The law? Why should Barry obey the law?

iVillage Member
Registered: 06-07-2010
The law? Why should Barry obey the law?
11
Tue, 06-22-2010 - 10:16pm

Interior Secretary Salazar Seeks to Reimpose Drilling Moratorium
WASHINGTON -- Interior Secretary Ken Salazar says he will issue a new order imposing a moratorium on deepwater oil drilling after a federal judge struck down the existing one.

Salazar said in a statement Tuesday that the new order will contain additional information making clear why the six-month drilling pause was necessary in the aftermath of the Gulf oil spill. The judge in New Orleans who struck down the moratorium earlier Tuesday complained there was insufficient justification for it.

"The decision to impose a moratorium on deepwater drilling was and is the right decision," Salazar said, adding that the moratorium is needed to protect the communities and the environment of the Gulf Coast that the Justice Department is appealing Tuesday's court ruling.

"We see clear evidence every day, as oil spills from BP's well, of the need for a pause on deepwater drilling," Salazar continued. "That evidence mounts as BP continues to be unable to stop its blowout, notwithstanding the huge efforts and help from the federal scientific team and most major oil companies operating in the Gulf of Mexico."

Salazar pointed to indications of inadequate safety precautions by industry on deepwater wells. "Based on this ever-growing evidence, I will issue a new order in the coming days that eliminates any doubt that a moratorium is needed, appropriate, and within our authorities."

White House spokesman Robert Gibbs said President Obama believes that until investigations can determine why the spill happened, continued deepwater drilling exposes workers and the environment to "a danger that the president does not believe we can afford."

Several companies that ferry people and supplies and provide other services to offshore rigs argued that the moratorium was arbitrarily imposed after the April 20 explosion that killed 11 workers and blew out a well 5,000 feet underwater. It has spewed anywhere from 67 million to 127 million gallons of oil.

U.S. District Judge Martin Feldman, who was appointed by President Ronald Reagan and has owned stock in a number of petroleum-related companies, sided with the plaintiffs.

"If some drilling equipment parts are flawed, is it rational to say all are?" he asked. "Are all airplanes a danger because one was? All oil tankers like Exxon Valdez? All trains? All mines? That sort of thinking seems heavy-handed, and rather overbearing."

He also warned that the shutdown would have an "immeasurable effect" on the industry, the local economy and the U.S. energy supply.

http://www.foxnews.com/us/2010/06/22/interior-secretary-seeks-renew-drilling-stay/

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iVillage Member
Registered: 02-28-2010
Tue, 06-22-2010 - 10:30pm

U.S. District Judge Martin Feldman, who was appointed by President Ronald Reagan and has owned stock in a number of petroleum-related companies, sided with the plaintiffs.


No surprise there!!!


Can hardly wait until Kagan gets confirmed!!!


iVillage Member
Registered: 06-07-2010
Tue, 06-22-2010 - 10:35pm

Brazil sees silver lining in BP spill: more rigs

* Brazil may pick up rigs idled on moratorium

* Could help the country's offshore campaign

* Deep water rigs in tight supply around the world

By Brian Ellsworth and Joshua Schneyer

RIO DE JANEIRO, June 11 (Reuters) - Brazil could benefit
from the BP Gulf of Mexico spill as a U.S. moratorium on
offshore drilling boosts available rigs for the country's deep
water oil exploration program.

Even as an ecological catastrophe makes the future of U.S.
offshore drilling less certain, Brazil is plowing ahead with a
$220 billion five-year plan to tap oil fields even deeper than
BP's (BP.L) ill-fated Gulf well, which is still leaking crude.

With an estimated 35 rigs idled in the Gulf of Mexico,
Brazil is already receiving inquiries from companies looking to
move their rigs here, where vast discoveries in recent years
may soon turn the country into a major crude exporter.

"What is bad for some may be good for others," said
Fernando Martins, Latin America Vice President for GE Oil and
Gas, which provides services to drillers in Brazil.

"Since operators are shutting down at least temporarily in
the U.S. Gulf, some companies are planning to move their rigs
to Brazil now," he said, without offering details.

The spill has temporarily halted new drilling in the Gulf
of Mexico and Alaska, and has spurred Norway, which 40 years
ago pioneered offshore drilling, to halt new licensing for now.

Brazil's state oil company Petrobras (PETR4.SA) (PBR.N),
which already produces around a quarter of the world's deep
water oil, could be an obvious candidate to take newly
available rigs.

Petrobras declined to comment on the issue.

But Mauricio Tolmasquim, a top Brazilian government energy
advisor, said this week that he expected the Gulf spill to
benefit Petrobras by making more deep water rigs available --
adding that cost savings could be offset by higher insurance
premiums for drilling operations.

Brazilian officials, including government leaders and
Petrobras executives, have said Brazil has no intention of
slowing its offshore development as a result of the spill.

STRONG RIG DEMAND

Analysts say oil companies operating in the Gulf of Mexico
-- most notably BP and Chevron (CVX.N) -- may have to decide
between paying standby fees while the rigs are idle, moving
them to other projects, or canceling the contracts.

The U.S. moratorium may last longer than six months because
of U.S. sentiment against offshore drilling and plans for an
overhaul of safety standards.

This could provide further incentives to move rigs to
Brazil or West Africa, which together with the Gulf of Mexico
have over the last five years been the principal areas of deep
water exploration.

"The largest question investors should ask is whether the
moratorium is lifted after six months or will there be a much
greater delay," said UBS analysts in a research note.

Production from deep waters has doubled over the last
decade to reach 9 percent of the world's total as easy-to-reach
onshore oil fields dry up, according to industry estimates,
boosting demand for deep water rigs beyond the pace of
production.

