This paper aims to evaluate the applicability of input/output analysis to local content management as a tool to assess the relationship between the Brazilian government’s local content policy and social and economic effects of investment projects in the oil and gas and shipbuilding industry. The methodology comprised literature review on central themes, field research, and a case study focusing on investment projects.
A logical framework was developed by combining monitoring and evaluation models identified from the literature review and the conceptual approach of input/output analysis. On the basis of this framework, a reference project concerning the development of an oil field in the Brazilian presalt region was defined. From typical information from other similar projects in Brazil, investments associated with drilling, assessment, and completion systems; production collection systems; and production units were considered.
The main result refers to the creation of a new logical framework that allows measuring the social and economic effects of local content management on investment projects in oil and gas and shipbuilding industry in Brazil. It can be used as a powerful tool either for crisis management arising from possible reduction of investments in local content, subsidizing actions to mitigate negative social effects that could damage the corporate image of these companies, or for formulation or revision of local content public policies that enhance the positive externalities of investment projects in this industry.
The results of the case study demonstrated how the investments of an oil company could generate positive socioeconomic externalities. The “Social and Economic Impacts Report” for the reference project showed the results of direct, indirect, income, and total effects for effects on the value of production, gross domestic product, and generation of job positions for each of the 55 economic activities in the Brazilian input/output matrix prepared by the Brazilian Institute of Geography and Statistics.
Finally, these externalities were correlated with the structure of local content requirements established by Brazilian regulation to identify competitive advantages for oil and gas and shipbuilding companies in the country.
Find the paper on the HSE Technical Discipline Page free for a limited time.
Don't miss our latest HSE content, delivered to your inbox twice monthly. Sign up for the HSE Now newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
9 - 11 Nov 2019
- Abu Dhabi, UAE
The programme combines expert input, case studies, and immersive scenarios from the E&P and other industries to embed your learning and enable you to progress to the next level of your career.
24 - 25 Sep 2019
- Nur-Sultan, Kazakhstan
Share best practices, progressive approaches and innovative applications to enhance HSE performance
11 - 12 Sep 2019
- Abu Dhabi, UAE
Reserve your place
16 - 18 Oct 2019
- Baku, Azerbaijan
Make plans to attend this premier event
22 - 24 Oct 2019
- Moscow, Russia
Take part in the discussion and reserve your place today
HSE Now is a source for news and technical information affecting the health, safety, security, environment, and social responsibility discipline of the upstream oil and gas industry.
©2003-2019 Society of Petroleum Engineers, All Rights Reserved.