WEBVTT - US Energy Secretary Chris Wright Talks Oil Flows Through Strait of Hormuz 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, radio news. 0:00:07.920 --> 0:00:10.800 US Energy Secretary Chris Wright speaking with Bloomberg Television anchor 0:00:10.840 --> 0:00:15.360 and Marie Hordern at the Bloomberg Energy Security Executive Briefing. 0:00:16.160 --> 0:00:18.800 Let's take a listen right now, blowing off nuclear bombs 0:00:18.880 --> 0:00:21.480 right now, let's just forget about it and move on. 0:00:22.040 --> 0:00:24.720 But he wasn't willing to do that. He was he said, 0:00:24.800 --> 0:00:26.720 we have to solve that problem. I'm not going to 0:00:26.800 --> 0:00:30.880 hand my credit my successor a nuclear armed to Ron. 0:00:31.680 --> 0:00:35.800 And so there's dialogue back. Of course, you know they 0:00:35.920 --> 0:00:40.120 for forty seven years, they are wedded to being to 0:00:40.240 --> 0:00:44.199 becoming nuclear armed and for whatever crazy reason, to export 0:00:44.240 --> 0:00:49.440 their Islamic revolution and change the whole world. Everyone converted 0:00:49.520 --> 0:00:52.559 or dead. It's an ideology that doesn't work well with 0:00:52.640 --> 0:00:55.920 other nations, with other people, and of course disastrous for 0:00:56.000 --> 0:01:00.200 the ninety million Iranians that live under that regime. So 0:01:00.200 --> 0:01:02.120 that's sort of the broader backdrop. 0:01:03.040 --> 0:01:05.680 I guess it's just hard to understand if is this 0:01:05.880 --> 0:01:08.320 a real inflection point, only because the President has said 0:01:08.319 --> 0:01:11.360 about forty times then since this conflict started that we 0:01:11.360 --> 0:01:13.360 were close to a peace deal, and then a peace 0:01:13.400 --> 0:01:14.240 deal never happened. 0:01:15.720 --> 0:01:18.800 Iran says things that they'll agree to, things that work 0:01:18.880 --> 0:01:21.760 for us, and then they don't, you know. And of course, look, 0:01:21.800 --> 0:01:25.280 the regime is fragmented, there's different power sources there, so 0:01:25.319 --> 0:01:28.679 it's a complex situation. And he's a negotiator too, right, 0:01:28.720 --> 0:01:32.640 So you've got to understand the communications share information, they 0:01:32.640 --> 0:01:35.920 also share messaging. But the one piece of leverage, the 0:01:35.959 --> 0:01:39.720 only piece of meaningful leverage Iran has had, has been 0:01:39.840 --> 0:01:42.679 to interrupt the flows of energy flowing out of the 0:01:42.680 --> 0:01:45.440 Persian Gulf. Right we had twenty million barrels a day 0:01:45.720 --> 0:01:49.280 round numbers flowing out before the conflict started through the 0:01:49.320 --> 0:01:54.400 East West Pipeline and the UAE pipeline. Close to five 0:01:54.480 --> 0:01:59.080 million barrels of that has been diverted. We've got increased production. 0:02:00.080 --> 0:02:02.520 It was pretty easy to do a few other places. 0:02:02.920 --> 0:02:05.480 I think in round numbers you had maybe a fourteen 0:02:05.640 --> 0:02:09.280 million barrel a day flow gap, which is a big 0:02:09.320 --> 0:02:13.079 flow gap of oil going out of the going out 0:02:13.080 --> 0:02:15.359 of the gulf. At the start of this conflict or 0:02:15.400 --> 0:02:18.480 early on in this conflict. We have a military effort 0:02:18.520 --> 0:02:21.239 that we've not talked a lot about that started more 0:02:21.320 --> 0:02:25.639 recently to get cargoes out, you know, because we President 0:02:25.680 --> 0:02:27.679 Trump said at the beginning, they're not going to have 0:02:27.720 --> 0:02:30.280 a newcre weapon, and we'll restore energy flows in the 0:02:30.400 --> 0:02:33.920 United States whither or without Iran. He always prefers the 0:02:34.000 --> 0:02:37.800 diplomatic arm and he works tirelessly on that. But we 0:02:37.880 --> 0:02:41.400 also have the we have the most powerful military in 0:02:41.400 --> 0:02:44.280 the world. We've destroyed most but not all, of their 0:02:44.320 --> 0:02:47.720 military capabilities, and we're just going to restore flows ourself. 