WEBVTT - US Energy Secretary Chris Wright Talks Today's Markets 0:00:02.520 --> 0:00:08.239 Bloomberg Audio Studios, podcasts, radio news. I don't know if 0:00:08.240 --> 0:00:10.080 you've seen, but it is a tough day in the market. 0:00:10.480 --> 0:00:13.360 Stocks were hit really hard, Oils off two percent, smp 0:00:13.560 --> 0:00:17.599 is off almost three percent. Growth fears and tariffears directly 0:00:17.680 --> 0:00:21.279 impacting the market. What do you say, Oh. 0:00:21.079 --> 0:00:22.759 Look, this president's a businessman. 0:00:23.000 --> 0:00:26.279 He's a negotiator, not his career in politics and his 0:00:26.400 --> 0:00:28.680 career in business. And what has been the end result 0:00:28.720 --> 0:00:31.760 of that improvements for the American people. But we're in 0:00:31.760 --> 0:00:33.720 the midst of a deal right now. We're in midst 0:00:33.760 --> 0:00:38.760 of negotiations. Trump is fighting every day to make conditions, 0:00:38.800 --> 0:00:42.600 business conditions, cost of living conditions better for Americans. I 0:00:42.640 --> 0:00:45.159 think that's the trajectory we're on. But you've always got 0:00:45.200 --> 0:00:46.080 uncertainty on the road. 0:00:46.120 --> 0:00:49.240 There's there's pain for gain, right, but like how long 0:00:49.280 --> 0:00:51.680 that pain lasts for it can be really tricky, particularly 0:00:51.680 --> 0:00:53.720 when we're trying to actually invest. 0:00:54.080 --> 0:00:56.720 Yeah, look, he's got two big goals on trade. 0:00:56.920 --> 0:00:58.440 Number one we've heard about. 0:00:58.480 --> 0:01:00.760 I don't think it's been talked about enough, is Look, 0:01:00.800 --> 0:01:04.520 one hundred thousand or more premature deaths of mostly young 0:01:04.560 --> 0:01:09.000 Americans from fentanyl. He's massively motivated by that. Anyone who's 0:01:09.040 --> 0:01:11.759 been touched by a friend or a family friend that's 0:01:11.760 --> 0:01:14.880 seeing a death from fentanyl, this is just heartbreaking. So 0:01:14.959 --> 0:01:16.880 he's trying to work with both of our neighbor to 0:01:16.880 --> 0:01:19.200 the south and are nable to the north. How can 0:01:19.240 --> 0:01:21.559 we go as far as we can to shut down 0:01:21.920 --> 0:01:23.280 the trafficking in fentanyl? 0:01:23.560 --> 0:01:26.760 I think it's hard to go too far in that direction. 0:01:27.160 --> 0:01:29.800 The other thing President Trump wants to do is have 0:01:30.000 --> 0:01:32.600 free trade, but fair trade. You've heard him talk about 0:01:32.640 --> 0:01:35.559 reciprocal tariffs. You know, we have two hundred and fifty 0:01:35.560 --> 0:01:38.840 percent tariffs to export, you know, dairy products into Canada. 0:01:39.000 --> 0:01:41.920 That doesn't make any sense. That certainly hurts American dairy farmers. 0:01:42.240 --> 0:01:45.959 So let's have the parties come together and together work 0:01:46.000 --> 0:01:49.640 to lower tariff barriers together and have reciprocal trade. 0:01:49.720 --> 0:01:50.880 So it's faritaboth sides. 0:01:50.960 --> 0:01:53.760 All right, let's unpack that for a second. I'm going 0:01:53.840 --> 0:01:57.640 first to the trade barrier part. Just example, when you 0:01:57.720 --> 0:02:01.440 have a tax and a teriff Canadian imports of oil, 0:02:02.000 --> 0:02:04.559 won't that actually hurt consumers because all of a sudden 0:02:04.560 --> 0:02:06.720 you're going to have refiner margins are going to plummet 0:02:06.760 --> 0:02:09.600 and you're gonna have higher gasoline prices. Every analyst on 0:02:09.639 --> 0:02:11.640 the street is saying that they. 0:02:11.600 --> 0:02:14.760 Might be wrong, they might be wrong, but they're right. 