Letter from Saudi Arabia: US-Saudi energy ties enter a new phase

Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future

Beneath the pomp, circumstance and controversy of the visit of Saudi Crown Prince Mohammed bin Salman to Washington, several agreements were reached that may matter far more than the choreography from the Oval Office. Oil policy was not the centre of discussion, largely because Saudi and American thinking has converged. Both expect strong demand for hydrocarbons well into the 2030s. Both favour continued investment in supply. And both understand the global economy is unlikely to transition away from oil at anything like the speed demanded by climate activists. In this respect, their approaches remain aligned with the old US instinct to ensure abundant supply rather than constrain it. $