0:02:47.960 --> 0:02:54.040 It flows today a close approaching half of the gap, 0:02:54.280 --> 0:02:57.280 and their rising. Ultimately, we will restore flows with or 0:02:57.280 --> 0:02:57.680 without them. 0:02:57.880 --> 0:02:59.960 So seven million bars a day are getting out right now. 0:03:01.760 --> 0:03:04.240 That's a rough estimate, rough average of where we are 0:03:04.360 --> 0:03:05.440 right now, and it's rising. 0:03:05.760 --> 0:03:07.760 So what kind is this oil? 0:03:07.919 --> 0:03:10.880 Is it products makes the tube? 0:03:11.120 --> 0:03:14.639 And it's being done with the US military? 0:03:14.880 --> 0:03:15.560 Correct? 0:03:15.880 --> 0:03:19.320 So are ships turning off their transponders or is the 0:03:19.320 --> 0:03:21.000 military escorting them? 0:03:21.280 --> 0:03:25.400 Is it by how air? Is it by suh? 0:03:26.280 --> 0:03:31.080 Most of them? It's hard to transport crude by air well, 0:03:32.040 --> 0:03:39.119 but I mean protective. But but yes, the military protection 0:03:39.480 --> 0:03:44.120 is there. It's actually it's actually going remarkably well. And 0:03:44.160 --> 0:03:47.640 of course this is just the US innovation, US military 0:03:47.680 --> 0:03:50.520 power solving a problem and h and we'll continue to 0:03:50.520 --> 0:03:53.120 solve that problem. So think of that impact that has 0:03:53.160 --> 0:03:56.640 on the dynamics if I'm in Iran, And of course 0:03:56.640 --> 0:03:58.960 what are they They're not concerned about Iranian people, right 0:03:59.000 --> 0:04:03.240 They're concerned about their regime and their selves personally, so 0:04:03.320 --> 0:04:06.080 they have a little bit of a narrower focus on 0:04:06.120 --> 0:04:10.040 what they care about. But they've thought they have this 0:04:10.160 --> 0:04:12.680 great leverage over the United States of America. Of course 0:04:12.720 --> 0:04:14.800 there isn't really leverage over US. It's leverage over the 0:04:14.800 --> 0:04:18.720 world economy. But they're losing that leverage right now. They 0:04:18.720 --> 0:04:22.400 are rapidly and will continue to lose that leverage. So 0:04:22.440 --> 0:04:25.200 you would think that their urgency to do a deal 0:04:25.400 --> 0:04:28.359 is rising, and it is rising they realize, you know, 0:04:28.440 --> 0:04:30.800 the jig is going to be up before too long. 0:04:31.040 --> 0:04:31.760 What can they get? 0:04:31.920 --> 0:04:34.119 How much Iranian crued is getting out right now? 0:04:34.360 --> 0:04:34.680 Zero? 0:04:35.560 --> 0:04:37.640 No Irunnan crew is able to escape. 0:04:37.680 --> 0:04:40.200 So this deal were to happen, would the United States 0:04:40.240 --> 0:04:43.520 let Iranian crewed go through the straight up FROMOS. 0:04:44.200 --> 0:04:46.640 Well, it depends on the deal, but of course that 0:04:47.720 --> 0:04:51.000 is a that is a give. We would certainly be 0:04:51.040 --> 0:04:53.200 willing to do absolutely, you know, if Ron gets rid 0:04:53.240 --> 0:04:57.440 of their nuclear program achieves what we want us to do. Yeah, 0:04:57.480 --> 0:04:59.640 their creud would be allowed to flow again, absolutely, so that. 0:05:00.360 --> 0:05:02.080 Of sanctions basically on Ronnie and oil. 0:05:02.720 --> 0:05:06.720 Their crude was flowing before, you know, during sanctions. Unfortunately, 0:05:06.800 --> 0:05:08.960 the same thing in Venezuela. You know, the world puts 0:05:09.000 --> 0:05:12.120 sanctions on then the world doesn't enforce the sanctions because 0:05:12.120 --> 0:05:15.160 it's hard to enforce sanctions. But if you really believe 0:05:15.160 --> 0:05:17.600 in the sanctions, you need to enforce them. So you 0:05:17.600 --> 0:05:22.080 could see partial lifting of sanctions on Iran would likely 0:05:22.160 --> 0:05:25.440 be on the give side for the United States. 