Obama’s $2 billion to Brazil ends up helping send oil to China

posted at 8:40 am on January 27, 2012 by Bruce McQuain

Remember this?

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-I’m 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.

And this?

“We want to work with you. We want to help with 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.”

Mr. Obama was saying that while he was drastically slowing down leasing and permitting in the US and whining about “subsides” to US oil corporations. We apparently can subsidize government controlled oil companies in foreign countries, but not here (and I’m not arguing for subsidies here – just pointing out the usual Obama contradiction – kind of like he’s against bailouts, except for Chrysler, GM, Solyndra, etc.)

Well, that little jump-start of ObamaDollars has indeed helped “develop these oil reserves”. And the beneficiary?

Off the coast of Rio de Janeiro — below a mile of water and two miles of shifting rock, sand and salt — is an ultradeep sea of oil that could turn Brazil into the world’s fourth-largest oil producer, behind Russia, Saudi Arabia and the United States.

The country’s state-controlled oil company, Petrobras, expects to pump 4.9 million barrels a day from the country’s oil fields by 2020, with 40 percent of that coming from the seabed. One and a half million barrels will be bound for export markets.

The United States wants it, but China is getting it.

Less than a month after President Obama visited Brazil in March to make a pitch for oil, Brazilian President Dilma Rousseff was off to Beijing to sign oil contracts with two huge state-owned Chinese companies.

Well done, Mr. Obama.

[HT: Red Country]

~McQ

Twitter: @McQandO

This post was promoted from GreenRoom to HotAir.com.
To see the comments on the original post, look here.

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

52% approval rating!

KOOLAID2 on January 27, 2012 at 8:41 AM

Who’s will be Brazil’s best customer Obama?

Electrongod on January 27, 2012 at 8:42 AM

Anyone still surprised by these things would be more surprising to me than this.

Gatsu on January 27, 2012 at 8:44 AM

Facepalm moment.

ConservativeMom on January 27, 2012 at 8:47 AM

Obama, destroying America, one day at a time!

The SCoaMF POS needs to be exiled!

insidiator on January 27, 2012 at 8:47 AM

It’s like he’s never run a business… Oh wait…

Mitoch55 on January 27, 2012 at 8:49 AM

Are we lending billions of Chinese money to Brazil?
But, but, butt…we can be energy independant! My messiah said so!
52%!!!!!!

KOOLAID2 on January 27, 2012 at 8:50 AM

Are we surprised?

Cleombrotus on January 27, 2012 at 8:51 AM

Facts are racist.

RBMN on January 27, 2012 at 8:52 AM

But let’s make sure that Romney spends sufficient time blaming Newt’s contract with Fannie and Freddie for the subprime lending debacle and that Romney and Gingrich spend a lot of time fighting over who said what on TV and radio ads. And let’s spend time talking about moon colonies.

WTF?

BuckeyeSam on January 27, 2012 at 8:53 AM

I really don’t have anything to say. Maybe it’ll help get us the pipeline from Canada?

angrymike on January 27, 2012 at 8:55 AM

so·cial·ism (ssh-lzm) n.

Any of various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy.

Our ‘presidente of the world’ Barry is like a dog in heat.

locomotivebreath1901 on January 27, 2012 at 8:56 AM

This guy makes money evaporate like rain on a hot sidewalk.

NeoKong on January 27, 2012 at 8:57 AM

maybe The Whine isn’t anti-American, but it’s hard to tell from the results of his actions.

rbj on January 27, 2012 at 8:57 AM

If the establishment Republicans went after Obama as hard as they’ve gone after Newt, maybe just maybe President jobZERO’s approval rating wouldn’t be so high.

redridinghood on January 27, 2012 at 8:58 AM

In every media market in the country, those headlines are screaming out on the front pages of every newspapes…it is the lead story every hour, on the hour, on all the major newscasts! OH wait! …it’s Baa-ma…not Boooooosh! NEVER MIND! (If you find this news in the paper…look in section 17K…down in the bottom right hand corner, where the ink is smudged).

KOOLAID2 on January 27, 2012 at 8:58 AM

So between Brazil and Keystone, it appears the Chinese are set. Well done Pres. Oilbama!

hillsoftx on January 27, 2012 at 8:59 AM

Sorry, I don’t follow the Washington Times–and maybe I should. But the date of the article is 19 January 2012, a week before yesterday.

Was this mentioned in the three GOP debates since the morning of that day?

BuckeyeSam on January 27, 2012 at 9:00 AM

Aren’t SEAL’s good at underwater demolition?

A POTUS with some seeds would send Rousseff a nice 8×11 photo showing SEAL’s attaching limpet mines to an underwater structure, and he would sign it “Hoping you success in your new oil venture”.

