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RICK PERRY IS ON A MISSION TO KEEP OIL PRICES LOW: Energy Secretary Rick Perry begins a mission on Monday to quell the rise of oil prices before sanctions kick in for Iran in November.

Perry is meeting with both the energy ministers of Saudi Arabia and Russia as the Trump administration tries to dissuade the top oil producers from cutting supply and generating higher fuel prices ahead of the sanctions, according to Reuters.

Perry was seen meeting informally with Saudi energy minister Khalid al-Falih on Saturday, when they were introduced, along with Exxon Mobil CEO Darren Woods, at a Texas A&M football game in Texas. Administration sources say Perry will meet al-Falih and other Saudi officials on Monday in Washington to discuss oil production in light of Iran.

Perry then sets off for Moscow on Thursday to meet with non-OPEC member Russia to discuss keeping production high amid the sanctions.

OPEC nations and Russia have forced a pact over the last few years to drive up the price of oil by coordinating strategic cuts to their oil production. In there most recent decision, they decided to keep production high due to increased global demand and very little excess supply on the market.

Russia and the U.S. have not met regularly to discuss energy issues since 2014, following the invasion of Crimea.

… MEANWHILE, THE U.S.-SAUDI RELATIONSHIP APPEARS STRONGER THAN EVER: Amid the energy talks, the U.S. and Saudi military forces will be holding join exercises called “Prevention Shield 2,” which began on Sunday.

Saudi Major General Merie’ bin Saad Al-Omari said the exercises are aimed at enhancing joint cooperation “and raising the level of training of our armed forces,” according to the Saudi government’s official news service.

The exercise is meant to guard against a potential missile strike by an opposing force in the region. The Saudi would not say exactly whom that enemy might be, although it is most likely Iran.

Also, the U.S. and Egypt began joint military exercises called Bright Star over the weekend.

Saudi Arabia, Greece, Britain, Jordan, the United Arab Emirates, Italy, France, in addition to 16 other countries, are taking part in the drills, according to government news outlets. The exercise will focus on combating terrorism, including combating piracy.

VICE PRESIDENT MIKE PENCE HOLDS TALKS WITH IRAQ’S KURDISH LEADER: Pence sat down with the prime minister of Iraq’s Kurdish regional government on Monday morning.

The Kurdish region is a key transit point for oil to leave Iraq. The Kurds have also tried to voice autonomy in producing oil in the northern part of Iraq outside of Baghdad’s influence.

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U.S. OIL EXPORTS HIT NEW RECORDS: U.S. oil exports reached new soaring heights in the first six months of 2018, with half of all exports going to Europe and Asia and India shoring up the rest, according to new data from the federal government.

U.S. crude oil exports saw an 80 percent increase in the first half of 2018 compared to the same period last year, according to the latest data and analysis issued Thursday by the Energy Information Administration.

A new monthly high: That’s an increase of 787,000 barrels per day, to set a new monthly record in June of 2.2 million barrels on average per day.

The largest recipients of U.S. oil were in Asia, with U.S. crude oil exports to China more than doubling in the first six months of the year. U.S. crude oil to China grew by 193,000 barrels per day compared to the first half of 2017.

New markets for U.S. oil: But U.S. oil exports to other countries in the region also rose significantly. Exports to South Korea and India jumped 81,000 barrels per day and 72,000 barrels per day, respectively, from the previous year.

Right behind the Asia market, Europe was the second-largest market for U.S. crude oil exports in the first half of the year. The continent received 555,000 barrels per day.

SOUTH KOREA COMPLIES WITH TRUMP SANCTIONS, STOPS BUYING IRANIAN OIL: South Korea has become the first of Iran’s top three oil buyers to stop buying crude oil from Tehran in response to U.S. sanctions.

South Korea didn’t import any crude from Iran last month, after importing 194,000 barrels a day in July, Bloomberg reported Sunday. China and India, Iran’s other top customers, have curbed purchases of Iranian oil, but have not stopped buying it completely.

The impact of lost Iranian oil: Experts have predicted Iran’s oil exports could fall by as much as 1 million barrels per day by year’s end — risking higher prices — as a result of the Trump administration’s vow to penalize countries that buy any amount of oil from Iran beginning Nov. 4. Iran is OPEC’s third largest producer.

