What does the Arctic National Wildlife Refuge (ANWR) have in common with Brazil’s Urucu natural gas fields? They both epitomize the struggle to balance energy independence and environmental conservation.

Located in the southern Amazon region and discovered in 1978, the Urucu fields are the largest onshore natural gas reserves in Brazil. Exploration began in 1988, but not without controversy. The Amazon rainforest, like ANWR, is a sensitive, biologically unique environment. Plans for exploration of the Urucu fields sparked heated debate over the extent of the environmental damage caused by such exploration—much like the current debate over oil drilling in ANWR.

Conservationists’ arguments revolved around two main issues: preservation of the environment and local communities’ livelihoods. The extraction complex will consist of three pipelines (map): Urucu-Coari (in existence); Urucu-Manaus; and Urucu-Porto Velho. The two new pipelines, which will total 621 miles of additional pipe, will also require the clearing of a 65-foot-wide strip along the entire pipeline. For the pipeline to reach Manaus, it needs to cross the six-mile wide Rio Negro, a tributary of the Amazon river. The project’s critics argue that even a small oil spill, especially in the stretches of the pipeline in the river, would harm the region’s biodiversity and the livelihoods of indigenous communities and others who depend on the river.

Petrobrás has sought to assuage activists’ concerns over the pipeline’s impact on local communities by assuring them that the Urucu gas fields will employ at least 3,800 local workers. In addition, Petrobrás is sponsoring community development projects to stimulate alternative economic activities.

Bolivia’s political crisis triggered Brazil’s decision to build the gas extraction pipelines, in spite of environmentalists’ misgivings. The December 2006 “nationalization” of natural gas in Bolivia, which provided Brazil with approximately half of its natural gas supply, made energy security and diversification of energy suppliers priorities for the government, and prompted Petrobrás to jumpstart a natural gas independence project in which Urucu features prominently.

While environmentalists may not have succeeded in stopping the development of the Urucu fields, their efforts have forced Petrobrás to significantly diminish the project’s environmental footprint. In conjuction with local universities and research centers, Petrobrás carried out an impact and risk analysis (Piatam) that led to the implementation of several environmental precautions. For example, the pipeline must be built eight feet under any river it crosses and permanently monitored by a cable embedded within the pipes. In addition, the extraction wells are very small, taking up very little forest area, and a remote control center that tracks any leaks in the pipeline is able to isolate and disable leaking pipes or valves, according to Jeff Hornbeck, an international trade and finance specialist at the Congressional Research Service (via email).

Moreover, all equipment is transported to the site by helicopters in order to avoid building roads, which frequently open up areas to logging and wider-scale development. Petrobrás also plans to use robots to monitor changes in environmental conditions, including the level of oil in the water; and to gather information to help prepare for emergency situations (e.g., flooding or other natural disasters) that threaten to damage the pipelines.

If Petrobrás executes the development of the Urucu fields successfully—with minimal negative consequences for communities and the Amazon—it could serve as an example for other energy projects in sensitive habitats. As growing energy needs increase demand for more exploration, environmentally conscious projects will become even more important.

By Brazil Institute Intern Ana Janaina Nelson.

Video: You can glimpse unspoiled forest outside the window of a plane landing at the Urucu fields, the product of Petrobrás’ efforts to minimize damage to the Amazon.