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All Da King's Men

Obama Supports Offshore Drilling

By Da King Published: August 22, 2009

I mentioned in my last post that President Obama was supporting offshore oil drilling in America.

But only in SOUTH America, not here. Following are the details of that support, from 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 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

So, we're lending Petrobras $2 billion or more. Sure, why not ? The good old USA is loaded ($11.6 trillion in debt) and our economy is doing so darn good (2.2 million jobs lost this year).

Here's a little information about Petrobras, the Brazilian state-run oil company. In 2008, Petrobras made an $18 billion profit. No wonder they need money from Uncle Sam. $18 billion is hardly enough to buy bread. Plus, poor Petrobras has been hit hard by the recession. Their profits are down 20% this year. For the first half of 2009, Petrobras has only made $7.4 billion in profit (link).

So, we're lending $2 billion or more to a foreign oil company that has made $25.4 billion in the last 18 months alone. I'm sure that makes sense somehow, but my little brain can't fathom it, even if big-time financier and left wing slush-funder George Soros can. Soros repositioned his holdings in Petrobras just days before the U.S. loan guarantees to Petrobras were announced. Soros sold 22 million shares of common stock and bought 5.8 million shares of preferred stock, which pay higher dividends. I'm sure Soros didn't have any inside information though. That would be, you know, illegal, and there's nothing at all shady about George Soros.

It would be nice if the USA had it's own offshore oil to invest in, wouldn't it ? We don't know exactly how much we have (lots), because nobody is looking for it. Offshore drilling has been banned off the East and West coasts for years, thanks to the environmentalists and other left wingers like Barack Obama.

I guess the new White House mantra is.......

Drill baby drill, but only in Brazil.

I sure hope we get a President someday who cares about America.

NORTH America, that is.



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