr. Camargo’s opening, the debate between Prof. Dr. -Ing. Armin Schnettler, Senior Vice President for Corporate Technology, Research in Energy and Elec-tronics at Siemens AG, and José Formigli, CEO of Forsea Engenharia,was moderated by Clarissa Lins, founding partner at Catavento and CEBRI’s Senior Fellow.

Prof. Dr. -Ing. Armin Schnettler presented his perceptions about the energy transition in the power sector emphasizing the role of technology and digitalization. José Formigli pointed out the main challenges faced by the oil and gas (O&G) industry, and illustrated the role of technology in promoting efficiency gains and new opportunities. A Q&A section followed the debate. This paper has the objective of consolidating the main issues raised during the seminar, although following the Chatham House rules of non-attribution.

VI meeTIng reporT

9Vi MEETinG - AUGUST, 2018

• Globalmegatrends, such as urbanization, connectivity, energy and climate, arechangingtheworld.Digitaltechnologiesandtheirapplicationshavethepotentialtoguaranteeasafetransition,creating a more efficient and intelligent global econo-mic system. In the energy industry, these technologies can promote disruptive changes in the way we produce and consume energy, enabling a transition towards a lower carbon economy through increased penetration of renewables, efficiency enhancement and productivity gains.

• Thepowersectorisbeingreshapedby3Ds–decarbonization,decentralizationanddigitalization.Eachofthesetransformativedriversisboostedbytheothers,contri-butingtoascenarioofnewopportunitiesandchallenges. Digital applications have an important role in this transformation. They stimulate electrification of a wide range of industries and sectors, while promoting extensive cost reductions. At the same time, they create opportunities for increased renewable penetration through decentralized energy systems. These aspects are allowing the emergence of new business models in the power industry, integrating different segments and breaking down barriers between producers and consumers.

• Energytransitionisimposingnewstrategicguidelinestotheoilandgasindustry.Connectivityanddigitalizationarecriticalenablersforthesuccessofthistransfor-mationinthecomingyears. Traditionally, O&G companies have been implementing specific digital technologies in different industry segments, and obtaining incremental results and gains. In a decarbonization context, it is crucial to expand disruptive digital technologies applications with the aim to maximize operational productivity, emissions control enhancement, operational costs reduction, safety improvement, reservoir limits expansion, marketing and distribution transformation, among others.

• Whilebenefitsfromthedigitalizationintheenergysectorareexpected,newrisksmayemerge,suchascyberattacks. Digital technologies are driving an exponential in-crease in global information flows and connected devices, which makes energy systems more vulnerable. Cybersecurity is gaining relevance because of the increasing number of attacks in recent years, and the potential impact that it could have on the existing infrastructure. Inthiscontext,astructuredcollaborativeapproachtowardscyber-securityishighlyrecommended.Companieshaveanimportantroletopromoteamoresecuredigitalecosystem.

exeCuTIVe Summary


T heworld is changing at a very rapidpace, influencedbymegatrends suchasurbanization,connectivity,energyandclimate.Differenttechnologieswillhaveanimportantroleinpromotingasafeandreliabletransitiontothefuture.

Source: Catavento’s analysis based on WEF. Global Risk Report. 2018

ConTexT

1. Un. World Urbanization Prospects. 20182. McKinsey. Smart Cities – digital Solutions For a More Livable Future. 20183. McKinsey. The internet of thing: mapping the value beyond the hype. 2015

Most of the world’s population (55%) is currently living in urban areas1. By 2050, this proportion is expected to increase to 68%, which represents an addition of more than 2.5 billion people. Digital technologies are required to add intelligence to urban systems, transforming cities, and making them more efficient, responsive and sustainable. The development of smart cities could improve quality life indicators by 30%2, such as lives saved, reduced crime, lower health burden, shorter commutes and avoided carbon emissions.

Additionally, digitalization, automation and other advances, such as big data, internet of things (IoT) and blockchain, are transforming industries and the global economy. A potential economic impact of US$ 11 trillion3 per year in 2025 is estimated due to IoT applications. Moreover, users of IoT technologies could capture 90% of the total value that these applications generate. The introduction of new advanced technologies allows companies to become more productive and efficient.

