Donald Trump's Secretary Of State Pick Rex Tillerson Forged Ties With Putin Over Decades

December 14, 2016

Dec 14: When ExxonMobil chief executive Rex Tillerson showed up in June at the annual St. Petersburg international economic forum that is dubbed Russia's Davos, he was asked about the impact international sanctions on Russia were having on his company, which had abandoned ambitious drilling plans there.

Rex

"It's a question for the government - if you find anyone from the U.S. government who's willing to answer this question," he replied to laughter from the audience of Western executives, who had been lavishing praise on their Russian hosts.

It was the first time in three years that Tillerson or most other chief executives had attended the confab, for the moment laying aside friction over Russia's abrupt annexation of Crimea and its backing of violent separatist forces in eastern Ukraine. Back in Washington, the State Department was not amused. State Department spokesman John Kirby commented that "most American companies understand" that taking part in the forum "sends the wrong message about the acceptability of Russia's actions."

Six months later, Tillerson's relationships with autocrats remain a source of friction after his surprise appointment by President-elect Donald Trump to be secretary of state. The ExxonMobil chief's ties to Russia have alarmed hawks in Congress, who vow to scrutinize Tillerson's good working relationship with President Putin and the latter's longtime confidante Igor Sechin, the chairman of the Russian petroleum giant Rosneft.

With his nomination, the 64-year-old Tillerson has been thrust into the long-standing U.S. foreign-policy divide separating those who value pragmatism and dealmaking, and those who attach greater importance to principles, human rights and democracy. This is a divide that cuts across both parties.

Should he be confirmed, Tillerson will no longer answer to the more than 93,000 shareholders of ExxonMobil but primarily to a single shareholder named Trump. And he will draw on views refined in industry, not diplomacy.

To fans of Tillerson, his relationship with Putin is a sign of his pragmatism, seeking advantage for his company with a blunt, straightforward style that has won respect abroad. Speaking to students from the Texas Tech business school last year, Tillerson said the reason "why I've been able to gain Vladimir Putin's trust" is "because throughout my career I've wanted people to view me as an honest person."

To his critics, however, Tillerson and ExxonMobil come across as arrogant and indifferent to Russia's record in Ukraine or Putin's harsh suppression of domestic opposition. The oil giant's vast enterprise spanning six continents and more than 50 nations has embraced a varied cast of national leaders, including the Saudi oil ministers, Equatorial Guinea's corrupt Teodoro Obiang Nguema, the autocratic government of Kazakhstan and the emir of Qatar.

These contrary views are in some ways connected. Edward Verona, who worked for ExxonMobil for two years and spent several more working in Moscow, said one reason Tillerson was respected in Moscow was because of the way the company dealt with Venezuela's then-president, the voluble Hugo Chávez. In 2007, Chávez had wanted to rewrite contract terms for companies operating in the country's vast, oil-rich Orinoco belt. Exxon said no, abandoning 2 percent of its worldwide reserves and winning arbitration court orders to freeze Venezuelan assets.

In the same way, Exxon exited Nigeria's Niger Delta after insurgents disputed operations there.

"You have to be willing to say, 'No, we aren't going to do it that way, we are going to do it this way; if we can't do it this way, we won't be here,' " Tillerson said about the company's strategy of keeping its Nigerian exploration to offshore areas, where it was safer.

"Rex Tillerson gained the respect of Russians, particularly Sechin and Putin, because he was prepared to stand up and push back when he felt his company was being treated unfairly," said Verona, now a senior adviser to McLarty Associates.

The fight coincided with efforts by Russia's Gazprom, a state-owned company, to horn its way into a Sakhalin Island project off eastern Russia that Tillerson had helped negotiate years earlier. ExxonMobil was able to navigate the dispute with help from Putin and Sechin. The project, built in extremely harsh conditions, remains one of the company's most lucrative, Tillerson has said.

Some of Exxon's perceived arrogance is rooted in the company's history as the largest of the corporations split off from the Standard Oil Trust, the enterprise built by John D. Rockefeller.

