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US oil industry has crashed, Obama is paying Brazil to drill and sell us oil

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posted on Aug, 19 2009 @ 02:55 PM
In the fall of 2008 the Oklahoma "oil field" which drills for natural gas and crude oil went belly up. The companies that were based in Oklahoma drilled and worked wells for both products accross the US. Now we are having reports of the current administration paying other countries to drill.

Obama Underwrites Offshore Drilling

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.

What everyone should be keeping in mind is the fact that we have oil here in the US that can be drilled for. The crash in the oil field industries has adversely affected hundreds of thousands of buisnesses, mine included. Oklahoma had it's own micro economy based on the oil field that kept it immune from so many economic woes until now.

This is further outsourcing of the US job market by corportations, only this time it is our government corportation, The Obama Corporation, that is doing it. With the money that they are lending to Brazil, they could give our oil field a new jump start and restart our economy in the state of Oklahoma.

I use my state of Oklahoma as an example but the devistation of the loss of oil field production has adversely affected many states accross the south. We the People need to stand up against this outsourcing of America. In a time where we have such widespread economic hardship, how can the administration justify such actions.

My answer: we are all servants to the new "Government of Obama Corporation".

posted on Aug, 19 2009 @ 03:11 PM
Another $2B to another country while our unemployment rate steadily rises? Why not give it to an American company for exploration? Oh ya, they are posting record profits, they don't need it! So why give it away at all? Why not give $1M to 20 alternative energy companies and let the rest of the world fight over oil?

Bad decision making in government is the sadly the best-case explanation! The worst-case and more likely explanations can be found in 100's of threads here on ATS.

posted on Aug, 19 2009 @ 03:15 PM
This is absolute craziness. The oilfield is slow right now and people are losing there jobs. So rather than allow domestic production they give billions to a foreign gov't to drill in there country??? WTF

I have a solution. First declare that any wells drilled in the next 24 months will have a 30% reduction in royalties for the life of the well.
First that means we save the 2 billion going to a different country. Second all the workers would be guaranteed work for 2 years at least, oil prices would drop. While the gov't would get less money than if they chaged the normal royalty rate, that assumes those wells would have been drilled anyways which they would not have given the current economic situation.

So everyone wins... well except for brazil, the NWO and the extreme enviromental groups but I don't care about any of them.

posted on Aug, 19 2009 @ 03:17 PM
The USA gov't and several others do this type of strategic buying.

They choose to keep their reserves while buying other people's oil while it is still cheap.

That way when everyone else runs out, the goal is to have the last reserves left.

At least thats my take on the geopolitical events.

So saying it has crashed is not true, and even if it was it would only be short and temporary.

I mean how profitable was Exxon last quarter? And this quarter? Far from crashed Im afraid.

[edit on 19-8-2009 by muzzleflash]

posted on Aug, 19 2009 @ 03:25 PM
reply to post by muzzleflash

You are talking about "Big Oil" I am taking about US based oil production. There is a huge difference between the two. "Big Oil" uses importation of oil along with lobbying of congress to get foreign contracts so as to make their oil more profitable. The key to the high profits is once again the outsourcing of American jobs. My take would be that "Big Oil" has thier hand in the kitty on this bid to move jobs outside of the US.

posted on Aug, 19 2009 @ 03:43 PM
Hrmm, lets see, I'll do some research on this, ahh here we go.

George Soros Cuts Petrobas in Second Quarter

That story came out on the 14th and now Obama Co. is going to invest 2 billion into the company....

I wonder who Obama is really looking out for.

posted on Aug, 19 2009 @ 03:51 PM
reply to post by Hastobemoretolife

That is an interesting correlation between governments. My take is what you are trying to say is that due to Soros cutting his stake, the Brazilian company entered into hardship or lack of capitol so the US government stepped in to give them the capitol they lost. Interesting, but now I must ask why?

posted on Aug, 19 2009 @ 04:06 PM
reply to post by LeaderOfProgress

He cut his stake in the common shares he still owns preferred stock in the company, or in other words he is repositioning himself to make more money off of this deal because preferred stock owners get paid first.

posted on Aug, 19 2009 @ 04:06 PM
Today's Class is Rich Elite/Banker/High Sheriff 101.

