10 Local Content Policies in the Energy Transition Era …
327
10.5.1 Brazilian and Norwegian Oil and Gas
Industry: The Local Content Setting in Mature
Oil and Gas Producers
The local content policy in Brazil and Norway both have four main
policy objectives, to increase domestic participation on a competitive
basis, to develop the national technological advancement, to improve
the domestic industry capabilities, as well as to create employment channels for the domestic workforce.
53 It should be noted that both Brazil
and Norway are among the wealthiest economies in the world with a
large domestic market, favourable business climate, efficient financial
markets as well as a high level of domestic driven innovation and technological adoption mechanisms. Both Norway and Brazil found offshore
oil and gas resources; Brazil is endowed with 13.1 billion barrels of
proven reserves and 16 trillion cubic feet of proven natural gas reserves.
54
Norway is endowed with 8.6 billion barrels of proven reserves and 66 trillion cubic feet of proven gas reserves.
55 These resources brought about
huge investments in Norway and Brazil; the extractive foreign investment led to the development of the petroleum industry in both Norway
and Brazil.
Both Norway and Brazil developed giant national oil companies,
Norway created Statoil (currently known as Equinor) while Brazil created
Petrobras. These two national oil companies held a monopoly over the
domestic oil and gas value chain.
56 Both countries build domestic capabilities using knowledge transfer mechanisms, training programs and
development of R&D. The national oil companies both control most
of the oil and gas production in Norway and Brazil, including other
multinational oil and gas companies.
57
53 Acheampong, Theophilus, Marcia Ashong, and Victoria Crystal Svanikier. “An assessment of
local-content policies in oil and gas producing countries.” The Journal of World Energy Law &
Business 9.4 (2016): 282–302.
54 Ibid.
55 Ibid.
56 Noreng, Øystein. “Brazil and Norway–Offshore petroleum experiences and lessons.” The
Journal of Energy and Development 35.1/2 (2009): 79–99.
57 Ibid.
327
10.5.1 Brazilian and Norwegian Oil and Gas
Industry: The Local Content Setting in Mature
Oil and Gas Producers
The local content policy in Brazil and Norway both have four main
policy objectives, to increase domestic participation on a competitive
basis, to develop the national technological advancement, to improve
the domestic industry capabilities, as well as to create employment channels for the domestic workforce.
53 It should be noted that both Brazil
and Norway are among the wealthiest economies in the world with a
large domestic market, favourable business climate, efficient financial
markets as well as a high level of domestic driven innovation and technological adoption mechanisms. Both Norway and Brazil found offshore
oil and gas resources; Brazil is endowed with 13.1 billion barrels of
proven reserves and 16 trillion cubic feet of proven natural gas reserves.
54
Norway is endowed with 8.6 billion barrels of proven reserves and 66 trillion cubic feet of proven gas reserves.
55 These resources brought about
huge investments in Norway and Brazil; the extractive foreign investment led to the development of the petroleum industry in both Norway
and Brazil.
Both Norway and Brazil developed giant national oil companies,
Norway created Statoil (currently known as Equinor) while Brazil created
Petrobras. These two national oil companies held a monopoly over the
domestic oil and gas value chain.
56 Both countries build domestic capabilities using knowledge transfer mechanisms, training programs and
development of R&D. The national oil companies both control most
of the oil and gas production in Norway and Brazil, including other
multinational oil and gas companies.
57
53 Acheampong, Theophilus, Marcia Ashong, and Victoria Crystal Svanikier. “An assessment of
local-content policies in oil and gas producing countries.” The Journal of World Energy Law &
Business 9.4 (2016): 282–302.
54 Ibid.
55 Ibid.
56 Noreng, Øystein. “Brazil and Norway–Offshore petroleum experiences and lessons.” The
Journal of Energy and Development 35.1/2 (2009): 79–99.
57 Ibid.