Expect massive UAE investments in US, says American Energy Secretary

The US foresees "very strong" long-term growth in oil and gas demand, spurred by the proliferation of advanced technology and the energy needed to power it, with the UAE, Saudi Arabia, and Qatar considered key partners to help meet that increase, America's energy chief said in Abu Dhabi on Thursday. "You're going to see a lot of energy co-operation between the United States and the UAE. You're going to see a huge co-operation on AI," Energy Secretary Chris Wright told reporters during a visit to Adnoc 's headquarters, which he described as an "incredibly impressive, high-technology, strong-culture, high-performing energy business". He said both countries have enormous capacity to expand their energy production, addressing a critical need in the US. "It's going to involve investments both ways, massive UAE investments in the United States, and we're going to see continued geo-strategic co-operation with the UAE," said Mr Wright. "Very bullish about the future here." The US energy secretary explained agreements would be aimed at the anticipated heightened growth in demand for oil and gas in the US, along with increased output. "And then layer on top of that AI itself over the next five years is going to draw significant growth in demand, particularly for natural gas and electricity from other sources in the United States, so we're leading into a period of dynamic growth that's going to require investment and more energy production." Mr Wright praised the UAE's "impressive" early investments in artificial intelligence and energy production technologies, and said, combined with US leadership in technology, he expected more large-scale deals to take place. "AI is going to take a lot of capital and a lot of expertise, I think, a very fertile ground for partnership between the UAE and the United States. Very exciting times," he said. Mr Wright was visiting the UAE as the first leg of a wider tour of the Middle East, his first overseas mission in this role. "Looking forward to visiting the Middle East this week and promoting investments in America!", he wrote in a post on X on April 8. The energy secretary's trip to the region will help to lay the groundwork for President Donald Trump's visit to the Middle East in mid-May. Energy is a key issue as oil prices plunged to their lowest levels in more than three years, after Mr Trump revealed new tariffs on about 90 countries on April 2, raising the risk of a global economic recession, and following the Opec+ alliance decision to boost oil supply. On April 9, Brent prices briefly fell below $60 per barrel, their lowest level since the first quarter of 2021, in response to Mr Trump announcing more than 100 per cent tariffs on imports from China. Mr Wright described the culmination of this week's market upheaval as necessary steps to achieving consensus with China. The main US crude contract, West Texas Intermediate, shed 3.03 per cent on Thursday at 8:30pm UAE time to reach $59.32 per barrel, while Brent fell 2.81 per cent to $62.67 a barrel, extending oil's volatile run as investors fret over abrupt shifts in US trade policy. Mr Trump announced a 90-day halt on higher tariffs against dozens of countries, but raised levies on China to 125 per cent. "What you're seeing is early-stage negotiations. We're going to we're going to see it coming together between the United States and China. I believe in the best interest of the United States and the best interest of China," Mr Wright said. China is the world's biggest oil importer, and the higher US tariffs may weigh on the Asian country's demand for fuels and petrochemicals. "Prices for Brent and WTI futures have tumbled since the start of April thanks to anxiety that a damaging global trade war will spark a major global slowdown and vastly reduce oil demand growth," Edward Bell, acting group head of research and chief economist at Emirates NBD, said in a research note on Thursday. The US has vowed to increase oil and gas production. In January, Mr Trump issued a directive that aimed to roll back regulations on the oil and gas sector, and accelerate drilling and pipeline development. “We will drill, baby, drill,” the President said in his inauguration speech, adding that the US has the “largest amount of oil and gas of any country on Earth — and we are going to use it.” However, industry experts have noted that energy prices and other market forces may deter energy companies from increasing drilling, noting that the US has been the world's top crude oil and liquefied natural gas producer for several years now. Also related to the energy dossier, Iran is set to engage in talks with the US this weekend over the possibility of a nuclear deal. Mr Wright said the goal with Iran is to have "its nuclear programme go away," and the best way to do that is through negotiations, "but of course, that's going to need some leverage". On Wednesday, the US Treasury Department said it imposed sanctions on five Iran-based entities and one person for their support of Tehran's nuclear programme, ahead of the expected negotiations Saturday. Although the agenda for the negotiations in Oman remains uncertain, the two sides are likely to discuss Iran 's nuclear enrichment and missile stockpile, as well as the influence it wields across the Middle East through allied groups. During his visit to Abu Dhabi, Mr Wright was expected to meet senior UAE leaders including Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc's managing director and group chief executive, Suhail Al Mazrouei, Minister of Energy and Infrastructure, and Mohamed Alsuwaidi, Minister of Investment and managing director and chief executive of ADQ, among others. He will also meet executives at UAE companies involved in energy, AI and investments such as Enec, Adnoc, MGX, AIQ, Mubadala and IHC, to accelerate cross-border trade and strengthen joint investment initiatives. His visit will include discussions about supporting the UAE’s recently announced investments in the US and advancing global energy security, state news agency Wam quoted Mr Wright as saying. The White House in March announced that the UAE has committed to a $1.4 trillion investment framework in the US related to artificial intelligence infrastructure, semiconductors, energy and manufacturing. The announcement of the framework – which will be over a period of 10 years – followed a series of meetings between US and UAE officials , led by Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser, last month.

Expect massive UAE investments in US, says American Energy Secretary

Chris Wright visits Abu Dhabi in first overseas trip in role, to lay groundwork ahead of President Donald Trump's expected Middle East trip