David Feldman

Three Things to Know in Energy – 7/10/2017

Blog Post created by David Feldman Champion on Jul 10, 2017

1. Former CEO of Exxon Mobil, Rex Tillerson, receives lifetime achievement award.


Current Secretary of State Rex Tillerson received a lifetime achievement award from the World Petroleum Congress in Istanbul, Turkey yesterday (Sunday).  The former CEO of Exxon Mobil is now a member of President Trump’s Cabinet, but Tillerson said he found out he would receive the award before he was chosen by Trump to lead the State Department, and joked that he thought at the time he would be accepting it in the middle of his retirement.


“It didn’t quite work out that way,” Tillerson said, according to ABC News.


Tillerson graciously accepted a lifetime achievement award and said, "I miss all of you, I miss you as colleagues, I miss you as partners, I miss you as competitors."


2. India buys U.S. crude oil for the first time.


India, the world's third-largest oil importer, has never imported oil from the U.S…. until now. 


For the first time ever, Indian Oil Corp bought a cargo of U.S. oil that will be delivered in October of this year.  IOC bought 1.6M barrels of U.S. Mars crude, a heavy, high-sulfur grade, and 400,000 barrels of Western Canadian Select. 


IOC's head of finance, A.K. Sharma, told Reuters that the cargo was priced "very competitively" and, "So long as the prices remain competitive, we will buy more of the U.S. crude,"


This first purchase of U.S. crude oil by India comes shortly after Indian Prime Minister Narendra Modi's visited the U.S. in June.  At the conclusion of their meeting, President Donald Trump said the U.S. looked forward to exporting more energy products to India.


3. Former Energy Secretary disagrees with Trump on oil reserve.


President Obama’s Energy Secretary Ernest Moniz publicly disagreed with the Trump administration's current policy on the federal government's oil reserve, stating the new administration should improve on its usefulness.


Moniz led the Department of Energy from 2013 to 2017 and argued in a Houston Chronicle op-ed last week that the Strategic Petroleum Reserve (SPR) should not be dramatically reduced, as President Trump’s budget proposes.


The former Energy chief maintained that while the United States’ oil and energy systems are different from four decades ago when the SPR was established, it’s still important and serves a vital purpose.