Trump Hints At Potential 'Very Large Scale' Alaska Oil And Gas Deal With China

President Donald Trump has hinted at a potential oil and gas deal between Alaska and China after a meeting with Chinese President Xi Jinping.

China’s Renewed Interest In US Energy

Trump took to Truth Social on Thursday to suggest a significant energy transaction involving Alaska. He wrote, “China also agreed that they will begin the process of purchasing American Energy. In fact, a very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska.”

Trump also mentioned that Energy Secretary Chris Wright and Secretary of the Interior Doug Burgum, and their respective energy teams, will be meeting to explore the potential energy deal.

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Trump Pushes For Arctic Alaska Oil Lease Sale

This announcement comes in the wake of China’s significant reduction in U.S. oil imports earlier this year. In April, Chinese refiners cut their U.S. oil imports by approximately 90% amid escalating trade tensions with the U.S. This led to a surge in Canadian crude imports, with China importing 7.3 million barrels of crude from Canada’s Vancouver port in March.

Meanwhile, the Trump administration has been pushing for an Arctic Alaska oil lease sale despite the government shutdown. The pending lease is in accordance with Trump’s One Big Beautiful Bill, passed in July, which entails the Bureau of Land Management (BLM) holding a minimum of five lease sales, offering at least 4 million acres each, over the next decade.

The potential Alaska gas deal with China could be a significant development in this context.

Trump’s meeting with Xi Jinping was also marked by decisions on trade, soybeans, and resources. The reduction in fentanyl tariffs from 20% to 10% was among the key outcomes of the meeting, indicating a potential thaw in the U.S.-China trade relations.

Price Action: West Texas Intermediate crude oil prices are trading at $59.92 per barrel when last checked.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.