While the traditional oil price benchmark has been the Brent crude, oil production in that region has declined whereas the West Texas Intermediate has gained importance and is a valuable reference. The adoption of WTI-Houston pricing would be a significant change in benchmarking history and would acknowledge the importance of US a marginal barrel supplier with market impacts worldwide.
Thank you to the Texas Business Hall of Fame Foundation. Our Hugo Lozano Jr., Vice President and General Manager, was selected as the 2018 scholarship recipient at Rice University's MBA program. This is a great honor and we are very proud of his achievement.
The Chinese oil market is important for US oil exports as new refining capacity is being installed to reach 16 million bbl/d in 2020. However, the 25% tariff that the Chinese government will impose starting July 6, 2018 as a response to the Trump's administration tariffs on Chinese goods will likely affect the US oil exports.