It is always so interesting to see both Republicans and Democrats react to huge monumental deals like this, and the reactions so far have not disappointed.
For those who do not know, this is a similar deal to what the Biden Admin had pitched to Saudi Arabia in 2023. However, it fell apart not long after it was pitched, as Hamas launched the Oct. 7 terrorist attack from the Gaza Strip, resulting in Israel shutting it down. Normalizing relations with Saudi Arabia has been a long-time goal of Israel but has remained out of reach, though in both the first Trump Admin and in 2023 the U.S. was close to securing the deal.
If the U.S. is able to pull this off, this would be a win for the United States, while many have already tried to pitch it as if it wouldn't be. There are multiple reasons for this, including Saudi investment and further cementing the Gulf State as a U.S. ally, but more importantly, it would help trigger an even more important event..... project or projects that have endless financing, meaning they would be built, and by starting the actual building of the plants and components that are needed, it results in lower costs for follow-up projects.
Right now in the U.S., the issue is that the next AP1000 is still going to cost $8 to $12 billion, but with the Vogtle power plant expansion between Unit 3 and Unit 4, economies of scale were already taking shape to help lower the price. By the time Unit 4 was completed, it was at least 20% cheaper, with other estimates putting it at 30% cheaper than Unit 3. Testing milestones dropped between 38% and 76%, and engineering service requests dropped 50%. That was just with two reactors and the two reactors utilizing the same crew (meaning a delay in Unit 3 affected Unit 4), so they had the same start date, but the completed date for Unit 4 was a couple of years after Unit 3.
People have also pointed out or voiced concerns about Saudi Arabia developing nuclear weapons and other nonproliferation issues. I get those concerns, and they are valid, but by joining the Abraham Accords and opening up the lines of communication with Israel, it addresses a lot of the pushback. Looping in Saudi Arabia into American tech and nuclear expertise also gives us the ability to know how the equipment could be used to develop a nuclear weapon instead of Chinese or Russian tech that we might not know all the ins and outs of. If you know what they have, then you know what they would have to do to enrich.
It also should be mentioned that Saudi has already said that if Iran develops nukes, they would be forced to as well. Saudi is a very, very rich country, and if they wanted to develop nukes, they would be able to. Just like how Pakistan, India, and North Korea have developed nukes, Saudi would be able to find the scientists and fund whatever they would need to make it happen. Sticking your head in the ground and saying la la la they won't do it isn't going to solve anything. Also, the UAE has a civilian nuclear program, so allowing Saudi to have one as well is just a follow-on to getting countries to reliable baseload energy production that isn't coal, oil, or natural gas.
Finally, this agreement with Saudi Arabia is going to get a hell of a lot of scrutiny. Why? Because it has to be approved by Congress. The Department of Energy has already announced the agreement will be sent to Congress, as required under the Atomic Energy Act. One submitted that Congress has to act on this within 90 days. Given that Congress just entered a 5-week recess, this gives both Committees and Personal Offices additional time to vet the agreement w/o the Floor teams trying to ram the agreement through.
As long as the Saudi's agree with the Abraham Accords addition, it is very likely that the deal will receive the Congressional approval it needs. In this situation, the benefits clearly outweigh the risks and help promote U.S. nuclear energy exports beyond Europe. Unlocking additional investment, furthering our partnership with Saudi Arabia, and getting arguably the biggest heavyweight in the Arab world to open up official lines of communication with Israel is too good a deal for all involved to pass up.
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