By Georgina McCartney and Arathy Somasekhar
Houston (Reuters) – Market reinforcement of the protectionist trade policy of US President Donald Trump has not tempered the foreign investment interest in the American energy industry, said managers this week, because they praise praise to reduce the regulations and support fossil fuels.
Trump has made energy -dominance a pillar of his administration, declared national energy rights on his first office day and removed the US from the Paris climate agreement. He has urged energy companies to stimulate the production of fossil fuels and promised to lower prices for consumers.
The American oil and gas industry, which has focused on returning capital to shareholders and who is set in exploration and investments, has broadly welcomed Trump’s pro-energy attitude, although the lower prices generally harm the soil rules of the company. The foreign companies have not yet committed a dollar with new investments in the United States.
The oil prices reached a low three -year low at the beginning of March. On Monday, the global Brent Crude Futures settled less than $ 70 per barrel, because investors were worried that a trade war would slow economic growth.
Foreign energy companies see opportunities in the enormous natural resources of America and Trump’s pro-energy policy. Their interest follows years of slower American spending while investing companies encourage companies to concentrate on returns instead of explosive growth.
The United Arab Emirates Energy Company Adnoc said on Tuesday that it was planning to make significant investments in the US in the coming months through its fully international investment arm XRG, which has around $ 80 billion in assets and is considering options for a first public offer.
“Investing in the United States via XRG is not a priority; it is an absolute necessity,” said Adnoc CEO Sultan Al Jaber Tuesday.
He said those investments would include the supply chain of natural gas. The VAE is a member of the organization of the Petroleum -Expanding countries.
The Australian oil and gas producer Santos also said that it was planning to increase his investment in the US, referring to the pro-energy policy of the Trump administration. That could also be capital for his Pikka Oil Project in Alaska.
Last year, the Australian company Woodside Energy took over the American liquid natural gas company Tellurian and is planning to make a final investment decision this year about an LNG export project in Louisiana. The company recently also bought an ammonia factory in Beaumont, Texas.
Santos attended a dinner on Sunday evening with the American energy secretary Chris Wright and managers from other large oil and gas companies. Wright promised to accelerate and support the industry.