Petrobras

Deep in the Amazon rainforest, many miles from anywhere, the Brazilian energy giant Petrobras is producing oil and natural gas from an industrial development carved out of the landscape that includes 70 working oil wells, five drilling rigs, an airport, two river ports and lodging for 1,800 workers.

This remote outpost is known as the Urucu Oil Province, and, believe it or not, state-controlled Petrobras says it’s an example of  “sustainable development.”

Flaring gas: Is this sustainable development?

Flaring gas at Urucu: Is this sustainable development?

This is sustainable only if you believe that the oil and gas will last forever, that climate change isn’t a worry, and that drilling for fossil fuels in one of the world’s most unspoiled and biodiverse regions makes sense.

Here’s the surprise, though: Petrobras’s Urucu project may not be sustainable in the strictest sense,  but it is about as environmentally benign as an oil-drilling project in a rainforest can be. That may be damning with faint praise, but I have to confess that I came to like Urucu after visiting today with a group of reporters on an six-day tour of Brazil.

Urucu has issues, to be sure, but it is generating thousands of jobs, contributing considerable wealth to a developing nation in the form of taxes and royalties, and generating electricity in ways that are cleaner and cheaper than the current alternative. [click to continue…]

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This morning I woke up in a hotel in Manaus, Brazil, had breakfast overlooking the Negro River, then went for a run along the river’s beaches. It was an enjoyable way to begin my first visit to Brazil, a six-day, government-backed, jam-packed tour with a focus on the environmental issues facing the Amazon.

Environmentalists have labored for decades to protect the impossibly vast rainforests of the Amazon, which make up more than half of the world’s tropical forests. But until recently they had little to show for their efforts. (Ben & Jerry’s Rainforest Crunch doesn’t count.) Since the 1970s,  about 230,000 square miles of the Amazon have been lost to development, mostly cattle ranches, soy plantations and illegal logging.

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Only lately has the rate of deforestation began to slow, thanks to more progressive government policies and corporate campaigns by NGOS, notably Greenpeace.  Just last week, there was encouraging news from a British think tank called Chatham House, which published a major report on illegal logging around the world. Fiona Harvey wrote in the Financial Times:

Illegal logging has fallen by 22 per cent worldwide in the past decade according to a report published on Thursday …

The assessment found that that in certain key countries the decline was even more dramatic, showing a fall of between 50 and 75 per cent in the Brazilian Amazon, 75 per cent in Indonesia and by about half in Cameroon.

The New York Times said:

In Brazil in particular, an overhaul of logging laws and a new zeal in enforcement have led to a significant drop not only in illegal logging but also in overall deforestation rates in the Amazon, according to satellite data from Brazil’s National Institute for Space Research.

Why should you care?

The big reason is that deforestation is a major cause of greenhouse gas emissions, accounting for as much as 20 percent of global emissions, scientists say. Preventing deforestation of the Amazon is incredibly complicated: It requires good government policy, effective local law enforcement, satellite monitoring and global cooperation because soy, beef and logs are shipped from Brazil to the U.S., Japan and Europe. Rich countries, NGOs and even some corporations  have been trying for years to find way to create market mechanisms or outright grants that would get money to places like the Amazon, so that trees  are worth more standing than cut down. (See Your parents were wrong and Marriott waves the REDD flag.)

Even oil and coal companies like this idea because preserving trees is low-cost way to generate carbon offsets and one of the very cheapest ways to fight climate change–much less expensive, say, than building solar or wind power.

Tropical forests are also storehouses of biodiversity that are the source of medicines, food and chemicals used worldwide.

Manaus has been the gateway to the Amazon since the 19th century. You can get here by plane or boat but no roads connect the city, which is home to about  2 million people, to the rest of Brazil. (In that regard, it’s a little like Juneau, Alaska, but hotter.) A half dozen or so reporters are taking this trip; this afternoon we [click to continue…]

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