March 16, 2025 – The Amazon rainforest, one of the world’s most crucial ecosystems, is becoming a hotbed for fossil fuel extraction, raising alarms among environmentalists.

South America’s reliance on oil and gas exports has fueled a rush to drill deeper into the region, despite concerns about deforestation, pollution, and climate change.

Brazil’s Oil Battle

Brazil’s President Luiz Inacio Lula da Silva is facing criticism for pressuring the environment agency Ibama to approve Petrobras’ oil drilling project in the Equatorial Margin, an untapped offshore oil region near the mouth of the Amazon River. Environmental groups argue that climate change-driven droughts make fossil fuel expansion in the Amazon even riskier.

However, Brazil is far from alone in its oil dependence. Nations like Guyana (77% of exports) and Venezuela (61%) rely heavily on fossil fuels for revenue. Even Brazil, South America’s largest economy, saw oil and gas account for 16% of exports in 2023, second only to soybeans.

Environmental and Social Fallout

Oil drilling in the Amazon basin has caused severe pollution and environmental degradation for decades:

Peru: 474 oil spills recorded between 2000 and 2019 (Oxfam).
Ecuador: Over 4,600 spills between 2006 and 2022 (Stand.earth and COICA).
Colombia: Aging pipelines continue to contaminate water sources.

In addition to spills, roads and pipelines fragment forests, inviting illegal deforestation, land grabs, and corruption.

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Pushback and Restrictions

Despite this expansion, some regions have resisted oil drilling:

Ecuador’s 2023 referendum forced state oil company Petroecuador to halt operations in the Yasuni Amazon Reserve.
Brazil prohibits drilling on Indigenous lands, but discussions in Congress and the Supreme Court could overturn this protection.

Bankrolling Amazon Drilling

A 2024 report by Stand.earth revealed that banks have poured over $20 billion into Amazon oil and gas projects over the last two decades. The top five financiers include:

Citibank
JPMorgan Chase
Itaú Unibanco
Santander
Bank of America

Environmental advocates urge banks to stop financing Amazon fossil fuel projects, warning of irreversible damage to one of the planet’s most vital ecosystems.

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