Egypt, a key US ally in the energy war against China and Russia
The quest for energy stability is the order of the day for all world powers. In the wake of Russia's invasion of Ukraine, the West despairs of acquiring alternatives to Moscow's gas. Meanwhile, Russia and China seek to decimate any chance for countries like the US to gain access to the precious resources held by Middle Eastern and North African countries.
Egypt is the essential enclave for the US giant and its quest for this energy control in the Middle East, particularly as compensation for the impact that the Sino-Russian bloc has had on its Saudi ally. Simon Watkins, an analyst for OilPrice media, explains that, "by bringing this leader of the Arab world to its side, the US hopes to offset, at least in part, the negative geopolitical impact of the loss of a long-term ally, Saudi Arabia, to the China-Russia bloc. Politically and historically, Egypt is at least as much a leader in the Arab world as Saudi Arabia has been.
However, the US also faces challenges and competition in its relations with Egypt, especially from other major energy players such as Russia, China, Turkey and Israel. These countries have also invested in Egypt's oil and gas sector, either through direct participation in exploration and production projects, or by offering loans, grants or technical assistance. Some of these countries have also pursued geopolitical agendas that may clash with US interests in the region, such as supporting rival factions in Libya, Syria or Yemen.
The Asian People's Republic is no stranger to Egypt's influence in the region. Its alliance with Iran has allowed it to reach out and try to attract Egypt with its idea of a 'unified power grid', but this attempt seems to be in vain, as the influence of US and European powers has already been established in the North African country.
The US has a strategic interest in Egypt's oil and gas sector as it seeks to diversify its energy sources, enhance its energy security and support its allies in the region. The US is Egypt's largest export market in Africa and a major importer of its natural gas and oil. The US also provides Egypt with significant economic and military assistance, which has helped the country develop its energy infrastructure and increase its production capacity.
Following the discovery of a gas field east of the Nile Delta, oil giant Chevron, together with its European partner Eni, will begin gas extraction activities in the first half of 2024. Both companies own 45% stakes in Nargis' 1,800 square kilometre concession in the area. Shell, a British company, also holds the concessions for 17 gas fields off the Egyptian coast. In this way, the Western front formed by European countries and the United States is consolidating its position as a key ally in the new energy world order.
The US needs to maintain and strengthen its ties with Egypt, and support its efforts to become a regional energy hub and a leader in the energy transition. It can do so by expanding its commercial and investment opportunities with Egypt, such as the recent Chevron deal, or by providing more technical and financial assistance for its energy projects, enhancing its cooperation on regional security and stability issues, and promoting dialogue and cooperation among regional actors involved in the Eastern Mediterranean gas forum. In doing so, the US can secure its influence and interests in Egypt's oil and gas sector, as well as in the wider region, and thus combat the exponential rise of Chinese and Russian influence in the region.
Americas Coordinator: José Antonio Sierra.