Obama to spend $1B [our $] to fund offshore drilling - for Brazil

[blue fluff]

August 18, 2009
Obama to spend $1 billion to fund offshore drilling - for Brazil
Rick Moran
Just when you think Obama has made the dumbest move of his presidency, he proves once again that there is no limit to his stupidity.

The Wall Street Journal is incredulous:

The U.S. is going to lend billions of dollars to Brazil's state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil's Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil's planning minister confirmed that White House National Security Adviser James Jones met this month with Brazilian officials to talk about the loan.

The U.S. Export-Import Bank tells us it has issued a "preliminary commitment" letter to Petrobras in the amount of $2 billion and has discussed with Brazil the possibility of increasing that amount. Ex-Im Bank says it has not decided whether the money will come in the form of a direct loan or loan guarantees. Either way, this corporate foreign aid may strike some readers as odd, given that the U.S. Treasury seems desperate for cash and Petrobras is one of the largest corporations in the Americas.

But look on the bright side. If President Obama has embraced offshore drilling in Brazil, why not in the old U.S.A.? The land of the sorta free and the home of the heavily indebted has enormous offshore oil deposits, and last year ahead of the November elections, with gasoline at $4 a gallon, Congress let a ban on offshore drilling expire.


Obama is actually going to go ahead with additional oil leases for the Gulf of Mexico. But as the Journal points out, there is as much oil along our east and west coasts as the oil field in Brazil our president is financing.

But carbon is evil and we emit too much of it. Better to let Americans pay through the nose for foreign oil than exploit any of our own fields and have one additional molecule of CO2 waft up into the atmosphere.

To quote the great philosopher Bugs Bunny: "What a Maroon."


http://www.americanthinker.com/blog/2009/08/obama_to_spend_1_billion_to_fu.html

 

[ruffryder]

Better to let Americans pay through the nose for foreign oil than exploit any of our own fields and still pay through the nose

fixed it for you...

Seems the article makes the implication that domestic oil is cheaper then foreign oil.. It all costs the same because we pay the MARKET price.

oh, and it is a loan..

man you are as bad as the media.. shock and awe tactics I guess....

 

[Ollie]

fixed it for you...

Seems the article makes the implication that domestic oil is cheaper then foreign oil.. It all costs the same because we pay the MARKET price.

oh, and it is a loan..

man you are as bad as the media.. shock and awe tactics I guess....

As usual you miss the point.
Why are we paying foreigh countries to give us what we can do ourselves?
Why are we paying foreign workers to do the jobs when we can be paying our own citizens 30 - 50 an hour to do it?
Why are we putting thousands of foreign workers to work when we could be putting our own citizens to work?

As for the cost, yep, you would be correct. It is pretty much all tossed into the same pot. However, when we drill a lot more of our own oil, we can determine how much and how fast that oil goes into the pot to begin with. If the price of oil starts to go too high, we just put more oil into the pot and drive the price back down. It's called capitalism, maybe you've heard of it.

 

[ruffryder]

As usual you miss the point.
Why are we paying foreigh countries to give us what we can do ourselves?
Why are we paying foreign workers to do the jobs when we can be paying our own citizens 30 - 50 an hour to do it?
Why are we putting thousands of foreign workers to work when we could be putting our own citizens to work?

Didn't miss it.. As to the point of the loan, I would think it has more to do with government / business relations then about oil and jobs...

However, when we drill a lot more of our own oil, we can determine how much and how fast that oil goes into the pot to begin with. If the price of oil starts to go too high, we just put more oil into the pot and drive the price back down. It's called capitalism, maybe you've heard of it.

So companies will try and manipulate the market to get the lowest price for their oil? Sounds like sound business strategy to me..

 

[Ollie]

Didn't miss it.. As to the point of the loan, I would think it has more to do with government / business relations then about oil and jobs...

Of cource it is about oil and jobs. Why are we paying a foreign company to do what we refuse to allow american companies to do? Also, in case you haven't noticed, WE'RE BROKE, STOP SPENDING MONEY

So companies will try and manipulate the market to get the lowest price for their oil? Sounds like sound business strategy to me..

If the oil is pumped inside US boarders, oil plants can and do contract directly with oil producers which would allow them to buy it at a lower cost. THe more sources of oil, the more stable the market will be. As Long as we relie on foreign countries to sell us oil, we will be hostage to the demands of those countries. If we have our own oil, that threat goes away. Hard to make threats when we can just pump our own.

 

[ericbigbore]

Where did we get a billion bucks to loan?

Ruffy, all we have to do is threaten to drill and the price falls. You can't deny the price of oil would be more stable if we were in the game.

