HUMAN RESOURCES DEVOTED TO ENERGY ISSUES

C O N F I D E N T I A L SECTION 01 OF 03 RIYADH 000592 SIPDIS SIPDIS NEA FOR DAS GGRAY DEPT OF ENERGY PASS TO A/S KKOLEVAR, DAS HAGBERG, AND MWILLIAMSON S/CT FOR GFEIERSTEIN AND BAVERILL TREASURY PASS TO A/S CLOWERY E.O. 12958: DECL: 04/08/2018 TAGS: APER EPET ENERG SA SUBJECT: HUMAN RESOURCES DEVOTED TO ENERGY ISSUES REF: A. E-MAIL WITH EXCEL ATTACHMENT SROSS-RJACHIM 4/8/2008 "ENERGYPERSONNELCOSTS" ¶B. SECSTATE 10743 Classified By: DCM Michael Gfoeller for reasons 1.4 (b) (c) and (d). ¶1. (U) This message is cleared by DOE/OE Assistant Secretary Kolevar. SIPDIS ¶2. (U) Per reftel B request, the State Department expended $275,269 on personnel costs to cover energy-related issues at Mission Saudi Arabia during the last year, and an additional $27,538 in program funds for energy-related activities. The Mission also expended an additional $21,306 in Department of Energy-sourced funding to support long-term DOE TDY assistance in Saudi Arabia. A complete analysis of Mission personnel, percent of time they devote to energy issues, personnel costs, and related program costs is included in ref A in an Excel spreadsheet format. Program costs may vary from year to year depending on work load and visitor demands. -------------- Energy Issues and Personnel Coverage -------------- ¶3. (U) Personnel Costs: Mission personnel, predominantly at Embassy Riyadh and Consulate General Dhahran, cover a wide spectrum of energy issues, including monitoring and reporting on energy developments, developing and maintaining contacts with high-level energy officials, and supporting U.S. based energy-related investments in Saudi Arabia. Personnel reported on new petroleum sector projects, management of Saudi Aramco oil resources, and developments in the gas sector. Personnel also invested significant resources managing the OPEC relationship, and devoted a small but increasing amount of time to emerging climate change, renewable energy, and carbon sequestration issues. ¶4. (U) Since 2007, we have supported numerous high-level energy delegations, including the Secretary of Energy in January 2008, and several visits by Assistant Secretaries of Energy. In 2008, the Mission also supported POTUS and VPOTUS visits, whose visits had significant energy components. In 2007, the Assistant Secretary for International Affairs conducted a formal meeting of the Energy Working Group, one of six tracks of the US-Saudi Strategic Dialogue. The Mission also supported technical delegations, such as the 2008 visit by the Department of Energy's Office of Fossil Energy to the Carbon Sequestration Leadership Forum in Dhahran. The Regional Security Officer in Dhahran invested time on liaison work with Saudi Aramco officials concerning security issues in the Eastern Province. ¶5. (U) The Mission provided significant coverage for facilitation of visa and travel issues for high level Saudi Aramco and SABIC company officials to travel to the U.S., including to conclude new investments in the Saudi Aramo/Shell Port Arthur refinery. (Note that per reftel B guidance, figures below do not include the direct Consular costs of issuing visas, which are significant in Saudi Arabia.) Other Economic Officers provided coverage on energy issues in the absence of staff with core energy responsibilities, and augmented staffing for visits of large delegations. ¶6. (C) The Mission has made in-depth and significant human resource investments in developing our bilateral critical infrastructure protection (CIP) program. We have reported frequently on this program. The Mission has supported numerous expert-level visits, technical exchanges, and vulnerability assessments by the Department of Energy's Office of Electricity Delivery and Energy Reliability RIYADH 00000592 002 OF 003 (DOE/OE),which also financed work by Sandia National Laboratories and the Coast Guard. During these same missions, we also supported the Department of State's Counterterrorism Office (S/CT) and Diplomatic Security/AntiTerrorism Assistance Office (DS/ATA) to contribute their expertise. ¶7. (C) The Mission also spends increasing time working on civilian nuclear power issues. We expect this to consume an increasing human resource burden in the future. ¶8. (SBU) Personnel Costs not Included: Additional funds are expended within Mission Saudi Arabia on energy issues via offices such as the Foreign Commercial Service and the Defense Attache. However, these are not Department of State-sourced funds, and so have been omitted as per reftel B parameters. Significant additional funds are also expended by both the Department of State's Consular Affairs and the Department of Homeland Security on the visa processing function in support of the energy industry. Again, according to reftel B parameters, we have not included these figures. -------------- Program Costs -------------- ¶9. (U) Program Costs: Program costs included travel costs to support visiting delegations, lead working groups, and attendance at relevant professional conferences. Mission expended representational funding to maintain contact with senior officials