The U.S. is implementing the sanctions as punishment to force Iran back to the negotiating table after Trump rejected the Iran nuclear deal established by the Obama administration and allied countries.

TRUMP COMMITTED TO TRUCKERS AMID HIGH DIESEL PRICES: The White House marked National Truck Driver Appreciation Week on Sunday, as diesel prices continued to climb even as gasoline prices began to soften.

No mention of pain at the pump: The president did not mention fuel prices in his statement issued Sunday night, but did say he was committed to reducing regulatory burdens on the trucking industry.

Trump committed to cutting the red tape: “My Administration remains committed to supporting these men and women by working with Congress to increase investment in America’s infrastructure and by reducing burdensome and unnecessary regulations on the trucking industry,” the statement read. “We must ensure that our country’s truckers can keep fueling our thriving economy.”

Diesel remains high and going higher: The Energy Department’s most recent price data shows the average price of diesel fuel, the life blood of the trucking industry, increased by over 2 cents to $3.25 per gallon on September 3. That is 49 cents higher than a year ago.

Gasoline prices soften slightly: Meanwhile, the average price of gasoline softened slightly by a little less than a penny to around $2.82 per gallon on September 3. Compared to diesel, the price of gas  is up only 15 cents from the same time last year, according to the Energy Information Administration’s Week in Petroleum report.  

OIL INDUSTRY LAUNCHES NATIONAL AD CAMPAIGN AGAINST E15: The American Petroleum Institute launched an ad campaign on Saturday to push back against selling higher blends of ethanol in the nation’s gasoline supply.

A broken system: The Environmental Protection Agency’s Renewable Fuel System “is broken and requires addressing to protect consumers – not another step in the wrong direction that results in pumping additional volumes of E15 into the fuel supply, where consumers could bear significant consequence,” the American Petroleum Institute said in a statement on the new television in online ad campaign.

What’s E15? E15 is a 15-percent ethanol-to-gasoline fuel blend. Currently, the nation’s fuel is a 10-percent fuel blend. The oil industry says raising it to 15 percent would harm vehicle engines and cause millions of dollars and damage that could make refiners liable.

Trump’s plan: President Trump has come out in support of a plan to remove regulatory barriers that prevent the sale of E15 all year. But so far, the Environmental Protection Agency the implementing agency, has not said how it intends to implement the president’s plan.

Ad asks Trump not to do it: The ad asks the president not to risk harming consumers by pushing year-round E15 ethanol blends.

EPA BEGINS PUBLIC HEARINGS ON COAL RULE NEXT MONTH: The EPA announced Monday that it will hold its first public hearing on the proposed Affordable Clean Energy plan in Chicago next month.

The EPA proposed rule would replace the Obama administration’s Clean Power Plan, which set greenhouse gas emission reduction targets for states.

The EPA announcement said that many have criticized the Obama-era rule “as overly prescriptive and burdensome.” The Trump administration’s plan would seek to empower states, promote energy independence, and facilitate economic growth and job creation, EPA said.

ZINKE EXPANDS HUNTING ON WILDLIFE REFUGES: Interior Secretary Ryan Zinke on Friday finalized a rule allowing new or expanded hunting and fishing on 30 national wildlife refuges.

Measuring the impact: The Interior Department’s Fish and Wildlife Service said the move would increase the number of refuges where hunting is allowed to 377, and that 312 will now allow fishing.

Altogether, the Trump administration is opening or expanding an additional 251,000 acres to hunting and sport fishing, which it says will yield thousands of dollars in recreation-related spending.

The wildlife refuges span the country, including ones in Utah, Maryland, Ohio, Montana, Pennsylvania, Oregon, Illinois, North Dakota, and more.

What the law says: Under federal law, national wildlife refuges in all states are protected from recreational use to protect and conserve threatened fish and wildlife.

But the Interior secretary can open refuges to hunting or sports fishing if he determines the use is compatible with protecting wildlife there.

RUNDOWN

Washington Post With a shrinking EPA, Trump delivers on his promise to cut government

New York Times EPA’s review of mercury rules could remake its methods for valuing human life and health

Wall Street Journal Oil market turns turbulent heading into fall season

Bloomberg Oil demand seen peaking by 2023 while climate targets missed

Axios Drilling and suburbia collide in Colorado fracking fight