Tillerson was born in Wichita Falls, Texas, the son of a Boy Scout administrator. He still lists the rank of Eagle Scout on his resume; and has remained active in the organization. In 2012, he was instrumental in pushing the Boy Scouts board to admit openly gay youths.

His experience as a scout fit well into the company, which insisted on rules that were more detailed than most other oil companies.

In 1997, Exxon sent Tillerson, then a promising executive who had been in Yemen, to Moscow to "pick up the relationship and repair it," Tillerson later recalled. His predecessor had been kicked out of the country. Tillerson met six different prime ministers over the course of 14 months.

The last of those was Putin.

Nearly 15 years later in Sochi, Putin provided the blessing for what could become Exxon's largest Russian deal, a joint exploration agreement with Rosneft covering almost 190 million acres, almost halfway across the Arctic shoreline and covering nine time zones.

Speaking later at Texas Tech, Tillerson cited the Boy Scout motto and urged students to have honor and integrity.

"Those words mean a lot to me," Tillerson said. "And I can tell you they mean a lot in any culture." He added that "integrity is recognized by every government, every leader. It's the most valuable asset you have, your personal integrity."

But while Tillerson preaches the value of honesty and integrity, ExxonMobil has not shied away from doing what is good for its bottom line, which has made environmental groups and others suspicious of its aims.

While Tillerson has acknowledged human involvement in the warming of the globe and backed a carbon tax to deal with it, the oil giant has continued to fund groups such as the American Legislative Exchange Council, whose leading members have cast doubt on climate change or its urgency. The relationship contrasted with that of Shell, which also acknowledges climate change but dropped its membership of ALEC last year citing differences over the issue.

The company is also in the midst of a bitter fight with the attorneys general of New York and Massachusetts and with more than a dozen nongovernmental organizations that are looking at whether the oil giant failed to disclose what it knew 40 years ago about the damage fossil fuels were doing to the Earth's climate. The attorneys general issued broad subpoenas for internal Exxon documents, and the NGOs have encouraged them to consider bringing a fraud case similar to the one that extracted billions of dollars from tobacco companies years ago.

ExxonMobil has fought back, going to a Texas federal court near its headquarters and winning the judge's highly unusual backing for discovery on the attorneys general, including with regard to internal emails, to determine whether they were acting "in good faith."

The company also is scrutinizing individuals and organizations. The day after the presidential election, for example, the company hand-delivered a subpoena to Carroll Muffett, the head of the Center for International Environmental Law, a nonprofit organization focused on environmental and human rights issues.

"The subpoena is in fact a fishing expedition that goes far beyond any issue arguably before the Texas court," Muffett said in an email. "It is clear that Exxon is trying to leverage this case, outrageous as it is, to intimidate and silence its critics."

Another important piece of Tillerson's background is his engineering background. ExxonMobil has been widely seen as a place with a higher "EQ," for engineering quotient, than IQ, or intelligence quotient.

Even the EQ has failed from time to time. The Exxon Valdez oil-tanker accident spilled crude off the pristine coast of Alaska in 1989, and more recently company pipelines leaked in Montana's Yellowstone River and in Mayflower, Arkansas. The company has taken tough legal strategies in those instances, too, and it litigated the Valdez spill for 20 years.

Still, Tillerson draws on that engineering construct and has applied it to the problem of climate change.

"It's an engineering problem, and it has engineering solutions," he said at an event sponsored by the Council on Foreign Relations in 2012.

As he looked back on his career during the Texas Tech event, Tillerson said that he views the company's oil and gas operation on Sakhalin Island - an area beset by poverty, seismic instability, long icebound winters and 100-foot waves in the summer - as one of his crowning achievements.

It might look easy compared to being secretary of state.

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Agencies
April 20,2020

Hong Kong, Apr 20: Oil prices collapsed to more than two-decade lows Monday as traders grow concerned that storage facilities are reaching their limits, while equities were mixed, with some support coming from signs that the coronavirus may have peaked in Europe and the United States.

