Pro-Trump Saudi Arabia Considering Increasing Investment in U.S. Oil Investments

Energy minister Khalid al-Falih has expressed admiration for Trump's pro-fossil-fuel stance

U.S. president Donald Trump's activities in his first few weeks in office may have earned him enemies far and wide, but his uncompromising stance has earned him at least one unlikely ally: Saudi Arabia, which is looking to increase its American oil investments due to the brash billionaire's pro-energy initiatives.

Khalid al-Falih, minister of energy, industry and mineral resources for the kingdom, told BBC television that, "President Trump has policies which are good for the oil industry, and I think we have to acknowledge it."

Al-Falih went on to say, "He has steered away from unrealistic and excessively anti-fossil fuel policies... I think he wants a mixed energy portfolio that includes oil, gas, renewables, and to make sure his economy is competitive; we want the same thing in Saudi Arabia."

When told by the BBC reporter that Trump has repeatedly stated he will block all imports from Saudi Arabia, al-Falih countered, "the energy policy on the White House website talks about working closely with Gulf allies - and Saudi Arabia is the leader of that group – on energy policies."

When the clearly-baffled (and unabashedly anti-Trump) reporter persisted in her inquiry, al-Falih cut her off by remarking, "I believe at the end of the day the Trump administration will do the right thing by the United States – and rightly so... and there are huge alignments in our interests."

He added, "We had billions of dollars invested in refining and distribution in the United States, and we may be increasing that investment on the back of pro-industry, pro-oil and gas policies of the Trump administration."

In another remarkable disclosure, al-Falih stated, "We have no problem with the growth of American indigenous oil supply; I have said it repeatedly, as long as they grow in line with global energy demand, we welcome them."

The minister's remarks accompany news on Thursday that Brent crude futures will average $58.01 per barrel in 2017, according to a Reuters poll of 31 analysts and economists (this is slightly higher than the $57.43 forecast in the previous Reuters survey).

Daniela Corsini, analyst for Intesa SanPaolo, said, "The Trump presidency should benefit the oil sector; it's not clear which measures will be implemented, but lower taxation and lower concerns about tighter environmental constraints would benefit U.S. domestic production."

And although Carsten Fritsch, analyst for Commerzbank, pointed out that "U.S. shale oil production could surprise to the upside this year," presumably U.S. crude oil output rising by about 6.3 percent since the middle of last year to 8.96 million barrels per day does not bother Trump's new new Saudi ally.

The Trump/Saudi alignment should come as no surprise to geo political experts, who have long pointed out that Middle Eastern leaders prefer dealing with heads of state whose strength and resolve match their own; and to that end the Saudis may have been swayed by Trump's presidential campaign, in which at one point he stated he would be willing  "to stop buying oil from the Saudis if they're unwilling to go in and help" defeat ISIS.