US energy chief Wright heads to Middle East for nearly two weeks, source says

WASHINGTON - US Energy Secretary Chris Wright on April 9 will launch a nearly two-week tour of three Middle East countries, including Saudi Arabia, marking his first visit as a US official to the de facto leader of the OPEC oil producer group, a source familiar with the matter told Reuters.

The trip, which will also include visits to Qatar and the United Arab Emirates, is expected to help lay the groundwork for President Donald Trump’s own visit to those countries likely in mid-May.

It comes at a critical time, on the heels of Mr Trump’s surprise announcement on April 7 that the US and Iran are having direct talks on Tehran’s nuclear programme and as global oil prices hit a near four-year low.

Oil prices have fallen on worries that Mr Trump’s latest tariffs could push economies around the world into recession at the same time OPEC+ oil producers speed up increases in production.

Mr Wright will start his trip in the United Arab Emirates, followed by Saudi Arabia over the weekend, and then Qatar, and he will also meet with the leaders of some of the countries, the Energy Department source said.

Mr Trump has said he wants to drive Iran’s oil exports to zero to prevent Iran from getting a nuclear weapon.

Increased oil output from other global producers could help prevent a politically damaging price spike if Washington’s sanctions cut the exports.

Low oil prices could also help the United States by pressuring Russia, another top oil exporter, to come to an agreement over its war in Ukraine by choking some of the revenue Moscow depends on to fund the fighting.

The source said that Mr Wright will likely have conversations about ensuring an abundant global supply of oil beyond countries where the United States has sanctions on oil exports including Iran, Venezuela and Russia.

Discussions will also centre on investments by the three countries in the United States after the UAE last month committed to a 10-year US$1.4 trillion (S$1.89 trillion) investment framework in AI infrastructure, semiconductors, energy and manufacturing.

Mr Trump in January asked Riyadh to increase a planned US investment package to US$1 trillion from an initial US$600 billion.

Mr Wright, who led fracking company Liberty Energy before becoming secretary, speaks often about how US oil companies can lower production costs as a way to deal with lower crude prices.

The source said Mr Wright will tour oil and gas production sites in the Middle East, looking at ways to cut costs.

He will also visit the nuclear power plant in the UAE, the source said.

Saudi Arabia also wants to develop commercial reactors, though unlike the UAE, Saudi Arabia has resisted strict proliferation agreements related to nuclear power.

Crown Prince Mohammed bin Salman has said the kingdom would develop nuclear weapons if its rival Iran does, raising proliferation experts’ concerns about a potential nuclear arms race in the Middle East.

Mr Wright’s visit will come weeks after he met with Israeli Energy Minister Eli Cohen, who proposed to him an oil pipeline running from Saudi Arabia to Eilat, Israel, where oil could be shipped to Europe. REUTERS