US crude benchmark West Texas Intermediate briefly plunged almost 20 percent to below 15 -- its lowest since 1999 -- as stockpiles continue to build owing to a crash in demand caused by the COVID-19 pandemic.

Analysts said this month's agreement between top producers to slash output by 10 million barrels a day was having little impact on the oil crisis because of lockdowns and travel restrictions that are keeping billions of people at home.

WTI was hit particularly hard as its main US storage facilities in Cushing, Oklahoma, were filling up.

ANZ said "crude oil prices remained under pressure, as projections of weaker demand weigh on sentiment".

"Despite the OPEC+ alliance agreeing to an unprecedented cut in output, the physical market is awash with oil," it said, referring to the Organization of the Petroleum Exporting Countries and non-OPEC partners.

And AxiCorp's Stephen Innes added: "It's a dump at all cost as no one... wants delivery of oil, with Cushing storage facilities filling by the minute.

"It hasn't taken long for the market to recognise that the OPEC+ deal will not, in its present form, be enough to balance oil markets." Stock traders were in slightly more buoyant mood as governments start to consider how and when to ease lockdowns that have crippled the global economy.

Italy, Spain, France and Britain reported drops in daily death tolls and slowing infection rates.

"We are scoring points against the epidemic," said Prime Minister Edouard Philippe, while insisting "we are not out of the health crisis yet".

Meanwhile, in the US, Andrew Cuomo, governor of badly hit New York state, said the disease was "on the descent", though he cautioned it was "no time to get cocky".

Mounting evidence suggests that the lockdowns and social distancing are slowing the spread of the virus.

That has intensified planning in many countries to begin loosening curbs on movement and easing the crushing pressure on national economies.

Adding to the sense of hope was a report indicating promising research on a drug to treat coronavirus.

Hong Kong, Shanghai and Seoul were each up 0.1 percent, while Wellington added 0.4 percent.

However, Tokyo went into the break 0.9 percent lower, while Sydney and Manila dropped one percent apiece. There were also losses in Taipei, Singapore and Jakarta.

"The longer investors have to contemplate future economic issues while they wait for more countries to be on the downward slope of the pandemic curve, the more scope there is of risk assets pricing in a difficult future," Chris Iggo, of AXA Investment Managers UK, said.

Investors are keeping an eye on Washington, where Congress and the White House are working towards a 450 billion economic relief plan for small business to add to the trillions already pledged to support the economy.

Big-name companies including IBM, Netflix and Coca-Cola are due to deliver their earnings reports.

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News Network
June 4,2020

Jun 4: A malaria drug President Donald Trump took to try to prevent COVID-19 proved ineffective for that in the first large, high-quality study to test it in people in close contact with someone with the disease.

Results published Wednesday by the New England Journal of Medicine show that hydroxychloroquine was no better than placebo pills at preventing illness from the coronavirus.

The drug did not seem to cause serious harm, though -- about 40% on it had side effects, mostly mild stomach problems.

 “We were disappointed. We would have liked for this to work,” said the study leader, Dr. David Boulware, an infectious disease specialist at the University of Minnesota.

“But our objective was to answer the question and to conduct a high-quality study,” because the evidence on the drug so far has been inconclusive, he said.

Hydroxychloroquine and a similar drug, chloroquine, have been the subject of much debate since Trump started promoting them in March.

Hydroxychloroquine has long been used for malaria, lupus, and rheumatoid arthritis, but no large studies have shown it or chloroquine to be safe or effective for much sicker patients with coronavirus, and some studies have suggested the drugs may do harm.

Trump took a two-week course of hydroxychloroquine, along with zinc and Vitamin D, after two staffers tested positive for COVID-19, and had no ill effects, according to results of his latest physical released by his doctor Wednesday.

Federal regulators have warned against hydroxychloroquine's use except in hospitals and formal studies because of the risk of side effects, especially heart rhythm problems.

