President Obama in a speech down in Brazil on March 19th told local businessmen in the nation state that the US is looking forward to being their best customer in buying oil from their offshore drilling. This policy to purchase more foreign oil comes after we invested over $2 Billion with 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.
“We want to help you with the 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. At a time when we’ve been reminded how easily instability in other parts of the world can affect the price of oil, the United States could not be happier with the potential for a new, stable source of energy.” – White House Press Briefing, March 19th
In this new policy, President Obama is promoting an offshore drilling partnership with Brazil, while at the same time placing moratoriums against US companies drilling in our own waters. This means jobs will be created in Brazil, and many American workers in the oil industry will move into the ranks of the unemployed.
Secondly, the US in 2007 alone imported over 3.66 billion barrels of oil, which at todays price of $103.74 per barrel, means a cost of nearly $380 Billion dollars exported out of the economy to foreign countries. With our trade deficit running over half a trillion dollars each year, this will only add to the cost of goods bought by US consumers in the future.
In 2009 when President Obama loaned $2 Billion dollars to the Brazilian nation oil company, there was alot of outrage by the American people over our spending taxpayer funds to develop infrastructure and production in a foreign country, while at the same time not addressing our own energy needs. With Obama’s trip to Brazil, and the speech given over the weekend, we now know the full extent of why the money was lent to Brazil, and in essense, why we gave them cash so in the end we could buy their goods.
With the President’s speech in Brazil, and the revealing of a new energy policy that contricts his moratorium on the dangers of offshore drilling, the American people and our economy will in the future become much more dependent on foreign oil, and lose out on jobs and economic production through the drilling and sale of our own resources.
President Obama gave Brazil $2 Billion dollars to develop their own oil, and in the end, the return on our countries investment will simply be the right to spend more money by purchasing oil from the Brazilian government.