Last month the Wall Street Journal reported how the Obama administration had sent preliminary letters of commitment to finance Brazilian exploration for oil. The largest company in Latin America is the oil company, Petrobras. Petrobras specializes in deep-water oil production.
The US will lend $2 billion to the Brazilian company to explore the Tupi oil field. The Tupi oil field is described by some as "possibly the third largest oil field" in the world. In May, the Chinese government financed a $10 billion loan to ensure 150,000 barrels per day for ten years. (some reports claim the agreement is 200,000 barrels per day)
There were a lot of conflicting reports. Insider Peakoil.com reported the US is lending $10 billion, which will match the Chinese. (http://peakoil.com/modules.php?name=News&file=article&sid=50486)
Now, in September, the Latin American Herald confirms the $10 billion deal. Gen. James Jones has confirmed the US Export-Import Bank already has the letter of intent.
So, as the WSJ article questions: why is drilling in Brazil okay, but not here in the US? We are in the middle of this huge "Go Green" campaign, but that doesn't extend to other countries? This is still foreign oil, is it not?
When President Bush lifted the offshore drilling ban, the environmental lawsuits came pouring in and outrage among those on the left has made this a very divisive issue. So what's so different?
Former VP Dick Cheney's past position with Haliburton enabled political enemies to vilify the Bush administration as corrupted and favored the "Big Oil Companies." Now, with the new regime, we are spending $10 billion to purchase oil from South America instead of Saudi Arabia. Maybe Gen. Jones, Obama's National Security Advisor, probably has some first hand knowledge from his days at Chevron.
Oh, did I not cover how Jones was a member of Chevron's Board of Directors from May until December of 2008. Chevron has been successful recently, announcing oil production from Brazil's deep waters (http://www.chevron.com/news/press/release/?id=2009-06-23), so let me point out this report from an S&P analyst:
"While Brazil (Petrobras-my insertion) would like control over these massive finds, we expect technical and financial challenges in their development will force varied participation by foreign oil firms, and think some production may not be realized for years -- Tina Vital, S&P Equity Research. (http://www.marketwatch.com/story/brazil-eyes-production-sharing-to-tap-offshore-oil-2009-08-31)
So, Petrobras can't handle this, their stock is shaky even with the billions in US and Chinese funds and they may ONLY GET 30% of the access to the Tupi oil field. Hmmm....I wonder what other company could be readied to move in and help expedite production -- would that be Chevron.
The President is willing to spend $10 billion to help boost this Brazilian company so they can add jobs while we in America watch our unemployment continue to rise. The NSA is a former Chevron board member and Chevron is conveniently positioned with successful drilling in nearby oil fields.
Meanwhile Obama and the extreme want to join the UN and global community pushing for international cap and trade yet the environmentalist prevent Alaskan and offshore drilling in the US.
Wow, even Michael Moore could connect these dots -- nevermind, the word Democrat after their names is like kryptonite to his incredible insight.