Atthesametime,energytransitionandglobalcommitmentstoalowcarboneconomyimposeunprecedentedchallengestotheenergyindustry,especiallytothepowerandO&Gsectors. The transition to a cleaner and more efficient energy system is key, as society demands a decarbonized, safer and affordable energy system. Governments must respond to these new requirements through policy-driven actions and foster new investment targets.


Source: IEA. Digitalization and Energy. 2017

Consumers are also expected to play an important role in this context. Thedevelopmentofdistributedenergyresourcesallowsthemtobecomeproducers,theso-calledprosumers.Differentdigitaltechnologiescanfacilitatethemanagementofthesenewsystemsandcontributetoasustainablepenetrationofrenewablesourcesintothepowermix.

To respond to all these challenges, digitalization is increasing its importance and use. Investments in digital technologies applied to the energy sector have grown by over 20% annually since 2014, and were almost 40% higher than the investments in gas-fired power generation worldwide in 20164. Therefore, unlocking the potential of the digitalization in the energy industry is essential in terms of reliability, security and affordability.

4. iEa. digitalization and Energy. 2017


T he current electricity landscape is being heavily disrupted by 3Ds –decarbonization,decentralizationanddigitalization5. The global power system is evolving from a predominantly fossil industry, based on centralized production

and vertically integrated utilities, to an industry counting on renewables and storage technologies, with consumers becoming producers and utilities getting digitalized.

Duetodecarbonizationmountingpressure,electrificationwillbecriticaltotheglobalenergy system. Electricity will become one of the most important forms of energy and fostering the electrification of different sectors will be crucial for a sustainable decarbonization. In 2016, the power sector edged ahead of the oil and gas industry, becoming the largest recipient of energy investment6.

Investments in new renewables power capacity - US$ 297 billion in 2016 - remained the largest share of electricity spending, representing approximately 41% of total electricity investments. Besides, spending on electricity networks and storage reached an all-time high of US$ 277 billion in 2016. The power grid is being modernized to consolidate itself as an integrated platform for data and information, enabled by digital technologies, which represents 10% of total networks spending7.

Technology and the power sector

5. SiEMEnS; SCHnETTLER, a. Shape the energy transition. 2018 6. iEa. World Energy investment. 20177. iEa. World Energy investment. 2017

Source: IEA. World Energy Investment. 2017


8. iREna. Renewable Power Generation Costs in 2017. 20189. iREna. Renewable Power Generation Costs in 2017. 201810. iEa. digitalization and Energy. 2017

Source: Catavento’s analysis based on – IEA. Digitalization and Energy. 2017

Inaddition,thelevelizedcostofelectricity(LCOE)ofrenewablesourcesisdramaticallyincreasing its competitiveness around the globe. Considering new projects in 2017, electricity costs from renewable power generation have continuously fallen, with the average LCOE from solar photovoltaics (PV) decreasing by 73% between 2010 and 20178. Additionally, by the same year, the levelized cost of electricity (LCOE) for onshore wind was around US$ 0.06/kWh, similar to the lower end of the LCOE range for fossil fuels (US$ 0.05/kWh – US$ 0.17/kWh)9.

Therefore,inacontextofdecarbonizationandglobalenergysystemelectrification,someopportunitiesemergeinthepowersectorwiththeapplicationofdigitaltechnologies, such as efficiency improvements and cost reductions, integration of renewables, smart charging for electric vehicles and smart demand response.

Digital data and analytics can reduce operations and maintenance costs, enablingpredictive maintenance. A reduction of more than US$ 20 billion in O&M costs is expected by 2040 (5% of total O&M costs)10. Additionally, advanced analytics can lower network losses and reduce unplanned outages and downtime, trough better monitoring. These aspects will be able to increase the resilience and reliability of the power grid.

Considering these potential benefits, power plants and networks could have their lifetime extended by approximately 5 years. This could reduce the need for new investments in infrastructure and projects, such as power plants and networks.


