Good news: Obama backs off-shore drilling! Update: A Soros connection?

posted at 3:35 pm on August 18, 2009 by Ed Morrissey

This should be good news for the Drill Here, Drill Now contingent, right?  The Obama administration has committed $2 billion in loans to exploit offshore oil resources in hopes of extracting a major new source of petroleum.  Despite the White House pursuit of a cap-and-trade scheme to limit the use of fossil fuels, the new field could help bring lower energy prices, and their support of this exploration of American resources shows their flexibility on energy policy.

Wait — did I say American resources?  That’s true, but only in the South American sense (via Gateway Pundit):

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 it still doesn’t allow the U.S. to explore in Alaska or along the East and West Coasts, which could be our equivalent of the Tupi oil fields, which are set to make Brazil a leading oil exporter. Americans are right to wonder why Mr. Obama is underwriting in Brazil what he won’t allow at home.

This seems odd in several ways.  For this particular administration to offer billions in loans to a foreign oil company makes a mockery of a number of Obama talking points.  First, why does Petrobas need loan guarantees to pursue its exploration?  As the WSJ notes, it is a very large corporation, which should have the resources to get to the oil on its own.  Obama, who has ripped American corporations for their supposed subsidies in American tax policy, now wants to use an empty Treasury to give cash to a Brazilian oil company.

Next, Obama keeps insisting that we cut back on our use of fossil fuels.  He and his allies in Congress have blocked exploration of American oil fields off both shores for decades, and Obama insists that we would only keep enabling our oil addiction if we started drilling off of our own coasts.  Yet he has no trouble committing $2,000,000,000 of our money for Brazil to drill off its own coast.

Here’s a proposal: Let American companies do what Obama is paying Brazilian companies to do — drill offshore.  We won’t have to pay them money or float them any loans to do it, either.  In fact, we will make money off of the leases, while the effort creates hundreds of thousands of high-paying jobs in the US, creating more tax revenue rather than emptying out the Treasury.

Update: Who else besides Obama has taken an interest in Petrobras?  Hmmmmmm:

His New York-based hedge-fund firm, Soros Fund Management LLC, sold 22 million U.S.-listed common shares of Petrobras, as the Brazilian oil company is known, according to a filing today with the U.S. Securities and Exchange Commission. Soros bought 5.8 million of the company’s U.S.-traded preferred shares.

Soros is taking advantage of the spread between the two types of U.S.-listed Petrobras shares, said Luis Maizel, president of LM Capital Group LLC, which manages about $4 billion. The common shares were 21 percent more expensive than preferred today, according to data compiled by Bloomberg. …

Petrobras preferred shares have also a 10 percent additional dividend, said William Landers, a senior portfolio manager for Latin America at Blackrock Inc.

“Given that there will most likely never be a change in control in the company, I see no reason to pay a higher price for the common shares.” Brazil’s government controls Petrobras and has a majority stake of voting shares.

This story is from last Friday.  Is it a coincidence that Obama backer George Soros repositioned himself in Petrobras to get dividends just a few days before Obama committed $2 billion in loans and guarantees for Petrobras’ offshore operations?   Hmmmmmmmmmm.


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The green movement isn’t about protecting the environment.

BadgerHawk on August 18, 2009 at 3:37 PM

Hallibama!

Laura in Maryland on August 18, 2009 at 3:37 PM

Dig that hole Barry.

marklmail on August 18, 2009 at 3:37 PM

Doubleyouteeeff?

Abby Adams on August 18, 2009 at 3:38 PM

As I noted in the Greenrooom, perhaps George Soros would know more about this deal.

It appears 23% of his $2.6 billion fund is in PetroBras stock.

FreakyBoy on August 18, 2009 at 3:38 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

He is for it before he is against it.

meci on August 18, 2009 at 3:38 PM

Where did he get the $2 Billion?

bopbottle on August 18, 2009 at 3:39 PM

You’re right. This is absolutely mind-boggling.

John the Libertarian on August 18, 2009 at 3:39 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

You brilliant bastard. Now I have diet Coke on my keyboard. LOL.

portlandon on August 18, 2009 at 3:40 PM

Oops. Here’s the link.

Soros and Petrobras:

http://www.gurufocus.com/news.php?id=66288

FreakyBoy on August 18, 2009 at 3:40 PM

Socialist Obama’s pay off to socialist Chavez buddy Lula da Silva….nah there’s nothing to see here…move along…

elduende on August 18, 2009 at 3:40 PM

W

T

F

Joe Caps on August 18, 2009 at 3:40 PM

Going Brazilian.