0:05:25.560 --> 0:05:28.520 According to Iranian press, the deal says within thirty days, 0:05:28.760 --> 0:05:31.640 the street would open, the blockade would be lifted. Is 0:05:31.720 --> 0:05:34.680 that your understanding? And if it is true, what does 0:05:34.720 --> 0:05:37.159 it look like then in thirty days, if we're already 0:05:37.200 --> 0:05:40.200 getting seven million barrels through, how much higher could you 0:05:40.240 --> 0:05:41.000 see the flow rate? 0:05:42.200 --> 0:05:46.000 I mean, the flowage would return to whatever's commercially you 0:05:46.000 --> 0:05:49.839 know makes sense there. So, but you know that you're 0:05:50.080 --> 0:05:52.839 clearly going to see after this conflict people to say 0:05:52.880 --> 0:05:56.000 Iran can never play that card again. You'll probably see 0:05:56.000 --> 0:05:59.599 some new pipeline infrastructure built. You'll certainly see continue to 0:05:59.640 --> 0:06:04.560 innovates in military technology from the United States to defang 0:06:04.720 --> 0:06:08.279 more easily and more quickly Iran's ability to interrupt the 0:06:08.279 --> 0:06:12.560 flows as they've done there. But yeah, before too. Certainly, 0:06:12.600 --> 0:06:15.200 after an agreement is reached, you'll see free flow of 0:06:15.240 --> 0:06:17.880 traffic of all products out of the golf or whatever. 0:06:18.160 --> 0:06:21.440 You'll see that either way. If there is no deal 0:06:21.440 --> 0:06:25.039 with Iran, eventually we would restore that militarily full flow 0:06:25.080 --> 0:06:26.040 as well. 0:06:26.279 --> 0:06:32.080 Prices have been relatively depressed given the intensity of the conflict. 0:06:32.160 --> 0:06:35.120 I believe we're down twenty percent on Brent since April. 0:06:35.160 --> 0:06:37.680 Prices this morning we're in the eighties. What is the 0:06:37.760 --> 0:06:38.880 driving force behind this? 0:06:40.320 --> 0:06:44.760 It's amazing the difference in attitude and positioning of a president. 0:06:44.839 --> 0:06:47.479 President Trump came into office and said, I want lower 0:06:47.560 --> 0:06:50.919 energy prices, I want more energy production. I want to 0:06:50.960 --> 0:06:55.760 embrace American allies around the world and the Persian golf 0:06:55.880 --> 0:06:59.200 energy producers. I should never call it person golf, the 0:06:59.240 --> 0:07:04.680 Arabian golf. I slipped up there. But the Biden administration, 0:07:04.839 --> 0:07:07.360 you know, you know, scorned them, said We're going to 0:07:07.880 --> 0:07:11.920 end the hydrocarbon industry. You know, just that rhetoric, that 0:07:12.040 --> 0:07:17.280 chilling rhetoric, that shunning of our allies. When Russia invaded Ukraine, 0:07:17.640 --> 0:07:21.000 there was almost no interruption of flow of Russian cruit. 0:07:21.360 --> 0:07:24.200 There was natural gas via pipeline into Europe, but there 0:07:24.240 --> 0:07:27.040 was not a meaningful reduction of Russian oil or oil 0:07:27.080 --> 0:07:30.320 product exports. And we had gasoline prices a dollar a 0:07:30.440 --> 0:07:33.840 gallon higher than than we have today with this large 0:07:33.840 --> 0:07:37.680 interruption of flows. I think that's President Trump's leadership in 0:07:37.760 --> 0:07:40.320 saying we care about energizing the world, and we're going 0:07:40.400 --> 0:07:43.080 to do whatever it takes to supply the world. You know, 0:07:43.080 --> 0:07:46.040 obviously we were released, not just in the United States 0:07:46.040 --> 0:07:49.920 but around the world stocks from strategic petroleum reserves fed 0:07:49.960 --> 0:07:54.280 two extensions of the Jonzac Waiver to allow crude supply 0:07:54.400 --> 0:07:56.480 from the Gulf Coast where it's coming from your region. 0:07:56.560 --> 0:07:58.920 Well, you do another extension. Actually, that's an audience question. 0:07:59.160 --> 0:08:03.920 It's we'll do whatever it takes to keep energy prices 0:08:04.320 --> 0:08:08.080 as low as possible for the American people. California has 0:08:08.560 --> 0:08:12.880 chosen to impose on their people wildly high gasoline, diesel 0:08:12.880 --> 0:08:16.000 and electricity prices just crazy, and so a lot of 0:08:16.040 --> 0:08:18.559 people would say, well, we shouldn't care. That's a blue state. 