Newtechnologiesarealsocreatingconditionsthatpromotedistributedenergysources,transforming the traditional roleof consumers. Digital connectivity allows appliances and equipment to be monitored, and the information collected can be used to match demand with available supply11. In other words, making use of intelligent control systems and management technologies can provide energy optimization for end users, potentially reducing costs.

These technologies allow for automated measurement, recording, storage and reading of end users’ data, optimizing customer’s energy production and consumption patterns. For example, the combination of data mining and Internet of Things (IoT) can enhance understanding of the energy use profile and promote the integration of different energy-consuming devices with the centralized grid.

In this sense, digitalization allows distributed energy systems to connect differentcomponentsinasmartway.12 With these technological applications, different opportunities emerge in the power sector. For example, coupling different supply options (e.g wind, solar, natural gas) at different times to achieve an optimal supply with lower costs and charges; synchronizing energy supply and demand across various geographical areas and different distributed energy owners (e.g households, buildings, industrial facilities); promoting an optimal coordination between centralized energy system and distributed energy sources.

Therefore, responding to signals from the system (smart demand response) couldprovidemoreflexibility,saveinvestmentsinnewelectricityinfrastructureandpromoteabroader integrationof renewables into thegrid. Globally, smart response has been operating in restricted regions and only 1% of demand is able to directly respond to shortages and excess supply.

Nonetheless, considering the potential benefits, smart demand response implementation could result in almost 185 GW of additional capacity flexibility to the grid in 2040, which is comparable to the currently installed capacity of Italy and Australia combined or even 25% higher than the current installed capacity of Brazil (149 GW)13. This could save around US$ 270 billion of investment costs in new power infrastructure, which represents almost the total spending on electricity networks and storage in 2016.

Otheropportunitiesarisefromtheapplicationofdifferenttechnologiestoreduce,forinstance,theimpactoffutureelectricvehiclesonthepowergrid.Some projections forecast that electric vehicles are to become more common from now on, reaching almost 55% of all new car sales and 33% of the global fleet by 204014. Given this context, technologies will help manage the potential impact of those vehicles, shifting charging to periods when

11. iEa. digitalization and Energy. 201712. iEa. Prospects for distributed energy systems in China. 201713. iEa. World Energy Outlook. 2017 14. BnEF. Electric Vehicle Outlook. 2018


electricity demand is lower and supply is abundant. Therefore, a coordination of charging strategies and digital technologies, such as smart charging, will be extremely relevant.

In addition, increased flexibility can be achieved through vehicle-to-grid (V2G) applications. Vehicles can become small storage systems and consumers could have the opportunity to sell energy to the grid when prices are higher. With these applications, electric vehicles will be able to withdraw and inject electricity into the grid. This opportunity is enabled by the growing investment in batteries and storages systems.

Finally,awiderangeofdifferentopportunitiesemergewiththeapplicationofdigitaltechnologiesinthepowersector.However,consideringtheglobalelectrificationtrend,the greatest transformational potential of digitalization should be the capacity ofenablingintegrationacrosstheentiresystem (transport, industry, business and consumer). These digital connections are able to increase the system flexibility and efficiency, and also provide a more secure and cleaner energy supply.

Source: Catavento’s analysis based on IEA. Digitalization and Energy. 2017


A lthough decarbonization of the energy mix implies an increased role ofrenewablesandmoreelectrification,thepathwaytoa lowercarboneconomywill still rely on fossil fuels for thenext decades. Different global energy mix

projections still expect a relevant share of total primary energy demand to come from oil and gas sources.

Considering the IEA NPS15 scenario, for example, oil and gas represent 52% of the total primary energy demand by 2040, compared to 54% in 2016. Even in the IEA SDS16, which is a more disruptive scenario and compatible with the Paris climate targets of 2°C, a relevant share (48% by 2040) of these fossil fuel sources is also expected. This does not mean, nonetheless, that the industry must not make significant efforts to address the climate challenges and promote a more efficient energy system.

O&G and new digital opportunities

15. new Policies Scenario – it incorporates the policies and measures that government have put in place, as well as the likely effects of announced policies.