Please. I can do without the mental image of the Obamas in butt-floss thongs, thank you very much.

UltimateBob on August 18, 2009 at 3:40 PM

Where did he get the $2 Billion?

bopbottle on August 18, 2009 at 3:39 PM

Cash for Clunkers Drilling.

portlandon on August 18, 2009 at 3:40 PM

Three letters…

J-O-B-S

for Brazil!

Laura in Maryland on August 18, 2009 at 3:40 PM

YES! Chop down more rain forests! Dam up the Amazon!

SouthernGent on August 18, 2009 at 3:40 PM

WOW! Just….. WOW…

the mind reels.

psv on August 18, 2009 at 3:41 PM

Where did he get the $2 Billion?

bopbottle on August 18, 2009 at 3:39 PM

He auctioned off some 2 years last week… no big deal… it’s only our currency at stake here.

BPD on August 18, 2009 at 3:41 PM

I cannot WAIT for Palin’s editorial excoriating Obama on this.

Abby Adams on August 18, 2009 at 3:41 PM

I bet it came to him in a dream, after Ted Kennedy told him this weekend about how he didn’t want to see windmills off of the compound in Hyannisport.

Dang, that’s two posts for me today with “windmills” in them.

NickelAndDime on August 18, 2009 at 3:42 PM

Poor Brazil needs relief too! /s

ConservativeJawa on August 18, 2009 at 3:42 PM

Sarah, here’s your opening, start typing.

tessa on August 18, 2009 at 3:42 PM

Yet he has no trouble committing $2,000,000,000 of our money for Brazil to drill off its own coast.

and if it were off the US coast and as efficient as C4C it would be 2% of the $2B.

Jed_Eckert on August 18, 2009 at 3:43 PM

Going Brazilian.

Ewwwwww. ED!!!! Next time you put up a picture of Obama do not EVER use the word Brazilian. I now have to go and gouge out my minds eye.

milwife88 on August 18, 2009 at 3:43 PM

As I noted in the Greenrooom, perhaps George Soros would know more about this deal.

It appears 23% of his $2.6 billion fund is in PetroBras stock.

FreakyBoy on August 18, 2009 at 3:38 PM

Ah . . . now it makes sense.

Another political payoff for one of the criminals who helped put Obama in office.

Your tax dollars at work, America.

AZCoyote on August 18, 2009 at 3:43 PM

Millions of jobs created or saved … … … in Brazil!!!

MB4 on August 18, 2009 at 3:43 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

LOL. +1000.

NickelAndDime on August 18, 2009 at 3:43 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

(Applause)

mikeyboss on August 18, 2009 at 3:43 PM

All the while Brazil, Russia, India and China (BRIC Countries) have been meeting to discuss the elimination of financial settlements using the Dollar. Nice….what a bunch of morons….I’m sure Tax Cheat Timmy had his hand in this one.

PatriotRider on August 18, 2009 at 3:44 PM

Where the &*$# is GreenPeace?

Oh yeah, they’re scheduled to removed by Bethesda’s Chief Proctologist on Tuesday.

Laura in Maryland on August 18, 2009 at 3:44 PM

Barry couldn’t let Exxon or any other American oil company in on that action. They might actually make, gulp, a profit. Who the hell needs tax revenue when you own the printing press.

ICBM on August 18, 2009 at 3:45 PM

…sniff…..sniff….

what’s that I smell?

Oh…it’s just more liberal hypocrisy

Spiritk9 on August 18, 2009 at 3:45 PM

DON,T BE FOOLED.He says that today but what will he say next week.He just today pulled back on having the public opp.in health care.

thmcbb on August 18, 2009 at 3:45 PM

Sarah, here’s your opening, start typing.

tessa on August 18, 2009 at 3:42 PM

BINGO

Weight of Glory on August 18, 2009 at 3:46 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

I think we can all agree that drilling domestically is better for any poltician.

Laura in Maryland on August 18, 2009 at 3:46 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

Nice.

BadgerHawk on August 18, 2009 at 3:46 PM

“Here’s a proposal: Let American companies do…”

That’s as far as Obama would hear before he tuned you out.

Daddy-O on August 18, 2009 at 3:46 PM

We also gave N. Korea nuclear reactors but won’t let Americans build them. I wasn’t under the impression that this was supposed to make sense.

