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Obama to finance oil drilling... in Brazil!
$2 BILLION of taxpayer money so far, and the funding may increase. Drill here, drill now to lower energy costs, and create jobs... in Brazil that is.
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| 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. |
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| 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. �He knows he held a voting right in the common shares that would never translate to actual power,� Maizel said in an interview from San Francisco. �He�s just playing the spread.� Petrobras preferred shares have also a 10 percent additional dividend, said William Landers, a senior portfolio manager for Latin America at Blackrock Inc. |
I was wondering why this thread was deleted from the COR 
Awwww, just like little dick and halliburton.
You wake up to the false left/right paradigm you lose.
If the government makes a profit, and they will, I see nothing wrong with it. Now, funding exploration for a foreign integrated oil company, so we can import more foreign oil, I don't like. But neither do I like drilling more on our lands. I say mobilize an entire sector of the economy to develop a post-fossil fuel economy, and fast.
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| Originally posted by iTranscendence Awwww, just like little dick and halliburton. You wake up to the false left/right paradigm you lose. |
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| Originally posted by Sushipunk I was wondering why this thread was deleted from the COR |
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| Originally posted by Krypton If the government makes a profit, and they will, I see nothing wrong with it. Now, funding exploration for a foreign integrated oil company, so we can import more foreign oil, I don't like. But neither do I like drilling more on our lands. I say mobilize an entire sector of the economy to develop a post-fossil fuel economy, and fast. Telling them to wake up will always make you lose. Nothing irks me more than having some asshole tell me I need to wake up. It's one of the most counter-productive statements if you'r trying to convince someone of something. Personally, I don't care if what you'r arguing is right or wrong, being told I need to wake up, just makes me dismiss whatever you have to say immediately. Not saying you directed your comment to me in this thread, but in other threads, the statement has been said on many occasions, especially by the 9/11 truther squad. |
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| Originally posted by iTranscendence |
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| Originally posted by pkcRAISTLIN are you sure that's not a truther rally? |
Oh for christ's sake ... seriously are you people retarded? Do you guys even understand the role of the Ex-Im bank?
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| Originally posted by iTranscendence Awww defending your boyfriend, that's even cuter than the poetic irony of this explosive new info. |
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| Originally posted by occrider Oh for christ's sake ... seriously are you people retarded? Do you guys even understand the role of the Ex-Im bank? |
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| Originally posted by pkcRAISTLIN haha, awesome. explain it for us if you have the time occrider |
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| Originally posted by pkcRAISTLIN i was just hoping you were going to tell me how strong the 911 movement is so i could have a chuckle |
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| Originally posted by iTranscendence �First they ignore you, then they laugh at you, then they fight you, then you win.� |
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| Originally posted by iTranscendence [img]http://imagemacros.files.wordpress.com/2009/06/roomful.jpeg[img] |
The US exim banks is an export credit agency, they give out LOANS, not grants, that finance export purchases or fund local jobs. It requires at least a 50% US stake in the venture whether that come from the purchase of US exports or funding US jobs via contracting out to US companies. Perhaps an easy analogy to use is that if egyptair wants to upgrade its fleet of jets it will work with exim bank to provide a loan to purchase boeing jets which it will eventually pay back the loan with interest. This is nothing new, exim bank has been operating since the 30's and has been facilitating deals under every administration since. Not only has exim bank been operating since the 30s but there are now some 70 or 80 foreign exim banks that are competing against the US exim bank.
So here's the question you should ask yourself ... Brazil is going to develop its oil fields no matter what. They have basically issued a letter of intent. Now do you want US oil companies developing those fields via a US exim loan (perhaps halliburton which should appease you neoconservatives) or do you want a Russian or an EU country developing them via a loan from their respective exim banks?
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MAY 7, 2009 Contact: Linda Formella (202) 565-3200 U.S. EXPORTERS TO BENEFIT FROM A $2 BILLION EX-IM BANK PRELIMINARY COMMITMENT TO BRAZIL'S PETROBRAS WASHINGTON, D.C.: Small and large U.S. companies may benefit from a nonbinding preliminary commitment of $2 billion in financing from the Export-Import Bank of the United States (Ex-Im Bank) to encourage purchases of U.S. goods and services by Petr�leo Brasileiro S.A. (Petrobras), Brazil's national oil company. Pending a final approval, the financing is anticipated to support more than $2.2 billion of U.S. exports to Petrobras. Ex-Im Bank anticipates that this preliminary commitment will give Petrobras the opportunity to identify potential U.S. exporters for its projects over the next two years. Upon conversion of the preliminary commitment to a final commitment, the financing could be used to support U.S. exports on repayment terms of up to 10 years, including a potential conversion of part of the financing to establish a medium-term (one to seven years) credit guarantee facility. Petrobras may use U.S. goods and services financed under an Ex-Im Bank final commitment to develop its offshore oil and gas reserves, particularly the large pre-salt reserves in the Santos Basin, and also to develop and upgrade its refining and distribution infrastructure. Petrobras anticipates that it will invest $174 billion in development over the next five years. "Petrobras presents an enormous opportunity for U.S. exporters in the oil and gas industries and many other sectors. With this preliminary commitment, Ex-Im Bank is actively encouraging Petrobras to consider extensive sourcing of equipment, services and supplies from the United States for its offshore development and infrastructure expansion," said Ex-Im Bank Structured Finance Vice President Barbara O'Boyle. U.S. companies of all sizes that are interested in exploring export opportunities to Petrobras may contact Philip Lim�n, treasurer, Petrobras America Inc. in Houston, Texas, (713-808-2160; [email