0:08:19.040 --> 0:08:22.040 We're here for three hundred and forty million Americans in 0:08:22.120 --> 0:08:25.080 every state across the country. So the Jone Jack Waiver 0:08:25.120 --> 0:08:27.960 has been enormously helpful for California in the West Coast, 0:08:28.120 --> 0:08:30.600 the northeast coast of the United States as well. So 0:08:30.640 --> 0:08:34.480 it's allowing the free flow of that traffic that we 0:08:35.200 --> 0:08:39.319 turn back on a platform producing fifty thousand barrels a 0:08:39.400 --> 0:08:43.880 day offshore California wells are already there, infrastructure is already there. 0:08:44.080 --> 0:08:47.920 It grew California oil production by twenty percent. That's a 0:08:47.960 --> 0:08:50.440 big deal. That's a meaningful amount of flows, and it 0:08:50.520 --> 0:08:54.679 sends a message that this administration is going to help 0:08:54.760 --> 0:08:57.840 the flow of energy around the world. People are surprised 0:08:57.840 --> 0:09:01.040 they're oil prices throughout all this have not gone to 0:09:01.080 --> 0:09:02.840 the extreme levels many expected. 0:09:03.080 --> 0:09:05.880 Isn't also because China is cutting some of their imports. 0:09:06.520 --> 0:09:08.000 Was there a conversation. 0:09:07.600 --> 0:09:11.120 Between the Chinese and the White House about this? 0:09:12.960 --> 0:09:15.280 Yeah, there's a lot of conversations between the White House 0:09:15.320 --> 0:09:18.160 and the Chinese, and I won't talk about that. But 0:09:18.160 --> 0:09:21.599 you saw at the start of the conflict, China was 0:09:21.640 --> 0:09:25.040 a massive They actually stepped up their purchases of crude oil, 0:09:25.720 --> 0:09:28.280 and as you see now they're in a very different 0:09:28.360 --> 0:09:31.200 position where they've stopped building their spr they've turned down 0:09:31.240 --> 0:09:34.680 some refineris. China has been a meaningful part of the 0:09:34.840 --> 0:09:37.280 of the balancing force in this crisis. 0:09:37.559 --> 0:09:40.360 There was a recent Washington Post article actually was yesterday 0:09:40.400 --> 0:09:43.600 about oil executives telling the White House and warning them 0:09:43.600 --> 0:09:46.439 that potentially prices are going to go higher soon, or 0:09:46.840 --> 0:09:48.040 living on inventories. 0:09:48.880 --> 0:09:52.240 Where do you see the inventories right now? How low 0:09:52.320 --> 0:09:52.600 are we? 0:09:53.920 --> 0:09:56.520 You know, it's different in different places. It's different in 0:09:57.120 --> 0:10:00.880 oil inventories in the last few weeks in a arising 0:10:02.520 --> 0:10:05.560 and so in the United States we have stepped in 0:10:05.600 --> 0:10:09.840 to fill this void. We've seen incredible response from American 0:10:09.920 --> 0:10:13.160 oil and gas companies, not just raising production but raising 0:10:13.240 --> 0:10:17.120 refinery throughput to a significant scale. In fact, if you 0:10:17.160 --> 0:10:20.040 look at the May data, the United States was by 0:10:20.160 --> 0:10:23.440 far the world's largest export of crude oil five point 0:10:23.440 --> 0:10:26.720 four million barrels a day, Russia a little over four million, 0:10:27.400 --> 0:10:30.720 study Arabia a little under four million. But United States 0:10:30.760 --> 0:10:33.719 producers have stepped up and from our reserves and from 0:10:33.760 --> 0:10:37.160 other stores to try to supply not just America but 0:10:37.280 --> 0:10:40.400 the world. But we've also had the benefit of you know, 0:10:40.480 --> 0:10:42.720 average gasoline prices in the US a little over four 0:10:42.760 --> 0:10:44.800 dollars a gallon. It's a little under ten dollars a 0:10:44.800 --> 0:10:47.440 gallon in Europe and in Asia. So we've been much 0:10:47.679 --> 0:10:50.520 We have not been completely isolated from the impacts of this, 0:10:51.320 --> 0:10:53.920 but we have been much more isolated than everyone else 0:10:53.960 --> 0:10:57.280 that's leaning in and being pro energy. That's Trump administration 0:10:57.559 --> 0:10:58.480 energy policy. 