{"id":17380,"date":"2023-06-19T13:27:00","date_gmt":"2023-06-19T16:27:00","guid":{"rendered":"https:\/\/fundacaofhc.org.br\/?post_type=debate&#038;p=17380"},"modified":"2024-07-18T09:20:53","modified_gmt":"2024-07-18T12:20:53","slug":"exploration-at-the-mouth-of-the-amazon-river-and-the-future-of-oil-in-brazil","status":"publish","type":"debate","link":"https:\/\/fundacaofhc.org.br\/en\/debate\/exploration-at-the-mouth-of-the-amazon-river-and-the-future-of-oil-in-brazil\/","title":{"rendered":"Exploration at the mouth of the Amazon River and the future of oil in Brazil"},"content":{"rendered":"\n<p>Authorization for Petrobras to conduct oil exploration near the mouth of the Amazon River in the Atlantic Ocean should be contingent upon completing an Environmental Assessment of Sedimentary Areas (Avalia\u00e7\u00e3o Ambiental de \u00c1rea Sedimentar \u2013 AAAS), as mandated by Brazilian environmental laws since 2012,\u201d stated&nbsp;<strong>Suely Ara\u00fajo, a lawyer, environmentalist, and former head (2016 to 2018) of the Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA)<\/strong>, during a webinar hosted by the Funda\u00e7\u00e3o FHC.&nbsp;<\/p>\n\n\n\n<p>Ms. Ara\u00fajo criticized the federal government\u2019s previous decision to auction several blocks along the Equatorial Margin in 2013 without an environmental assessment of the expansive Atlantic region, which extends from the state of Rio Grande do Norte to the state of Amap\u00e1: \u201cHad the study been conducted prior to the auction of the exploratory blocks, we could have circumvented the ongoing controversy.\u201d<\/p>\n\n\n\n<p>\u201cEnvironmental licensing stands as the foremost tool in averting environmental harm. Removing its technical component could lead to grave incidents. Hence, the prerogative to either grant or deny research permissions at the Amazon\u2019s mouth rests entirely with IBAMA\u2019s president, Rodrigo Agostinho, who should rely strictly on technical grounds. It is imperative that there will not be any intrusion from political figures,\u201d said the senior public policy specialist at the Climate Observatory.<\/p>\n\n\n\n<p>\u201cThe Brazilian state auctioned off the blocks, generating substantial revenue. Then, another governmental body intervened and halted the research. What is the stance on the companies that acquired these rights? How does this affect the government\u2019s credibility?\u201d&nbsp;<strong>Roberto Furian Ardenghy, CEO of the Brazilian Oil and Gas Institute (IBP)<\/strong>, raised concerns. In May, IBAMA denied the licensing application for block 59 by Petrobras, which claims the exploration rights to the potential reserves located in the Atlantic Ocean, approximately 500 km off Amap\u00e1, near the Mouth of the Amazon River.<\/p>\n\n\n\n<p>According to Mr. Ardenghy, the fact that an Environmental Assessment of the Sedimentary Area has not yet been carried out is the government\u2019s responsibility: \u201cIt\u2019s not up to Petrobras or the private sector to carry out this type of study.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-responsive embed-responsive-16by9\"><iframe loading=\"lazy\" class=\"embed-responsive-item\"  title=\"Resumo do webinar - A explora\u00e7\u00e3o na Foz do Rio Amazonas e o futuro do petr\u00f3leo no Brasil\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/Zh9DfAxa6V4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>With regard to the Mouth of the Amazon River region, Mr. Ardenghy pointed out that what is being debated at the moment is authorization to carry out research into the real oil potential of the region, not the actual start of exploration. \u201cIt\u2019s possible we might not discover any oil. However, to obstruct the research process, thus concealing potential knowledge of a significant oil reserve along the Equatorial Margin, is, in my view, unwise,\u201d he remarked.&nbsp;<\/p>\n\n\n\n<p>The expertise of Petrobras in offshore oil exploration, according to the company\u2019s former chief of staff, equips it with all the necessary capabilities to conduct research at the Amazon\u2019s mouth responsibly and safely: \u201cPetrobras successfully extracts millions of barrels daily in the Campos (in the states of Rio de Janeiro and Esp\u00edrito Santo) and Santos (Rio de Janeiro and S\u00e3o Paulo) basins, located in regions of high environmental sensitivity and dense population, without a record of major incidents. The Brazilian offshore oil sector is not only safe but also highly effective,\u201d he stated.