Best Practice in Fleet Operation

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Rio 02 World Climate & Energy Event Jan, 9th, 2002 Best Practice in Fleet Operation João Eudes Touma Chief Executive Manager - PETROBRAS

CONPET Energy Efficiency Programme -Brazilian Government National Programme for Rationalization of Oil Products and Natural Gas Use (CONPET) -The main aim is to maximize the utilization in Brazil of existing technologies and experience concerning energy conservation and efficient energy use - Build public awareness of the opportunities for rational use of energy throughout the Brazilian economy and motivate consumers to achieve the consequent benefits

CONPET is funded and managed by the State-owned oil company PETROBRAS - PETROBRAS has the resources to make the programme a success (administrative infraestructure, technical support, fund, etc) - PETROBRAS has the credibility to make programme a success partly because the long experience in energy efficiency programme developed since 1974

A leading energy conservation project in Brazil for the transport sector

Main Objectives -Optimize the use of diesel oil -Minimize fuel waste -Reduce black smoke emissions

-People and goods moved through 1,7 million km of highways in 8,500,000 km 2 of the country -Urban and road transport represent 96% of passengers movement and 62,6% of cargo transport

Petroleum products consumption distribution Industry 16% Agricultural 6,3% Electric 5% Residential / Commercial 8,0% Transport 50% Others 0,7% Non energetic 14%

Petroleum products and alcohol consumption in Brazil 700 600 Diesel oil Liquefied gases Diesel oil 500 400 700 300 200 100 0 1970 1972 1974 1976 1970 1978 1970 1982 1984 1986 1988 1990 1992 1994 1996 Gasoline 1998 2000 Gasoline Fuel oil Alcohol Jet Fuels Naphta Others

Transport sector in Brazil : -40,000 companies -2.5 million of workers - 300,000 one-man company (medium and heavy trucks) -6.4% of GDP (US$ 29 billions) -Bus fleet 420,000 -Medium and heavy trucks fleet 1,775,000

Project Economizar -Developed and coordinated by PETROBRAS/CONPET and CNT/IDAQ (Brazilian national confederation of transport) -The target is transport sector (freight and passengers) -Voluntary participation -Technical assistance -Free of charge Economizar Mobile Unit

Project Economizar Basic concept Technical assistance to foster coordinated measures in order to: -Improve management and guarantee the diesel oil quality at the end use (storage and refueling procedures) - Improve personnel qualification (drivers, maintenance staff, management) -Vehicles diagnosis -Engine diagnosis using modern tools such as opacimeter

Project Economizar Goals -Reach, until 2003, 13% diesel oil saving in trucks and buses fleets -Minimize vehicle emissions in order to improve air quality -Eliminate tailpipe black smoke -Increase participation of trucks and buses fleets companies raising awareness and encouraging transportation sector to use diesel more rationally -Increase companies profits

Project Economizar Organization and Operation National Coordination (PETROBRAS / CONPET and CNT / IDAQ) responsible for: -Setting goals -Approving standards and operational procedures -Monitoring and evaluating results Regional Supervision (syndicates and federations linked to CNT) -Elaborate standards and procedures -Plan and control field programs within their areas of influence

FRAMEWORK Cooperation Agreement Institutional Articulation Guidelines Standards and Procedures Approval Standards and Procedures Elaboration Planning and Control Field Works Fuel Analysis Opacimeter Emission Test Report Writting General Coordenation PETROBRAS / CONPET CNT / IDAQ Regional Coordination Transport Federations and Associations Mobile Units Economizar s Technician PETROBRAS & CNT Staff 17 Persons Oct / 2001 22 Nov / 2001 41 41 Technician Dec / 2003 80 Buses and Trucks Fleets Companies Participants 5,500 Companies Fleets 67,000 Vehicles

Drive Force Black Smoke = US$ R$ Benefits: -Economic Profit Increase Diesel Oil Saving ( U$ 46,000,000 / year ) -Social Environmental Protection Jobs Creation ( 41 to date ) Costs ( until 2000 ): Investment in Mobile Units US$ 330,000 ( 22 units ) Running Costs US$ 528,000 / year

Mobile unit Vehicle and running cost supplied by private sector Equipments, methodology, trainning and technical support supplied by PETROBRAS Mobile unit equipment

Project Economizar Operators -High qualified technicians -Rigorous selection -Specific trainning by PETROBRAS Analyzing Diesel Oil

Economizar Annual Meeting

Mobile units Mobile unit equipment

Collecting diesel oil Testing diesel oil

Opacimeter emission test Smoke emissions measurement

Energy efficiency typical label Vehicles with this label has been approved by environmental and transit authorities in several metropolitan areas without emissions inspection

Project Economizar Main Results 2000 Transport Association Federation States Companies Fleet (buses and trucks) Engine Diagnosis Total Fuel Saving Per Year (litre) Avoided CO 2 Emission (ton/year) Avoided Particulates Emission (ton/year) 14 21 5.500 67,000 111,000 144,000,000 401,000 8,700

Example: Rio de Janeiro Metropolitan Area Tailpipe Black Smoke Reductions 1997 (Project Start) 2001 Bus Fleet (Rio de Janeiro Nova Iguaçú Caxias) 10,978 11,392 Vehicle without Black Smoke * Vehicle with Black Smoke * 4,940 ( 45% ) 6,038 ( 55 %) 8,658 ( 76% ) 2,734 ( 24% ) Black Smoke Reductions 56% * CONAMA 16/95-251/99 CONTRAN 510/77

More Information About Project Economizar and CONPET João Eudes Touma Alexandre Bahia Santiago www.petrobras.com.br/conpet conpet@petrobras.com.br Petróleo Brasileiro S.A. PETROBRAS Gerencia de Conservação de Energia Avenida República do Chile, 65 11 andar Sala 1104-D CEP: 20035-900 Centro Rio de Janeiro RJ - Brasil Fax: (55 21) 2534-3663