0:02:14.840 --> 0:02:17.360 I mean, we don't have that oil in the US, right, 0:02:17.360 --> 0:02:19.640 we don't have heavy oil, so we cannotver find it here. 0:02:20.639 --> 0:02:23.519 Yes, it's good for that oil to come into our marketplace, 0:02:23.560 --> 0:02:26.760 and I suspect that market will continue coming into our marketplace. 0:02:27.120 --> 0:02:30.360 So look, there's uncertainty, is unsettling, and that leads to 0:02:30.400 --> 0:02:33.079 a loss of confidence, that leads to fear. But look, 0:02:33.120 --> 0:02:36.320 life is long. This administration has been in fifty days. 0:02:36.440 --> 0:02:39.960 We've had four actions on LNG exports. We're getting rid 0:02:40.000 --> 0:02:45.000 of nonsense regulations on home appliances to make them lower 0:02:45.040 --> 0:02:48.440 costs and higher performing. There's so much positive going on. 0:02:48.919 --> 0:02:51.800 But yes, you're seeing the sausage making up close and personal. 0:02:51.919 --> 0:02:53.680 Okay, at the end of the day, we want a. 0:02:53.720 --> 0:02:57.040 Lower cost for Americans and expand opportunity for Americans, and 0:02:57.080 --> 0:02:58.280 I think that's what you'll see coming. 0:02:58.400 --> 0:03:01.080 But what if the sausage becomes higher gasoline prices or 0:03:01.120 --> 0:03:03.160 diesel prices because of the tariffs. 0:03:03.400 --> 0:03:06.720 Well, since President Trump was elected and since he was inaugurated, 0:03:06.760 --> 0:03:09.519 you've seen the decline in oil prices, and i've decline 0:03:09.560 --> 0:03:10.840 in gasoline prices. 0:03:11.080 --> 0:03:12.760 You saw decline further today. 0:03:13.320 --> 0:03:15.600 This is true if they're down about seventeen percent oil 0:03:15.639 --> 0:03:17.960 prices since the peak back in January. But on the 0:03:17.960 --> 0:03:20.600 flip side, if I'm a driller, how do I drill more? 0:03:20.960 --> 0:03:23.280 Because I don't want to drill when oils at sixty nine. 0:03:23.720 --> 0:03:26.959 So President Trump's worked hard to lower the cost of 0:03:27.040 --> 0:03:29.720 doing business in the United States. We had four years 0:03:29.720 --> 0:03:32.800 in the Biden administration where there was so many barriers 0:03:32.840 --> 0:03:34.800 and you never knew where the next one was coming. 0:03:34.840 --> 0:03:37.240 You can't get a permit on federal land, you can't 0:03:37.240 --> 0:03:39.320 build a gathering line, you can't maybe you're not going 0:03:39.360 --> 0:03:41.000 to be able to export your natural gas. I don't 0:03:41.000 --> 0:03:42.600 want to drill if I'm not sure where it's going 0:03:42.680 --> 0:03:46.360 to go. We had all those things that artificially chilled investment, 0:03:46.560 --> 0:03:49.160 which means to break and break even, prices for the 0:03:49.200 --> 0:03:53.200 companies goes higher and higher. Trump's longer term agenda is 0:03:53.240 --> 0:03:56.280 make it easier to invest in America, lower cost to 0:03:56.320 --> 0:04:00.360 produce oil and natural gas, electricity, manufactured products, everything in 0:04:00.400 --> 0:04:02.440 the United States. So I think you're going to see 0:04:02.440 --> 0:04:05.120 a lowering of the break even, a lowering in the 0:04:05.240 --> 0:04:08.000 threshold at which it no longer makes sense to drill 0:04:08.160 --> 0:04:10.200 but supply to mantel dictate prices for sure. 0:04:10.320 --> 0:04:12.520 Sure, But on the flip side, if you have tariffs 0:04:12.560 --> 0:04:14.680 coming in on aluminum steel, that will raise the break 0:04:14.760 --> 0:04:18.080 even prices for well drilled We need. 0:04:18.279 --> 0:04:19.320 Two motivations there. 