U.S.-Saudi Strategic Reset: Nuclear Energy Partnership Emerges

The U.S.-Saudi strategic relationship is undergoing a reset after 80 years. The original bargain, forged by Franklin D. Roosevelt and King Abdul Azziz Ibn-Saud in 1945, was based on energy security for America in exchange for economic security for Saudi Arabia.

At the time, the U.S. needed Saudi oil to meet its growing requirements following World War II. However, with the U.S. now being the world's largest oil producer since 2018, this need has receded.

Riyadh must ensure it can sustain oil exports to generate revenues for continued economic growth and development. The Kingdom consumes all its gas production, making it a non-exporter of natural gas.

As Saudi Arabia's domestic energy consumption grows at an annual rate of 5%, the Kingdom risks morphing from a major oil exporter into an oil importer within a generation.