U.S. Government Loaned Mexican Government More Than $1 Billion to Drill Oil in Gulf of Mexico Last Year

The U.S. Export-Import Bank, an independent federal agency, loaned more than $1 billion to the Mexican state oil company PEMEX in 2009 to support the company’s oil drilling in the southern Gulf of Mexico. The bank has another $1 billion in loans in the pipeline for 2010, unless Congress objects. On May 27, after the British Petroleum oil spill, President Obama imposed a moratorium on U.S. deepwater drilling in the Gulf, effecting 33 deepwater drilling rigs in the region. PEMEX was the Export-Import Bank’s largest borrower in 2009 and has borrowed $8.3 billion from the U.S. federal government since 1998. Under the 2009 loan agreements, PEMEX agreed to contract with American firms and purchase equipment from American manufacturers in exchange for the money...more