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Obama Vows To Help Brazil Drill For Oil

In the rush of events we did not get to what Mr. Obama told a group of Brazilian businessmen at a CEO Summit during his trip to South America over the weekend.

From The White House:

Remarks by the President at CEO Business Summit in Brasilia, Brazil

Tryp Convention Brasil 21 Center
Brasilia, Brazil
March 19, 2011

We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers. At a time when we’ve been reminded how easily instability in other parts of the world can affect the price of oil, the United States could not be happier with the potential for a new, stable source of energy…

And according to a White House ‘fact sheet’ (a pdf file) issued on the same day:

FACT SHEET: U.S.-BRAZIL STRATEGIC ENERGY DIALOGUE

March 19, 2011

Oil and Natural Gas

President Rousseff and President Obama committed to take concrete steps to enhance cooperation between their two countries’ energy sectors. As Brazil plays an increasingly important role in global oil markets, President Obama indicated that the United States looks forward to being a strategic partner and to participating, as appropriate, in the environmentally-responsible and technologically-advanced development of those resources.

President Rousseff welcomed President Obama’s announcement of plans for a U.S. oil and gas trade mission to be conducted in conjunction with the Latin Oil Week conference to be held at the end of May in Rio de Janeiro.

The two Presidents also discussed intensified sharing of best practices with respect to the safe and environmentally benign exploitation of offshore oil and gas resources. Brazilian officials will meet with representatives of the U.S. Department of the Interior within two weeks to advance the dialogue on safe offshore oil and gas development. The United States and Brazil will hold workshops on deepwater production technologies and environmental management, the first planned for early October in Rio de Janeiro…

And, as we know, the Obama administration is putting the US taxpayers’ money where its mouth is. Since the US Import/Export Bank has guaranteed at least $2 billion dollars in loans for Petrobras offshore oil exploration and drilling.

Still, we thought we wanted to end our dependence on foreign oil. Isn’t Brazil a foreign country?

Also, couldn’t we use some of these oil drilling jobs here at home?

This article was posted by Steve Gilbert on Wednesday, March 23rd, 2011. Comments are currently closed.

5 Responses to “Obama Vows To Help Brazil Drill For Oil”

  1. heykev

    “Since the US Import/Export Bank has guaranteed at least $2 billion dollars in loans for Petrobras offshore oil exploration and drilling.”

    This would be pay back to our real President – Mr. Soros. BHO is simply Partier-in-Chief.

  2. RAZ

    The US Export Import Bank provides loans to buyers of US goods and services. Its program is designed to create a level playing field for US suppliers vis a vis other exporters, and its goal is to promote jobs in the US by promoting the sale of US goods. So, the fact that the Bank is providing loans to Brazil will permit US manufacturers and service suppliers to hire people to fulfill those Brazilian supply contracts. In my opinion, therefore, your complaint really is not fair. The US also hasd a legitimate interest in developing offshore sources of energy where the US does not have the same security issues that we have with our friends in the Middle East; thus, it is wholly appropriate for Obama to encourage the development of Brazil’s offshore resources. Your point should be that, in order to protect our economy against supply disruptions, we should also do what Obama seems determined to prevent — that is, develop to the fullest our own in-country energy resources. With that concept, I am in full agreement.

    • BigOil

      So where does the money come from that the US Export/Import Bank is loaning to Brazil? It is borrowed from countries like China, and the US taxpayer pays the interest. Last time I checked, the US budget deficit was 1.6 trillion dollars.

      American oil companies do not borrow money to explore and develop oil fields. We generate our own capital from profits. If the US government had not funded Petrobras, they would come to US oil companies for the capital and expertise to develop their oil fields. In the end, it would not have cost the US taxpayer a dime.

      Where in the Constitution does it give the federal government the power to loan money to foreign oil companies?

  3. There was a quiet revision of the loan from $2 billion to $10 billion in the summer of 2009:

    http://www.laht.com/article.as.....ryId=10718

    “The U.S. government is prepared to provide up to $10 billion in loans to finance the development of massive hydrocarbon reserves off Brazil’s coast…”


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