EXCLUSIVE: U.S. Government Loaned Mexican Government More Than $1 Billion to Drill Oil in Gulf of...

cns news ^ | 9/8/10 | Matt Cover

[Nachum]

(CNSNews.com) – The U.S. Export-Import Bank, an independent federal agency, loaned more than $1 billion to the Mexican state oil company PEMEX in 2009 to support the company’s oil drilling in the southern Gulf of Mexico. The bank has another $1 billion in loans in the pipeline for 2010, unless Congress objects.

On May 27, after the British Petroleum oil spill, President Obama imposed a moratorium on U.S. deepwater drilling in the Gulf, effecting 33 deepwater drilling rigs in the region.

[Nachum]

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/

[crusty old prospector]

We need the oil but why we need to loan Mehico the money to drill is absurd. How about letting American companies compete against Pemex?

[Buckeye McFrog]

what’s that I hear......crickets, or environmentalists??

[cripplecreek]

2 or 3 billion to Brazil for the same. Wonder how much stock Lord Soros holds in this company.

[1rudeboy]

Um . . . that's what the Ex-Im Bank is for:

Under the 2009 loan agreements, PEMEX agreed to contract with American firms and purchase equipment from American manufacturers in exchange for the money.

[crusty old prospector]

Pemex is the national oil company of Mexico. Think monopoly. Think 20th (or perhaps 19th) century technology.

[crusty old prospector]

Well, like so many third world countries, I doubt they pay it back.

[1rudeboy]

And Ex-Im starts seizing Pemex assets here, and elsewhere. It’s not that complicated.

[crusty old prospector]

We are the only game in town, any way. Where else are the going to get the equipment? China has a few drilling rigs but that is about it. Baker Hughes, Halliburton, Schlumberger, Cameron, etc...

[1rudeboy]

I am not an expert in oil drilling, transportation, and oilfield services, but the “we are the only game in town” attitude is a little too cocky for my taste.

[crusty old prospector]

Whatever. If they want equipment and properly-trained personnel, it ain’t coming from France or Pakistan.

[HuntsvilleTxVeteran]

Mexico has never been a friend of our United States.

Based on old pesos!

The looters of Mexico want to have the freedom to loot America.

After spending several years starting oil exploration crews for Pemex, I think I have The reason Mexico has become so bad.

I like the Mexican people in the fly over parts of Mexico. The mid level and workers of Pemex are good. It is the government and the high up in Pemex that are the vultures and looters. The peso was about 8 cents (12.5 to a dollar). When Pemex found the sito grande, a very large oil pool that covers parts of the states of Chiapas and Tabasco also a long ways into the Gulf of Mexico.

Pemex borrowed billions to produce this great oil find. The looters (government) stole most of the money and what they did buy was junk oil rigs and drill pipe, etc. 1,000 pesos which was worth about $80 now will not buy a coke (old pesos). This was due to the looters stealing billions from the Mexican people.

Instead of overthrowing the looters the Mexican people had an out, they had no weapons and they could cross into America and have a much safer life. This hurts both Mexico and America as Mexico lost some of it’s hardest workers. The gangbangers and welfare frauds also came over from Mexico as they could rape and pillage at will.

The government of Mexico is propped up by the billions sent back by the illegals and by our government having borders that are too open.

The only chance I see to help America and Mexico is to seal the border, deport the people who are not here legally. We also need to arm the Mexican people so they can have a chance against the looters with their armies.

[1rudeboy]

"They couldn't hit an elephant at this distance."
--Major General John Sedgwick, Spotsylvania Court House, killed in action May 9, 1864.

[ilovesarah2012]

Obama Underwrites Offshore Drilling

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.

http://online.wsj.com/article/SB10001424052970203863204574346610120524166.html

[cranked]

Meh....the AnnointedIdiot gave Brazil and PetroBras $2 billion for deep-water drilling in and around the Gulf.... =.=

[thackney]

What about Scotland, Norway, Finland and UK?