0:10:58.559 --> 0:11:00.400 Has there been an ask or pressure in the White 0:11:00.440 --> 0:11:02.439 House on the industry to produce more. 0:11:03.880 --> 0:11:05.760 Pressure is the wrong word, but but of course we 0:11:06.320 --> 0:11:11.160 dialogue with industry across all sectors in this economy. We're 0:11:11.200 --> 0:11:15.960 not they're pursuing some crazy agenda, as unfortunately the Biden 0:11:15.960 --> 0:11:19.680 administration was. We're there to engage with American businesses and 0:11:19.760 --> 0:11:24.679 help them grow their businesses, whether they're building artificial intelligence 0:11:24.679 --> 0:11:27.480 factories or new manufacturing plants, or oil and gas or 0:11:28.120 --> 0:11:31.520 coal or electricity of any kinds. We want to see 0:11:31.840 --> 0:11:35.440 America thrive. We want to see energy production increase. We 0:11:35.440 --> 0:11:38.079 want to see prices that consumers go down. We want 0:11:38.120 --> 0:11:41.559 to see competitiveness to do business in the United States grow, 0:11:41.960 --> 0:11:43.559 higher wages, lower costs. 0:11:44.280 --> 0:11:46.720 But there is a concern that potentially if we're running 0:11:46.760 --> 0:11:49.520 low on inventories and say we don't get a piece 0:11:49.640 --> 0:11:52.599 deal this weekend, and we're back to potentially strikes or 0:11:52.640 --> 0:11:55.480 this linger. The President in a recent interview said it 0:11:55.520 --> 0:12:00.240 could be closed until September. Then what happens if we 0:12:00.280 --> 0:12:02.040 get higher gasoline prices. 0:12:01.720 --> 0:12:04.000 In America closer to five dollars a gallon. 0:12:05.400 --> 0:12:08.120 Look, we've done everything we can since the day it 0:12:08.280 --> 0:12:12.680 started to both fix the existential problem. A nuclear armed 0:12:12.760 --> 0:12:18.200 Iran becomes a much larger threat to energy supplies, to peace, 0:12:18.240 --> 0:12:21.880 to commerce that people just don't appreciate how critical that 0:12:22.000 --> 0:12:27.360 issue is. So to solve that fundamental problem, it's coming 0:12:27.400 --> 0:12:30.199 at disruptions, it's coming at some costs. I think the 0:12:30.240 --> 0:12:33.920 Trump administration has managed them fabulously well. I think we'll 0:12:33.920 --> 0:12:36.680 continue to do that. We may use different levers going forward, 0:12:36.679 --> 0:12:39.360 but we will do everything we can to get through 0:12:39.480 --> 0:12:44.880 to achieve the fundamental objective that we will not fail on. 0:12:45.200 --> 0:12:49.040 So what kind of levers? There's rumors months ago about 0:12:49.040 --> 0:12:51.160 an export ban. I know you said that's not happening. 0:12:52.200 --> 0:12:53.080 That will never happen. 0:12:53.640 --> 0:12:56.840 No export bans, No export bans. A couple of reasons 0:12:56.960 --> 0:12:59.599 number what we produce more than we consume. So what 0:12:59.679 --> 0:13:01.880 do we get shut in our wells and reduce our 0:13:01.920 --> 0:13:06.000 production down. That number two is a large part of 0:13:06.040 --> 0:13:11.439 the Trump administration diplomacy is to make America an energy superpower, 0:13:11.679 --> 0:13:14.520 which means to be a reliable supplier to our friends 0:13:14.520 --> 0:13:17.439 and allies abroad of oil, of natural gas, of coal, 0:13:17.720 --> 0:13:21.840 of next generation nuclear power plants, of fusion energy technology. 0:13:21.920 --> 0:13:25.240 We want to develop energy resources in this country to 0:13:25.320 --> 0:13:28.480 benefit Americans and to benefit our trade balance abroad, and 0:13:28.600 --> 0:13:31.480 support our allies so they don't have to depend upon 0:13:32.679 --> 0:13:38.120 an unstable hostiles. 0:13:38.840 --> 0:13:41.280 There was a recent Reuter's pull that showed eighty percent 0:13:41.320 --> 0:13:44.000 of Americans say the current gas prices are straining their 0:13:44.040 --> 0:13:47.679 household budget. Is the administration still pushing congres look at 0:13:47.720 --> 0:13:50.200 a gas tax holiday, especially over the summer. 