Pilar Olivares/Reuters
Off the northeastern coast of Brazil, where the Amazon River empties into the Atlantic, lies a new battleground between ecology and energy. Beneath a vast coral reef system discovered less than a decade ago, billions of barrels of oil may be waiting to be tapped. Brazil’s recent approval for exploratory drilling in the Foz do Amazonas Basin has set off a wave of optimism in the oil industry and alarm among environmentalists, as reported by CNN.
It is part of a broader surge across the continent. From the deep waters of Brazil to the shale plains of Argentina and the offshore rigs of Guyana, South America has become the world’s newest oil frontier. These three nations are now among the leading drivers of global oil growth outside of OPEC, reshaping the geopolitics of energy just as climate change accelerates.
In Guyana, an offshore discovery in 2015 turned a small rainforest nation into the planet’s fastest-growing petrostate. Around 650,000 barrels of oil are pumped daily, giving Guyana the highest oil output per capita in the world. President Irfaan Ali has promised that oil revenues will lift citizens out of poverty while maintaining the country’s status as a net carbon sink thanks to its rainforests. Critics, however, warn that the sudden wealth could trap Guyana in the same “resource curse” that crippled Venezuela.
Graphic Courtesy: CNN
Sources: Arayara, Rystad Energy, International Trade Administration
In Argentina, production from the Vaca Muerta shale region is expanding rapidly. The area holds some of the world’s largest reserves of shale oil and gas and is key to President Javier Milei’s economic revival strategy. Yet the fracking process has raised serious environmental concerns, consuming vast amounts of water and chemicals in a region already facing climate stress.
Brazil, the region’s largest economy, remains the powerhouse. Its ultra-deep pre-salt reserves have propelled oil output to record levels, with crude now overtaking soybeans as the country’s top export. In August, BP announced its largest discovery in a quarter century off Rio de Janeiro, cementing Brazil’s position as the continent’s energy leader.
The controversy centers on the Foz do Amazonas Basin, where Petrobras was granted permission to drill despite warnings that a spill could devastate reefs and mangroves. The approval came just months before COP30, which Brazil will host in Belém, the gateway to the Amazon. President Luiz Inácio Lula da Silva has defended his pro-oil stance, arguing that new oil wealth will fund Brazil’s renewable transition. “It would be irresponsible to quit oil,” he said at a recent climate meeting.
Environmental groups disagree, warning that each new discovery undermines global efforts to cut fossil fuel use. But demand remains strong, and companies like Exxon, Chevron, and BP are racing to expand. Analysts say South American oil is cheaper and cleaner to produce than many global alternatives, giving it a competitive edge in a still oil-hungry world.
Whether this boom marks a new era of prosperity or a step backward for the planet remains uncertain. As one analyst told CNN, South America’s leaders appear united by a simple reality: even in the midst of a climate crisis, the world still runs on oil – and they intend to supply it.