16. Sustainable development Scenario – describes a pathway to the achievement of universal access to modern energy sources, Paris agreement commitments and global air quality improvements

Source: IEA. World Energy Outlook. 2017


17. iEa. digitalization and Energy. 2017; MCKinSEy. The next frontier for digital. 2017 18. WEF. digital Transforming initiative – O&G industry. 201719. S&P Global. Brazil enhanced oil recovery success tied to Petrobras divestments. 201820. Petrobras. Relatório de sustentabilidade. 2017

FacingchallengesregardingenergytransitionandlowerBrentpricesintherecentyears,O&Gcompanieshadtoadjusttheirinvestmentstrategiestobecomemoreefficientandresilient. Different technologies based on digitalization can contribute to sizeable efficiency improvements, and digital applications could drastically transform operations, reducing costs and creating additional opportunities. The International Energy Agency estimates that digitalization could reduce O&G costs in up to 20%17 from current levels.

Historically, the O&G sector has long used digital technologies to run its operations, promoting incremental changes. However, digitalization now has an important roleenablingsolutionsforoperationalchallenges. These technologies can improve production, asset life cycle management, marketing and distribution.

Many oil companies are applying digital technologies and transforming theirproductionandoperations.Withautomationandconnectivity,O&Gcompaniescanbecomedata-driven. Monitoring real time information will allow companies to find new productivity insights, making the production more reliable and agile.

Additionally, other trends could boost the technology application in the oil and gas market, such as rapid advances in technology and changing consumer needs and expectations18. Consumers are demanding more speed, engagement and personalization from their services providers. Besides, they have concerns about environmental impacts and seek transparency from companies in different areas.

Considering efforts toprevent climate change,data analysiswillhave an importantroleinreducingmethaneemissionsfromoilandgascompanies. In a connected facility environment, companies can collect and analyze data recognizing methane emission patterns. This will allow the reduction and prevention of methane emissions. Additionally, technological applications such as enhanced oil recovery (EOR) are capable of increasing the amount of oil that can be extracted from a given oil field. Petrobras has recently implemented EOR pilot projects19 at pre salt fields using gas injection techniques – which resulted in reduced emissions and increased production (an additional 1.9 billion BOE of reserves is expected). Since 2008, Petrobras has already reinjected more than 7 million tons of CO2 in the pre-salt fields20.

Digitalapplicationscanalsotransformexplorationandproduction(E&P). Artificial intelligence (AI) is a technological option that should be applied in upstream activities, allowing intelligent robots and machine automation to boost efficiency and performance. AI could, for instance, be used to analyze underperforming fields, suggest corrective actions and even perform complex tasks through the deployment of robots. The development of


drones and other capabilities are being developed allowing for remote operations. Together, drones and automated technologies are expected to reduce operational costs and could lower employee costs by up to 20% by 202521. It is necessary to understand the further impact of these technologies on the workforce.

OneofthemostimportantbenefitsoftheapplicationofdifferenttechnologiesintheO&Gsectorisincreasedsafety.Digitaltechnologiescanpreventandreduceaccidentsandinjuries22. Digital data and connected workers are key to ensure that the best decisions are made in critical situations. Enabling an efficient data flow with reliable communication networks can dramatically reduce the response time during an accident.

In addition, different technologies can unlock volumes of oil and natural gas, maximizing recovery and expanding reservoir limits. Recovery factors and O&G reserves are critical for price projections and future industry profits. The application of digital technologies across the resource base could increase the recovery factor by 15%, which is equivalent to supplying 10 more years of current world oil and gas consumption23.

Digital technologies are at the same time transforming marketing and distribution channels. Oil and gas companies are applying different technologies to better understandconsumerhabits,optimizepricingmodelsandimprovesupplylogisticefficiency.For instance, geospatial analytics is contributing to a better route and location planning of distribution networks.

Gas stations and other fuel retailers are also undergoing major transformations as consumer behavior is already changing, and the increased share of electric vehicles is set to pose additional challenges to a traditional business. Gas stations will have to adapt in order to offer different services, and apply digital technologies to a new business model. Digital analytics should be a useful mechanism to provide personalized services in a timely manner.