29Victor on August 18, 2009 at 3:47 PM

Obama: “Hey, Brazil. America doesn’t need these jobs. You can have them.”
This man holds other countries in higher esteem than he does America.

kingsjester on August 18, 2009 at 3:47 PM

I can’t even joke about this madness. I was part of the DOMESTIC oil industry before I went “Jane Galt” and this is the biggest slap in the face to our industry yet. I would encourage all domestic producers to take a “time out” and show this sob what happens when our industry is shut down.

Aggie85 on August 18, 2009 at 3:47 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

sweet.

29Victor on August 18, 2009 at 3:47 PM

This post about oil (and old things) made me realize.. has anyone seen Joe Biden lately?

Wolftech on August 18, 2009 at 3:47 PM

How much evidence does it take to convince our citizens that Obama’s goal is to end America’s exceptionalism? While each of his actions here and abroad designed to sap our strength is outrageous, no reasonable person can any longer be surprised at what he does. Each day may bring a new low, but it is not surprising.

GaltBlvnAtty on August 18, 2009 at 3:47 PM

Everyday, Every, single, day, this son of a b*tch makes my blood boil, and I am not racist.

tessa on August 18, 2009 at 3:48 PM

Sarah, here’s your opening, start typing.

tessa on August 18, 2009 at 3:42 PM

She might not have to say anything about this outrage. After all, how much of the commentary on this item over the next two days is merely going to invoke Sarah’s name to help stir the pot?

But then, a nice little Facebook post with footnotes would drive home the point rather nicely, wouldn’t it?

BradSchwartze on August 18, 2009 at 3:48 PM

This should help Barry’s plummeting popularity.

Is this guy trying to screw up, or is he really stupid enough to think he won a mandate for all of this crap last November?

At this rate, he’s sure to be pulled aside and be asked to pull a Lyndon Johnson and not run for a second turn.

The only thing bad about that is that the Democrat candidate will be every bit as bad as Barry and possibly even worse.

NoDonkey on August 18, 2009 at 3:48 PM

Where did he get the $2 Billion?

bopbottle on August 18, 2009 at 3:39 PM

China

gonegaltinstl on August 18, 2009 at 3:48 PM

This is insane. It’s just not funny anymore. The “Socialist Joker” really is leading America.

Mojave Mark on August 18, 2009 at 3:48 PM

I think what this country needs is a good 10 day general strike. If asshat in chief doesn’t want to stop his bullcrap, we can always do a repeat a couple days after that one is done.

Spiritk9 on August 18, 2009 at 3:49 PM

I think what this country needs is a good 10 day general strike. If azzhat in chief doesn’t want to stop his bullcrap, we can always do a repeat a couple days after that one is done.

Spiritk9 on August 18, 2009 at 3:50 PM

No cronies for oil?

Monica on August 18, 2009 at 3:50 PM

California will never allow off shore drilling…

Khun Joe on August 18, 2009 at 3:50 PM

Sanford was so close. He was drilling in Argentina.
faraway on August 18, 2009 at 3:38 PM

POTC! (post of the century)

connertown on August 18, 2009 at 3:50 PM

Aw! I was sure he would have backed Hugo Chavez and Citgo.

mizflame98 on August 18, 2009 at 3:50 PM

Is this guy trying to screw up, or is he really stupid enough to think he won a mandate for all of this crap last November?BradSchwartze on August 18, 2009 at 3:48 PM

He really does hate us.

tessa on August 18, 2009 at 3:50 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

What the hell. Let’s quote it again.

LibTired on August 18, 2009 at 3:51 PM

Where the &*$# is GreenPeace?

Oh yeah, they’re scheduled to removed by Bethesda’s Chief Proctologist on Tuesday.

Laura in Maryland on August 18, 2009 at 3:44 PM

Funny, “RedWar” would more accurately describe them.

Count to 10 on August 18, 2009 at 3:51 PM

Shhh. We weren’t supposed to notice this. Move along…

Man, Palin’s gonna rip ‘em to shreds over this.

CP on August 18, 2009 at 3:51 PM

Haliburton’s fingerprints are all over this.

Akzed on August 18, 2009 at 3:52 PM

This really makes me sick. My husband and I work for a domestic oil company that he wants to destroy with Cap and Tax and he is bankrolling foreign companies? Isn’t the president of Brazil the guy that said that white people with blue eyes caused the international economic meltdown! I need a drink.

TXMomof3 on August 18, 2009 at 3:52 PM

As I understand it, ignorant merely means in need of education, stupid means lack of intelligence. 0 has always shown remarkable ignorance, but as we watch him, he is showing more signs of stupidity.

