What Obama wouldn’t fund with $2B in loan guarantees

posted at 4:45 pm on August 20, 2009 by Ed Morrissey

Earlier this week, we found out what kind of energy production Barack Obama likes to support when he offered $2 billion in loans and guarantees to Brazilian oil producer Petrobras to drill off Brazil’s shores — while supporting a moratorium on offshore drilling in the US.  Coincidentally, Obama had the opportunity to offer the exact same amount of money to an American company for energy production just three weeks earlier.  Did they get the cash for their zero-emission energy industry venture?  Apparently, George Soros didn’t invest in USEC:

Bethesda-based USEC on Tuesday accused President Obama of reneging on a campaign pledge after the Energy Department turned down the company’s request for $2 billion in loan guarantees for a new uranium enrichment project in Piketon, Ohio.

USEC, which operates the nation’s only uranium enrichment facility, said it would “demobilize” the new project, which it said could not obtain private financing without the federal loan guarantee. The company has already spent $1.5 billion on what it calls the American Centrifuge Plant, but USEC says the final price tag could reach $3.5 billion, 1 1/2 times as much as it estimated two years ago.

“We are shocked and disappointed by DOE’s decision,” USEC chief executive John K. Welch said in a statement. “President Obama promised to support the loan guarantee for the American Centrifuge Plant while he campaigned in Ohio. We are disappointed that campaign commitment has not been met.”

Let’s make this clear.  Obama found $2 billion in the depleted Treasury to fund an expansion of oil production in Brazil, despite both his opposition to American offshore drilling and to increasing reliance on fossil fuels.  However, he cannot find any money to keep a promise to support nuclear energy in the US by keeping the USEC plant in operation in Ohio, a state that will get hammered by his cap-and-trade proposal.  The denial will set back the introduction of nuclear energy that could replace some of the coal-based electrical power generated in Ohio and elsewhere.

The DoE says that the USEC project has not reached the readiness stage required for funding.  However, the same is true of the project that Obama’s funding in Brazil.  In fact, investors (other than Soros) wonder whether the state-owned and state-run Petrobras is really up to the task of properly exploiting the find, despite the leftist government’s campaign of supporting Petrobras control of it.  The extraction of the coastal find is still in the planning stages, whereas the USEC facility is much closer to production.  Yet the US has no use for American energy even as it subsidizes Brazil’s government-owned oil production.

What’s the difference that pushed Obama towards Petrobras and away from USEC?  Because from here, it just looks like George Soros.

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i’m willing to go out on a limb and say they’re viable.

sesquipedalian on August 20, 2009 at 6:07 PM

Only at the destruction of mother earth! earth hater!

daesleeper on August 20, 2009 at 6:19 PM

Petrobras is about as an inefficient state rum company as you’ll find. Having delt with some south american oil companies I guarantee these loans will never be paid back. This was all done to placate China as they signed a $58 billion deal earlier this year.

HoustonRight on August 20, 2009 at 6:28 PM

Evergreen Solar and Ex-Im Bank Offer Loans for Solar Projects Outside US

US Ex-Im Bank loan for India’s infrastructure sector
Obama okays U.S. Exim bank loans for Cambodia, Laos [to help finance export of US goods]

sesquipedalian on August 20, 2009 at 6:12 PM

And what is solar? I.E. renwable resources.

What is oil? Come on…. you can answer this!

upinak on August 20, 2009 at 6:29 PM

I “hope” that Prez Zero would at least negotiate first rights to any oil that would be found. But as others have said, we already have first rights on Alaska and other US sources. How lame is this administration? Beyond belief.

jbinnout on August 20, 2009 at 6:35 PM

I wonder if USEC is suprised to find out he’s an incompetent, leftist liar?

Let’s see: No Executive experience, no business experience, no foreign policy experience, no military experience, no economics training, no legislative accomplishments as a senator (state or federal level), grand father and mother were both communist, his “mentor” was a communist poet, he was a community organizer in the Alinsky tradition, went to a church that preached anti-american, anti-capitalist screeds, supports abortion on demand, and favors a single payer system, among other things.

Very hard to connect the dots on what this presidency is all about. DUH! Of course he’s giving loan guarantees to a leftist comrade in Brazil to support “State Run” oil.

Dr_Irish on August 20, 2009 at 6:45 PM

Isn’t this racism?

Dirty oil rigs are okay for third world folks, but we must remain pristine.

PattyJ on August 20, 2009 at 6:46 PM

Yeah, if this one gets the press it so richly deserves….(don’t hold your breath) Barry comes off like the ultimate blow hard hypocrite.

Why the hell does Brazil need a loan anyway? They’ve got tons of oil money.

anniekc on August 20, 2009 at 6:50 PM

Any obotomized cult morons out there still think this punk is not out to destroy America? What could any of his flaks present as an argument to redeem the motives of the smug one? He absolutely hates this country, its people, our values, and our traditions. Had we any sort of normal press, he would already be job hunting…and not in this country. He is the repository of all that festers in the parallel universe of America’s darkest imagination. To not stir to save ourselves is to admit a reality of indentured servitude.

Western_Civ on August 20, 2009 at 6:55 PM

i’m willing to go out on a limb and say they’re viable.

sesquipedalian on August 20, 2009 at 6:07 PM

Please define viability in light of a field of heavy crude AND cap-and-trade carbon emission limits.

Yoop on August 20, 2009 at 7:14 PM

…..it just looks like George Soros.

Well, it isn’t JUST George Soros.
0bama is happy to do ANYTHING that will weaken America. If it benefits Soros financially, that is ‘extra icing on the cake’.

LegendHasIt on August 20, 2009 at 7:34 PM

Why the hell does Brazil need a loan anyway? They’ve got tons of oil money.

anniekc on August 20, 2009 at 6:50 PM

Not to mention, they’re one of the leading exporters of sugarcane, which they use to develop ethanol with.

So while the Scumbag-In-Chief keeps the US down, everyone else is racing ahead. As planned….

dmh0667 on August 20, 2009 at 8:06 PM

Goin’ out on a limb here…BOOTLICK MEDIA won’t report on this?

On the other hand, if you think there is a committed Marxist in the White House that would like to emulate Chavez and Castro then it makes perfect sense.

And come to think of it, if Soros is on the other end of his private Blackberry or his Saudi masters it also makes perfect sense.

In fact, if you think his job to dismantle the power of the United States then EVERYTHING he’s doing makes perfect sense.

Just work with me here people.

PappyD61 on August 20, 2009 at 8:33 PM

Every article like this gets me ornerier and ornerier. Please let Dear Reader get thrown out of office in disgrace, or we’ll have to live with his narcissistic photo ops for the rest of our gov’t allocated lives.

ornery_independent on August 20, 2009 at 10:16 PM

The president of Brazil is a socialist. As is Chavez, Correa, Zelaya, et.al. He is somewhat more pragmatic, but likes Obama. I think we are seeing an alignment of leaders with the same agendas. There was a time when democracy was the driving force, but no longer. Here is a quote from last spring.

“When asked about AIG and the current problems in the US, Lula cited greed as the culprit, and suggested that greed and the culture of greed would always result in a worse situation for Americans and others worldwide, unless something is done to change that reality”

Sound familiar?

archer52 on August 20, 2009 at 10:59 PM

What this clown needs to do is keep the billions intended for left leaning Brazil, Add it to the somewhere around $700 billion in useless stimulus and fix social security and medicare. The only thing needed to fix health care is tort reform and interstate commerce for insurance companies. That’ll fix a world of problems. What an absolute bonehead.

ultracon on August 21, 2009 at 12:10 AM