RIYADH: As President Trump’s production expansion policy effectively removes the limits of US crude oil output, investors from abroad look to be at the forefront of the impending changes, while the global market environment also provides support for gradual oil production growth. One of the investors is Saudi Arabia, the world’s second largest crude oil producer. While on the campaign trail, one of Trump’s promises was to achieve US energy independence from oil cartels such as OPEC, but that does not mean that OPEC’s de facto leader can’t profit from these policies indirectly. Speaking to the BBC, Saudi Energy Minister Khalid Al-Falih stated that ‘there are huge areas of alignment’ in interests between the two countries that, at first glance, might seem to be at the opposite sides of the barricade.
The minister added that Saudi Arabia already has billions of dollars invested in the US oil industry and ‘may be increasing that investment on the back of pro-industry, pro-oil and gas policies of the Trump administration’. When asked whether US achieving energy independence and blocking imports from OPEC is viewed as a hindrance by Saudi Arabia, Al-Falih replied that his country welcomes growth in American supplies as long as that growth is in line with global energy demand.
Minister Al-Falih believes that President Trump wants the United States economy to be competitive and to have a mixed energy portfolio that would include oil and gas, as well as renewable energy sources, which is exactly what Saudi Arabia is looking for in its own economy. In the end, Saudi Energy Minister stated that the relations between the United States and Saudi Arabia are very strong and that he personally is looking forward to working with the US Energy Secretary nominee Rick Perry.
