Beyond Oil: Rethinking the Amazon’s Future

As the world races to address the climate crisis, the urgency of transitioning to renewable energy is undeniable. But in the Amazon—one of the planet’s most vital ecosystems—oil extraction continues to exact a high price. Extracting oil and gas in the Amazon is no minor activity. It means drilling into the earth, carving roads into dense forests, polluting rivers and disrupting the lives of local communities. In the Peruvian Amazon alone, more than 1,460 oil spills were recorded between 1997 and 2023, mostly caused by operational failures and corrosion of infrastructure. These incidents have left deep environmental and social scars that are difficult to repair.

An industry in decline

Oil production in the Peruvian Amazon is steadily declining. A lack of investment, depleted reserves, international competition and the global shift towards clean energy have it a risky and increasingly unprofitable activity. Pushing ahead with new oil projects in the rainforest is a financial gamble e—one that could cost the Peruvian state, local communities and the Amazon itself dearly.

These risks aren’t just economic. Oil expansion has led to human rights violations, health threats to vulnerable and no-contact populations and the erosion of Indigenous rights. Many communities have not been adequately informed or consulted about these projects, directly violating their right to free, prior and informed consent. In the case of Indigenous peoples in voluntary isolation, any contact at all could threaten their survival.

And yet, Peru’s state-owned company, Perupetro, continues to push for new exploration in the Amazon, one of the world’s most ecologically and culturally precious regions. 25 of the 31 areas presented as investment opportunities are in the Peruvian jungle, with 14 of them in Loreto—covering nearly 6 million hectares or 16 percent of the department’s total area. These areas overlap with the territories of over 400 Indigenous communities, lands inhabited by Indigenous Peoples in voluntary isolation (PIACI for its acronym in Spanish) and ecosystems, such as the Pastaza Fan and the Pacaya Samiria National Reserve, which are vital to the planet's health.

Rethinking Loreto’s economic model

It’s true that many regional and local governments have historically relied on oil revenues to fund public works and basic services. But this era is ending. Continuing to rely on this unstable source of revenue puts local economies and the well-being of people at risk.

A new economic model for Loreto is not an option. It’s a necessity. Diversifying the region’s economy, including by investing in sustainable industries and centering local voices, is key to building a more secure and inclusive future.

The world is changing. The energy transition is already underway. The Amazon can —and must—be part of this shift. The region deserves a different future in which its biodiversity is valued, the rights of its people respected and alternative pathways to well-being are established. Moving beyond oil isn’t just possible. It’s urgent.