Therefore,O&Gcompanieshaveawiderangeofopportunitiesrelatedtodigitalandtechnological applications, especially in areasof safety, operational costs reductionsandproductivitygains.Historically focused on incremental gains24, the industry has the opportunity to better assess the potential risks associated with technological disruptions. Digitalization enables O&G companies to be open to changing direction quickly. Some applications have shorter innovation cycles that allow them to be tested in a variety of environments simultaneously. In this sense, it is important to foment innovations in all industry segments, using technological applications to mitigate energy transition challenges, changing how the industry operates and maps the future.

21. WEF. digital Transforming initiative – O&G industry. 2017 22. FORSEa; FORMiGLi, J. Technology and digitalization in O&G – some insights. 201823. iEa. digitalization and Energy. 201724. FGV Energia. Transformação digital, a 4ª revolução industrial. 2018


D igitalizationleadstoanexponentialincreaseinglobalinformationflows,creatingnewrisksrelatedtodataprivacyandcybersecurity. Exposure to risks related with cybersecurity is growing as companies become more dependent of technologies and

connected systems. Internet of things (IoT) devices are expected to expand from 8.4 billion in 2017 to approximately 20 billion in 2020, which represents a growth of 143% in less than 3 years25. In this scenario, companies are increasingly concerned about the impacts of cyberattacks.

Considering theWorld Economic Forum’s Global Risk Report 2018, cyberattacksandmassivedata fraudappear in thirdand fourthposition, respectively,on the listofglobalrisksbyperceivedlikelihood. Additionally, cyberattacks are the global risk of highest concern to business leaders in advanced economies, such as North America, East Asia and the Pacific26.

The WEF report emphasizes that the attacks against businesses that were once considered extraordinary rare are becoming more common, since the number of attacks almost doubled in less than five years27, from 68 cyber breaches per business in 2012 to 130 per business in 2017.

Intheenergyindustry,theconnectionwithdigitalandsmartcomponentsalsomakesenergy systems more vulnerable. Although they improve efficiency, interconnectedsystemsanddevicesraisetheissueofcomplexityincybersecuritymanagement. Cyber risks encompass different crimes related to digital systems, and they can have either non-physical or physical consequences.

The increased relevance of cybersecurity

25. WEF. The Global Risks Report.201826. WEF. Cyber risk is a growing challenge. So how can we prepare? 201827. WEF. The Global Risks Report.2018

Source: WEC. Managing Cyber risks. 2016


Cyberattacks on energy infrastructure can directly affect the economy and social wellbeing. Centralized infrastructure is especially in risk due to the potential damage that an attack on a nuclear, coal or oil plant could cause. Such an attack has the potential to cross from the cyber world to the physical world. For instance, an attack could lead to a massive operational failure, an infrastructure shut down, the loss of life or even massive environmental damage.

The number of attacks on energy systems has been increasing in recent years. In2015, 80% of O&G companies reported an increase in the number of successfulcyberattacks28. Some of these security breaches had grave consequences. Saudi Aramco, for instance, suffered a virus attack that damaged computers and destroyed 85%29 of the hardware on the company’s device, back in 2012. Another recent incident occurred in South Korea (2015), when Korea Hydro and Nuclear Power Co. were attacked, causing a nuclear reactor malfunction.

Theenergy industrymust take a proactive approach andwork collaboratively andacrossindustriestoincreasecyberresilienceandreducerisks. As an example, a group of companies including IBM, Daimler Group, Allianz, AES Corporation, Enel and others are working collaboratively through the Charter of Trust initiative to promote a more secure digital world. One of the ten principles supported is joint initiative, since the companies understand that working in partnership with others is a critical factor for the digital economy’s success. The other principles upheld in the document are: ownership of cyber and IT security; responsibility throughout the digital supply chain; security by default; user-centricity; innovation and co-creation; education; certification for critical infrastructure and solutions; transparency and response; and finally, regulatory framework30.

