Bloomberg Talks
00:04:54 · S1, Chris Wright, S3
[00:04:54] S1: Secretary, it's been remarkable to see flows, at least on some days, return to pre-war levels. How much is the United States spending on a daily basis, on a nightly basis, for safe passage through the Strait? [00:05:09] S2: Look, I don't have specific numbers on that, but we've got large military forces deployed in the region. We're using forces that were already there in the region to escort those convoys out in the evening time. But there's no doubt that removing Iran's ability to develop a nuclear weapon, that comes at a cost. It's come at an economic cost. It's come at the cost of 18 brave American soldiers that have lost their lives in this conflict. But I think these costs are still modest when you compare what would this regime in Iran armed with nuclear weapons, what havoc would that bring? [00:05:46] S1: Well, it's been a boon for our oil companies. Of course, the president of the United States himself said that the U.S. is, quote, making a freaking fortune, unquote. We're seeing Exxon Chevron trading near all-time highs. The XLE, it's incredible. It just keeps rising, Mr. Secretary. The president said when he dropped that line, and he got some laughs when he said it, but his advisors told him not to say that in public. [00:06:09] S3: Were you one of them?
00:06:09 · S3, Chris Wright, S1
[00:06:09] S3: Were you one of them? [00:06:11] S2: No, I did not speak with the president about that. But this is a guy who's worked his whole career to grow American energy production, to reduce energy prices. And look, it's the profit system, capitalism, that's what grows energy production, not top-down government control of things. But of course, the goal of energy policy is to have low-cost, affordable energy. 100% of Americans consume oil and gas. Only about 1% of Americans work in the production of them. Mm-hmm. [00:06:42] S3: Understood. [00:06:42] S1: You know, the president was talking about solar last night, and I recall conversations we had, Secretary, at the outset of the administration, and it was an all-of-the-above approach, along with drill, baby, drill. But I think you embraced an all-of-the-above approach for the most part. I know the president is done with wind. He's essentially called for the death of that industry. But last night, when it comes to solar, he said the solar panels kill all the animals. [00:07:07] S3: Quote, the animals jump on them and they fry. [00:07:11] S1: If you look at shares of Enphase or First Solar, they've been left for dead, Mr. [00:07:16] S3: Secretary. [00:07:17] S1: Has the administration succeeded in killing both of these industries?
00:07:17 · S1, Chris Wright, S0, S3
[00:07:17] S1: Has the administration succeeded in killing both of these industries? [00:07:21] S2: What we killed was the subsidies for those industries and the mandates that forced them onto grids driving up electricity prices. We want free market competition to decide the best way to deliver low-cost, affordable, reliable, secure energy. Where I am here in Wisconsin, the previous Department of Energy wanted to lend money up here about solar panels. [00:07:45] S0: Well, solar panels, in the summertime, you get a lot of energy out of them. [00:07:48] S2: In the wintertime, when it's cold and dark, they're completely worthless. [00:07:52] S0: They're just cost centers. [00:07:54] S2: So it's different math in different places. But for us, it's not about politics. It's not about this technology or that technology. It's about the American people. How can we deliver affordable, reliable, secure energy? And subsidizing and forcing wind and solar onto electricity grids around the country. [00:08:11] S0: Has been a disaster. [00:08:13] S2: You can see it in the states with renewable portfolio standards. [00:08:16] S0: That have forced wind and solar. [00:08:18] S2: They have 50% higher electricity prices than the states that don't have those. I haven't met anyone that wants their electrical bill to go up 50%. [00:08:26] S0: People want their bills to go down. [00:08:28] S2: And that's what the Republicans and the Trump administration work on every day. [00:08:32] S0: We're just doing the math. [00:08:33] S3: You are the energy expert here.
00:08:33 · S3, S1, S0, Chris Wright
[00:08:33] S3: You are the energy expert here. [00:08:35] S1: You actually worked in the industry before you became energy secretary. So I just wonder, how do you look at solar, particularly when it comes to data center? You know, we've heard a lot of executives say that while they're lining up gas turbines for now, solar to battery. to prevent outages and maintain consistency is going to be a really important part of that energy chain. Is there a place in the world for that technology, from your view? [00:08:58] S0: Oh, absolutely. [00:08:59] S2: Oh, solar energy will continue to grow. It'll grow in a more sensible way now. It won't be subsidized. Some states will still force it onto the grid. But if it's competing in a marketplace. [00:09:11] S0: Is there a role for solar energy? Absolutely. Is there a role for energy storage? Absolutely. [00:09:17] S2: In fact, this project we're on right up here, a lot of it is energy storage, battery energy storage, and also liquefied natural gas storage inland in our country. So a very unique way of solving these peak demand times that really drive price and energy. [00:09:35] S0: So yes, there's a role for solar, there's. [00:09:36] S2: A role for batteries, there's a role for all different kinds of energy technologies. But America's electrical grid today runs on natural gas, nuclear and coal, and that'll be true decades in the future as well. But do we want to see fusion energy arrive? [00:09:51] S0: Absolutely. Do we want geothermal? Do we want solar where it makes sense? Absolutely.
00:09:51 · S0, S3, S1, Chris Wright
[00:09:51] S0: Absolutely. Do we want geothermal? Do we want solar where it makes sense? Absolutely. [00:09:57] S3: Fusion Energy. I look forward to that interview. someday, Secretary. [00:10:01] S1: I have to ask you before you leave us, I know you're traveling, but you might have seen this report in the Financial Times that the U.S. [00:10:07] S3: And Russia are in active talks. [00:10:09] S1: Around energy companies collaborating, resuming some of the joint ventures that ended with Russia's invasion of Ukraine. [00:10:18] S0: Is the U.S. [00:10:19] S3: In active talks. [00:10:20] S1: With Russian energy companies to start working together again? [00:10:23] S2: Look, I will say President Trump, since he arrived in office, has looked at how do we end the Russia-Ukraine war. You know, that was well along the way when this administration was inaugurated. And it's just a brutal war that's savaging the people of Ukraine. [00:10:37] S0: It's destroying the Russian economy. [00:10:39] S2: He's looking for any creative way to create the right incentives to end that war. That was the idea of this for six months, just temporarily suspending the sanctions on the export of diesel. Not on oil, not on any other Russian products, only on diesel. [00:10:57] S0: And why diesel? Two reasons.
00:10:57 · S0, Chris Wright, S1, S3
[00:10:57] S0: And why diesel? Two reasons. [00:10:59] S2: One, the world is giantly short of diesel today. And two, Russia cannot export diesel today because the war effort has taken so much of their consumption of diesel. And the Ukrainians have knocked their refineries out so they can't even produce enough diesel for their own demand. So the only way Russia can benefit meaningfully from exporting diesel is to turn down the war effort, deliver a ceasefire on energy, or deliver a ceasefire on the war. And in any of these efforts, if they lead to an end of the war, there'll be home runs. [00:11:32] S1: Well, unfortunately, diesel's gone up from 631 a week ago to 635 today. [00:11:37] S3: Was that a yes on the U.S. talking with Russian oil companies? [00:11:41] S0: That's a no comment on that. [00:11:43] S2: But, of course, we're looking always for creative ways to deliver this war and end this war. And diesel's still down 20 cents a gallon from. [00:11:51] S0: Its peak last month. We will see it drop significantly. [00:11:55] S2: But to get there, we need more refined diesel onto the global marketplace. That will likely come from increased exports out of the Arabian Gulf region. We'll probably see China reenter the diesel supply to the world. But that's a challenge we're working on every day. [00:12:12] S1: That's the Energy Secretary, Chris Wright, speaking with us from Wisconsin a little bit earlier today.