Trump Administration Predicts 20% Lower Energy Prices Than Previous 4 Years

U.S. Energy Secretary Chris Wright has asserted that energy prices during the Trump administration will be lower than those of the previous administration. During a press conference in Riyadh, Wright stated, "Under President Trump's leadership over the next four years, U.S. average energy prices will almost certainly be lower than the last four years of the previous administration." However, he did not provide specific price targets.

Wright's comments come at a time when the U.S. and Saudi Arabia have had frequent disagreements over energy policy, particularly during the Biden administration. The Biden administration had called on Saudi Arabia to increase production and lower prices to combat inflation, but Saudi Arabia did not respond to these requests.

Wright emphasized that reducing investment barriers and removing infrastructure obstacles could lower energy supply costs. Recent commitments from Saudi Arabia and other oil-producing countries to increase production, coupled with the impact of Trump's comprehensive tariff policies on the market, have driven oil prices below $65 per barrel, reaching a new low since the pandemic. This price level is significantly lower than Saudi Arabia's fiscal balance line, which could potentially affect Saudi Arabia's ability to fund its major economic transformation plans.

Despite these challenges, Wright noted that the U.S. and Saudi Arabia share a common view on the energy market. "I believe that both Trump and Saudi Arabia hope to see an increase in global energy demand, while also expecting continued expansion on the supply side," he said.

Wright also revealed that the U.S. and Saudi Arabia have reached an initial agreement on cooperation in civilian nuclear energy production, with progress expected this year. He stated that the two countries are on a "path" to reaching an agreement on nuclear technology non-proliferation controls. Wright mentioned that Saudi Arabia needs to sign a "123 agreement" that includes technology transfer provisions. "This view is shared by both countries, and in the past few years, this view may have been questioned, which perhaps indicates that the relationship between the U.S. and Saudi Arabia has not been effective in the past."

Wright's visit to the Middle East included meetings with Saudi Energy Minister Abdulaziz bin Salman in Riyadh. The discussions focused on energy market dynamics and potential areas for cooperation.