&nbsp;<\/p>\n\n\n\n<p>\u201cIn 2018, during my tenure as IBAMA\u2019s president, I declined five drilling proposals near block 59 without witnessing such a strong response. The Mouth of the Amazon River, a biodiversity haven scarcely explored and characterized by intense sea currents, poses unique challenges. The license request from Petrobras lacks comprehensive details on the swift management of potential accidents in this area,\u201d Mr. Aguiar contended.<\/p>\n\n\n\n<p>He suggested pausing all licensing activities across the Equatorial Margin until an AAAS is performed. \u201cWith adequate support from the federal government in terms of human, logistical, technological, and financial resources, conducting this study could take up to two years. Obtaining a thorough understanding of both the environmental and social ramifications is crucial prior to any decisions regarding the exploration of oil in this extensive maritime zone in Brazil\u2019s north,\u201d he explained.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Society must engage in dialogue on Brazil\u2019s oil future<\/strong><\/h3>\n\n\n\n<p>In her introductory remarks, Suely Ara\u00fajo emphasized the need to separate the specific licensing discussions at the Amazon\u2019s mouth from the broader discourse on the future of oil exploration in Brazil and crafting an energy strategy suitable for the 21st century. \u201cSince 2007, IBAMA has issued over 2,100 offshore drilling licenses, each determined by rigorous technical assessments on a case-by-case basis. However, formulating energy policies is beyond IBAMA\u2019s scope. We must engage in a national conversation about our energy framework, involving all societal sectors in a transparent and thoughtful manner,\u201d she stated.<\/p>\n\n\n\n<p>Reflecting on the global climate crisis, the former IBAMA president highlighted the urgent recommendations of the UN Intergovernmental Panel on Climate Change (IPCC), which calls for a 43% reduction in worldwide greenhouse gas emissions by 2030 to cap the ongoing temperature rise at 1.5\u00baC. \u201cBrazil is uniquely positioned to lead the charge in the energy transition and in addressing the climate emergency. Thanks to its advantageous power grid, Brazil has the potential to emerge as the world\u2019s first \u2018carbon negative economy\u2019 by 2045,\u201d she said.<\/p>\n\n\n\n<p>\u201cWhat kind of country do we want? Is the oil from the Equatorial Margin truly necessary, whether for domestic needs or export purposes? In an era of escalating global warming, is it prudent to base our economic growth on the export of fossil fuels? Or should we instead emphasize investments in green technologies and energy initiatives that derive from renewable sources?\u201d said Ara\u00fajo.<\/p>\n\n\n\n<p>\u201cI am not suggesting a complete halt to oil production in Brazil. Instead, the focus should be on limiting the number of barrels extracted to what is absolutely necessary, whether for domestic needs or export purposes. It is vital that the country prioritizes other energy sources in its energy matrix. This approach aligns with President Lula\u2019s electoral promises to prioritize climate issues and is reflected in the appointment of Minister Marina Silva to the Environment Ministry in 2023.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Brazil has the most extensive carbon capture program in the oil and gas sector<\/strong><\/h3>\n\n\n\n<p>\u201cRather than focusing solely on the concept of energy transition, we advocate for the idea of energy convergence. This approach integrates various energy sources in a manner that minimizes greenhouse gas emissions,\u201d Roberto Ardenghy emphasized, noting the inevitable economic and environmental impacts of all energy production methods.<\/p>\n\n\n\n<p>The head of the Brazilian Oil and Gas Institute highlighted Brazil\u2019s leading role in environmental responsibility within the oil and gas sector. \u201cBrazil is home to the most extensive carbon capture initiative globally, particularly within the pre-salt layer, where carbon dioxide emissions are only a third of the global average. Petrobras has committed to re-injecting all CO2 produced during the extraction process back into the underwater reservoirs since the commencement of its operations in the pre-salt fields,\u201d he explained.<\/p>\n\n\n\n<p>\u201cFossil fuels, accounting for approximately 80% of global energy consumption, encompass oil and its derivatives, coal, and natural gas. These resources are expected to remain significant contributors to the world economy for decades to come. Brazil is uniquely positioned to supply fossil-based energy while significantly minimizing carbon emissions, as demonstrated in the Santos Basin,\u201d he elaborated.