0:13:51.120 --> 0:13:55.280 Trade offs in all of these issues, but the overriding 0:13:55.320 --> 0:13:59.079 objective is lower energy costs for Americans across the board. 0:14:00.320 --> 0:14:03.560 Is that a s I mean? 0:14:03.640 --> 0:14:05.559 Is it still one of the tools in the toolbox. 0:14:06.000 --> 0:14:07.520 It's possible. It's possible. 0:14:07.559 --> 0:14:10.520 Do you think Congress has the votes? You probably have 0:14:10.559 --> 0:14:11.679 to do it before the midterms. 0:14:13.520 --> 0:14:18.200 Yeah. Look, my bigger effort, my bigger effort right now 0:14:18.600 --> 0:14:22.120 in Congress is permitting reform. We want to leave behind 0:14:22.160 --> 0:14:25.280 as much permanent change as we can, so we won't 0:14:25.320 --> 0:14:27.880 go back to the energy foolishness we suffered under the 0:14:27.880 --> 0:14:31.280 Biden administration and it began under the Obama administration. We 0:14:31.440 --> 0:14:35.160 just got to stop this mindset that's somehow making energy 0:14:35.200 --> 0:14:38.120 expensive in the United States and exporting our industries is 0:14:38.160 --> 0:14:41.280 somehow going to save the world from climate change. I've 0:14:41.320 --> 0:14:44.360 been looking at data and studying climate change for twenty years. 0:14:44.440 --> 0:14:47.800 It's just amazing how that issue, a real issue, but 0:14:47.880 --> 0:14:50.240 sort of a slow moving, actually not that big deal 0:14:50.280 --> 0:14:53.880 of a problem, has just become so politically dominant among 0:14:53.960 --> 0:14:56.880 the left in the United States and of course across 0:14:56.960 --> 0:14:59.160 the board in Europe. I think we are moving that 0:14:59.280 --> 0:15:01.400 tie back. Just got to get back to focusing. It 0:15:01.600 --> 0:15:02.360 is human big thing. 0:15:02.440 --> 0:15:04.400 You hear a lot of Democrats now, especially ahead of 0:15:04.400 --> 0:15:06.960 the midterms, especially out of twenty twenty eight, saying we 0:15:07.000 --> 0:15:10.000 should focus energy more about using an all of energy 0:15:10.000 --> 0:15:13.320 approach because they want to talk about affordability, less so 0:15:13.600 --> 0:15:18.120 about climate change. When it comes though to policies that 0:15:18.160 --> 0:15:21.120 the United States could do besides the Jones Waiver Act, 0:15:21.320 --> 0:15:24.640 anything else that you think could be pretty short term 0:15:24.640 --> 0:15:26.200 on the horizon for this summer. 0:15:27.640 --> 0:15:32.240 Things we're talking about, but not We look through ideas 0:15:32.240 --> 0:15:34.280 and decide if they're viable, and we'll come out and 0:15:34.320 --> 0:15:36.640 engage in that. But of course it is a constant 0:15:36.680 --> 0:15:39.720 dialogue with energy producers here. How can we be helpful 0:15:39.880 --> 0:15:44.000 like the you know EPA, we change the regulations for 0:15:44.160 --> 0:15:49.320 blending for gasoline this summer. That's going to meaningfully increase 0:15:49.560 --> 0:15:53.680 America's ability to produce gasoline with our existing refinery capacity. 0:15:54.480 --> 0:15:55.360 That's going to be helpful. 0:15:55.520 --> 0:15:57.920 There's also the drawdown the spr Do you have plans 0:15:57.920 --> 0:15:58.520 to refill it? 0:15:59.720 --> 0:16:03.360 Yeah, there's another I would say start contrast, the previous 0:16:03.400 --> 0:16:08.160 administration sold two hundred million barrels of oil without an 0:16:08.240 --> 0:16:11.920 interruption of flow around the world, trying to push down 0:16:11.960 --> 0:16:15.800 prices for a midterm election. We've not sold a single 0:16:15.880 --> 0:16:19.520 barrel of oil. Every barrel of oil we have released 0:16:19.680 --> 0:16:22.120 has been a trade. It's been an exchange for a 0:16:22.120 --> 0:16:25.080 barrel coming back. And the exchanges we completed so far 0:16:25.200 --> 0:16:27.240 this is not the current ones that are going on 0:16:27.320 --> 0:16:29.680 right now. I don't have the data on them, but 0:16:29.800 --> 0:16:33.880 today every barrel we've released, we've gotten one point two 0:16:34.200 --> 0:16:38.120 eight barrels coming back. So that's thirty five to forty 0:16:38.320 --> 0:16:41.640 million barrels of additional crew that'll be in the SPR 0:16:41.800 --> 0:16:43.600 at no cost to American taxpayers. 