from the Ministry of Petroleum and Mineral Resources, Saudi Aramco, SABIC, and other entities relevant to Saudi Arabia's energy sector, such as the Majlis ash Shoura's (Consultative Committee) Economic and Energy Committee, the Supreme Economic Council, and the Supreme Petroleum Council. -------------- Many CIP Program Costs to Date Accounted for in Washington -------------- ¶10. (C) Embassy Riyadh has worked intensively with the Departments of Energy, State, Homeland Security, and Defense to develop a critical infrastructure protection (CIP) program in Saudi Arabia. As the technical and operational lead for our CIP program, DOE's Office of Electricity Delivery and Energy Reliability (DOE/OE) has expended significant program funds for CIP in Saudi Arabia, in the areas of training, technical exchanges, contingency planning, vulnerability assessments, and related programs. DOE/OE has also supported energy-related CIP work at Mission Saudi Arabia (both Embassy Riyadh and ConGen Dhahran) with long-term TDY support during the last year to a total of USD $21,306 to date. While funded by DOE, not DOS, we note these costs in the interests of fully documenting the energy program funds expended at the Mission. Note these costs include only TDY support costs incurred at Embassy Riyadh (principally TDY housing),and do not/not include salary costs, which continue to be paid out of DOE accounts in Washington. DOE/OE should be contacted directly for additional information regarding CIP program costs or DOE TDY personnel costs. ¶11. (C) Additional personnel costs for Saudi Arabian CIP programs have also been supported by Department of State offices, including S/CT, NEA/EX, DS/ATA, and the PoliticalMilitary Bureau. The Department of Homeland Security, particularly Coast Guard, and the Department of Defense, including the Office of the Secretary of Defense and CENTCOM, have incurred personnel costs for CIP programs. -------------- Qualifications of Key Personnel -------------- RIYADH 00000592 003 OF 003 ¶12. (U) Embassy Riyadh: Ambassador Ford Fraker - Ambassador Fraker enjoyed a more than thirty year career as a banker in the Middle East, including significant time in the management ranks of Chemical Bank, Saudi International Bank, and Mees Pierson Investment Finance. Ambassador Fraker has been involved in the financing of numerous energy projects, including those in Saudi Arabia. He founded Fraker and Company, and later the Trinity Group Limited, a private investment bank, where he served as Managing Director and Chairman at the time of his appointment by the President as Ambassador to Saudi Arabia. Deputy Chief of Mission - The DCM is a FE-OC Senior Foreign Officer. He has formerly served as Political Counselor in Riyadh, Deputy Director of the State Department's Office of Regional Security and Arms Transfer, and DCM in Armenia and Moldova. He also held a variety of Economic and Political/Military positions, and served as advisor to the Coalition Provisional Authority in Iraq from 2003 to 2004. He served as Natural Resources Officer at the U.S. Mission to the European Union from 1992-1994, and as Energy Officer at Embassy Moscow. The DCM holds a masters degree in Middle Eastern Studies, and studied Arabic language and Islamic history at the American University in Cairo. He is a full member of the Council on Foreign Relations, and a fluent Arabic speaker. Economic Counselor - The Economic Counselor is an FS-01 Foreign Service Officer, and has previously served in Iraq, three previous tours in Saudi Arabia, and held economic postings throughout the Gulf region. He holds two law degrees, and also graduate degrees in Economics, Administration, and International Affairs. He has served for nine years in energy-related positions, including two years as a resource analyst in the intelligence community, and six years in field positions with substantial energy interest. The Economic Counselor conducted research into energy issues for one year as the faculty member of a war college. Energy Attache/Deputy Economic Counselor - A FS-2 Foreign Service Officer, the Energy Attache served two years as Energy Officer in Nigeria during a volatile period in the energy industry, prior to appointment in Saudi Arabia. The Energy Attache has also served tours as the Economic/Commercial Officer in Afghanistan and Mozambique, and in Brazil. The officer holds a Masters of Business Administration with a focus in international financial and economic issues, and trained in petroleum issues at the National Foreign Affairs Training Center. Consulate General Dhahran: Consul General - The Consul General in Dhahran is a FS-01 Foreign Service Officer and a 23-year veteran of the Foreign Service, having served predominantly in the Middle East and South Asia. He has served a previous tour in Saudi Arabia, and covered energy issues previously in Yemen and Bangladesh. He is a fluent Arabic speaker. Political/Economic Officer - The Political/Economic Officer is an FS-04 officer who previously served in Mexico, where he covered energy issues in addition to other reporting issues. He also speaks Arabic. FRAKER