Something stinks in the Gulf of Mexico — and it’s not oil.
Obama exploited the BP oil disaster to impose a moratorium on deepwater drilling in the Gulf of Mexico. But now he’s backing the U.S. Export-Import Bank’s plan to guarantee $1 billion in loans to PEMEX, the Mexican state oil company, for its oil drilling in – where? — the Gulf of Mexico!
FoxNews.com reports on September 11, 2010:
[The Export-Import Bank], which is the official American export credit agency, loaned more than $1 billion to PEMEX in 2009 — when the company was the bank’s largest borrower — in support of its drilling activities. That year, the bank also guaranteed two loans totaling $300 million made by a commercial lender.
The latest request comes during a drilling moratorium that was first imposed by Obama in May to find out what was the cause behind the April 20 Deepwater Horizon oil rig explosion that killed 11 workers and led to 206 million gallons of oil spewing from BP’s undersea well.
After a federal court struck down the ban amid complaints that it threatened thousands of jobs in the offshore oil industry, the Obama administration issued a new moratorium in July on most deep-water drilling activities that is in effect until Nov. 30.
The Export-Import Bank said the moratorium doesn’t affect its pending deal with PEMEX. “None of these projects involve deepwater drilling,” bank spokeswoman Maura Policelli told FoxNews.com in an e-mail.
The $1 billion deal is awaiting approval by the bank’s board, which is expected to reach a final decision by Sept. 30, the end of the fiscal year. Because the bank is an independent agency, the deal is not subject to congressional approval.
Since 1998, the bank has guaranteed $7.7 billion in loans that U.S. and international banks have made to PEMEX. The bank agreed to make the direct loan of $1.05 billion to PEMEX last year in the wake of the financial crisis when commercial lenders tightened their lending.
…The 2010 request will support multiple PEMEX projects, including offshore drilling and a $200 million facility to finance sales to U.S. small businesses. By law, the bank’s financing is “directly tied to the export of goods and services produced or provided by American workers,” Policelli said.
H/t beloved fellow Tina.