Another Oil Rush, Another Boomtown, Another Deforestation Spike In Impoverished Northeastern Brazil

Last edited Thu Apr 9, 2026, 09:44 AM - Edit history (1)

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The rain meant he couldn’t work on building his own house or do odd jobs for others in the area, but the weather wasn’t the only thing holding him back. Like thousands of others who have moved to the small city of Oiapoque, in Brazil’s northern state of Amapa, Fonseca is waiting for an economic boom that may or may not come. The area is experiencing a rush of migrants since Petrobras, Brazil’s state-run oil company, last year secured environmental licensing for offshore drilling in the Equatorial Margin near the mouth of the Amazon River, about 180 kilometers (112 miles) off Amapa’s coast.

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Amapa is one of Brazil’s poorest and underdeveloped states. Oiapoque’s economy relies on fishing, illegal gold mining and visitors from neighboring French Guiana, who cross daily and spend euros, which hold their value better than the Brazilian real. While the prospect of economic opportunities is bringing hope, the impacts of unplanned urban growth in a city with already poor infrastructure are being felt.

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While some point to Dubai as a model for Oiapoque’s future, nearby cities that once benefited from oil offer a warning for Oiapoque. Petrobras has explored oil and gas in the state of Coari, also part of the Amazon, since the 1980s. Yet the city ranks among Brazil’s poorest, with about 72% of its residents living in extreme poverty, according to a recent study by Agenda Publica, a nonprofit focused on public policy. Other cities in Amapa have also seen boom and decline cycles tied to mining. Pedra Branca, about 280 miles from Oiapoque, grew between 2007 and 2014 during an iron ore boom.

Prosperity in Pedra Branca drew Selma Soares, 46, who moved from Maranhao to Amapa in 2008 and opened a grocery store. In 2013, a collapse at a port operated by mining company Anglo American killed six workers and disrupted iron ore production. India’s Zamin Ferrous later took over the mine and suspended operations. “People who had shopped with us for years struggled to eat,” Soares said. In the past few years, she heard growing rumors that Oiapoque was booming. After visiting the city last year, she moved with her husband and son. The family now runs a small supermarket on the outskirts of town. Soares said many others have followed. “People are waiting for drilling to begin,” she said. “They believe everything will improve.”

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https://apnews.com/article/brazil-amazon-rainforest-petrobras-oil-drilling-fossil-fuels-ea7a03d690fcfa549bba785ba9a88f3a