WEBVTT - US Energy Secretary Chris Wright Talks Powering AI

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<v Speaker 1>Bloomberg Audio studios, podcasts, radio news. The Department of Energy

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<v Speaker 1>is also celebrating one hundred days of American energy what

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<v Speaker 1>it's calling victories, including in manufacturing and innovation. Joining us

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<v Speaker 1>now is US Energy Secretary Chris Wright, Secretary right. Thank

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<v Speaker 1>you for your time in joining us here on Bloomberg Technology.

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<v Speaker 1>There is one question that that Americans that watch this

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<v Speaker 1>show have for you, which is, how have you changed

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<v Speaker 1>policy in that period of time for energy in a

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<v Speaker 1>way that supports US manufacturers.

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<v Speaker 2>Well, here I am at a plant in Griffin, Georgia,

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<v Speaker 2>about forty miles southeast of Atlanta, that makes low cost, tankless,

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<v Speaker 2>non condensing hot water heaters. A little too technical there,

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<v Speaker 2>These are low cost heaters. Over a million Americans today

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<v Speaker 2>take showers and wash their hands from water heated from

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<v Speaker 2>a device in this plant, just in the last three years,

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<v Speaker 2>and of course millions more interested in this technology because

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<v Speaker 2>it's very low cost. And this was going to be illegal.

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<v Speaker 2>On December twenty sixth, the Biden administration passed a rule

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<v Speaker 2>through the Department of Energy, my predecessor, that would have

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<v Speaker 2>made the manufacture of these devices illegal. Hundreds of people

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<v Speaker 2>here in Georgia would have lost their jobs, and millions

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<v Speaker 2>of Americans wouldn't have had a low cost choice to

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<v Speaker 2>put into their house, their apartment, their you know, wherever

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<v Speaker 2>it is. They want hot water, their restaurant, their business.

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<v Speaker 2>And so we're thrilled to see this factory humming along

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<v Speaker 2>and excited workers that they have the future and their

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<v Speaker 2>products have a future.

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<v Speaker 1>Secretary, right fifty miles away from where you're standing, Rivian

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<v Speaker 1>is building an electric vehicle plant in Georgia. Rivian had

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<v Speaker 1>secured a six point six billion dollar loan from the

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<v Speaker 1>Department of Energy agreed under the prior administration. What is

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<v Speaker 1>your assessment of that loan? Will it pro seed? And

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<v Speaker 1>all you were viewing the issuance of those funds.

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<v Speaker 2>So we will review the issuance of all the funds,

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<v Speaker 2>loans and grants from the Department of the Energy. To

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<v Speaker 2>give you one reason for the serious concern, we have

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<v Speaker 2>about eighty percent of the loan money and the grant

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<v Speaker 2>money put out by the Biden percent Biden administration, eighty

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<v Speaker 2>percent went out after President Trump was elected and before

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<v Speaker 2>his inauguration day. If they had great, rock solid, make

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<v Speaker 2>American lives better opportunities, wouldn't they have done that? In

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<v Speaker 2>the previous two and a half years, but instead so

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<v Speaker 2>much of the money was rushed out the door after

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<v Speaker 2>election day and before inauguration. So we've got a lot

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<v Speaker 2>of reasons to be worried and suspicious about that. We're

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<v Speaker 2>stewards of the American taxpayer's money, and the goal the

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<v Speaker 2>Department of Energy is to improve our energy system, to

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<v Speaker 2>make energy more affordable, reliable, and secure. Everything that serves

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<v Speaker 2>that agenda we will carry through. So we want to

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<v Speaker 2>if you want to carry out the president's agenda, follow

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<v Speaker 2>the rule of law. And so some of these loans

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<v Speaker 2>will go forward, some of them it's too late to

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<v Speaker 2>change courses. A lot of them won't go forward. But

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<v Speaker 2>that's a very careful review processes that we've just put

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<v Speaker 2>in place and just got the team to execute on.

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<v Speaker 1>Secretary Right, it's not just the company's manufacturing. If you

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<v Speaker 1>think about the infrastructure, particularly from the utilities point of view,

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<v Speaker 1>there is a lot of concern about storage capability. Tesla

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<v Speaker 1>is the leader in energy storage right, but the frank

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<v Speaker 1>reality is that for the energy storage products, it relies

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<v Speaker 1>on prismatic LFP cells that are one hundred percent manufactured

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<v Speaker 1>in China by c ATL if there is a need

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<v Speaker 1>to build out storage product at the commercial scale. Are

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<v Speaker 1>you evaluating any exemptions in the context of tariffs or

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<v Speaker 1>any work with Tesla so that they can get moving

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<v Speaker 1>on building out energy storage infrastructure in this country.

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<v Speaker 2>Well, look, I won't talk on specific things right here,

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<v Speaker 2>but we are looking very careful at everything we can

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<v Speaker 2>do to reshure the manufacturing of critical systems like the

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<v Speaker 2>ones you've talked about here in the United States. We've

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<v Speaker 2>just become way too dependent on China for things that

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<v Speaker 2>are in our defense systems, that are in our electric grids,

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<v Speaker 2>that are in our automobiles, that are in our space systems.