Give me one good reason that we shouldn't drill for our oil???

 

[ruffryder]

if we were in the game.

We are in the game... we are number 3 according to this list..

Oil production by country.

EIA website for more information..

Note for all the canucks.. we make twice as much oil as you do...

We do drill for our own oil... just not everywhere there is oil.

 

[Gainster]

Where did we get a billion bucks to loan?

True!

 

[ruffryder]

If we have our own oil, that threat goes away. Hard to make threats when we can just pump our own.

Kind of. You need to remove "we" from that statement. These are not US companies, they are international companies.

I don't know about that. I mean, market price right? As long as a group can effect the market, it will effect us, even if we produced all our own. Isn't that how it works?

 

[ericbigbore]

Ruffy,

That list is a little out dated and you just proved my point, George pumped up oil production and opened up new sites to drill drill drill and look what happened to oil prices. I hated Bush but I would love to see the list now that your boy BHO is in office screwing everything up with his unprecedented failures due to his lack of experience.

Are you going to answer my other question? Give me one good reason we shouldn't drill more oil to stabilize the market?

 

[ruffryder]

Give me one good reason we shouldn't drill more oil to stabilize the market?

There isn't a good reason.. Lets start in your back yard though.

I added another link with 2008 data, the latest that is out there.. unless you want the annual data for 2009.. lol

Ruffy,

That list is a little out dated and you just proved my point, George pumped up oil production and opened up new sites to drill drill drill and look what happened to oil prices.

So what happened last summer when diesel was 5 bucks a gallon? Or was that Obama's fault?

 

[ericbigbore]

There isn't a good reason.. Lets start in your back yard though.

I added another link with 2008 data, the latest that is out there.. unless you want the annual data for 2009.. lol




So what happened last summer when diesel was 5 bucks a gallon? Or was that Obama's fault?

Drill it! I'm rich biotch...

 

[ruffryder]

On another note, the government spends lots of money on oil, helping out companies, creating and upgrading infrastructure that increases the use of more oil.... The solution to the problem is not only "drill more". The more we have the more we use, the more we need...

Once the government stops subsidizing the automobile on such a gigantic scale (the vehicles and the infrastructure) as it does now, then we will see things changing.

 

[ericbigbore]

On another note, the government spends lots of money on oil, helping out companies, creating and upgrading infrastructure that increases the use of more oil.... The solution to the problem is not only "drill more". The more we have the more we use, the more we need...

Once the government stops subsidizing the automobile on such a gigantic scale (the vehicles and the infrastructure) as it does now, then we will see things changing.

Very good points.

 

[2001rmk700]

Give me one good reason that we shouldn't drill for our oil???

i see the point of bring jobs back to american and i am all for that but for drilling our own oil why not use every one eleses and then when they run out we will still have oil and be able to decide what the price is

idk just my $0.02

 

[Wolfrun]

On another note, the government spends lots of money on oil, helping out companies, creating and upgrading infrastructure that increases the use of more oil.... The solution to the problem is not only "drill more". The more we have the more we use, the more we need...

Once the government stops subsidizing the automobile on such a gigantic scale (the vehicles and the infrastructure) as it does now, then we will see things changing.

Wow, Ruffy just when I was starting to like you a little too, but that is what you get with token liberals.

 

[ruffryder]

i see the point of bring jobs back to american and i am all for that but for drilling our own oil why not use every one eleses and then when they run out we will still have oil and be able to decide what the price is

We / they will never run out....

 

[woodzy]

drill our own oil, farm our own fields, etc.... Stop importing everything we need to sustain life. Bring the US back to a world powerhouse that doesn't need chit from anybody. That's all. Too much to ask? Apparently.

 

[ericbigbore]

drill our own oil, farm our own fields, etc.... Stop importing everything we need to sustain life. Bring the us back to a world powerhouse that doesn't need chit from anybody. That's all. Too much to ask? Apparently.

exactly!!!!!!

 

[Ollie]

Ruffy, you miss one basic point about the price of oil.
The US imports oil because we use more than we produce.
So if some backwater 3rd world chithole like Chavez's country decides to play games, all they have to do it stop shipping oil to the US. The price of oil goes thru the roof.

Same senario, only this time chavez shuts down oil to the US and the US turns to it's reserve capacity (which we currently don't have) to increase the production to compensate, the price of oil stays the same. The only difference is chavez loses billions. A win/win situation.

As for where to drill.
We have billions of barrels of oil off shore that the libs won't let us drill.
Wyoming and North/South Dakota would love to expand their own oil exploration, too bad the libs in washington have decided to interfere in the states rights to manage their own economies.