Bishop on January 27, 2012 at 9:00 AM

Seriously: What is the Lib spin on this? Are the environmental extremists that Obama panders to (Keystone) even aware about this loan to Brazil? How do they square that circle?

visions on January 27, 2012 at 9:01 AM

Caption on picture for thread:
See! I told you the other day I was gonna bend over the American people…and use this thing! GAWD DAMN AMERICA!
(…and now the campaign money will be coming from overseas like you have never seen before. The alphabet networks will be rich! Rich I tell you!)

KOOLAID2 on January 27, 2012 at 9:05 AM

Are we surprised?

Cleombrotus on January 27, 2012 at 8:51 AM

About the outcome? Not at all. What is surprising is that the worthless SOB is so brazen about his socialist agenda. He doesn’t even pretend to care about this nation and the middle class being destroyed a little bit more each day this jug-eared traitor is in office.

Happy Nomad on January 27, 2012 at 9:06 AM

Whatever..at least we are getting the Olympics. Wait? What? /

HumpBot Salvation on January 27, 2012 at 9:09 AM

From Barry’s SOTU speech the other night:

Claim: “Right now, companies get tax breaks for moving jobs and profits overseas.”

Claim: “If you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it.”

Claim: “No American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas.”

Claim: “From now on, every multinational company should have to pay a basic minimum tax.”

Claim: “It is time to stop rewarding businesses that ship jobs overseas.”

What the future Barry? Make up you future mind!

parke on January 27, 2012 at 9:11 AM

There is a bit more to the story than that.

http://www.snopes.com/politics/gasoline/braziloil.asp

rwven on January 27, 2012 at 9:18 AM

Go figure. I don’t understand why we help out these countries that give us nothing in return.

mrscullen on January 27, 2012 at 9:20 AM

Why no mention of Soros in this? I thought he was also a financial partner in Petrobas.

herm2416 on January 27, 2012 at 9:20 AM

Barrack Obama, the best President of China EVA !

Sams88 on January 27, 2012 at 9:23 AM

This is maddening beyond (legal) words.
ØbaMaØ continues to be the ChiCom’s favorite stooge.
President Smart Power really does hate the United States.
(he’s still channeling the dreams of his father)

Just UndØ it Dammit !!
~(Ä)~

Karl Magnus on January 27, 2012 at 9:26 AM

Why no mention of Soros in this? I thought he was also a financial partner in Petrobas.

herm2416 on January 27, 2012 at 9:20 AM

He is. And he’s one of Obama’s notable backers. Which I think explains everything.

LarryD on January 27, 2012 at 9:29 AM

Jebus H. Craps…ffs, cant this guy to anything right? Like…not one f@(4ing thing??? Holy donkeynuts, voting day cannot come fast enough…

MooCowBang on January 27, 2012 at 9:38 AM

The Journalists are all busy reading Mitt Romney’s tax returns this week, kind of like when they sent nine reporters to Alaska to see what they could find out on Sarah Palin, but forgot to ask BHO what he thought about his church subscribing to Black Liberation Theology.

So, they are too busy to ask BHO what he thinks and why he is letting them use our donation to send oil to China.

They are too busy to count how many of BHO’s energy boondoggles have gone bankrupt, but you can read that for yourself at Michelle Malkins web page.

You might think the journalists are paid by BHO. Well, yes, they do expect to get a lot of that money he is fundraising right now, in paid media ads during the campaign. Conflict of interest?

Fleuries on January 27, 2012 at 9:43 AM

So when do we expect the Pubbies’ fearless leadership to make political hay out of this – November 7th probably!

Bob in VA on January 27, 2012 at 9:44 AM

Focus on getting Barry out in Nov.

galtani on January 27, 2012 at 9:45 AM

Bottom line is that Romney will not have the balls to bring this up in a presidential debate. Newt or Santorum will.

jeffn21 on January 27, 2012 at 9:46 AM

Soros is a heavy investor of Petrobras. It is just Barry’s give back to his master.

galtani on January 27, 2012 at 9:47 AM

Obama lends $2 billion in taxpayer money to develop Brazilian oil fields so the oil can be sold to China. Then he blocks the development of the Keystone XL pipeline so that Canada sells its oil to China.

Dateline January 21, 2013: After attending the inauguration ceremony for his successor, former President Barack Obama boarded a commercial flight which will stop over in his native Hawaii, en route to his new residence in the Forbidden City, adjacent to Tien an Men Square…

Steve Z on January 27, 2012 at 9:50 AM

But we do get a 12% rate of return on the loan, right? Right?

tomg51 on January 27, 2012 at 9:51 AM

So, we borrow money from the Chinese to lend to Brazil so Brazil can drill for oil that they will then send to China. US taxpayers then have to pay back the borrowed money with interest. Hmmmm.