0:04:19.400 --> 0:04:23.160 Number One, we've seen so much exporting of manufacturing jobs 0:04:23.160 --> 0:04:25.159 in the United States over the last twenty five years, 0:04:25.160 --> 0:04:28.479 mostly to Asia, driven in large park by China. So 0:04:28.560 --> 0:04:30.760 he has a goal, I think, a great goal to 0:04:30.920 --> 0:04:34.359 reshore manufacturing in the United States. We can make heavy 0:04:34.400 --> 0:04:38.120 industry again in this country. But there's a transition time 0:04:38.160 --> 0:04:41.919 there for sure. But look, he's a negotiator, he's a businessman. 0:04:42.320 --> 0:04:45.480 He got elected to lower prices for American consumers. Do 0:04:45.480 --> 0:04:47.160 you think he's going to change his mind and say no, 0:04:47.160 --> 0:04:50.760 I'm in favor of higher prices on American consumers. That's 0:04:50.800 --> 0:04:52.240 not where this administration is going. 0:04:52.800 --> 0:04:54.960 Is just how long the pain will last? I think 0:04:55.040 --> 0:04:56.520 is really at the heart of the question. And as 0:04:56.560 --> 0:04:58.800 a CEO, I have not yet to meet a CEO 0:04:58.880 --> 0:05:00.400 here today that tells me they're going to a drill 0:05:00.480 --> 0:05:02.800 more because they're worried about the uncertainty. 0:05:03.440 --> 0:05:05.719 Uncertainty's unsettling. Uncertainty's unsalling. 0:05:05.760 --> 0:05:07.600 You know you're a CEO of a no oil company. 0:05:07.880 --> 0:05:10.920 Absolutely, but look, you've got to give it a little 0:05:10.920 --> 0:05:13.520 bit of time. We saw the results last time Trump 0:05:13.600 --> 0:05:16.320 was in four years in his first term, Trump forty five, 0:05:16.640 --> 0:05:17.920 there was a lot of fear there. 0:05:18.000 --> 0:05:18.640 What happened. 0:05:18.920 --> 0:05:23.600 Inflation average below two percent, Energy prices came down, wages 0:05:23.680 --> 0:05:28.360 grew in America, particularly for blue collar working class people. 0:05:28.520 --> 0:05:31.400 It's the same agenda. It's the same agenda this time. 0:05:31.760 --> 0:05:33.680 So let's go to the IRA for a second. You 0:05:33.680 --> 0:05:35.479 guys are reviewing, of course, what parts of the IRA 0:05:35.600 --> 0:05:38.599 will stay. Tax credits. Everyone I talked to loves the 0:05:38.640 --> 0:05:39.320 tax credits. 0:05:39.400 --> 0:05:40.040 They love them. 0:05:40.080 --> 0:05:41.680 They love them for hydrogen, they love them for when, 0:05:41.720 --> 0:05:44.440 they love them for solar. Will you keep those? Well, 0:05:44.480 --> 0:05:45.559 the administration keep them. 0:05:45.640 --> 0:05:48.480 Everybody loves to get other people's money, you know, whether 0:05:48.520 --> 0:05:51.479 it's business or consumers or whatever. But look where that's 0:05:51.520 --> 0:05:53.800 led us, Alex, Look where that's led us almost a 0:05:53.920 --> 0:05:56.680 two trillion dollar deficit in the last year of the 0:05:56.680 --> 0:06:00.360 Biden administration in peacetime with relatively low on them deployment. 0:06:00.640 --> 0:06:02.640 That's just un sustainable. 0:06:02.880 --> 0:06:05.280 If you shovel money out the door, everyone can get 0:06:05.279 --> 0:06:07.719 a sugar high, but you have to pay the piper. 0:06:08.200 --> 0:06:09.320 So there's of course. 0:06:09.080 --> 0:06:11.760 Politics, and it's the House and the Senate will decide 0:06:11.920 --> 0:06:15.840 what from the IRA bill stays and what goes. I'm 0:06:15.839 --> 0:06:17.680 of course advising on that, but I don't have a 0:06:17.760 --> 0:06:19.400 vote in the House or the Senate. 