<\/p>\n\n\n\n<p>Mr. Ardenghy recalled that the Biden administration, despite its environmental pledges, has approved oil exploration in Alaska. Similarly, Norway has greenlit a substantial oil and gas venture in the North Sea. \u201cFaced with the challenge of securing energy resources amid declining production, these nations are adapting and affirming their status as key players in the global oil and gas market. Why should it be any different in Brazil? We cannot afford to overlook the immense value lying beneath us,\u201d he said.<\/p>\n\n\n\n<p>The executive highlighted Petrobras\u2019 decades-long record of producing oil and gas in the Amazon Rainforest through the Urucu project in the municipality of Coari, located 650 km from Manaus: \u201cEighty percent of the energy supply in Manaus is sourced from natural gas extracted from the Solim\u00f5es River Basin. Without this energy source, residents would have to rely on diesel oil, which emits significantly more pollutants than natural gas.\u201d&nbsp;<\/p>\n\n\n\n<p>He also noted that approximately 70% of Brazil\u2019s current oil output is derived from the pre-salt layer, but warned that by 2029, production in the Santos Basin is expected to peak and subsequently decline. \u201cWe have to plan for the future by identifying new reserves to replace the ones currently in use, ensuring the nation\u2019s energy security. Brazil can and should continue its oil and gas production, maintaining a commitment to reducing carbon emissions,\u201d he stated.<\/p>\n\n\n\n<p>\u201cIn our perspective, it\u2019s imperative to embrace the strategy of \u2018stacking energies,\u2019 where fossil-based and renewable energies\u2014encompassing wind, solar, biomass, and green hydrogen\u2014integrate and contribute to a robust, coherent, and sustainable energy framework,\u201d he summarized.&nbsp;<\/p>\n\n\n\n<p>Suely Ara\u00fajo acknowledged Petrobras\u2019s achievement in producing oil and gas more cleanly than other nations. However, she underscored a crucial point: regardless of emission reductions during extraction, production, and transportation, the combustion of oil inevitably releases carbon dioxide, exacerbating global warming. \u201cMinimizing the impact of emissions in the production chain doesn\u2019t change the fact that burning oil, both in Brazil and globally, is a significant source of emissions. Given the urgency of the climate crisis, reducing our reliance on fossil fuels is critical, and Brazil stands in a prime position to initiate this transition without delay,\u201d she stated.<\/p>\n\n\n\n<p>According to the environmentalist, the idea of increasing oil production by incorporating the Equatorial Margin alongside existing oil-producing regions would be \u201cenvironmental and climate suicide.\u201d<\/p>\n\n\n\n<p><em>Watch the\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=RBvxb4y8gh4\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>lecture in full<\/strong><\/a>\u00a0(In Portuguese).<\/em><\/p>\n\n\n\n<p><em><br>Ot\u00e1vio Dias is the content editor at the Funda\u00e7\u00e3o FHC. He is a political and international affairs journalist, a former correspondent for Folha de S\u00e3o Paulo in London, and former editor of the estadao.com.br website.<\/em><\/p>\n\n\n\n<p><em>Portuguese to English translation by Melissa Harkin, CT and Todd Harkin \u2013&nbsp;<a href=\"https:\/\/harkintranslations.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Harkin Translations<\/strong><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Authorization for Petrobras to conduct oil exploration near the mouth of the Amazon River in the Atlantic Ocean should be contingent upon completing an Environmental Assessment of Sedimentary Areas (Avalia\u00e7\u00e3o Ambiental de \u00c1rea Sedimentar \u2013 AAAS), as mandated by Brazilian environmental laws since 2012,\u201d stated&nbsp;Suely Ara\u00fajo, a lawyer, environmentalist, and former head (2016 to 2018)&#8230;<\/p>\n","protected":false},"featured_media":17381,"template":"","tags":[523,525,526,527],"plataforma-democratica":[],"tema":[470],"tipo-debate":[],"class_list":["post-17380","debate","type-debate","status-publish","has-post-thumbnail","hentry","tag-amazon-2","tag-amazonia-2","tag-amazon-river","tag-equatorial-margin","tema-development-and-sustainability"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Exploration at the mouth of the Amazon River and the future of oil in Brazil | Funda\u00e7\u00e3o FHC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fundacaofhc.org.br\/en\/debate\/exploration-at-the-mouth-of-the-amazon-river-and-the-future-of-oil-in-brazil\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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