Boulware's study involved 821 people in the United States and Canada living with someone diagnosed with COVID-19 or at high risk of getting it because of their job -- doctors, nurses, ambulance workers who had significant exposure to a sick patient while not wearing full protective gear.

They were randomly assigned to get either the nutrient folate as a placebo or hydroxychloroquine for five days, starting within four days of their exposure. Neither they nor others involved in the research knew who was getting which pills.

After 14 days in the study, 12 per cent on the drug developed COVID-19 symptoms versus 14 per cent in the placebo group, but the difference is so small it could have occurred by chance, Boulware said.

“There's basically no effect. It does not prevent infection,” he said of the drug. Even if it were to give some slim advantage, “we'd want a much larger effect” to justify its use and risk of side effects for preventing illness, he said.

Results were no different among a subgroup of participants who were taking zinc or vitamin C, which some people believe might help make hydroxychloroquine more effective or fight the coronavirus.

There are some big caveats: The study enrolled people through the Internet and social media, relying on them to report their own symptoms rather than having them tracked in a formal way by doctors.

Participants were not all tested for the coronavirus but were diagnosed as COVID-19 cases based on symptoms in many cases. And not all took their medicines as directed.

The results “are more provocative than definitive,” and the drug may yet have prevention benefits if tried sooner or in a different way, Dr. Myron Cohen of the University of North Carolina at Chapel Hill wrote in a commentary in the journal.

Others were glad to see a study that had a comparison group and good scientific methods after so many weaker reports on hydroxychloroquine.

“This fits with everything else we've seen so far which suggests that it's not beneficial," said Dr. Peter Bach, director of a health policy center at Memorial Sloan Kettering Cancer Center in New York.

This study was in younger relatively healthy people, but the results “would make me very discouraged about trying to use this in older people” who are most vulnerable to serious illness from the coronavirus, Bach said.

“If it does work, it doesn't work very well.” Dr. Dan Culver, a lung specialist at the Cleveland Clinic, said there's still a chance that giving the drug sooner than four days after someone's exposure to the virus may help prevent illness.

But the study “takes 'home run' off the table” as far as hopes for the drug, he said.

The study was mostly funded by David Baszucki, founder of Roblox, a California-based game software company, and other private donors and the Minnesota university.

Boulware also is leading a study testing hydroxychloroquine for treating COVID-19. The study is finished and results are being analyzed now.

On Tuesday, the journal Lancet posted an “expression of concern” about a study it published earlier this month of nearly 15,000 COVID-19 patients on the malaria drugs that tied their use to a higher risk of dying in the hospital or developing a heartbeat problem.

Scientists have raised serious questions about the database used for that study, and its authors have launched an independent audit.

That work had a big impact: the World Health Organization suspended use of hydroxychloroquine in a study it is leading, and French officials stopped the drug's use in hospitals. On Wednesday, the WHO said experts who reviewed safety information decided that its study could resume.

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Agencies
July 7,2020

Washington, Jul 7: US Secretary of State Mike Pompeo on Monday (local time) confirmed that the White House is "looking at" banning the Chinese social media apps including TikTok.

"With respect to Chinese apps on people's cell phones, I can assure you the United States will get this one right too. I don't want to get out in front of the President [Donald Trump], but it's something we're looking at," Pompeo was quoted by CNN during an interview with Fox News.

He said people should only download the app, "if you want your private information in the hands of the Chinese Communist Party."

Responding to his comments, a TikTok spokesperson said, "TikTok is led by an American CEO, with hundreds of employees and key leaders across safety, security, product and public policy here in the US."

"We have no higher priority than promoting a safe and secure app experience for our users.  We have never provided user data to the Chinese government, nor would we do so if asked," the spokesperson added.

The US politicians have repeatedly criticised TikTok, owned by Beijing-based startup ByteDance, of being a threat to national security because of its ties to China.

Recently, India banned 59 Chinese apps including TikTok following a violent standoff with Chinese troops. This move was lauded by the US officials.

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