Are you claiming the North Sea facilities used only US components and crews?

Dolphin Drilling

KCA Deutag

Maersk Drilling

Northern Offshore

Odfjell Drilling

SeaWell

Stena Drilling

Do these any many other non-US companies sound familiar?

[Dubya-M-DeesWent2SyriaStupid!]

Hillary Clinton and Obama need impeached and removed from office immediately!

[crusty old prospector]

Nope, just Maersk. They must all be the equivalent to Lane Wells and Gearhart.

[DUMBGRUNT]

Do BP,Shell or any major receive loans from the Export-Import Bank?

[thackney]

There are far more experienced and bigger players than you seem to realize. We compete on a global market with real competition.

[houeto]

Let me know if you would like to be on or off the ping list

Right now, I think I'd just like to throw up. This makes me sick.

[crusty old prospector]

They must only work in the Dead Sea, i.e. North Sea.

[houeto]

How about Aker Solutions? They are onsite at the Macondo well as we speak. From their website:

"Aker Solutions is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Solutions comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals and Power Generation.

The parent company in the group is Aker Solutions ASA. Aker Solutions has aggregated annual revenues of approximately NOK 54 billion and has approximately 22 000 employees and 8 500 contract staff in about 30 countries.

Aker Solutions is part of Aker (www.akerasa.com), a group of premier companies with a focus on energy, maritime and marine-resources industries. The Aker companies share a common set of values and long traditions of industrial innovation. As an industrial owner controlling 40.27 percent of the shares in Aker Solutions through Aker Holding AS, Aker ASA takes an active role in the development of Aker Solutions."

[crusty old prospector]

Did Mexico ask Norway’s E-I bank for any dough? I am pulling everyone’s chain as far as pleading ignorance about other multi-national service companies. My point is that Mexico is the FIFTH largest producer of oil in the world (we are third.) Why do they need a loan? Why can’t they just live off of current cash flow?

[FReepaholic]

...an independent federal agency...

What does that mean? Independent of what? If it's a "federal agency" it ain't "independent".

[Nachum]

Right now, I think I'd just like to throw up. This makes me sick.

You aren't alone.

[Hoodat]

U.S. Government Loaned Mexican Government More Than $1 Billion to Drill Oil in Gulf of Mexico

And to pay for it, they slapped an 18% excise fee on all American oil that is extracted from the Gulf. (The Mexican oil company is exempt from paying the 18% tax.)

[1rudeboy]

I am pulling everyone’s chain as far as pleading ignorance about other multi-national service companies. My point is that Mexico is the FIFTH largest producer of oil in the world (we are third.) Why do they need a loan? Why can’t they just live off of current cash flow?

No, you are not. Your central contention is that Ex-Im Bank need not have loaned the money to Pemex in exchange for agreements to hire Americans, use American firms, and buy American equipment, because Pemex would have done so on its own, anyway. "We are the only game in town," and all that. It appears that we are not.

So what game are you playing?

[crusty old prospector]

The game I am playing now is called Clue. Like, get one.

[1rudeboy]

From where I sit, the game you are playing is, "Back Away as Quickly as Possible Before Anyone Else Notices I Have no Clue."

[crusty old prospector]

I’ll repeat the question. Irregardless of whether the Mexicans hire Americans, Norwegians, or Cambodians, they are the FIFTH largest producer of oil in the world. We already take care of the bottom 10% of their population. Why do they or for that matter the Brazilians need a loan? They have printing presses in their countries just like we do.

[thackney]

Deceive yourself if you want.

Dolphin Drilling

DEUTAG is responsible for offshore platforms in the North Sea, Caspian, Angola, and Sakhalin.

Northern Offshore operates drilling units and production units in Asia and Europe and one in the U.K. North Sea.

