By DANIEL HENNINGER
Charles de Gaulle once wrote off the nation of Brazil in six words: “Brazil is not a serious country.” How much time is left before someone says the same of the United States?
One thing Brazil and the U.S. have in common is the price of oil: It is priced in dollars, and everyone in the world now knows what the price is. Another commonality is that each country has vast oil reserves in waters off their coastlines.
Here we may draw a line in the waves between the serious and the unserious.
Brazil discovered only yesterday (November) that billions of barrels of oil sit in difficult water beneath a swath of the Santos Basin, 180 miles offshore from Rio de Janeiro and Sao Paulo. The U.S. has known for decades that at least 8.5 billion proven barrels of oil sit off its Pacific, Atlantic and Gulf coasts, with the Interior Department estimating 86 billion barrels of undiscovered oil resources.
When Brazil made this find last November, did its legislature announce that, for fear of oil spills hitting Rio’s beaches or altering the climate, it would forgo exploiting these fields?
Of course it didn’t. Guilherme Estrella, director of exploration and production for the Brazilian oil company Petrobras, said, “It’s an extraordinary position for Brazil to be in.” Indeed it is.
At this point in time, is there another country on the face of the earth that would possess the oil and gas reserves held by the United States and refuse to exploit them? Only technical incompetence, as in Mexico, would hold anyone back.
But not us. We won’t drill.
California won’t drill for the estimated 1.3 billion barrels of recoverable oil off its coast because of bad memories of the Santa Barbara oil spill â€“ in 1969.
We won’t drill for the estimated 5.6 billion to 16 billion barrels of oil in the moonscape known as the Arctic National Wildlife Refuge (ANWR) because of â€“ the caribou.
In 1990, George H.W. Bush, calling himself “the environmental president,” signed an order putting virtually all the U.S. outer continental shelf’s oil and gas reserves in the deep freeze. Bill Clinton extended that lockup until 2013. A Clinton veto also threw away the key to ANWR’s oil 13 years ago.
Our waters may hold 60 trillion untapped cubic feet of natural gas. As in Brazil, these are surely conservative estimates.
While Brazilians proudly embrace Petrobras, yelling “We’re Going to Be No. 1,” the U.S.’s Democratic nominee for president, Barack Obama, promises to impose an “excess profits tax” on American oil producers.
We live in a world in which Russia’s Vladimir Putin and Venezuela’s Hugo ChÃ¡vez use their vast oil and gas reserves as instruments of state power. Here, Nancy Pelosi and Harry Reid use their control of Congress to spend a week debating a “climate-change” bill. This they did fresh off their subsidized (and bipartisan) ethanol fiasco.
One may assume that Mr. Putin and the Chinese have noticed the policy obsessions of our political class. While other nations use their oil reserves to attain world status, we give ours up. Why shouldn’t they conclude that, long term, these people can be taken? Nikita Khrushchev said, “We will bury you.” Forget that. We’ll do it ourselves.
Read the rest of this commentary, and see Daniel Henninger’s video at the Wall Street Journal.