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.
Why create jobs and cheaper energy here at home, when you can create jobs and cheaper energy in Brazil?
Blocking energy production is the Democrats’ energy policy
Team Obama approved a nuclear energy program for the UAE in May.
But, Obama and the Pelosi-Reid Democrats will not allow nuclear energy expansion in the United States.
Already this year democrats banned offshore drilling, scrapped oil and gas leases in Utah and opened the 111th Congress by introducing a bill to permanently prohibit drilling in the Arctic National Wildlife Refuge (ANWR).
But, Team Obama is going to lend billions of dollars to Brazil to finance exploration of its huge offshore oil field discovery.
[…]Over the past 30 years:
Democrats have blocked the development of new sources of petroleum.
Democrats have blocked drilling in ANWR.
Democrats have blocked drilling off the coast of Florida.
Democrats have blocked drilling off of the east coast.
Democrats have blocked drilling off of the west coast.
Democrats have blocked drilling off the Alaskan coast.
Democrats have blocked building oil refineries.
Democrats have blocked clean nuclear energy production.
Democrats have blocked clean coal production.
If there is no energy crisis, how can the Democrats trick the public into letting them take control of the free market? You commoners don’t really need fancy light bulbs and gas-powered carriages. Those are only for your betters in Washington!
George Soros is heavily invested in Petrobras
Check out this Bloomberg article dated last Friday: (H/T Hot Air)
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.
Ed Morrissey writes:
This story is from last Friday. Is it a coincidence that Obama backer George Soros repositioned himself in Petrobras to get dividends just a few days before Obama committed $2 billion in loans and guarantees for Petrobras’ offshore operations? Hmmmmmmmmmm.
On her Facebook page, Sarah Palin is extremely displeased.