Home > newsroom > Page
Wall Street Journal Editorial: Obama Underwrites Offshore Drilling - Too Bad It's Not in U.S. Waters
"If President Obama has embraced offshore drilling in Brazil, why not in the old U.S.A.?"

WASHINGTON, D.C., August 18, 2009 -

Editorial: Obama Underwrites Offshore Drilling
Too bad it's not in U.S. waters.

Wall Street Journal
Editorial
August 18, 2009

You read that headline correctly. Unfortunately, the Obama Administration is financing oil exploration off Brazil.

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.

But look on the bright side. If President Obama has embraced offshore drilling in Brazil, why not in the old U.S.A.? The land of the sorta free and the home of the heavily indebted has enormous offshore oil deposits, and last year ahead of the November elections, with gasoline at $4 a gallon, Congress let a ban on offshore drilling expire.

The Bush Administration's five-year plan (2007-2012) to open the outer continental shelf to oil exploration included new lease sales in the Gulf of Mexico. But in 2007 environmentalists went to court to block drilling in Alaska and in April a federal court ruled in their favor. In May, Interior Secretary Ken Salazar said his department was unsure whether that ruling applied only to Alaska or all offshore drilling. So it asked an appeals court for clarification. Late last month the court said the earlier decision applied only to Alaska, opening the way for the sale of leases in the Gulf. Mr. Salazar now says the sales will go forward on August 19.

This is progress, however slow. But it still doesn't allow the U.S. to explore in Alaska or along the East and West Coasts, which could be our equivalent of the Tupi oil fields, which are set to make Brazil a leading oil exporter. Americans are right to wonder why Mr. Obama is underwriting in Brazil what he won't allow at home.

# # #

Print version of this document


Contact: Emily Lawrimore or Jill Strait (202) 226-2311

Latest News

Bishop: FWS Mimics EPA Tactics in Expansive Critical Habitat Proposal

Today, the U.S. Fish and Wildlife Service and the National Marine Fisheries Service announced the finalization of a new policy for defining and designating critical habitat under the Endangered Specie...... Read more

Committee Advances Bipartisan “National 9/11 Memorial at the World Trade Center Act”

Today, the Committee on Natural Resources passed H.R. 3036 (Rep. Tom MacArthur, R-NJ), the “National 9/11 Memorial at the World Trade Center Act,” legislation designating the National September 11 Mem...... Read more

New York Times: How Free Electricity Helped Dig $9 Billion Hole in Puerto Rico

To understand how Puerto Rico’s power authority has piled up $9 billion in debt, one need only visit this bustling city on the northwest coast. Twenty years ago, it was just another town with dwindlin...... Read more

View All News

Calendar

The Costly Impacts of Predation and Conflicting Federal Statutes on Native and Endangered Fish Species
Subcommittee on Water, Power and Oceans | 1334 Longworth House Office Building, Washington, D.C. 20515
Legislative Hearing on H.R. 87, H.R. 295, H.R. 1621 and H.R. 2817
Subcommittee on Federal Lands | 1324 Longworth House Office Building, Washington, D.C. 20515
The U.S. Department of Treasury's Analysis of the Situation in Puerto Rico
Full Committee | 1324 Longworth House Office Building, Washington, D.C. 20515
View All Events