Gas pipeline in Brazil seen as a model

As more firms look to drill in the Amazon, observers say one project properly balances the needs of the people and the environment.

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That is why, observers say, Urucu is such an important template. Exploration plans for the region are dramatic, as oil prices stay high and demand from places such as China and India grows. In Brazil, Petrobras plans to build another pipeline and has plans to explore hydrocarbons farther west. In Peru, 70 percent of the most pristine Amazon forest is zoned for oil and gas. "In western Amazon countries, we are concerned by the large areas of land that are now open to oil and gas exploration," says Mr. Pimm.

"The majors have learned that it is good business to manage environmental issues with great attention and detail. They learned from past mistakes," Mr. Killeen says. "The smaller companies are less subject to the pressures of the market place; many are unknown entities and there is reason to be skeptical of their commitment to environmental issues."

Petrobras officials say they will provide gas to Manaus by the spring of 2008.

Still, there are some groups that refuse the Manaus pipeline construction altogether, says Thadeu Melo, a spokesperson for Greenpeace's Amazon Campaign. The Brazilian government recently granted preliminary approval to two massive hydroelectric dams in the region, and environmentalists are concerned about soy farming spreading into the forest. "The solution is better than we have now," Mr. Melo says. "But it is not the best. We still claim cleaner and renewable sources of energy for developing Brazil."

But Urucu could provide a demonstration effect in the region, pushing residents to demand more from state-run oil companies and multinationals that invest in the area, says Mark London, coauthor of the recent book "The Last Forest" and one of the first journalists to report on the conflict between development and preservation of the region in 1980. People might ask, he says, "Why can't you have environmentally smart projects like Urucu in Peru, Ecuador, and Colombia?"

Even if done responsibly, though, oil discoveries will have lasting effects on the region. When asked if she supports the pipeline, Adele Schwartz Benzaken, the director of a local hospital in Manaus who is studying the rise in prostitution along the pipeline, takes a long time to answer. "I'm not against it," she says finally.

"But," she adds, "Maybe the towns will have more money, but at the cost of more prostitution? Things are built, at the same time other things are destroyed."

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