“I went on the river for money, I sold my rotten shack / For a rusty tanker leaking oil, and the burning sun was on my back / Travelled up the ragin’ river, I watched the jungle burn... I’m ridin’ on a river of dreams / Amazon, is it heaven or hell?”
— Amazon (River of Dreams), a 1993 song by jazz guitarist Artie Traum emblematic of the iconic river basin’s dire straits three decades later
Climate impact on the Amazon rainforest and the issue of fossil fuels brought together the heads of Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname and Venezuela—eight members of Amazon Cooperation Treaty Organization (ACTO)—after 14 years in August 2023 at Belem, Brazil. Home to more than 1.5 million indigenous people representing over 385 ethnic groups and a verdantly diverse biome, the enigmatic Amazonia seeks inclusive social support, besides an environmental look.
Holding a fifth of all newly-identified global oil reserves, the region is currently witness to a frenzy as oil majors and nouveau rentiers capitalise on the opportunity. However, the well-documented history of “experimental exploration” in the Amazon basin reflects failed projects and environmental delinquency. Recurrent mechanical failures, sabotage, corrosion and natural disasters on ageing and “strategically misplaced” pipelines have resulted in thousands of oil spills over the last 50 years. River pollution and destruction of planet’s largest rainforest remains a politically sensitive issue for Latin American oil producers, as they rely on exports to usher social and economic welfare.
With rampant hydrocarbon contamination of numerous waterways and Amazon tributaries, infrastructural compatibility and logistics management is essential for ethical production practices. The catastrophic March 2025 spill in coastal Esmeraldas from a ruptured trans-Ecuadorian pipeline, the worst in 30 years, is such a tragedy. The historic referendum of August 2023 precluded exploration in the country’s Yasuní National Park, a Unesco Biosphere Reserve. Ceasing further operations in the area, Petroecuador was directed to “revive the ecosystems and dismantle any infrastructure within a year”. However, ‘stranded assets’ and debris continue to besmear the pristine environs.
The Orinoco river belt in central and eastern Venezuela saw its first oil well in 1936. With the discovery of extra heavy crude and 20 percent of the world’s proven reserves, major exploration was initiated in the area that extended further south around the Amazon rainforest. Frequent spills and infrastructural mismanagement by a callous PDVSA, the state oil company, accelerated the pace of deforestation and ecological catastrophe across the region. Similarly, scores of oil spills due to corrosion and faulty maintenance of Petroperu’s Norperuano pipeline resulted in pollution of Maranon river, Peru’s second largest and a mainstem source of Amazon river from the Andes.
Colombia, among the top five oil producers in South America, shares tales of “oil misdemeanours”. The Rio Putumayo, an Amazon tributary flowing through Colombian forests before entering Ecuador, is sacred to the Siona and Inga indigenous communities with spiritual and cultural significance. Exploration since the 1940s and sabotages by armed rebels has sullied the river belt. While emphasising “ending deforestation in the Amazon is fundamental” in 2023, Colombian President Gustavo Petro halted approval of new extractive contracts. He suggested the creation of an ‘Amazon NATO’ to defend the region “with weapons”, as a joint initiative of members.
Flowing close to areas under prospective drilling activities, the Branco river in Guyana, a major tributary of Amazon, faces potential ecological and environmental risks. Fearing this, Guyana’s parliament recently passed the Oil Pollution Prevention Bill, making parties accountable for damages caused by spills and to provide financial assurance. Companies defaulting on regulatory compliance would face suspension of licence for exploration and production.
Brazil’s state-run oil giant Petrobras awaits clearance from Ibama, the country’s environmental regulator, to drill in the deepwater Equatorial Margin, an area along the Brazilian coast—specifically, off the mouth of the Amazon—with significant potential. It is here that the Amazon empties 200,000 cubic metres of water every second into the Atlantic, feeding the marine ecosystem with tonnes of nutrients. Brazil’s Minister of the Environment, Marina Silva, born to a rubber-tapper family in a village near Rio Branco and a native Amazonian herself, is opposed to oil exploration in the area.
Oil remains a major contributor to ACTO members’ GDPs and it would be unfair to deny them “the fruits of their wealth”. They hold dreams of ‘greener days’, but the passage is dusky. The answer lies in due diligence, and not abstinence. A pragmatic approach to conserve Amazonia while balancing economic sustainability would be crucial. With 60 percent rainforest cover and as the seventh largest oil producer, Brazil defends its stance. President Lula da Silva states, “We will follow all the necessary procedures to ensure no harm to nature, but we can’t ignore the wealth beneath us.”
Green transition is a transcontinental liability. Amazonian countries need cooperation, especially from the major oil companies that flourish in partnership with them. International financing initiatives by the Global North are integral to judiciously carry forward the agenda.
Climate considerations at the BRICS summit in Rio de Janeiro this week provide ACTO members a chance to strengthen their position for just negotiations at COP30 later in the year at Belem. Incorporating adequate deterrents to environmental and infrastructural dereliction are needed to help preserve nature while pursuing economics. ‘Clean after energy’ should precede the move towards clean energy.
(Views are personal)
(ranjantandon@live.com)
Ranjan Tandon | Senior markets specialist and author