With Trump, energy gains new power
Tillerson choice an indication administration to be pro business
Folks in Foggy Bottom no doubt had heart palpitations when President-elect Donald Trump announced last week that he selected Rex Tillerson, the CEO of ExxonMobil, to serve as Secretary of State. No fan of big oil companies, and ExxonMobil in particular, the diplomatic corps’ poor relations reflected the views of President Barack Obama, whose priorities often were at odds with Chairman Rex Tillerson.
Government officials in Washington criticized the Irving-based company for focusing too strongly on oil and gas production instead of renewable energy, maintaining effective relations with Moscow, taking contrary views on climate change, and offending Baghdad by investing in oil opportunities in Kurdistan, after establishing the major interest in the super-giant West Qurna-1 oil field near Basrah.
In most countries, diplomacy and business work together hand-in-glove. British and Canadian cases are exemplars for this symbiotic relationship; they do this so well that it is virtually seamless. But this is not the case for Americans, who periodically hold to values that are antithetical to the promotion of business around the world. Sometimes social values displace political economy imperatives in diplomacy, which often confounds our allies and amuses others.
Thankfully, this strange situation will come to an end when businessman Donald Trump ascends to the White House in January 2017. The State Department transition will be difficult and painful, but it will be rapid and lasting because international business promotion is in the national interest, along with a new politicaldiplomatic-military strategy for foreign policy that enhances domestic and international security. Promoting social values
will not disappear, but business and security will take higher priority.
I arrived at the U.S. Consulate General offices in Basrah in September 2012 to serve as the Senior Oil & Gas Adviser. My diplomatic colleagues had good relations with Shell, BP and other European-based petroleum companies. On the other hand, we had terrible relations with ExxonMobil, and the feeling was mutual. Because I had friendships with ExxonMobil dating back to the early 1980s, it became my mission to assess, repair and promote our relations with this iconic American and global brand which set the standard for other oil companies to follow in Iraq on management, ethics and community relations.
I found that many in ExxonMobil saw the State Department as a business obstacle instead of a business advocate. Someone pointedly asked me what State had done to help them with the many challenges they had in trying to do business with the South Oil Company (Basrah) and the Ministry of Oil (Baghdad). Despite the enduring animus between Irving and Washington, I found there were plenty of things that my colleagues and I could do to help this major petroleum company do business in the challenging Iraqi environment.
After a few meetings, tensions subsided and we developed a rapport, which led to real progress in helping ExxonMobil succeed. From improved payment schedules to a candid conference on Iraq’s failure to make progress with the Combined Seawater Supply Project (to enhance water supplies to better exploit oil fields), we strengthened the relationship between diplomacy and business. It was long overdue.
With Trump’s selection of Tillerson to serve as Secretary of State, Rex has gained a measure of revenge for the poor treatment that he and his company often endured under President Obama and through his diplomatic corps. The incoming president strongly believes that the U.S. government has an important responsibility to advocate for American business around the world, and ExxonMobil is a key business leader. That mandate will be in effect with this choice for Secretary of State, and is further reinforced with nominations of Oklahoma Attorney General Scott Pruitt to serve as EPA Administrator and former Texas Gov. Rick Perry to head the Department of Energy.
Moreover, Trump wisely understands that all forms of energy are important to his plan to benefit consumers and business. Likewise, on the international stage, having an effective relationship with a global powerhouse like ExxonMobil will only enhance U.S. diplomacy and bolster American economic power, thus strengthening military power to preserve the peace. Who knows, diplomats might actually find this to be enjoyable and worthwhile.
After a 30-year military career, Núñez served as a senior adviser in Iraq between 2007 and 2013, most of it with the U.S. Department of State.