28. WEC. Managing Cyber risks. 201629. WEC. Managing Cyber risks. 201630. SiEMEnS; SCHnETTLER, a. Shape the energy transition. 2018

Source: SIEMENS. Charter of Trust on Cybersecurity. 2018


Different types of measures can be taken by companies to reduce their vulnerability, such as intrusion detection and prevention, encryption and attack surface minimization. All that said, recognizing that cyber threats are a serious business risk is the first step in order to develop an organizational response structure. Taking proactive measures is essential to guarantee the security needed for development of the energy sector. Digitalization and technological advancements need to be reconciled with risks and stability.

Energysystemsmustadapttothedigitalrisksthatareincreasing,bothinprevalenceandindisruptivepotential. Additionally, the industry needs to be prepared for the new opportunities that will emerge with the growing complexity and decentralization of the grid, and the increasing availability of new technologies such as sensors, machine learning, IoT and big data.


D igitalization enables the decarbonization and the decentralization of energysystems, changing the way we produce and consume energy. It promotes significant efficiency and productivity gains and, at the same time, creates new

business models that will have an important role in a secure and reliable energy transition.

Inthepowersector,newtechnologiesareintegratingdifferentplayersandstrengtheningtherelevanceofconsumers. Through digital distributed energy systems, the traditional role of consumers is changing. Digital applications enable a broader energy use control and management, fostering the penetration of renewables and efficiency gains. In addition,digitalizationisakeyfactortothefutureofO&Gsectorinanenergytransitioncontext.It creates a broader range of opportunities that must be captured by O&G companies, maximizing safety, operational costs reductions and productivity gains.

However, despite the potential benefits that these technologies could promote, theincreasing number of digital connections creates vulnerabilities to energy systems.Industry companies must take proactive positions to track and reduce cybersecurity risks.

Therefore, new digital technologies are changing energy structures and creatingnew opportunities and business models. Energy companies must fully understand their potential and risks in an energy transition context, promoting digital technologies innovations in different energy segments.

FInaL remarkS


ACCENTURE. The Digital Oil Company. 2017.BNEF. Electric Vehicle Outlook. 2018.FGV Energia. Transformação digital, a 4ª revolução industrial. 2018.FORSEA; FORMIGLI, J. Technology and Digitalization in O&G – some insights. 2018.IEA. Digitalization and Energy. 2017.IEA. Prospects for distributed energy systems in China. 2017.IRENA. Renewable Power Generation Costs in 2017. 2018.MCKINSEY. Smart Cities – Digital Solutions For a More Livable Future. 2018.MCKINSEY. The Internet of Things: mapping the value beyond the hype. 2015.MCKINSEY. The next frontier for digital. 2017.PETROBRAS. Relatório de sustentabilidade. 2017.S&P GLOBAL. Brazil enhanced oil recovery success tied to Petrobras divestments. 2018.SIEMENS. Charter of Trust on Cybersecurity. 2018.SIEMENS; SCHNETTLER, A. Shape the energy transition. 2018.UN. World Urbanization Prospects. 2018.WEC. Managing Cyber risks. 2016.WEF. Cyber risk is a growing challenge. So how can we prepare? 2018.WEF. Digital Transforming Initiative – O&G Industry. 2017.WEF. The Global Risks Report. 2018.

reFerenCeS


appenDIx

Participants of the VI Meeting

ana Zambelliarmin Schnettler, PalestranteBeatriz Costa RozaBianca nunes de OliveiraBruna MascotteBruno dinizClarissa Lins, Palestrantedavid TaffEduardo Prisco Paraiso Ramos, EmbaixadorEloi Fernández y FernándezFernando Cariola TravassosGabriel FranciscoGuilherme FerreiraGuilherme MelloJaques ScvirerJorge de Toledo CamargoJosé Formigli, PalestranteJuliana Pizzolato Furtado SennaLeonardo MouraMarcello Portes da Silveira LoboMarcia SakamotoMaria Pia Müssnichnadia StanzigPedro RodriguesPitter Lessa MottaRafael de JesusRafael Lemme Ricardo SerafimRoberto Pereira Rangel de almeidaThiago Vasconcellos Barral FerreiraThomas SuedVictor Magalhaes Feleppa

