We are in it deep. Water that is. Bloomberg News reported some very welcome news that Exxon Mobil Corp. won a US deep-water drilling permit for the Gulf of Mexico, becoming the fourth company cleared to work in the largest source of domestic crude after BP Plc's oil spill last year. Perhaps President Obama is expecting a huge political backlash by using US taxpayer money to support drilling in Brazil while millions of Americans are out of work and that could explain the timing of this latest permit.
Obama raised the ire of the U.S. energy industry, unions and jobless Americans everywhere when the President, who has shut down drilling in the Gulf of Mexico, seemed to embrace deep water drilling. Not here, but in Brazil! When Obama promised to create Jobs, I thought he was talking about in America, not Brazil. To help Brazil develop their deepwater quest he is using our hard earned tax payer dollars. The Wall Street Journal reported that, "The U.S. government's export credit agency has authorized $3 billion in financing for Brazil, including $2 billion for the Brazilian government-run oil company, Petroleo Brasileiro SA, or Petrobras." Somewhere investor George Soros must be smiling.
In an OP-Ed with the USA Today the President said, "We'll also work to strengthen our relationship when it comes to energy. Brazil holds recently discovered oil reserves that could be far larger than ours, and as we seek to increase secure-energy supplies, we look forward to developing a strategic energy partnership. We'll also continue our shared leadership in green economic growth and clean energy, including everything from biofuels to renewables such as wind and solar power."
In fact Obama said he was looking forward to importing oil from Brazil. The President said "We want to work with you. We want to help with 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."
Running up our deficit so we can be more dependent on foreign oil? The President goes on, "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."
He wants to work with Brazil, but what about America? Does he not think our companies and workers are worthy? Obama has bashed U.S. oil companies but apparently there is something about a state run oil company that the President just seems to love! In fact he is enchanted with Brazil so much that he said that Brazil was a democracy that the Arab world could look up to. I guess we can blame that on “Rio.”
In the mean time, Obama has done little to promote our most promising resources in this country. Drilling in many areas has been thwarted and the most promising source of energy in shale which could yield 800 billion barrels of oil and gas supply that could last for over 100 years, is being stymied while gas and oil prices surge due to unrest in the Middle East and the development of emerging economies like Brazil around the globe.
These delays are costing Americans hundreds of thousands of jobs. Good high paying jobs that will go elsewhere as the world's demand for energy continues to increase. With uncertain regulation in the US and uncertainty about risk caps, companies will gravitate to Brazil who as Obama remind us, has a growing and dynamic economy. At the same time he is putting our economy at a greater risk as he is outsourcing our energy security to other nations.
While I do support cooperation with Brazil to expand their vast oil reserves, I also know we should be making the same commitment to our country and workers in this country. This double standard is a slap in the face to American workers, companies and American ingenuity. Why is Brazil more worthy than us? Can they do it better or safer? Are they better workers? Obama is the first President of the United States that is openly advocating becoming more dependent on foreign sources of oil.
With our economy in turmoil it is time that Obama made shale gas development and drilling priority one in this country. This is the green energy economic boom the President has been praying for and it is right in front of his eyes if he chooses to grasp it. We know that shale gas drilling can be done safely and the President can assure us of that. While the development of shale gas and oil will disappoint "Big Green," the big money companies that want us to gamble our future and money on unproven fuels, our economy and people deserve to be allowed to prosper by developing our own resources. This may even help lead our economy out of a recession and make us a net exporter of energy in the future.
Big draws in gasoline on API Get rid of those winter blends and bring in the summer. Upside risks abound in oil and products. Downside risk includes the euro economy, mainly Ireland and Portugal.
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org.