The Amazon rainforest faces increasing pressure from oil and gas drilling, driven by economic needs despite environmental concerns. Brazil’s Petrobras is pushing for drilling in new regions, while significant oil spills impact local ecosystems. Protective measures exist but may be challenged by financial institutions backing fossil fuel projects.
The Amazon rainforest is becoming a focal point for oil and gas extraction in South America. Currently, Brazil’s government, led by President Luiz Inacio Lula da Silva, is advocating for Petrobras, a state-controlled oil company, to commence drilling in the Equatorial Margin region, facing opposition from environmental groups. These groups argue against fossil fuel drilling, citing climate change and severe drought conditions in the area as serious concerns.
Fossil fuel extraction sites in the Amazon span several countries. The oldest oil blocks are located along the western Amazon, encompassing parts of Colombia, Ecuador, and Peru, drilled since the late 20th century. Notably, Brazil’s inland fossil fields have been active since the 1980s, while offshore reserves remain unexplored. Economic reliance on oil is evident, with Guyana and Venezuela’s exports significantly comprising fossil fuels, while Brazil’s oil and gas accounted for 16% of its exports in 2023, trailing only soybeans.
The negative impacts of fossil drilling are substantial. Reports reveal chronic issues with oil spills in Peru, Colombia, and Ecuador, contaminating water and harming ecosystems. For instance, Oxfam documented 474 spills in Peru from 2000 to 2019, while Stand.earth reported over 4,600 incidents in Ecuador from 2006 to 2022. Infrastructure development enhances these problems, as it leads to environmental degradation and increased corruption.
Certain areas are currently protected from drilling. A recent Ecuador referendum in 2023 halted oil production in the Yasuni Amazon reserve, which began in 2016. Furthermore, regulations exist across Amazonian countries that limit fossil fuel extraction in environmentally sensitive territories. In Brazil, drilling is prohibited on Indigenous land, although discussions are ongoing that could potentially alter this restriction.
Funding for drilling projects mainly comes from large financial institutions. According to Stand.earth’s report, key financiers include Citibank, JPMorgan Chase, Itaú Unibanco, Santander, and Bank of America, which collectively invested over $20 billion in Amazonian oil and gas projects over the past two decades. The report advises these banks to avoid new investments in the region’s fossil fuel sector.
The Amazon rainforest is increasingly targeted for fossil fuel drilling, primarily driven by economic interests and governmental support, particularly in Brazil. Despite significant environmental and health concerns, extraction continues to expand, with several countries reliant on oil exports. Protective regulations exist, but their enforcement is challenged by ongoing discussions about drilling in Indigenous territories. Financial backing from major banks poses additional risks, thus emphasizing the need for tighter restrictions against such investments.
Original Source: www.context.news
