The Rio Olympic Games & Their Impact on the Oil & Gas Industry

When Brazil was awarded the Olympics, it was a country that appeared to be on the rise. The economy was in excellent shape, the middle class had grown significantly, and the country has just discovered a large supply of oil off its coast. This led the Olympic committee to believe that it was the perfect place to hold the 2016 games. A lot has changed since that time, and Rio is now a public calamity according to its governor. Fortunately, there is hope that the Olympic games will help to turn this around, and the oil and gas industry has definitely had a role in this.

It was estimated back in 2012 that the oil and gas sector would increase by 5.1 percent as a result of the games being held in the country. In fact, this is only one of 55 sectors that would benefit during preparations for the games. Although final tallies have yet to be calculated, this industry has definitely seen a boost, thanks to the use of oil country tubular goods in many construction projects. In fact, the construction industry was expected to receive the most benefit from the hosting of the games, with experts anticipating a 10.5 percent increase in this industry.

Any time a country hosts the Olympic games, new venues must be built. In addition, new subway stations and roads must be built. These types of projects require the use of gas and oil, if for nothing more than to transport goods to the building site. Often, they use gas and oil for various other purposes as well. A variety of oilfield products may be used in a number of ways during the process, as preparation for the games often takes years, and the benefits obtained from pipe storage and other products of the industry continue for a long time after the games are complete.

Regardless of what happens during the Olympics or over the coming months, it is believed that Brazil can once again be an example to other countries. Experts feel the democracy has matured and that citizens of the country are demanding more from their leaders. Government officials are being held accountable for their actions, and many companies helping to build Olympic venues are caught up in the scandal. Now is the time for things to be cleaned up, as the oil and gas industry has a bright future ahead of it in the country. BP Global predicts the country will become a net energy exporter by 2020 thanks, in large part, to the increased production of gas and oil. This will lead to an excess of production as compared to growth in energy demand. The country so excited to host the Olympics may find they struggle in the coming years, but their future looks bright.

The Olympics will spotlight the beauty of the area and what it has to offer, and more individuals will want to visit. When they do so, they’ll take advantage of products offered by the oil and gas industry, even if they don’t realize they are doing so. This is one thing any country looking to host the Olympic games should keep in mind. The benefits of doing so for many industries, including the gas and oil industry, far exceed any drawbacks.

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