0:06:19.760 --> 0:06:21.800 But we had four years of a lot of. 0:06:21.720 --> 0:06:23.279 Money going out of the door, a lot of it 0:06:23.360 --> 0:06:26.159 in the name of new energies or whatever. And what 0:06:26.240 --> 0:06:30.720 do we get higher priced energy over. 0:06:30.440 --> 0:06:32.280 Those four years. Of course there's going to be a 0:06:32.320 --> 0:06:33.320 different tack this time. 0:06:33.600 --> 0:06:35.359 It will be if we label a clean tech for 0:06:35.400 --> 0:06:38.080 a moment, our analyst at Bloomberg they're called Bloomberg n 0:06:38.120 --> 0:06:41.280 EF said that over two trillion was invested in clean 0:06:41.360 --> 0:06:45.960 tech last year, about double fossil fuels, but nine percent 0:06:46.000 --> 0:06:48.680 of that was from China. If we don't invest in 0:06:48.720 --> 0:06:52.680 clean tech, are we basically giving China free run in 0:06:52.720 --> 0:06:55.880 that industry. And that's exactly not what the administration wants. 0:06:56.160 --> 0:06:58.680 Of course, I rejected label clean tech. That's just a 0:06:58.720 --> 0:07:03.000 marketing term. That means is lower greenhouse gas emissions. But 0:07:03.120 --> 0:07:07.520 much more material intensity, much more land and intermittent solar panels. 0:07:07.839 --> 0:07:10.920 So and you're right, China is huge in the manufacturing 0:07:10.920 --> 0:07:14.160 of these systems. China has built lots of wind and solar, 0:07:14.440 --> 0:07:19.120 but China last year permitted one hundred gigawatts of coal power. 0:07:19.520 --> 0:07:22.640 Their energy system is more hydrocarbon dominant than ours. So 0:07:22.680 --> 0:07:26.040 they're not moving They're not moving that direction. They're building 0:07:26.040 --> 0:07:28.720 a manufacturing industry to sell products to the United. 0:07:28.440 --> 0:07:29.280 States and Europe. 0:07:29.480 --> 0:07:31.440 So far, I would say it's worked for them better 0:07:31.480 --> 0:07:33.920 than it's worked for us. The United States gets just 0:07:34.040 --> 0:07:37.920 over three percent of our primary energy from wind, solar, 0:07:37.960 --> 0:07:41.040 and batteries three percent. Hundreds of billions of dollars for 0:07:41.120 --> 0:07:42.120 three percent. 0:07:42.880 --> 0:07:45.720 Okay, so you're not worried about that. So you don't 0:07:45.720 --> 0:07:47.920 want to like on shore US solar panels. Here in 0:07:47.960 --> 0:07:49.480 a world where you don't like solar panels. 0:07:49.840 --> 0:07:52.080 I'm not saying I don't like solar panels, okay, but 0:07:52.080 --> 0:07:55.040 the look I am. I'm actually I've worked in solar. 0:07:55.160 --> 0:07:57.520 I think solar has got a great future. It's growing rapidly. 0:07:57.800 --> 0:08:00.240 That's not at all true. It's just we do don't 0:08:00.240 --> 0:08:02.400 want to race down the road Europe went down right, 0:08:02.440 --> 0:08:03.000 we could. 0:08:02.760 --> 0:08:04.800 Put lots of windmills up in solar panels as. 0:08:04.680 --> 0:08:07.360 Germany and UK did, in double or triple our electricity 0:08:07.440 --> 0:08:10.200 prices and export our industry. That's just simply not the 0:08:10.240 --> 0:08:14.800 agenda of this administration. We want more energy, more affordable, reliable, 0:08:14.840 --> 0:08:18.240 secure energy that could come from all different sources. But 0:08:18.480 --> 0:08:22.600 ultimately the only constituency being aimed at is the American citizen. 0:08:23.480 --> 0:08:25.360 When we take a look at other forms of energy, 0:08:25.360 --> 0:08:27.800 we haven't brought up natural gas and energy exports, which 0:08:27.840 --> 0:08:31.000 was a huge focus of your speech today at Sarah Week. 0:08:31.440 --> 0:08:34.440 How are the conversations going for the ability to build 0:08:34.480 --> 0:08:38.120 out in the West energy export facilities to be more 0:08:38.120 --> 0:08:39.760 efficient to get energy to Japan. 0:08:40.559 --> 0:08:43.040 Yeah, Look, there's a project in Alaska we're talking about. 