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Obama lays out plans for oil trade with Brazil; API comments

Hydrocarbon Engineering,

US President Barack Obama has spoken of his country’s desire to secure more of its oil from Brazil in future after talks with his counterpart, President Dilma Rousseff. The announcement came in Brasilia on March 19 at the start of a two-day visit to Latin America's biggest country.

‘I have told her that the United States wants to be a major customer, which can be a win-win for both our countries,’ Obama said.

A good deal of revenue raised from deals to sell oil to the US and other countries could go towards infrastructure improvements as the 2014 World Cup and 2016 Olympics in Rio de Janeiro approach.

Brazil possesses some of the world's biggest offshore oil reserves in the pre salt area off the south east coast. Ms Rousseff has expressed a desire to export a significant amount of oil from the fields as the country concentrates on developing renewable sources of energy such as hydroelectric power and ethanol for use domestically.

API President and CEO Jack Gerard commented on another component of the president’s proposed trade for oil, stating that the administration’s offer to exchange batteries for oil from Brazil reflects its inadequate and illogical energy policy:

‘It is beyond comprehension the administration would encourage trade for Brazilian oil while obstructing US oil and natural gas development, eliminating related jobs here at home and decreasing oil and natural gas revenues to the US Treasury when the government is trillions of dollars in debt. The message from the White House to America’s oil and natural gas workers: we’re going to outsource your job.

‘The administration is missing the obvious: what makes sense for Brazil also makes sense for the United States. Like every other nation, we should be developing our own oil and natural gas resources. It’s good for energy security, good for the economy, good for jobs and it will help bring down our deficit.

‘The administration says it supports more oil and natural gas development here in the United States, then at every turn discourages it. And today, the White House is making a deal with Brazil for the oil it is not allowing companies to produce here. There’s nothing wrong with buying Brazilian oil, but there’s a big problem when we’re forced to because we’re held back from producing our own.’

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