Saudi Crown Prince and US officials meet to discuss energy security

Leaders discuss bilateral relations and investments in the region

Saudi Arabia and the US have a long-standing bilateral relationship, and have co-operated on important global matters. AP
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Saudi Arabia's Crown Prince Mohammed bin Salman met senior US officials in Jeddah on Friday.

They discussed ways to boost international energy security and investments in the region.

The Crown Prince spoke with Brett McGurk, the US National Security Council's co-ordinator for the Middle East and North Africa, Amos Hochstein, a senior adviser for energy security, and Tim Lenderking, the US special envoy for Yemen, the state-owned Saudi Press Agency reported.

"During the meeting, the bilateral relations between the two countries were discussed, and the active follow up from the Jeddah Summit, particularly in the fields of energy security and investment in the partnership for global infrastructure and investment, as well as the developments in the region," the SPA said.

The world's major economies are seeking ways to boost co-operation to ensure energy security.

Oil and gas will account for more than 50 per cent of the global energy mix by 2045 and will continue to play an important role even as the world pivots towards cleaner forms of energy, according to Opec.

Spending in the oil and gas industry took a hit during the Covid-19 pandemic and the push by governments to transition to cleaner forms of energy.

Total investment in the upstream part of the oil and gas sector fell 23 per cent below pre-coronavirus levels to $341 billion in 2021, according to the International Energy Forum and IHS Markit.

The oil and gas sector needs $600bn worth of investments until 2030 to keep pace with rising demand, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group Chief Executive of Adnoc, said last year.

Meanwhile, energy transition requires a “practical”, realistic and collaborative approach to ensure that it is just and addresses the triple challenges of climate progress, energy security and economic prosperity, Dr Al Jaber, who is also the UAE's Special Envoy for Climate Change, said this week.

Saudi Aramco, the world's largest oil company, said at this week's Schlumberger Digital Forum that a global consensus is urgently needed to address climate priorities and energy security challenges, as a lack of investment in hydrocarbons will worsen the energy crisis and wipe out spare oil production capacity once economies rebound further.

Saudi Arabia and the US have a long-standing bilateral relationship, and have co-operated on important global matters.

In July, they announced agreements on energy, led by Prince Mohammed and President Joe Biden.

The countries said they reviewed the historical relationship and “emphasised the pivotal role” US-Saudi relations play in regional stability and prosperity.

Washington said at that time that it “welcomed Saudi Arabia's commitment to support global oil markets balancing for sustained economic growth”.

Updated: September 24, 2022, 1:14 PM