America will never drill in this country until ever drop from everywhere else is gone. Obama paying Brazil to drill is no surprise to me at all. America is an oil addict, and an addict must have the drug, whether it be oil, narcotics, sex, gambling. America is the world's largest consumer of everything. Trouble is we are broke and out of money that was fake to begin with. So, our money is worth less and less every day. How much do you have saved up, friend?

The rich get richer, while to poor get nothing. How long has this been going on? Beginning of the Industrial Age and Central Banking. Is the united States bankrupt? Yes.

Subject: .The Bankruptcy of The United States
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303
Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:

"Mr. Speaker, we are here now in chapter 11.. Members of Congress are
official trustees presiding over the greatest reorganization of any Bankrupt
entity in world history, the U.S. Government. We are setting forth
hopefully, a blueprint for our future. There are some who say it is a
coroner's report that will lead to our demise.

It is an established fact that the United States Federal Government has
been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1,
Public Law 89-719; declared by President Roosevelt, being bankrupt and
insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint
Resolution To Suspend The Gold Standard and Abrogate The Gold Clause
dissolved the Sovereign Authority of the United States and the official
capacities of all United States Governmental Offices, Officers, and
Departments and is further evidence that the United States Federal
Government exists today in name only.

The receivers of the United States Bankruptcy are the International
Bankers, via the United Nations, the World Bank and the International
Monetary Fund. All United States Offices, Officials, and Departments are now
operating within a de facto status in name only under Emergency War Powers.
With the Constitutional Republican form of Government now dissolved, the
receivers of the Bankruptcy have adopted a new form of government for the
United States. This new form of government is known as a Democracy, being an
established Socialist/Communist order under a new governor for America. This
act was instituted and established by transferring and/or placing the Office
of the Secretary of Treasury to that of the Governor of the International
Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part:
"The U.S. Secretary of Treasury receives no compensation for representing
the United States."
(More at Website)

Congressman McFadden on the Federal Reserve Corporation
Remarks in Congress, 1934 AN ASTOUNDING EXPOSURE

"Only government can take perfectly good paper, cover it with perfectly good ink and make the combination worthless."
—Milton Friedman

"Destroyers seize gold and leave to its owner a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it."
—Ayn Rand
Atlas Shrugged, 1957

"Blessed are the young, for they shall inherit the national debt."
—Herbert Hoover

"I have spent my career trying to get Congressmen to spend the people's money as if it were their own. But I have failed."
—Sen. William Proxmire, 1989
On retirement from the Senate

Get the point here. folks? The government charges other nations billions in tariffs and taxes the American worker to death. They spend and spend, most time in a most reckless manner... one that would get the CEO of any company fired immediately. We, the Americans, stupidly elect and re-elect these money hungry greedy bastards, again and again, and with a smiling face, they stretch out their hand, and Lobbies back dump trucks up to their offices, full of money, prises, women, and drugs. You know it, and I know it. The so called President of America is a Figure-head, and talking head, and another smiling face, his/her private bank accounts, (off shore, for tax reasons) fill up as he/she preforms the duties assigned to him/her by the Masters, the unseen, unknown to the masses... Ancient Gods who are not Gods at all.

And what do we, the American people do? Let me see....the ones who still have a job work and pay taxes. The ones lucky enough to still get un-employments get by, as do the ones collecting social security and welfare, for as long as that[/] lasts, and the rest beg, starve, or trade their bodies and soul for food and drugs. The is a loaded weapon in most every closet, and the local library usually has a copy of the Constitution and the Bill of Rights. Those of us who haunt these forums know about the Common Law, police corruption, and have seen first hand how the Courts work, and the money they make for knowing things you do not know. You pay for everything, plus interest and tax, and you still do not own your home, you car, or your children, for that matter, and in effect you are nothing but a commodity traded on the International Market by Rick Elite Bankers, protected by Rich Elite Attorneys.

Meanwhile, we sit and type out our troubles and fears, and what WE think should happen, but in reality, have no idea what to do. We play with all of our neat electronic toys the government so gladly provided for us, and we watch mind numbing TV shows and play mind controlling video games, and our cell phone/IPod/Blackberry are never far from our bodies.

Never let your sense of morals get in the way of doing what's right.
—Isaac Asimov

Of all the properties which belong to honorable men, not one is so highly prized as that of character.
—Henry Clay

A "No" uttered from deepest conviction is better and greater than a "Yes" merely uttered to please, or what is worse, to avoid trouble.
—Mahatma Gandhi

It is better to deserve honors and not have them than to have them and not deserve them.
—Mark Twain

Does that just about sum it up?