Charlemagne on January 27, 2012 at 9:51 AM

Obama is Public Enemy Number One.
We used to wonder if he was just naïve, stupid or doing all this dliberately. Now we know, it’s deliberate. He is not one of us. It’s like Putin is running our country.

Impeach this traitor.

fogw on January 27, 2012 at 9:55 AM

So we didn’t expect Brazil might also sell oil to China?

DarkCurrent on January 27, 2012 at 9:57 AM

Why no mention of Soros in this? I thought he was also a financial partner in Petrobas.

herm2416 on January 27, 2012 at 9:20 AM

He is. And he’s one of Obama’s notable backers. Which I think explains everything.

LarryD on January 27, 2012 at 9:29 AM

I wasn’t clear, I meant why didn’t Ed mention Soros?

herm2416 on January 27, 2012 at 9:58 AM

People, people- get some perspective here, please.

President Earflaps said he WANTED us to be one of Brazil’s biggest customers- not that we would be. So see, that’s not a lie.. just a broken dream.

And let’s not lose sight of what’s important- it doesn’t matter who gets the oil, so long as petrobras makes a nice chunk of change selling it- thereby enriching the most critical piece in the equation, George Soros.

And do keep in mind- barky’s nixing of the XL pipeline had no bearing whatsoever on the lending of our money to a brazilian firm. The XL pipeline debacle is going to enrich BUFFETT, not Soros. Barky is an equal opportunity crony capitalist.

Lending money to foreign firms to produce oil for China and guiding legislation/domestic policy, all to the benefit of his cronies-

that’s winning the future, the soetero way!

GrassMudHorsey on January 27, 2012 at 9:58 AM

Obama, destroying America, one day at a time!

insidiator on January 27, 2012 at 8:47 AM

$1 at a time? $1billion at a time?

And the math-challenged media parrots can’t figure any of it out!

stukinIL4now on January 27, 2012 at 10:03 AM

President Ghetto is merely employing all the business acumen he accumulated organizing his fellow dwellers.

Nemesis of Jihad on January 27, 2012 at 10:06 AM

But he is still saving the middle class in all 57 states, right?

/moonbat

shanimal on January 27, 2012 at 10:07 AM

Winners: China and Soros
Losers: Taxpayers; drivers; etc (since almost 1/2 don’t pay fed taxes)
Where are the Republicans? Why aren’t they holding news conferences? Putting commercials about this on TV?
Where does 0bummer get the money to give to Brazil?

dillydally on January 27, 2012 at 10:08 AM

George Soros is a large investor in Petrobras.

fleiter on January 27, 2012 at 10:12 AM

How in the heck can he with his signature loan our money away?

PattyJ on January 27, 2012 at 10:13 AM

Great job Barry! Saving Brazilian jobs one billion at a time.

smfic on January 27, 2012 at 10:22 AM

People, people- get some perspective here, please.

President Earflaps said he WANTED us to be one of Brazil’s biggest customers- not that we would be. So see, that’s not a lie.. just a broken dream.

And let’s not lose sight of what’s important- it doesn’t matter who gets the oil, so long as petrobras makes a nice chunk of change selling it- thereby enriching the most critical piece in the equation, George Soros.

And do keep in mind- barky’s nixing of the XL pipeline had no bearing whatsoever on the lending of our money to a brazilian firm. The XL pipeline debacle is going to enrich BUFFETT, not Soros. Barky is an equal opportunity crony capitalist.

Lending money to foreign firms to produce oil for China and guiding legislation/domestic policy, all to the benefit of his cronies-

that’s winning the future, the soetero way!

GrassMudHorsey on January 27, 2012 at 9:58 AM

Did we ever think we would see the day where the current President of the United States uses taxpayer money to enrich 2 of the richest men on the planet and NOT A PEEP from the main stream press?

The sheer audaciousness of these actions leave me speechless.

How in the world did oloser give money to Brazil without a requirement that they sell their oil to us? Why did they need the money anyway?

I hate this man with an extremely unhealthy intensity.

karenhasfreedom on January 27, 2012 at 10:24 AM

The Emperor is devoted to putting as many of us out of work as he can and completely destroying our way of life.

He keeps saying it, and the Ozombies cheer.

dogsoldier on January 27, 2012 at 10:31 AM

Does Soros not own about 80 media outllets includeing The Washing Post and ABC?

rocrio15 on January 27, 2012 at 10:44 AM

Vote him out in november! NOBAMA!!