Oleta on August 18, 2009 at 3:52 PM

faraway on August 18, 2009 at 3:38 PM

I’d venture to say this comment is getting more +1s than any I’ve ever seen.

BadgerHawk on August 18, 2009 at 3:53 PM

1: Pay foreign nation to dig oil.
2: ???
3: GREEN LIVING!

ConservativeJawa on August 18, 2009 at 3:53 PM

I thought Brazil was big on biofuel and half their transportation oil came from that. I guess yet another ‘green’ technology that just doesn’t work.

Wolftech on August 18, 2009 at 3:53 PM

We are now citizens of the world.

MadisonConservative on August 18, 2009 at 3:53 PM

California San Francisco will never allow off shore drilling…

Khun Joe on August 18, 2009 at 3:50 PM

Plenty of people inland that would be all for it.

Count to 10 on August 18, 2009 at 3:53 PM

I’ll try to channel my inner leftist US hating alterego and attempt to understand our President’s decision process. Does this proposal:

1. Screw the US? check

2. Help a socialist Fidel wannabe? check

3. Gratuitously insult the 46% or so who didn’t vote Obama? check

OK, looks like a winner. Let’s do it.

jwolf on August 18, 2009 at 3:53 PM

Is it too soon to call for impeachment?

darwin on August 18, 2009 at 3:53 PM

No attorney general, independent investigators are fired at his/her majesties’ whim, shadow government (czars), where am I?

tessa on August 18, 2009 at 3:53 PM

He’s an idiot!

Hopeless Future on August 18, 2009 at 3:53 PM

As I noted in the Greenrooom, perhaps George Soros would know more about this deal.

It appears 23% of his $2.6 billion fund is in PetroBras stock.

FreakyBoy on August 18, 2009 at 3:38 PM

Whoa. That.is.no.coincidence. Payback continues.

NickelAndDime on August 18, 2009 at 3:53 PM

Does this have something to do with that 16 year old chick he was busted scopin?

SnowSun on August 18, 2009 at 3:53 PM

DON,T BE FOOLED.He says that today but what will he say next week.He just today pulled back on having the public opp.in health care.

thmcbb on August 18, 2009 at 3:45 PM

By next week, he may not even have said it.

gonegaltinstl on August 18, 2009 at 3:53 PM

Here’s a Brazilian who’s been doing some drilling of her own:
http://www.thesun.co.uk/sol/homepage/news/2592734/Girl-aged-17-knifes-30-men-to-death.html

jgapinoy on August 18, 2009 at 3:54 PM

HTF can we lend billions of dollars to Brazil when we are so broke we can’t pay attention?

What does our major creditor, China – have to say about this?

I mean this as nutty as the Navy Exchange giving a monopoly for it’s on base gas stations to Hugo Chavez’s CITGO corporation. Yeah – I believe that little monopoly is still in place. No one will buy CITGO gasoline – but the U.S. Navy will! And … they’ll sell it on base at a slightly lower price than everyone else in town. Great huh?

HondaV65 on August 18, 2009 at 3:54 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

Allah, can this be QOTD pleeeeeeeeeeeeeeeeeez?

fiatboomer on August 18, 2009 at 3:54 PM

Isn’t the president of Brazil the guy that said that white people with blue eyes caused the international economic meltdown!
TXMomof3 on August 18, 2009 at 3:52 PM

Right, and BO agrees with him.

NickelAndDime on August 18, 2009 at 3:55 PM

OK so let me guess. The money comes with the condition not to sell the oil to the US, cuz we, ya know, need to reduce our dependence on foreign fossil fuels.

The GOP is being given hundreds of opportunities here. When will they do something with it? obama is so brazen in his actions because he knows he has the MSM and the liberals behind whatever he does. Please, when will it end???

Spectreman on August 18, 2009 at 3:56 PM

Where are we going and why are we in this handbasket?

Wolftech on August 18, 2009 at 3:57 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

At least he got something out of the deal and, it didn’t cost us 2 Billion.

Jeff2161 on August 18, 2009 at 3:58 PM

I like it….I own Petrobas stock….THANKS ALL YOU TAX PAYERS IN AMERICA! I appreciate your taxes “stimulating” my “recovery”

SDarchitect on August 18, 2009 at 3:58 PM

I do not seek..and I will not accept the nomination of my fellow bloggers for QOTD.

faraway on August 18, 2009 at 3:58 PM

I’d venture to say this comment is getting more +1s than any I’ve ever seen.