Quotes courtesy of: On Matters of Most Grave Concern

posted on Aug, 19 2009 @ 04:08 PM

off-topic post removed to prevent thread-drift


posted on Aug, 19 2009 @ 04:15 PM
i wonder who bought stock in petroba just recently. bet it's gonna skyrocket for a time.

posted on Aug, 19 2009 @ 05:29 PM

That being said, I will attempt to rise up to the challlenge of making sense of this business transaction, that is business transaction. Not free money, buut money that will be repaid with interest.

I have paid a visit to the US Export-import bank website. The following is written in the Brazil page

Ex-Im Bank's Mission

The Export-Import Bank of the United States (Ex-Im Bank) - the official export credit agency of the United States - supports the purchases of U.S. goods and services by creditworthy international buyers that cannot obtain credit through traditional trade and structured finance sources. Ex-Im Bank does not compete with private sector lenders but provides products that fill in the gaps in areas of trade and structured financing. The Bank assumes country and credit risks that the private sector is unable or unwilling to accept, and helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. In more than 70 years of operation, Ex-Im Bank has supported more than $400 billion of U.S. exports to international markets.

Ex-Im Bank in Brazil: Overview

Ex-Im Bank has had a long-standing relationship with Brazil for more than 60 years. In fiscal year 2004, Ex-Im Bank approved $213 million in support of U.S. exports to Brazil.

Opportunities in Brazil Through Ex-Im Bank

Ex-Im Bank finances purchases for a wide range of sectors, including oil and gas, agriculture, transportation, telecommunications, and textiles.

Brazil's PUBLIC-PRIVATE PARTNERSHIP LAW: The Public-Private Partnership Law, envisioned to promote infrastructure investment of $66 billion, could generate significant business for U.S. suppliers once fully implemented. Ex-Im Bank seeks to identify ways to develop a closer working relationship with the Brazilian Government, particularly BNDES, to finance infrastructure projects under Brazil's PPP Program.

Loan Guarantees in Brazilian Reais. The real has been approved as an eligible currency under Ex-Im Bank's Foreign Currency Guarantee Program. A number of commercial banks are currently reviewing funding mechanisms for real-based guarantees.

Small-and Medium-sized Enterprises: Ex-Im Bank is committed to helping small- and medium-sized Brazilian companies purchase goods and services from the United States.

Environmental Sector: Ex-Im Bank's environmental exports program provides enhanced support for exports of environmentally beneficial goods and services, including water treatment and waste management.

Technically, this is simply business as usual. The US EC-Im bank's exclusive purpose is for these kinds of deals. If this Oil company in Oklahoma nneeds assistance, then it should probably holla at a department whos business is domestic financing of credit-worthy conglomerates.

Here you may find a list of Products and Policies and the in depth analysis of such.

What is likely happening is that this financeing is for Brazil to purchase US Equipment and resources to carry out their exploration and drilling operation, just like any typical consumer loan, except with bigger numbers. Again, this is simply regular bussiness being conducted in a regular manner in oone of those thousands of agencies and/or departments we only find out about when someone atttempts to sensationalize for a particular agenda. This does in fact suppport american jobs and industry by doing this.

Of course I really aint no business major and I have never been to colllege, this is as best i could describe. If someonne else wishes to take a shot at Ex-Ims role in international trade and financing with the States, you can utilize the actual website I already provided for additional resources.

Howd I do?

posted on Aug, 19 2009 @ 05:46 PM
Just like to add guys, this is part of how our government makes money. Did everyone believe that taxation on the popullace was the only source of income for a nation?

In May, Ex-Im Bank approved a $2 billion preliminary commitment to encourage purchases of U.S. goods and services by Petroleo Brasileiro S.A. (Petrobras), Brazil's national oil company. The amount of a final commitment may be increased above the $2 billion preliminary amount. Petrobras anticipates that it will invest $174 billion in development over the next five years.

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, including $1.5 billion of exports for oil and gas production projects. The Bank authorized $875 million to support U.S. exports to Brazil last year.

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

There we go All it takes is actually researching to see that the op's article, and I dont blamme you op you just probably did not know any better to look further than the op of another editor with an agenda, is attempting to make it look like our President is selling us out.

