TRANSFORMATIONS IN THE OIL AND GAS SECTOR, LABOR MARKET DYNAMICS, AND HIGHER ENGINEERING EDUCATION IN BRAZIL AND RIO DE JANEIRO

Abstract

This chapter analyzes the combined impacts of the 2014 oil price shock, the COVID-19 pandemic, and the rapid expansion of distance learning on engineering education and the technical labor market in Brazil, with a particular focus on the state of Rio de Janeiro. Using data from the Higher Education Census, RAIS/MTE, and other sectoral sources, the authors show how these events led to a sharp decline in on-campus engineering enrollments, formal job losses, high dropout rates, and declining training quality—especially in traditional engineering fields. The 2014 crisis severely affected the oil and gas production chain, resulting in the loss of thousands of technical jobs and the suspension of investments, particularly in cities like Macaé. The pandemic accelerated the shift to online learning, consolidating a more flexible educational model, though with critical concerns regarding its effectiveness in technical training. Simultaneously, the recent recovery of investments in the energy sector, as forecasted in the Energy Expansion Decennial Plan and Petrobras' Strategic Business Plan, points to a rising demand for engineers. The study also highlights a growing mismatch between training and market needs, worsened by the declining appeal of technical careers among youth. In response, the chapter proposes a set of strategies, including pedagogical modernization, stricter regulation of distance education, stronger partnerships between academia and industry, and professional valorization policies, aiming to restore the training system’s ability to meet the country’s new development demands.