BadgerHawk on August 18, 2009 at 3:53 PM

He’s just 6 more +1′s from a free Snuggie or box of ShamWow’s.

Laura in Maryland on August 18, 2009 at 3:58 PM

I mean this as nutty as the Navy Exchange giving a monopoly for it’s on base gas stations to Hugo Chavez’s CITGO corporation. Yeah – I believe that little monopoly is still in place. No one will buy CITGO gasoline – but the U.S. Navy will! And … they’ll sell it on base at a slightly lower price than everyone else in town. Great huh?

HondaV65 on August 18, 2009 at 3:54 PM

Stupid. I know there’s some massive ironclad contract the Navy has with Citgo out there (probably pre-Ooooogo), but c’mon. They’re enriching a guy who would be happy to see America get the shaft.

fiatboomer on August 18, 2009 at 3:58 PM

outcry from the left in 3… 2…

gatorboy on August 18, 2009 at 3:58 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM

That, in conjunction with the ‘Going Brazilian’ sub head makes this thread feel…. tawdry? Not that there’s anything wrong with that.

juanito on August 18, 2009 at 3:59 PM

Sanford was so close. He was drilling in Argentina.

faraway on August 18, 2009 at 3:38 PM
At least he got something out of the deal and, it didn’t cost us 2 Billion.

Jeff2161 on August 18, 2009 at 3:58 PM

chlamydia?

NickelAndDime on August 18, 2009 at 3:59 PM

This really makes me sick. My husband and I work for a domestic oil company that he wants to destroy with Cap and Tax and he is bankrolling foreign companies? Isn’t the president of Brazil the guy that said that white people with blue eyes caused the international economic meltdown! I need a drink.

TXMomof3 on August 18, 2009 at 3:52 PM

I can’t even joke about this madness. I was part of the DOMESTIC oil industry before I went “Jane Galt” and this is the biggest slap in the face to our industry yet. I would encourage all domestic producers to take a “time out” and show this sob what happens when our industry is shut down.

Aggie85 on August 18, 2009 at 3:47 PM

Ah ha! I knew all you so called “conservatives” were really paid shills that work for big oil. You have been exposed!

Now if i can just root out the big insurance executives that post here I will really have you guys!

The jig is up!

/libtard troll mode off

Joe Caps on August 18, 2009 at 3:59 PM

I do not seek..and I will not accept the nomination of my fellow bloggers for QOTD.

faraway on August 18, 2009 at 3:58 PM

STFU and bow. *throws roses and XL panties*

Laura in Maryland on August 18, 2009 at 4:00 PM

Sanford was so close. He was drilling in Argentina

At first I didn’t get that…I kept thinking of Fred Sanford drilling for oil…Then my post workout snack finally kicked in and I said “Ohhhh, that Sanford, and that kind of drilling…Took me a while, but still dang funny…

Battlecruiser-operational on August 18, 2009 at 4:00 PM

The other day, the POTUS, a South American oil exec, and a couple of Brazillion Billions step into a bar…

CMonster on August 18, 2009 at 4:00 PM

Where did he get the $2 Billion?

bopbottle on August 18, 2009 at 3:39 PM

That’s just walkin’ around money left over from the stimulus.

thomasaur on August 18, 2009 at 4:00 PM

I can just see Obama saying,

“After visiting Yellowstone [right?], I realized we don’t want to drill in America, but now the Brazilians are very inventive people.”

Upstater85 on August 18, 2009 at 4:01 PM

oh wait…the jokes ON us

CMonster on August 18, 2009 at 4:01 PM

Just a little love between socialists

Falz on August 18, 2009 at 4:02 PM

STFU and bow. *throws roses and XL panties*

Seconded!

Best line since the one about carnival music inside someone’s head…Dang, how did they put it? Wanted to use that one too…

Battlecruiser-operational on August 18, 2009 at 4:02 PM

Does he look like the Joker in that photo or is it just me?

Trying to apply logic to the over educated, super-size, liberal brain and the schemes it concocts will lead to a headache. He probably thinks Che came from Brazil and they’ll use the oil money to help build the Obama library or something just as ridiculous. There is no American oil for Americans because we are all racists and need to be taught a lesson in longsuffering. The liberals know best.

Hening on August 18, 2009 at 4:02 PM

I do not seek..and I will not accept the nomination of my fellow bloggers for QOTD.

faraway on August 18, 2009 at 3:58 PM

It’s either you or the trollbait “Palin’s a Trotskyite” story! :D

fiatboomer on August 18, 2009 at 4:04 PM

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