A recent article in the Wall Street Journal reports the U.S. Export Import bank has signed a $2 billion loan guarantee with Brazilian oil company Petrobras. Petrobras will use the money to explore and develop the Tupi oil field in the Santos oil basin off shore from Rio de Janeiro. Bank officials say there is a possibility the amount may be increased beyond the original $2 billion.
The development of this oil field will boost the Brazilin energy industry and create perhaps thousands of jobs. Unemployment is currently at 9.6% here in the United States. Why is this money not being used here to create jobs? The Import Export banks claims they are not using taxpayer money. Where else would they be getting the money? If Petrobras defaults the American taxpayers will foot the bill. With money and credit so tight in his country why are we sending so much money oversees?
Why aren’t we using this money to develop oil fields off of our own shores? Development of our own oil fields would create thousands of jobs. Public opinion supports off shore drilling in coastal areas if it can be done safely. American companies will take more care than most countries to drill in an environmentally responsible way. The money should stay here to develop jobs for American workers and help to make us energy independent. Government policy can and does make a difference in job creation. This is not about protectionism. It doesn't make sense to develop oil exploration in another country when we refuse to do it in our own. Ihave no problem with investment in foreign countries. It just seems hypocritical of politicians to block exploration here and fund it abroad.
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