A History Lesson in case YOU forgot:
Suggest you click the links below and READ.
**Make sure you read ENITRE post, especially information linking Warren Buffett to Canadian oil (toward end of post)**
U.S. Backs $1B Loan to Mexico for Oil Drilling Despite Obama Moratorium. Another Foreign Oil Company? What About American Oil Rig Workers?
The Obama administration is financing offshore drilling off the coast of Brazil. According to the Wall Street Journal,
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 oil reserves in Brazil’s Tupi oil field are likely to make Brazil one of the world’s top oil exporters. In the U.S., however, domestic companies are denied access to rich oil reserves in Alaska and off the East and West Coasts. This leaves us all to wonder: why is Obama in favor of drilling off Brazil’s coast, but not our own? And if drilling is so wrong, why in the world are we paying for it?
UPDATE: Bloomberg is reporting an interesting link between Obama’s Petrobras deal and billionaire George Soros:
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.
Hmm. Isn’t it a strange coincidence that Obama-supporter Soros would reposition himself within Petrobras to receive dividends just days before Obama’s $2 billion in loans and guarantees for the country’s offshore drilling operations?
***After “investing” TWO BILLION dollars of taxpayer funds, this is the “THANK YOU” Brazil gives the U.S.****
China gets jump on U.S. for Brazil’s oil
Two export pacts a coup for Beijing
By Kelly Hearn – Special to The Washington Times
January 19, 2012
BUENOS AIRES — 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.
The deals are part of a growing oil relationship between the two countries that, thanks to a series of billion-dollar agreements, is giving China greater influence over Brazil’s oil frontier.
Chinese oil companies are pushing to meet mandatory expansion targets by inking deals across Africa and Latin America, but they are especially interested in Brazil.
“With the Lula and Carioca discoveries alone, Brazil added a possible 38 billion barrels of estimated recoverable oil,” said Luis Giusti, a former president of Venezuela’s state oil company, PDVSA, referring to the new Brazilian oil fields.
“That immediately changed the picture,” he said, adding that Brazil is on track to become “an oil giant.”
During Mrs. Rousseff’s visit to China, Brazil’s Petrobras signed a technology cooperation deal with the China Petroleum & Chemical Corp., or Sinopec.
Petrobras also signed a memorandum of understanding with Sinochem, a massive state-owned company with interests in energy, real estate and agrichemicals.
The Sinochem deal aims to identify and build “business opportunities in the fields of exploration and production, oil commercialization and mature oil-field recovery,” according to Petrobras.
The relationship with China goes back to at least two years before Mr. Obama came to Brazil to applaud the oil discovery and tell Mrs. Rouseff:
“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.”
China rescued Petrobras in 2009, when the oil company was looking at tight credit markets to finance a record-setting $224 billion investment plan. China’s national development bank offered a $10 billion loan on the condition that Petrobras ship oil to China for 10 years.
A chunk of Brazil’s oil real estate appeared on China’s portfolio in 2010, when Sinopec agreed to pay $7.1 billion for 40 percent of Repsol-YPF of Brazil, which has stakes in the now internationally famous Santos Basin, and the Sapinhoa field, which has an estimated recoverable volume of 2.1 billion barrels. Statoil of Norway also agreed that year to sell 40 percent of the offshore Peregrino field to Sinochem.
One could argue Obama just wants to promote “Green Energy Jobs”
How has that been working out?
Washington Post: Obama Green Jobs Cost $5 Million Each
Will networks report massive cost for failed program?
The Washington Post might be a day late and $38 billion short, but it’s being honest about Barack Obama’s failed green jobs program. According to the Post, the “$38.6 billion loan guarantee program” has created just “3,545 new, permanent jobs” “after giving out almost half the allocated amount.”
For those not doing the math at home, that means more than $5 million per job.
The Post outlined Obama administration promises to “create or save 65,000 jobs” in the green jobs category. What it left out was that, while campaigning, Obama promised to create 5 million “green” jobs. He’s about 4,996,455 short.
The green jobs program has come under scrutiny following “the collapse of Solyndra, a solar-panel maker whose closure could leave taxpayers on the hook for as much as $527 million.”
According to the Post, the White House won’t even admit it’s failing. “The Energy Department says that the green-jobs program is still on track to meet its employment goals. It claims credit for saving 33,000 jobs at Ford Motor Co. – about half of the Detroit automaker’s entire hourly and salaried U.S. workforce.”
At least, however, the Post is reporting it. The broadcast networks are not. The Business & Media Institute analyzed the results of a Nexis search for the term “green jobs” and found only 4 stories out of 52 (roughly 8 percent) between Jan. 17, 2009, and Aug. 17, 2011, included any criticism. That means 92 percent had no criticism. An additional 10 stories focused on Obama’s former green jobs “czar” Van Jones resignation (because of his 9/11 Truther views) were excluded from the analysis.
Now one can ASK why Obama cancelled the Keystone Pipeline. Warren Buffet, a big supporter of Obama in donor $$$:
Buffett would profit from Keystone cancellation
By Dave Boyer
January 24, 2012
The Washington Times
Warren Buffett, whom President Obama likes to cite as a fair-minded billionaire while arguing for higher taxes on the wealthy, stands to benefit from the president’s decision to reject the Keystone XL oil pipeline permit.
Mr. Buffett’s Berkshire Hathaway Inc. ownsBurlington Northern Santa Fe LLC, which is among the railroads that would transport oil produced in western Canada if the pipeline isn’t built. [Emphasis added]
“Whatever people bring to us, we’re ready to haul,” Krista York-Wooley, a spokeswoman for Burlington Northern, a unit of Buffett’s Omaha, Neb.-based Berkshire Hathaway Inc., told Bloomberg News. If Keystone XL “doesn’t happen, we’re here to haul,” she said.
The Obama Administration rejected TransCanada’s request for a permit on Jan. 18, saying there was not enough time to review the proposal by Feb. 21, the deadline imposed by congressional Republicans eager to see the pipeline built. The decision came from the State Department, although Mr. Obama said he agreed with it.
TransCanada said it plans to submit another proposal that would avoid an environmentally sensitive route through Nebraska. The State Department had been reviewing the pipeline project tor three years when it rejected the permit.
If completed, the $7 billion Keystone XL would deliver 700,000 barrels a day of crude from oil sands in Canada to Texas refineries on the coast of the Gulf of Mexico. It would traverse about 1,600 miles.
The State Department’s review of the project said shipping oil via rail is more costly than delivering it to refineries by pipeline.
Republicans, labor unions and even some Democrats have criticized the administration’s rejection of the pipeline permit, saying it would create up to 20,000 jobs.