Multiple countries are pitching the Trump administration on how they can offer alternatives to the energy crisis the Iran war has sparked over the Strait of Hormuz.
They’re hoping to get political backing and financial support in Washington. And they appear to be knocking on an open door.
“Energy security is back on the table. This is exactly how we want to position ourselves. We can be one of the safe havens when it comes to supplying energy,” Suriname’s Oil, Gas and Environment Minister Patrick Brunings said in an interview.
Suriname has discovered gas off its coast and Brunings said he believes there is more offshore, within easy reach for shipping, and outside investors including from the U.S. could help. He said he talked up Suriname’s gas with Assistant Secretary of State for Energy Caleb Orr during a trip to Houston in March and hopes to rekindle that conversation. The State Department confirmed the March meeting.
Soaring gas prices tied to the closure of the strait have become a major political problem for the White House, with President Donald Trump’s approval ratings diving to record lows. The administration’s efforts to bring prices back down have included military support for some tankers. In a social media post Wednesday, Trump said those operations had gotten “100 MILLION” barrels onto the market.
“The Trump administration is working closely with our allies around the world to diversify supply chains, expand energy infrastructure, and strengthen our energy security by minimizing global reliance on chokeholds like the Strait of Hormuz,” White House spokesperson Taylor Rogers said.
Energy Secretary Chris Wright had a similar message on Tuesday, saying “We want to work as partners to energize the world” in remarks to the Atlantic Council’s Global Energy Forum.
Countries pitching the White House might be trying to get on the administration’s good side by talking about energy, but if they get buy-in, it could also be a step to tapping into American expertise and financing with financial tools like the Development Finance Corporation.
Congress last year expanded the DFC’s authorities to operate in more countries and with a greater risk tolerance, key for financing large-scale energy projects. The agency, which provides financing to projects abroad, said in a statement that “energy is central” to its strategy.
Energy infrastructure takes years to come online, and none of the efforts being pitched would have an immediate impact on gas prices.
But the disruption to the strait will have a long tail, argued Geoffrey Pyatt, who served as assistant secretary of State for energy resources under former President Joe Biden and continues to advise energy projects at McLarty Associates.
“Even if the straits are reopened, there’s going to be a risk premium attached to molecules coming out of the Gulf that was not there previously,” he said. For countries developing their own energy, “the American flag, the support of the U.S. government counts for a lot.”
Wright and Jarrod Agen, the executive director of the National Energy Dominance Council, discussed energy projects on Tuesday with “several Middle Eastern countries,” a White House official said.
U.S. backing could be especially important in complex energy environments like the eastern Mediterranean, where Greece, Cyprus and Israel are a part of a “3+1” partnership with the U.S. to cooperate on fields like energy. Wright is set to meet with energy ministers from those countries Thursday in Texas, where he will preside over the launch of the East Med Energy Center at Rice University.
The center was planned in the 2019 EastMed Act, but the question of energy has grown more relevant in recent months, Cypriot Energy Minister Michael Damianos said in an interview. He said natural gas projects by American and European firms operating in Cyprus could yield gas by 2028.
“Because of the Strait of Hormuz and the global crisis, the eastern Mediterranean is becoming more important,” he said. “All these external shocks can be bypassed if we have more options.”
Syrian Energy Minister Mohammed al-Bashir said he met with Wright and discussed ways American energy companies could expand their work in his country.
“We told the secretary of Energy that Syria’s doors are open for companies to invest,” al-Bashir said.
He pointed to two pipelines that could provide energy routes away from the strait. One is the Arab Gas Pipeline that runs between Egypt, Jordan, Lebanon and Syria, but that will need about 18 months of work to repair wartime damage. Syria is also discussing reviving the Kirkuk-Baniyas oil pipeline that would carry crude from Iraq.
James Bikales contributed to this report.
