By Georgina McCartney and Arathy Somasekhar
HOUSTON (Reuters) – Market upheaval from U.S. President Donald Trump’s protectionist trade policies has not dampened foreign investment interest in the U.S. energy industry, executives said this week, as they lauded his promise to cut regulations and support fossil fuels.
Trump has made energy dominance a pillar of his administration, declaring a national energy emergency on his first day of office and pulling the U.S. from the Paris climate agreement. He has urged energy companies to boost fossil fuel production and promised to bring down prices for consumers.
The U.S. oil and gas industry, which has focused on returning capital to shareholders and reined in exploration and investment, has broadly welcomed Trump’s pro-energy stance, even though lower prices typically hurt company bottom lines. The foreign companies did not yet commit a dollar amount to new investment in the United States.
Oil prices hit a three-year low in early March. On Monday global Brent crude futures settled under $70 a barrel as investors worried a trade war would slow economic growth.
Foreign energy companies see opportunity in America’s vast natural resources and Trump’s pro-energy policies. Their interest follows years of slower U.S. spending as investors pushed companies to focus on returns rather than explosive growth.
United Arab Emirates energy company ADNOC on Tuesday said it intended to make significant investments in the coming months in the U.S. through its fully-owned international investment arm XRG, which has about $80 billion in assets and is considering options for an initial public offering.
“Investing in the United States through XRG is not a priority; it’s an absolute imperative,” ADNOC CEO Sultan Al Jaber said on Tuesday.
He said those investments would include the natural gas supply chain. The UAE is a member of the Organization of the Petroleum Exporting Countries.
Australian oil and gas producer Santos also said it planned to increase its investment in the U.S., citing the Trump administration’s pro-energy policies. That could include further capital toward its Pikka oil project in Alaska.
Last year, Australian company Woodside Energy acquired U.S. liquefied natural gas company Tellurian and plans to make a final investment decision on an LNG export project in Louisiana this year. The company also recently acquired an ammonia plant in Beaumont, Texas.
Santos on Sunday evening attended a dinner with U.S. Energy Secretary Chris Wright and executives from other major oil and gas firms. Wright promised to speed up permitting and support the industry.