protected]) to learn more about the company's bidding process and how to participate in transactions that could be financially assisted by Ex-Im Bank. Founded in 1953, Petrobras is the primary oil company operating in Brazil and is one of the world's largest oil producers. Petrobras holds the second largest reserves in South America, with proven oil reserves totaling 12.5 billion barrels and proven natural gas reserves totaling 14.8 trillion cubic feet. Petrobras is a fully integrated oil and natural gas services company and operates in all parts of the production chain from exploration and development to production, refining, transportation, distribution and marketing. Ex-Im Bank offered the $2 billion preliminary commitment to Petrobras as part of its proactive outreach. A preliminary commitment is issued by Ex-Im Bank to demonstrate that the Bank is interested in providing financing for the types of transactions indicated. Final approval follows receipt of a final commitment application, review by Ex-Im Bank staff and final action by the Bank's board of directors. In fiscal year 2008, Ex-Im Bank authorized a total of $14.4 billion in financing to support an estimated $19.6 billion of U.S. exports worldwide. The Bank authorized financing to support $1.5 billion of U.S. exports for oil and gas production projects. Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 75th year, helps to create and maintain U.S. jobs by financing the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans. For more information, visit www.exim.gov. http://www.exim.gov/pressrelease.cf...3E6E44E287C2DA/ |
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| Originally posted by pkcRAISTLIN are you sure that's not a truther rally? |
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| Originally posted by occrider The US exim banks is an export credit agency, they give out LOANS, not grants, that finance export purchases or fund local jobs. It requires at least a 50% US stake in the venture whether that come from the purchase of US exports or funding US jobs via contracting out to US companies. Perhaps an easy analogy to use is that if egyptair wants to upgrade its fleet of jets it will work with exim bank to provide a loan to purchase boeing jets which it will eventually pay back the loan with interest. This is nothing new, exim bank has been operating since the 30's and has been facilitating deals under every administration since. Not only has exim bank been operating since the 30s but there are now some 70 or 80 foreign exim banks that are competing against the US exim bank. So here's the question you should ask yourself ... Brazil is going to develop its oil fields no matter what. They have basically issued a letter of intent. Now do you want US oil companies developing those fields via a US exim loan (perhaps halliburton which should appease you neoconservatives) or do you want a Russian or an EU country developing them via a loan from their respective exim banks? |
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| Originally posted by occrider The US exim banks is an export credit agency, they give out LOANS, not grants, that finance export purchases or fund local jobs. It requires at least a 50% US stake in the venture whether that come from the purchase of US exports or funding US jobs via contracting out to US companies. Perhaps an easy analogy to use is that if egyptair wants to upgrade its fleet of jets it will work with exim bank to provide a loan to purchase boeing jets which it will eventually pay back the loan with interest. This is nothing new, exim bank has been operating since the 30's and has been facilitating deals under every administration since. Not only has exim bank been operating since the 30s but there are now some 70 or 80 foreign exim banks that are competing against the US exim bank. So here's the question you should ask yourself ... Brazil is going to develop its oil fields no matter what. They have basically issued a letter of intent. Now do you want US oil companies developing those fields via a US exim loan (perhaps halliburton which should appease you neoconservatives) or do you want a Russian or an EU country developing them via a loan from their respective exim banks? |
I think its a fairly good bit of pro-active safeguarding given the majority of oil from the middle east is liable to explode in price every time someone launches a bottle rocket near a share holder.
The other important fact is that Brazil isn't a member of OPEC... buying oil out from under them will force prices to maintain some downward/realistic trends.
Also, three of the five directors of the Ex-Im Bank were nominated by Republican presidents.
Further lols:
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| Charge: The U.S. government is giving away more than $2 billion in taxpayer dollars to Brazil�s largest oil and gas company to drill for oil in Brazil. Fact: The Bank has approved a preliminary commitment to lend up to $2 billion to Petrobras for the purchase of American-made goods and services. The funds will go to American exporters as payment for their sales to the company. Of note, the Bank is self-sustaining and no taxpayer dollars are involved. Charge: The loans to Petrobras represent a giveaway of U.S. tax dollars. Fact: The Bank�s activities do not cost the American taxpayer a dime. In fact, since 1992 the American people netted more than $4.9 billion and the jobs those exports created. Charge: America is exporting jobs to Brazil as a result of the loans. Fact: Only American made goods and services qualify for Ex-Im Bank loans or guarantees. This is the government doing what it's supposed to do - helping to create U.S. jobs, making sure that Americans get a fair shot at selling goods and services, and helping American workers compete on a level playing field against foreign competition. Charge: The loan to Petrobras represents a reversal of the Obama Administration�s policies on off-shore drilling. Fact: The Bank�s bipartisan Board unanimously approved the preliminary commitment to Petrobras on April 14, 2009, before any Obama appointees joined the Bank. In fact, at the time the Bank�s Board consisted of three Republicans and two Democrats, all of whom were appointed by George W. Bush. |
Hmmm... I do appreciate the explanation, occrider. It certainly makes sense. I am still, however, within my rights to be upset about the deal regardless because A) Soros clearly made out like a bandit in the deal by making moves just a few days before it was inked... in a similar fashion that had the Left screaming bloody murder about Cheney/Halliburton; B) The same amount of money was denied to a US based company to develop nuclear technology for energy purposes, after Obama made promises on the campaign trail to that company that it would happen; and C) It's retarded that Obama will help underwrite a loan for offshore drilling in Brazil that will supposedly benefit the U.S., but won't consider allowing it to happen here which will benefit our economy even more.
All in all though, I thank you for correcting some erroneous judgements I had on the issue.
It's a good idea to have oil drilling in Brazil.
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