The Obama White House may have finally begun listening to Newt Gingrich’s American Solutions push to Drill Here Drill Now campaign. Highly touted as one component of energy independence drilling the vast American oil reserves makes a great deal of sense.
The Wall Street Journal reported on Tuesday that the Obama administration has committed at least $2 billion dollars for oil exploration and drilling in the Americas. That figure may go to as much as $10 billion to promote national security.
Unfortunately for the oil-rich parts of the United States, the cash will be going to America, just not North America. OUR TAX DOLLARS are going to be sent to Brazil for oil exploration at their state-controlled oil company, Petroleo Brasileiro SA. Maybe the White House is just more comfortable with “state-controlled” businesses?
You may make the argument that any increase in oil supply helps take money away from regimes that hate America and should ease the crude oil commodities markets. That should be good. The serious question is why not do the same for oil exploration in the United States? That would certainly stimulate jobs and reduce energy costs probably leading to more investment by businesses leading to even more jobs leading to lower unemployment and increase tax revenues.
If we are so interested in helping South American countries, why not sign the Columbian Free Trade . Free trade makes total sense and it would reward and help a country that has been a friend of the United States. Also, free trade works both ways and should open markets for our goods in South America. George W. Bush requested that Congress pass CFTA in April 2008. We are still waiting for action.
These two positions seem to be at odd with each other unless you look at “that which is not seen.” If we start with CFTA, the unseen part is that the U.S. labor unions are against any free trade agreement. These labor unions are very big “supporters” (campaign contributions or money) of the Democrats and Obama. It would not be good for his financial future to tick off the unions. Who cares if the CFTA would save the rest of us gobs of money and open markets?
If you take another look at the boys from Brazil, you may be surprised to learn that while Petroleo Brasileiro SA is state controlled, it does accept investments. That which is not seen is that George Soros had recently invested nearly $1 billion to purchase a “stake” in Petroleo Brasileiro SA. In case you did not know, George Soros and his many organizations provide a significant amount of support to the Democrats. If I were skeptical, I might try to make a connection between Soros’ investment, his hefty campaign contributions and this “reward” to one of his investments. It is reported that this investment makes up 22% of Soros Fund Management LLC.