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<v Speaker 2>We need to bring that kind of manufacturing, those technologies,

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<v Speaker 2>and those materials back into the United States. It is

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<v Speaker 2>a high priority of the Trump administration.

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<v Speaker 3>Secretary, right, you spend a lot of time talking to executives,

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<v Speaker 3>as does the President. I just want you to rehaar

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<v Speaker 3>what the Nvidia CEO said on the Hell just this week.

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<v Speaker 3>Take a listen.

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<v Speaker 4>In order for this industry to thrive, we need to

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<v Speaker 4>build these systems, of course, but we also need a

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<v Speaker 4>progressive growth and industry oriented energy policy, which this president

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<v Speaker 4>has really put his way behind. I really appreciate that

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<v Speaker 4>without energy, we can't possibly have new growth industries.

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<v Speaker 3>An industry focused energy policy for AI. Secretary, Right, what

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<v Speaker 3>does that industry policy look like?

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<v Speaker 2>That means getting the barriers out of the way of

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<v Speaker 2>energy production. Divide. The administration spent four years in sort

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<v Speaker 2>of an all of government approach to impede the production

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<v Speaker 2>of hydrocarbons in the United States up for all energy sources.

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<v Speaker 2>But hydrocarbons are over eighty percent of US energy when

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<v Speaker 2>I was born and they are today. So if you

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<v Speaker 2>stand in the way of our main energy system, guess

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<v Speaker 2>what you get? Higher prices. We grew our electricity production

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<v Speaker 2>only two percent, twenty percent price rise. So to achieve

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<v Speaker 2>in Vidia's and America's dream to win the AI race,

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<v Speaker 2>we've got to produce a lot more electricity, a lot

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<v Speaker 2>more of energy of all sorts in the United States.

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<v Speaker 2>And all the government needs to do is get out

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<v Speaker 2>of the way a little bit of common sense. There's

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<v Speaker 2>American businesses, a Maria capital, American technologies ready to roar,

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<v Speaker 2>and President Trump's goal is to unleash that American energy,

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<v Speaker 2>that American capital and let American energy production grow sexually.

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<v Speaker 3>Right, though, is there potential that you're accidentally getting in

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<v Speaker 3>the way because of geopolitics and trade issues. Because the

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<v Speaker 3>energy lack of in many ways is an infrastructure and

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<v Speaker 3>supply chain issue. You don't have the turbines to be

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<v Speaker 3>able to bring the energy at the infrastructure rate that

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<v Speaker 3>the CEOs want to see. There's not enough equipment. Is

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<v Speaker 3>there enough time to pivot to make that in the US.

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<v Speaker 2>Oh, I've spoken to the turbine manufacturers and they are

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<v Speaker 2>in huge demand right now. But ge Vernova made twenty

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<v Speaker 2>seven of them last year. They'll make eighty of them

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<v Speaker 2>next year. So that Americans are ingenious and with a

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<v Speaker 2>little bit of regulatory common sense, they can ramp up

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<v Speaker 2>their capacity rapidly. So no, I'm quite excited about how

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<v Speaker 2>much new energy production capacity we'll see in the United

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<v Speaker 2>States under construction today, and a lot more will be

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<v Speaker 2>under construction by the end of this year. I think

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<v Speaker 2>we will ramp it up in time. But you're right,

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<v Speaker 2>it's going to be a race. It's going to be

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<v Speaker 2>a race, but we must lead in AI and that

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<v Speaker 2>means we must rapidly grow our energy production. But we're

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<v Speaker 2>up for the.

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<v Speaker 1>Job, Secretary, right, How reliant will the AI boom in

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<v Speaker 1>this country be on fossil fuels. And while we have you,

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<v Speaker 1>what is the plan for the SPR?

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<v Speaker 2>Pleads Well, the natural gas is by far the biggest

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<v Speaker 2>source of electricity in the United States, followed by nuclear

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<v Speaker 2>and coal, so that's what's going to power the race.

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<v Speaker 2>It's slow to build coal plants and nuclear plants are

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<v Speaker 2>very slow. We want to change that. But in the

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<v Speaker 2>short term, the main source of additional electricity that will

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<v Speaker 2>power AI arms race is going to be expanded natural

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<v Speaker 2>gas electricity production. That'll be the workhorse of winning the

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<v Speaker 2>AI race. But a lot of solars getting built, transmission,

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<v Speaker 2>energy store bridge, all of the above that works, that'll

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<v Speaker 2>add to it. Your last question, sorry, repeat it again.

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<v Speaker 1>The status of the SPR. Please.

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<v Speaker 2>Hey, the SPR was half drained for the twenty twenty

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<v Speaker 2>two mid term elections, so we are filling it slowly

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<v Speaker 2>right now, but we're going to try to get money

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<v Speaker 2>through Congress to fill it more rapidly. But unfortunately you

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<v Speaker 2>can only fill it at a much slower pace than

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<v Speaker 2>you can drain it, so it will take us years

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<v Speaker 2>to fill it back. But we will entirely fill it

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<v Speaker 2>because it's a strategic reserve. You got to have that

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<v Speaker 2>because you never know what's coming.

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<v Speaker 3>We appreciate your time outside, of course Rehinai America Corporation.

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<v Speaker 3>US Energy Secretary Chris Right