President Obama Supports Oil Production -- in Brazil

The most remarkable event this week was President Barack Obama endorsement of more oil production—in Brazil.  In a speech to CEOs in Brasilia, Obama said:

By some estimates, the oil you recently discovered off the shores of Brazil could amount to twice the reserves we have in the United States.  We want to work with you.  We want to help with technology and support to develop these oil reserves safely, and when you’re ready to start selling, we want to be one of your best customers.

I’m all for more oil production in Brazil, but what’s good for Brazil would also be good for the United States.  Were the federal government to open some of America’s vast untapped offshore and Alaskan oil resources, it would lower our trade deficit by hundreds of billions of dollars, provide billions of dollars in royalties to the federal treasury, create hundreds of thousands of high-paying jobs not subsidized by taxpayer dollars, and contribute significantly to our long-term prosperity.  Given the economy’s current dismal long-term prospects, continuing to lock up our resources is detestable.

President Obama’s remarks in Brazil show that he understands this.  He clearly thinks prosperity is good for Brazil.  But it is something that he is working mightily to deny to Americans.  He and his administration have adopted policies that they know will reduce oil and coal production, raise energy prices, and make Americans poorer.  As the President said when gas prices reached $4 a gallon in the summer of 2008 when he was running for President, the problem wasn’t the price, but that prices had risen too suddenly. In fact, the Administration is full of senior officials who are on record supporting much higher gasoline and electricity prices, starting with Energy Secretary Steven Chu.