Thanks to government red tape, a new oil refinery hasn’t been built in the United States since 1976. Even though we’re still in the grips of a nasty national recession, with spiking energy prices exacerbating the problem, our federal government continues to stand in the way of domestic development of energy resources such as oil, coal and natural gas.
But that apparently isn’t stopping the federal government from supporting other countries developing their resources. Obama told Brazil that he was looking forward to America being a customer for their oil. Now comes news that the federal government is loaning billions to the construction of a new refinery…in Colombia.
(CNSNews.com) – The U.S. Export-Import Bank, an independent agency of the federal government, is now planning a $2.84-billion loan for a massive project to expand and upgrade an oil refinery–in Cartagena, Colombia.
The money would go to Reficar, a wholly owned subsidiary of Ecopetrol, the Colombian national oil company.
“This is part of a $5.18 billion refinery and upgrade project in Cartagena, Colombia supplying petroleum products to the domestic and export markets,” the Export-Import Bank said in a statement.
The U.S. government-controlled bank says the $2.84-billion in financing it plans to undertake will be the second largest project it has ever done. The largest was $3 billion in financing for a liquid natural gas project in Papua New Guinea.
The statement released by the bank said that on April 7 the bank’s presidentially-appointed board of directors had “voted to grant preliminary approval for a $2.84 billion direct loan/loan guarantee” for the Colombian refinery project.
So the government stands in the way of private development of our fossil fuel resources here in the US, but has the taxpayers subsidizing development in other countries.
Meanwhile, we have a $1.5 trillion budget deficit and a national debt that is closing in on $15 trillion.