0:16:43.680 --> 0:16:45.240 Where do you think the SPR will be at the 0:16:45.360 --> 0:16:46.880 end of Trump's term? 0:16:47.480 --> 0:16:51.720 Much fuller than it was before we arrived. I would 0:16:51.800 --> 0:16:53.960 like it to be completely full. That's what it's there 0:16:53.960 --> 0:16:55.280 for the first price. 0:16:55.120 --> 0:16:59.360 Level that you would want to go out and fill 0:16:59.400 --> 0:16:59.960 it up more. 0:17:01.440 --> 0:17:07.760 If there was I certainly wouldn't share it. But but 0:17:07.080 --> 0:17:10.879 but also it's not as simple as that. You know, 0:17:10.920 --> 0:17:13.919 you've got to get money from Congress to fill the 0:17:14.119 --> 0:17:17.639 SPR and that's very challenging. There's not a great political 0:17:17.680 --> 0:17:20.960 constituency that wants to spend money today, you know, to 0:17:21.640 --> 0:17:24.000 prepare us for a problem way down the road, which 0:17:24.040 --> 0:17:27.160 is exactly why no previous president would take a RAN 0:17:27.240 --> 0:17:30.880 head on, like in the short term. It's disruptive fixing 0:17:30.960 --> 0:17:34.880 long term problems. That's tough to do in politics. That's 0:17:34.880 --> 0:17:38.160 a unique thing about President Trump. He has the courage 0:17:38.200 --> 0:17:41.320 to take on this Iranian issue where all the news 0:17:41.440 --> 0:17:44.240 is short term. He's terrible, Iran's winning and all that's 0:17:44.280 --> 0:17:47.400 all it's all wrong, it's all nonsense. We are living 0:17:47.440 --> 0:17:50.520 with higher energy prices. He takes all the negative, but 0:17:50.640 --> 0:17:54.120 people don't, certainly in the media in general, don't think 0:17:54.119 --> 0:17:57.919 about these long term issues. He's engaging in a long 0:17:58.040 --> 0:18:00.840 term strategic issue that's going to better not just the 0:18:00.880 --> 0:18:03.879 Middle East but the world for generations to come. And 0:18:03.920 --> 0:18:06.560 he's taken whatever the heat comes, you know, through a 0:18:06.640 --> 0:18:09.359 higher prices. But I think he's managed that quite well. 0:18:09.440 --> 0:18:13.159 So there's impacts are real, but again less impact on 0:18:13.280 --> 0:18:16.320 prices than just the foolish policies and rhetoric of the 0:18:16.359 --> 0:18:17.119 Biden administration. 0:18:17.160 --> 0:18:19.399 Do you think the psychology has changed? It used to 0:18:19.480 --> 0:18:22.040 be that OPAQ, Saudi Arabia, now the UAE has left, 0:18:22.240 --> 0:18:24.639 was the swing producer, the central bank of oil. 0:18:25.840 --> 0:18:27.440 Why wouldn't it be the United States? 0:18:28.440 --> 0:18:31.600 Well, we produce far, far more than Saudi would be. 0:18:31.640 --> 0:18:33.720 In fact, you know the way people report one hundred 0:18:33.720 --> 0:18:35.560 million to one hundred and five million barrels of demand, 0:18:35.600 --> 0:18:38.719 that's liquid fuels. KRUDEL is the biggest component of that, 0:18:38.760 --> 0:18:40.680 but it's just one piece of that. If you look 0:18:40.720 --> 0:18:44.160 at total liquid fuels, the United States is twenty four 0:18:44.359 --> 0:18:47.000 million barrels a day of production in a world of 0:18:47.000 --> 0:18:49.400 about one hundred and five hundred and six million of demand. 0:18:49.640 --> 0:18:53.120 So yeah, we are the big dog in energy production, 0:18:53.520 --> 0:18:56.600 but it's all by businesses here. We don't decide at 0:18:56.600 --> 0:18:59.480 a government level our production levels, so we never play 0:18:59.520 --> 0:19:03.000 a role as a short term swing producer. We do 0:19:03.119 --> 0:19:06.200 lean in as we are right now. But I think 0:19:06.280 --> 0:19:10.520 Saudi Arabia's role in the oil markets likely will continue 0:19:10.760 --> 0:19:13.240 as it has. They have been willing and with a 0:19:13.280 --> 0:19:17.280 few partners, but mostly Saudi Arabia, they have played a 0:19:17.359 --> 0:19:20.040 sort of central bank role of oil. I think the 0:19:20.119 --> 0:19:22.200 net impact of that overall has been positive. 