0:08:43.080 --> 0:08:44.559 There's several other projects. 0:08:44.960 --> 0:08:49.240 Ultimately, the infrastructure that comes from private industries and private players. 0:08:49.679 --> 0:08:53.040 So our goal is not to decide what the energy 0:08:53.080 --> 0:08:55.280 system is. It's just to get out of the way 0:08:55.360 --> 0:08:59.080 and enable businesses and consumers to decide with their own 0:08:59.400 --> 0:09:02.080 pocketbook and their own investments, what energy is going to be. 0:09:02.520 --> 0:09:04.480 But yes, we've had four years of it. 0:09:04.480 --> 0:09:07.360 Making it very hard to build new infrastructure that has 0:09:07.480 --> 0:09:09.200 changed now. I think you're going to see a lot 0:09:09.200 --> 0:09:12.520 of infrastructure built, but the specific projects will be built 0:09:12.520 --> 0:09:16.800 that'll be determined by consumers and investors builders of those projects. 0:09:16.840 --> 0:09:18.800 You haven't had talks with the Japanese government about this 0:09:18.880 --> 0:09:19.280 or anything. 0:09:19.320 --> 0:09:22.520 Absolutely, we have, okay, tremendous interest in Japan to get 0:09:22.600 --> 0:09:23.600 trust or just thoughts. 0:09:24.000 --> 0:09:26.360 Oh I would say, firm interests, firm interests. Yeah, I 0:09:26.440 --> 0:09:26.719 did that. 0:09:26.880 --> 0:09:29.120 Japan and the United States have had a great alliance 0:09:29.320 --> 0:09:32.840 across many sectors. The United States is blessed with abundance 0:09:32.840 --> 0:09:36.120 of energy. Japan didn't get the same abundances we have, 0:09:36.559 --> 0:09:39.719 but they also have the start of AI and technology 0:09:39.760 --> 0:09:43.000 growing in Japan. They have growing energy demand needs and 0:09:43.040 --> 0:09:45.679 where better to get that energy supplied than from the 0:09:45.800 --> 0:09:48.320 United States. Oh, I think we have very productive dialogues 0:09:48.360 --> 0:09:49.160 going on with Japan. 0:09:49.440 --> 0:09:51.840 And last question for you, because I have to ask it, 0:09:52.600 --> 0:09:55.600 are we going to see increased and harsher sanctions on 0:09:55.679 --> 0:09:59.640 Iran's oil industry and how does that then play into 0:09:59.720 --> 0:10:03.120 the UN as his relationship with Saudi Arabia and OPEQ 0:10:03.160 --> 0:10:04.240 plus and Russia. 0:10:05.200 --> 0:10:08.600 Look, President Trump has great cards in his hands right now. 0:10:08.640 --> 0:10:11.520 Given the American energy system and the willingness to produce 0:10:11.559 --> 0:10:15.359 more energy here. When he was president last time, Iranian 0:10:15.400 --> 0:10:18.920 oil exports shrunk down to very modest levels. It starved 0:10:18.920 --> 0:10:21.440 that regime of money to fund terrorists and to make 0:10:21.480 --> 0:10:24.840 trouble around the world. Biden didn't remove those sanctions, but 0:10:24.880 --> 0:10:27.800 he stopped enforcing him That enriched Iran. And now we've 0:10:27.800 --> 0:10:30.679 seen what's happened with the hu Thies, hesbl and Hamas 0:10:30.760 --> 0:10:34.320 it's been mayhem. So is President Trump looking to stop 0:10:34.400 --> 0:10:35.079 the mayhem and. 0:10:35.040 --> 0:10:36.959 Bring peace to the world. Absolutely. 0:10:37.400 --> 0:10:40.880 Can we afford the squeezing off of Iranian oil exports? 0:10:40.920 --> 0:10:44.559 Absolutely from the United States number one, but also from 0:10:44.600 --> 0:10:47.600 our allies abroad. You know, I think people realize America 0:10:47.640 --> 0:10:50.760 is open for business again, and we're seeing increased oil 0:10:50.760 --> 0:10:53.560 production and increased investments not just in America but around 0:10:53.600 --> 0:10:53.960 the world.