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A Second Hydrocarbon Boom
Threatens the Peruvian Amazon

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Fran SEVILLA

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A recent study made by environmental researchers Matt Finer and Marti Orta-Martinez exposes the terrible consequences of the so-called Block 67 project and the lack of environmental policy intended to protect that vulnerable region and the indigenous communities settled down there. For considering it of the public interest, we are reproducing some segments of the discussion part of this study and some of its conclusions as well. (Photo Alvaro Gomez/Seinforma Canada).


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This should be considered a conservative estimate, however, given that many modern seismic campaigns greatly exceed what is called for in the minimum work program that formed the basis of our projections.

Our projections also show that the number of exploratory wells to be drilled in the Peruvian Amazon over the next several years-around 182- may exceed that of the mid-1970s peak.

The number of new exploration contracts spiked between 2005 and 2009, resulting in more active concessions and more Amazonian land area covered by concessions than at any other time in Peru’s history.

The jump in the percentage of the Peruvian Amazon covered in hydrocarbon concessions between 2005 and 2007-7%-49%-exceeds that of the concession expansion leading to the first exploration boom of the 1970s. During the peak of the 1970s exploration boom, only 34% of the Peruvian Amazon was under concession.

When proposed concessions are included in the analysis, we found that nearly two-thirds of the Peruvian Amazon is now zoned to hydrocarbon activities. This number could continue to rise as only 10% of the Peruvian Amazon is currently offlimits to oil concessions. Indeed, 18 new proposed concessions were unveiled in early 2010.

The region may be on the verge of a second exploitation boom as well. Although oil production in the Peruvian Amazon has been steadily falling since its peak in 1979-2009 marked the lowest output in over 20 years; it may soon increase sharply if production starts in the extremely controversial Block 67.

Natural gas production still has not peaked, and annual gas production is expected to
keep rising due to the large Camisea reserves. Indeed, 2009 marked the sixth consecutive year of rapidly increasing annual gas production. With this skyrocketing natural gas production, total hydrocarbon production (combining both oil and gas) actually reached its historical maximum in 2009.

21000 KM OF SEISMIC LINES WILL BE DRAWN UP OVER THE NEXT 5 YEARS
03/07/10
By Matt Finer & Marti Orta-Martinez*/ Seinforma Canada


The Peruvian Amazon is now in the early stages of a second hydrocarbon exploration boom. The first exploration boom occurred in the early to mid-1970s and was characterized by an extraordinary burst of seismic activity.

Nearly 63 000 km of seismic lines were cut during the four years between 1972 and 1975, over half of all historic activity. We project that the second boom will consist of around 21000 km of seismic lines over the next 5 years.
This expansion includes the unprecedented coverage of protected areas and indigenous territories, particularly areas utilized by vulnerable indigenous peoples in voluntary isolation. Nearly one-fifth of the Peruvian Amazon protected area system is covered by hydrocarbon concessions, while that figure rises to over 60% for proposed territorial reserve area for uncontacted indigenous peoples.

Increasing global oil demand and consumption, combined with the high oil prices from 2003-2008, spurred energy company commitments to relatively high-cost exploration and exploitation projects (US Energy Information Administration 2009).

Indeed, one of the more troubling aspects of the new exploration boom is that areas previously protected by their remoteness are now covered by proposed or active oil concessions. Many areas untouched by the seismic testing wave of the 1970s are now in active or proposed concessions.

In other words, there has been a rapid expansion of the oil frontier in the Peruvian Amazon. This expansion includes the unprecedented
Map of all current oil and gas concessions, proposed concessions, and technical evaluation agreement lots in the Peruvian Amazon. These hydrocarbon zones overlap both protected areas and indigenous peoples’ territories. (Map-Illustration Instituto del Bien Comun- stacks.iop.org/ERL/5/014012/Seinforma)

coverage of protected areas and indigenous territories, particularly areas utilized by vulnerable indigenous peoples in voluntary isolation. Nearly one-fifth of the Peruvian Amazon protected area system is covered by hydrocarbon concessions, while that figure rises to over 60% for proposed territorial reserve area for uncontacted indigenous peoples.

Our finding that over 84% of the Peruvian Amazon has been or is currently zoned for hydrocarbon activities raises many questions. For example, what has been the cumulative impact of well over 100 000 km of seismic lines cut through primary Amazonian forest? Little is known about the environmental impacts from exploratory seismic testing, particularly the much more work-intensive 3D form that is now being used with greater frequency.

During the exploration phase, there is deforestation related to the construction of the base camp, sub-bases, and the numerous heliports. Most modern seismic projects require at least 50 heliports, and larger seismic projects may call for hundreds of heliports.

There are also potential environmental impacts from helicopter noise, the influx of a large amount of seismic crew workers into remote areas, the cutting of hundreds of kilometers of seismic lines through the understory-which may act as new hunting or logging trails deep into remote forest-and the detonation of thousands of seismic explosives.

A recent study on the impacts of 2D seismic testing in a remote, intact section of the Peruvian Amazon (block 39) found a significant decrease in the group sizes of the Endangered White-bellied Spider Monkey (Ateles belzebuth) during the seismic testing phase (Smithsonian Conservation Biology Institute
2009).

Although no negative impacts were detected in the study’s focal species, the Ocelot (Leopardus pardalis), it is clear more research is needed on the impacts of seismic testing in mega-diverse environments.

During the production phase, the environmental impacts are potentially much more severe and extensive. Therefore, what has been the cumulative impact from the drilling of nearly 700 wells and the exploitation of nearly a billion barrels of oil from the Peruvian Amazon? The contamination of the Corrientes region is now well-documented.

And although direct contamination and pollution per unit of production will presumably never again be as bad as the 1970s era projects due to much improved regulations and standards, modern production sites and pipelines are still prone to accidents, leaks, and spills.

And since pipelines often extend over hundreds of kilometers, impacts are not isolated exclusively to the extraction site. The indirect impacts associated with new hydrocarbon-related access routes are also especially severe.

We argue that a rigorous policy debate, including a greater analysis of potential environmental and social impacts, is urgently needed as the Peruvian Amazon is set to face a dramatic increase in hydrocarbon-related activity.

Ecuador seeks alternative sources of revenue from the international community to offset the financial loss of not extracting the oil in three fields, known collectively as ITT. Given that the controversial Block 67 is just across the border from ITT, perhaps Peru could employ a similar strategy to avoid impacts in this bi-national region of extraordinary biodiversity and uncontacted indigenous peoples.

As global demand for oil increases while conventional oil reserves decrease, some of the world’s most remote and ecologically intact regions, such as the Peruvian Amazon, are increasingly vulnerable to industrial activity without markedly improved policy measure
s.

NOTES:
*Original title: A second hydrocarbon boom threatens the Peruvian Amazon: trends, projections, and policy implications. Matt Finer and Marti Orta-Martinez. Environmental Research Letters. 2010. Institute of Physics and IOP Publishing Limited 2010.
1 Save America’s Forests, 4 Library Court NW, Washington, DC 20003, USA
2 Institut de Ciencia i Tecnologia Ambiental, Universitat Autonoma de Barcelona,
08193 Bellaterra (Barcelona), Spain. February 2010. Pages 8,9.

Full report available online at stacks.iop.org/ERL/5/014012.
Seinforma Editor’s Note: Some academic references have been suppressed in this article. To see all those references please refer yourself to the original source. We do apologize with the authors and their publisher as well.


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