US expects oil and gas growth
Increasing UAE investments
The US administration expects “growing” investment from the UAE in the US energy sector, its energy secretary Chris Wright said during a visit to Abu Dhabi this week.
On his first overseas trip since taking office, Wright met senior officials from the UAE – the Middle East’s third-largest oil producer – including Abu Dhabi National Oil Company (Adnoc) CEO Sultan Al Jaber.
They discussed Abu Dhabi-led UAE investments in US infrastructure, natural gas, and low-carbon projects, Adnoc said in a statement.
“We’re going to see growing investment from the UAE into the US,” Wright said in an interview with the UAE state-owned Wam news agency, “and you will also see growing partnerships of American companies in the UAE and growing investments over here.”
The Gulf visit, which also takes in Saudi Arabia and Qatar, comes as global oil prices plunge to a four-year low.
In barely a week since Donald Trump announced record-level US tariffs on April 2, oil prices have fallen by between 10 and 15 percent, depending on the blend.
Brent crude is trading around $63 a barrel on Friday, while WTI has fallen below $61, pressured by concerns that lower economic growth or even recession will reduce global demand for oil.
On Wednesday President Trump announced a 90-day suspension of higher so-called reciprocal tariffs on dozens of countries but raised tariffs on China – the world’s second largest economy and the world’s largest oil importer – to 145 percent. This is the highest US tariff rate in over a century.
Analysts forecast that global oil-demand growth could halve this year over previous predictions.
Still, the US anticipates “strong” energy demand-growth, driven by advancements in artificial intelligence and emerging technologies, Wright said.
“We are going to see very strong growth in the demand for oil and gas in the United States,” said Wright, the former CEO of oil services company Liberty Energy.
The US is also looking to anchor Gulf investment in the US energy and AI sectors.
Last month the UAE committed to a 10-year $1.4 trillion investment framework spanning energy, manufacturing, AI infrastructure and semiconductors.
The UAE has been increasing its investments in the US through Abu Dhabi-owned entities including renewable energy company Masdar, Mubadala Energy, and Adnoc’s international investment arm XRG.
Masdar has invested about $1 billion in the US and is developing over 12 gigawatts of clean energy projects across California, Texas, and New York state.
Adnoc’s XRG owns assets in NextDecade’s Texas liquefied natural gas plant and seeks to acquire a fourth processing unit. The company is scouting for new investment opportunities in the US, Adnoc has said.
Mubadala Energy this week entered the US gas market via a 24 percent stake in Kimmeridge’s SoTex.
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