The turth however, as is clearly presented, is that this positive business venture is in essence helping to sustain American jobs and earn interest for our economy. You know a country does not stay in existence by making bad business.

posted on Aug, 19 2009 @ 06:13 PM
reply to post by DYepes

You are trying to excuse why the government does this. The problem is that the people of the US are suffering while the governemt is making huge salaries. If it was a government of the people, by the people, for the people, then the government would cut their wages and benifits so as to not need to earn more money. That way they will not have to give money to another nation so as to make more money to line politicians pockets. Direct the flow of money back to the people.

posted on Aug, 19 2009 @ 06:31 PM
That is another topic LoP, but the topic here, which I prefer to focus on, is this 2 billion dollar finance deal for petrobas to purchase US equipment. In fact the amount is actually estimated too rise. What dooes that mean? It means more US equipment will be purchased by Petrobas. Well this equipment does not magically appear out of thin air. It is manufactured by working people doing a job. It is also delivered by working people doing a job. Therefore this deal is supporting and may in fact be creating new jobs to fill the quota for such a large project.

Hence, this deal supports American jobs and our national economy. Is that a bad thing?

I supppose if you want to discuss goverment wages and salaries thats another topic. But then again this is your thread, and I just try to focus my response on the topic stated.

posted on Aug, 19 2009 @ 06:41 PM
reply to post by DYepes

The equipment would be made, purchased and use by americans for americans if they directed the money to our oil production.

posted on Aug, 19 2009 @ 07:02 PM
Well That is happening in other parts of the country I am sure as it is also happening in other industries. I do sympathize with what may have happened in your local community. But that is actually unrelated too this international trade matter. We do not just cut-off international trade when a community loses its income source. Possible solutions are for you to join some organization to try and get another private conglomerate to revive the well. As you know the US government does not own any oil drilling companies soo they cannot just step in and start doing. I personally believe it woud be wise to have a state owned energy company, that may help in this situation.

But there are no state-owned energy companies that I am aware of at this time. The best that can be done is to convince some existing energy co. to have a go at it, or perhaps if the local community wishes citizens can form a new company exclusivly for your community and seek funding from private and public sources to finance the project.

If you are looking foor solutions that is the best I can do.

May I aso reccomend changing the title as it is mis-leading and non-factual. Obama is not GIVING Brazil money. A company of Brasil is seeking financing from the Ex-Im, an agency of our government, a sef-sustaining one for that matter, in order to secure equipment and resources from American firms for the puurpose of an industrial energy extraction project. They are essentially purchasing American equipmennt back through American loans. Thats twice we are getting paid now. First the purchase of the equipment, and then the interest through finance.

Perhaps some of that oil will come to us in the future perhaps it wont. But the primary focus is that the deal is not for us to get oil, it is for us to sell a foreign market the equipment and resources to extract oil. That is where this particular entity the Ex-Im entire purpose is for.

[edit on 8/19/2009 by DYepes]

posted on Aug, 20 2009 @ 02:51 AM
The last line of the article that the OP referred to says that Americans are right to wonder why Mr. Obama is underwriting in Brazil what he won't allow at home.

This seems like a backdoor bailout of Brazil or bailout of someone, and there are many "backdoor" bailouts going on, one just needs to ask themselves why?

Why are we loaning another country money to drill for oil, when our economy is in a recession or maybe even something worse?

It sure seems like Americans would be better off if there was any job creation going on here in our country, and why is our government creating jobs in Brazil?

All these months of decline, this year and last year and I have yet to hear any talk from politicians about how we are going to create jobs here. I agree with the OP that we should have invested the money here and obviously the author of the article in the WSJ felt the same way.

posted on Aug, 20 2009 @ 03:02 AM

Originally posted by DYepes

The turth however, as is clearly presented, is that this positive business venture is in essence helping to sustain American jobs and earn interest for our economy. You know a country does not stay in existence by making bad business.

Yes it does, just look at the U.S., and the huge deficit we have.

If the U.S. were a person, it would be homeless and broke.

Both parties share the blame for the current state of the economy.

[edit on 20-8-2009 by amaranth]

[edit on 20-8-2009 by amaranth]

posted on Aug, 20 2009 @ 01:12 PM
reply to post by DYepes

Obama is giving them the money. It may be in the form of a loan but it is still "giving" monies to another country to improve their economy instead of ours.

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