Vntnrse on January 27, 2012 at 10:45 AM

I am sorry. Outlets

rocrio15 on January 27, 2012 at 10:45 AM

Who won the caption fest is what I want to know.

Bmore on January 27, 2012 at 10:52 AM

Some may ask: “What kind of a blockhead authorized this kind of nonsense?”

Apparently, some Brazilian millionaire found out he could pass a wad of cash on to Obama under the table, so to speak, and that Obama would respond favorably with a big “loan” to Brazil’s oil czar community to finance some offshore drilling, or whatever.

Things are really out of control when foreigners have less trouble getting U.S. loans and grants than folks who are not in Obama’s immediate circle of eager donors. It is the way things have been done in Chicago for centuries.

But I do wonder if the NO TRESPASSING and “NO SMOKING” signs on the Brazilian beaches opposite the drilling areas with have the standard, “Courtesy Of Barack Hussein Mohammed Obama” on them in smaller print? Like the ones from Mayor Daly.

dockywocky on January 27, 2012 at 10:54 AM

Obama is a Soros puppet and his sole purpose on this earth is to destroy the United States as his puppet-master wishes.

maryo on January 27, 2012 at 11:17 AM

subsides

Subsidies, not subsides. (Spell check is not always your friend.)

Mr_Magoo on January 27, 2012 at 11:21 AM

NO CLUE!!!!

rjoco1 on January 27, 2012 at 11:29 AM

Obama is Public Enemy Number One.
We used to wonder if he was just naïve, stupid or doing all this dliberately. Now we know, it’s deliberate. He is not one of us. It’s like Putin is running our country.
Impeach this traitor.
fogw on January 27, 2012 at 9:55 AM

actually he is more like the organgrinders dancing animal

I’d love to know who, besides the obvious, are the architects of the American peoples ruin

we are being digested by the rest of the world because our constitution is the only thing that stands in the way of a commie paradise

that’s why they bring ingnorance and dependence here in droves, to dilute a liberty loving people till they are no more

makes you want to blow things up

Sonosam on January 27, 2012 at 11:34 AM

There is a bit more to the story than that.

http://www.snopes.com/politics/gasoline/braziloil.asp

rwven on January 27, 2012 at 9:18 AM

Is Snopes version the truth or is the article here at HA the truth. One or the other has to be false.

they lie on January 27, 2012 at 11:45 AM

“We want to work with you. We want to help with 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.”

My Hero…..sigh….

timberline on January 27, 2012 at 12:07 PM

Every fiber of my being screams SKoaMF!!!

POS.

askwhatif on January 27, 2012 at 12:30 PM

Dateline January 21, 2013: After attending the inauguration ceremony for his successor, former President Barack Obama boarded a commercial flight which will stop over in his native Hawaii, en route to his new residence in the Forbidden City, adjacent to Tien an Men Square…

Close. My prediction: Od0ucheb@g continues to release control of the US (L.O.S.T. Treaty, et al) to the UN…then becomes head of the UN. Watch out for the Blue Helmets!!
Aaaahhh!!!

askwhatif on January 27, 2012 at 12:41 PM

angrymike on January 27, 2012 at 8:55 AM

No, I think at the end of the day we’ll learn that Obama spiked the pipeline in order to benefit China.

UnrepentantCurmudgeon on January 27, 2012 at 1:30 PM

Not So fast !!! have we forgotten Sarah be thy name- WARNED the good people this was going on and what a scam it was. SHE tried to make political hay out of this BACK IN 2009 !! Everyone in the media (sans Fox) dismissed her then….. Ben Smith Politico went out of his way to attacked her harshly- And whaddya know…….
.
Please Sarah- STAY NEUTRAL in this primary- There is not a candidate worthy of your blessing. Do not let the turdfest TARNISH your efforts going forward. May the Force be YOU. (and with You)

FlaMurph on January 27, 2012 at 1:30 PM

Somebody please help me here –
Are O and his handlers really this stupid, or do they they think we are???

n0doz on January 27, 2012 at 1:48 PM

SMART Power!!!!1111!!!!eleventy

It will be so nice when we get a president that is playing for our team.

jukin3 on January 27, 2012 at 3:24 PM

anything to help Mao

John Kettlewell on January 28, 2012 at 1:59 AM

Oil of a given quality is a fungible commodity. If we pay money to bring more of it to market then the market price as a whole goes down from where it would be without that oil contribution. It doesn’t matter if that particular oil flows to China as long as the other sources of equivalent oil no longer are raided for the flow to China.

This argument sounds good until you think about it. It has no basis in fact.

{^_^}

herself on January 28, 2012 at 3:16 AM