0:19:22.280 --> 0:19:24.199 But do you think their hand has been weakened with 0:19:24.240 --> 0:19:26.040 the amoradis leaving the group? 0:19:26.560 --> 0:19:31.119 Sure? Sure, sure, less less oil will be controlled in 0:19:31.240 --> 0:19:36.399 that Opek fashion. UAE is a major oil producer, super 0:19:36.520 --> 0:19:39.960 successful economy in that country, and they're investing and growing 0:19:40.000 --> 0:19:43.520 their productive capacity. Kuwait is leaning in and growing their 0:19:43.520 --> 0:19:46.760 productive capacity. People are just getting out of this silly mindset, 0:19:46.800 --> 0:19:49.919 like the goal was to hit peak demand for oil, 0:19:50.040 --> 0:19:52.320 right and then we're all, that's seven billion people that 0:19:52.359 --> 0:19:55.120 don't live like us, Sorry about them. You know, It's 0:19:55.160 --> 0:19:59.600 just crazy how much how far off a human focused 0:19:59.640 --> 0:20:03.040 and a a focused dialogue we're in I'm thrilled that 0:20:03.119 --> 0:20:06.520 the world is swinging back to common sense. It's thinking 0:20:06.600 --> 0:20:09.639 long term. We need massively more oil in the world, 0:20:09.720 --> 0:20:14.000 massively more natural gas, massively more energy to continue to 0:20:14.000 --> 0:20:17.399 grow our economy, to reindustrialize our industry, and to lift 0:20:17.520 --> 0:20:19.800 everyone's standard of living up around the world. 0:20:20.320 --> 0:20:22.360 An audience question. Also thing I'm curious to. 0:20:22.320 --> 0:20:26.119 Get your take on, is American investment regarding Venezuela. 0:20:26.720 --> 0:20:27.760 I was there in krocacy. 0:20:27.800 --> 0:20:32.080 You were the first secretary to go to Venezuela since 0:20:32.359 --> 0:20:33.880 the capturing of Nicholas Maduro. 0:20:34.240 --> 0:20:35.320 What is the status now? 0:20:35.359 --> 0:20:37.360 When was the last time you spoke to Delsea Rodriguez? 0:20:37.359 --> 0:20:40.040 Do you expect more American companies to go produce? 0:20:40.119 --> 0:20:43.360 There lots of American companies going down there, a lot 0:20:43.400 --> 0:20:46.880 of business we are working. My team and including myself 0:20:47.160 --> 0:20:51.440 is in regular communication with Delcea. You know, twenty five 0:20:51.520 --> 0:20:54.240 years go in the wrong direction. You know that that's 0:20:54.400 --> 0:20:57.440 it is. As another case, amazing how low it's sunk, 0:20:57.520 --> 0:21:00.919 eight million people leaving, millions leaving Venezuela to go to 0:21:00.960 --> 0:21:04.680 poorer countries. So you know, is it Norway today? It's 0:21:04.680 --> 0:21:09.600 not Norway yet, But the pivot that change into the 0:21:09.800 --> 0:21:13.280 improvement in the conditions in Venezuela is going quite well 0:21:13.359 --> 0:21:15.399 right now. A lot of work to be done there, 0:21:15.560 --> 0:21:18.800 but oil exports out of Venezuela have more than doubled 0:21:19.080 --> 0:21:23.360 since January second of this year, so that's also helpful. 0:21:23.520 --> 0:21:25.920 And of course, when most of the American refineries were 0:21:25.920 --> 0:21:28.959 built in the sixties and seventies, Venezuela was the largest 0:21:28.960 --> 0:21:31.960 export of oil in the world, third largest producer, biggest 0:21:32.000 --> 0:21:35.080 oil exporter, so a lot of our refineries were built 0:21:35.119 --> 0:21:38.880 to handle those lower cost, high viscosity cruds. So it's 0:21:38.920 --> 0:21:41.159 great news to see that production growing. I think you 0:21:41.160 --> 0:21:44.800 will see tremendous growth in Venezuelan production in the coming years. 0:21:44.960 --> 0:21:47.119 Another question from the audience is about the surge and 0:21:47.160 --> 0:21:49.000 power demand for data centers. 0:21:49.359 --> 0:21:51.040 Why is the Trump administration. 0:21:50.600 --> 0:21:53.560