This rapid deep water growth may leave oil majors unwilling
to cancel rig contracts, despite the expense of keeping them
idle, for fear of losing rigs they need down the road.

"If I'm Chevron, I know I've got Petrobras looking over my
shoulder, and if I cancel that rig I'm taking the chance that I
might not get it back," said Kurt Hallead, an analyst with RBC
Capital Markets, who covers oil services.

Petrobras, which pumps the vast majority of Brazil's crude,
said in its 2009 business plan that it would lease eight deep
water drilling rigs this year and a total of 14 in 2011 and
2012.

By 2013 it will begin receiving the first of 28 new rigs to
be built in Brazil by local shipyards, giving it a fleet of
more than 60 deep water rigs by 2017.

UBS estimates that there are currently 23 ultra-deep water
drilling rigs in the Gulf of Mexico. This type of rig could be
attractive to Petrobras or other major oil companies operating
offshore Brazil.

"Who could benefit from the moratorium? Petrobras ...
should benefit as some U.S. (Gulf of Mexico) rigs begin looking
for new markets at a time when Petrobras is tendering for a
large number of deepwater rigs," UBS said.

http://www.reuters.com/article/idUSN1115006620100611

iVillage Member
Registered: 06-07-2010
Tue, 06-22-2010 - 10:36pm

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

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.

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

iVillage Member
Registered: 06-07-2010
Tue, 06-22-2010 - 10:46pm

Good news: Obama backs off-shore drilling! Update: A Soros connection?

This should be good news for the Drill Here, Drill Now contingent, right? The Obama administration has committed $2 billion in loans to exploit offshore oil resources in hopes of extracting a major new source of petroleum. Despite the White House pursuit of a cap-and-trade scheme to limit the use of fossil fuels, the new field could help bring lower energy prices, and their support of this exploration of American resources shows their flexibility on energy policy.

Wait — did I say American resources? That’s true, but only in the South American sense (via Gateway Pundit):

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 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.

This seems odd in several ways. For this particular administration to offer billions in loans to a foreign oil company makes a mockery of a number of Obama talking points. First, why does Petrobas need loan guarantees to pursue its exploration? As the WSJ notes, it is a very large corporation, which should have the resources to get to the oil on its own. Obama, who has ripped American corporations for their supposed subsidies in American tax policy, now wants to use an empty Treasury to give cash to a Brazilian oil company.

Next, Obama keeps insisting that we cut back on our use of fossil fuels. He and his allies in Congress have blocked exploration of American oil fields off both shores for decades, and Obama insists that we would only keep enabling our oil addiction if we started drilling off of our own coasts. Yet he has no trouble committing $2,000,000,000 of our money for Brazil to drill off its own coast.

Here’s a proposal: Let American companies do what Obama is paying Brazilian companies to do — drill offshore. We won’t have to pay them money or float them any loans to do it, either. In fact, we will make money off of the leases, while the effort creates hundreds of thousands of high-paying jobs in the US, creating more tax revenue rather than emptying out the Treasury.

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UPDATE: Who else besides Obama has taken an interest in Petrobras? Hmmmmmm:

His New York-based hedge-fund firm, Soros Fund Management LLC, sold 22 million U.S.-listed common shares of Petrobras, as the Brazilian oil company is known, according to a filing today with the U.S. Securities and Exchange Commission. Soros bought 5.8 million of the company’s U.S.-traded preferred shares.

Soros is taking advantage of the spread between the two types of U.S.-listed Petrobras shares, said Luis Maizel, president of LM Capital Group LLC, which manages about $4 billion. The common shares were 21 percent more expensive than preferred today, according to data compiled by Bloomberg. …

Petrobras preferred shares have also a 10 percent additional dividend, said William Landers, a senior portfolio manager for Latin America at Blackrock Inc.

“Given that there will most likely never be a change in control in the company, I see no reason to pay a higher price for the common shares.” Brazil’s government controls Petrobras and has a majority stake of voting shares.

This story is from last Friday. Is it a coincidence that Obama backer George Soros repositioned himself in Petrobras to get dividends just a few days before Obama committed $2 billion in loans and guarantees for Petrobras’ offshore operations? Hmmmmmmmmmm.

http://hotair.com/archives/2009/08/18/good-news-obama-backs-off-shore-drilling/

iVillage Member
Registered: 02-14-2010
Tue, 06-22-2010 - 10:51pm
"Brazil sees silver lining in BP spill: more rigs

* Brazil may pick up rigs idled on moratorium


* Could help the country's offshore campaign"


iVillage Member
Registered: 09-10-2009
Tue, 06-22-2010 - 11:19pm

U.S. District Judge Martin Feldman, who was appointed by President Ronald Reagan and has owned stock in a number of petroleum-related companies, sided with the plaintiffs.


No surprise there!!!


The key word above is past tense.

iVillage Member
Registered: 06-07-2010
Wed, 06-23-2010 - 12:51pm
Too many "coincidences" for all this to be a "coincidence."
iVillage Member
Registered: 04-04-2001
Wed, 06-23-2010 - 4:19pm

Obama - and many liberals -

iVillage Member
Registered: 02-14-2010
Wed, 06-23-2010 - 9:13pm

"U.S. District Judge Martin Feldman, who was appointed by President Ronald Reagan and has owned stock in a number of petroleum-related companies, sided with the plaintiffs."


iVillage Member
Registered: 06-07-2010
Wed, 06-23-2010 - 11:25pm
Um...didn't Barry also get huge amounts of campaign money from BP?

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