AZ Engenharia

CEBRI, Associado PJ -Siemens

Ipiranga

Empresa de Pesquisa Energética - EPE

Catavento Consultoria

Ipiranga

CEBRI, Senior Fellow


CEBRI, Sócio Individual

PUC-Rio


Consulado Geral da Noruega

Catavento Consultoria

Solar Volt


CEBRI, Membro do Conselho Curador

Forsea Engenharia

Kincaid

Aker Solutions

CEBRI, Associado PJ - Pinheiro Neto



AmCham Rio

CBIE (Centro Bras. de Infraestrutura)

CEBRI, Associado PJ - Dannemann, Siemsen

Petrobras

CBIE (Centro Bras. de Infraestrutura)

Aker Solutions


Empresa de Pesquisa Energética - EPE

Solar Volt

CEBRI, Associado PJ -Eletrobras

ChairmanJosé Pio Borges

Honorary ChairmanFernando Henrique Cardoso

Vice ChairmenJosé Luiz AlquéresLuiz Felipe de Seixas CorrêaTomas Zinner

Vice Chairmen EmeritiDaniel KlabinJosé Botafogo GonçalvesLuiz Augusto de Castro NevesRafael Benke

Trustees EmeritiCelso LaferMarcos AzambujaPedro MalanRoberto Teixeira da CostaRubens Ricupero

Executive DirectorJulia Dias Leite

Board of TrusteesAldo RebeloAndré ClarkAnna JaguaribeArmando MarianteArminio Fraga Carlos Mariani BittencourtCláudio FrischtakDemétrio MagnoliGelson Fonseca Jr.Henrique RzezinskiJoaquim FalcãoJorge Marques de Toledo CamargoJosé Alfredo Graça LimaJosé Roberto Castro NevesLuiz Fernando FurlanLuiz Ildefonso Simões LopesMarcelo de Paiva AbreuMarcos GalvãoMaria do Carmo (Kati) Nabuco de Almeida BragaRenato Galvão Flôres Jr.Roberto AbdenurRonaldo VeiranoSérgio QuintellaSérgio AmaralVitor HallackWinston Fritsch

International Advisory BoardAlbert FishlowAlfredo ValladãoAndrew HurrellFelix PeñaJulia SweigKenneth MaxwellLeslie BethellMarcos CaramuruMarcos JankMonica de BolleSebastião Salgado


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Adriano AbdoÁlvaro Augusto Dias MonteiroÁlvaro OteroArminio FragaCarlos Eduardo Ernanny de Mello e SilvaCarlos Leoni de SiqueiraCarlos Mariani BittencourtCelso LaferChristiane AchéClaudine Bichara de OliveiraDaniel KlabinDécio OddoneEduardo Marinho ChristophEduardo Prisco RamosEvangelina SeilerFernando BodsteinFernando Cariola Travassos

Fernão BracherFrederico Axel LundgrenGilberto PradoHenrique RzezinskiJaques ScvirerJoão Felipe Viegas Figueira de MelloJoão Roberto MarinhoJosé Francisco Gouvêa VieiraLarissa WachholzLeonardo Coelho RibeiroManuel ThedimMarcelo Weyland Barbosa Vieira Marcio João de Andrade FortesMaria Pia Mussnich Mauro Ribeiro Viegas NetoMauro Viegas FilhoNajad Khouri

Paulo FerracioliPedro BrêtasPedro Leitão da CunhaRicardo HaddadRicardo LeviskyRoberto AbdenurRoberto Amadeu MilaniRoberto Guimarães Martins-CostaRoberto Pereira de Almeida Roberto Prisco Paraiso RamosRoberto Teixeira da CostaRosana LanzelotteStelio Marcos AmaranteThomas TrebatTomas ZinnerVitor HallackWinston Fritsch

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www.cebri.org

Since 1998, the leading think tank in international relations in Brazil. Ranked in 2017 the third best think tank in South and Central America by the Global Go To Think Tank Index, compiled by the Think Tanks and Civil Societies Program of the University of Pennsylvania.


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ENERGY VI meeTIng - midias.cebri.org - Energy Program - IV Meeting... · Julia Dias Leite COORDINATION. 5 TOPICS ADDRESSED REPORT 06 VI MEETING REPORT 08 aPPEndix PARTICIPANTS OF