Odfjell Drilling

SeaWell

Stena Drilling: past and present operations in the North Sea, US Gulf of Mexico, South East Asia, Mediterranean, Caribbean, South America, Australia, North Africa and West Africa.

But hey, keep telling yourself Mexico wouldn't consider going anywhere but the United States. Pretend no other global company will get their business.

PEMEX contracts deepwater EM survey {Norway}
http://www.offshore-mag.com/index/article-display/5474005825/articles/offshore/geology-geophysics/latin-america/2010/07/pemex-contracts_deepwater.html

[1rudeboy]

And I’ll repeat the answer you ignored (comment #6). Ex-Im Bank loaned the money in order to promote American oilfield services firms and oil equipment manufacturers. Nothing would have stopped Pemex from loaning the money from elsewhere, just as nothing would have stopped Pemex from using non-American firms. It really isn’t complicated.

[Rockiette]

Everytime I read about another Obama obomination I get angry but THIS is enough to send Americans over the top!
IMHO, the “President” should be impeached because if this isn’t grounds for it than nothing is! Write your Congress critters and DEMAND he start impeachment proceedings NOW!!!!

[1rudeboy]

Before you start writing members of Congress, I’d suggest a little more study of the issue. You don’t want to appear foolish.

[thackney]

they are the FIFTH largest producer of oil

Down to seventh these days and continuing to trend lower.

[crusty old prospector]

I guess you don’t know how to read or want to impress me with graphics. Like I said before, I am well aware of the companies you spoke of earlier. All fine, upstanding multi-nationals. If Mexico wants to hire them, great. I could care less. I have chosen to only work domestically. It is a bit of a patriotic thing for me.

[Osage Orange]

Personally...if the Ex-Im Bank can make a profit...I'm good with that. And require as part of the loan agreement to make PEMEX use American companies and equipment...is icing on the cake.

[thackney]

I was having trouble keeping up with your quickly changing perspective.

[Rockiette]

I don’t need to study an issue that I’ve been well informed on for decades, may I suggest you educate yourself.

[1rudeboy]

Is that why you didn’t click-through to read the rest of the article?

[crusty old prospector]

Well, in the immortal words of Phil Collins, “I don’t care anymoooeooo.” Buh bye.

[1rudeboy]

I love these threads. Probably the most of all, of all on FR.

[Ben Ficklin]

Back in the old days WSJ was a reliable and informed source. That has changed since Murdoch bought it.

While there are no un-truths in the WSJ article you linked to. it is incomplete and inaccurate.

For their first round of financing covering 2009-2013 Petrobras needed about 30 billion and then they would need more subsequently.

The Brazil Development Bank came in at $14.5 billion, a group of international banks came in with $5.5 billion and finally the China Development Bank with $10 billion. For the $30 billion total thru 2013.

After China comes in, the US has to get in with an equal amount, but the $30 billion has already been raised.

So NSA Jones tells them that the US is in for $10 billion, and please take the this $2 billion now, even though you don't need it, as a commitment of the total $10 billion, which also allows the US to get in on the ground floor.

[prairiebreeze]

Under the 2009 loan agreements, PEMEX agreed to contract with American firms and purchase equipment from American manufacturers in exchange for the money.

And we actually believed them....

LOL!

[itsahoot]

The looters of Mexico want to have the freedom to loot America.

Well they must have had a plan, because that is exactly what they are doing.

[SunkenCiv]

Thanks Nachum.

...more than $1 billion to the Mexican state oil company PEMEX in 2009 to support the company's oil drilling in the southern Gulf of Mexico. The bank has another $1 billion in loans in the pipeline for 2010, unless Congress objects.

[1rudeboy]

It’s pretty easy for a party to a contract to determine whether the other party is satisfying its obligations. I’d like to see some evidence that Pemex breached it, but that’s just me. Believe what you want to believe.

[1rudeboy]

Ex-Im Bank = America = poor lil' ol' me

I see what you did there.