WEBVTT - US Energy Sec. Chris Wright Talks Energy Flows

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>It's the latest this morning, Bren climbing back above one eleven.

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<v Speaker 2>As President Trump ways Iran's latest proposal to end the war,

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<v Speaker 2>the Treasury Secretary scomp Messin saying the US blockade is

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<v Speaker 2>forcing Iran's oil industry to shut with gasoline shortages to follow.

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<v Speaker 2>John Gus now to discuss. I'm very pleased to say

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<v Speaker 2>the US Energy Secretary Chris Right joined us for more.

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<v Speaker 2>Mister Secretary, you are in Croatia. I believe we can

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<v Speaker 2>talk about the relationship between the US and Europe and

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<v Speaker 2>just a moment, we have to lead with Iran this morning,

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<v Speaker 2>mister secretary, in your mind, how much storage capacity does

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<v Speaker 2>Iran have left? And what's informing that conclusion at the moment.

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<v Speaker 3>Well, look, there's monitoring of storage tanks that carg islanded

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<v Speaker 3>around the nation of Iran. But yeah, they don't have

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<v Speaker 3>a huge amount of storage capacity, and they've got old

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<v Speaker 3>reservoirs that are low pressure, which means it's much more

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<v Speaker 3>destructive if they have to shut in their production.

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<v Speaker 4>Kepler, the secretary is talking about twelve to twenty two

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<v Speaker 4>days left that Iran has in terms of storage before

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<v Speaker 4>they have to shut in. Do you see the President

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<v Speaker 4>making any sort of decision on Iran's proposal before that

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<v Speaker 4>time period is up.

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<v Speaker 3>At the President's focused on getting the right deal that

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<v Speaker 3>could be independent of their storage. But obviously that puts

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<v Speaker 3>great heat on Iran. If we can get the right resolution,

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<v Speaker 3>that could be tomorrow, that could be two weeks from now,

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<v Speaker 3>But the key thing is the right resolution Iran.

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<v Speaker 5>And let me just put the context again.

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<v Speaker 3>Iran has roughly one thousand pounds of sixty percent enriched uranium.

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<v Speaker 3>There's no commercial peaceful use for that. That's bomb material

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<v Speaker 3>and that's ten days two weeks tops to turn that

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<v Speaker 3>into highly enrich uranium for bombs.

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<v Speaker 5>So this is an existential crisis. I'm very proud of

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<v Speaker 5>the President to.

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<v Speaker 3>Stand up and put an end to Iran's efforts to

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<v Speaker 3>get a nuclear bomb.

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<v Speaker 4>Well, so it doesn't sound like the President would take

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<v Speaker 4>this off ramp from Iran, which is reopening the straight

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<v Speaker 4>up removes. Obviously the US blockade would have to end,

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<v Speaker 4>and then kicking the can down the road when it

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<v Speaker 4>comes to talks on nuclear.

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<v Speaker 3>Yes, again, the critical outcome here is that we end

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<v Speaker 3>the ability for Iran to have a nuclear weapon. There's

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<v Speaker 3>many ways that deal can be structured, but the compromise

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<v Speaker 3>will not be made on the principle no nuclear armed Iran.

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<v Speaker 4>We see gasoline prices on average rising again this morning.

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<v Speaker 4>They're above four dollars a gallon. You recently said the

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<v Speaker 4>administration plans to do more to bring down US gas prices.

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<v Speaker 4>We saw the waiver on the Jones Act extended. What

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<v Speaker 4>else are you thinking about.

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<v Speaker 3>When you also saw announcements on the EPA for blending

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<v Speaker 3>requirements this summer that allows our refineries to produce a

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<v Speaker 3>lot more gasoline. Unfortunately, a few states foolishly did not

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<v Speaker 3>go along with it, so California is still going to

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<v Speaker 3>have outrageously high gas prices. New York State, I don't

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<v Speaker 3>know why also did not go along with the federal regulations,

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<v Speaker 3>but we're doing everything we can to increase refinery throughput.

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<v Speaker 3>American oil production is at record high, American oil export

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<v Speaker 3>store allies are broader at record high. So look, we're

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<v Speaker 3>going through a purity of discomfort to solve a forty

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<v Speaker 3>seven year crisis, and gasoline prices are still a dollar

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<v Speaker 3>a gallon cheaper than they were during the middle of

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<v Speaker 3>the Biden administration.

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<v Speaker 4>Well, I'm hearing that the administration is also considering an

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<v Speaker 4>export ban on US products.

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<v Speaker 5>Is that accurate? Absolutely not, absolutely not.

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<v Speaker 3>Look here, I am in Dubruvnik, in Croatia signing multi

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<v Speaker 3>billion dollar deals to sell American energy exports.

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<v Speaker 5>That is the fastest growing export out of our country.

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<v Speaker 3>We're selling American natural gas, American oil, American jet fuel, diesel,

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<v Speaker 3>and gasoline all around the world. We're not going to

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<v Speaker 3>stop those exports. We're going to grow those exports.

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<v Speaker 1>Secretary, how much are you trying to ameliorate some of

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<v Speaker 1>the price considerations and traditional allies of the United States

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<v Speaker 1>as this does potentially drag on for a longer period

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<v Speaker 1>of time. I mean, how much does cost a big

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<v Speaker 1>part of some of these exports.

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<v Speaker 3>Yes, everyone understands, particularly over here in Central and Eastern Europe.

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<v Speaker 3>People understand the existential threat from Iran. Everybody wants to

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<v Speaker 3>see that the United States successful in ending Iran's nuclear

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<v Speaker 3>weapon ambitions. Nobody likes, of course, high prices in the

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<v Speaker 3>short term, but they understand increased American energy exports, increased

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<v Speaker 3>energy addition policies lean into more energy production.

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<v Speaker 5>That's what President Trump is all about.

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<v Speaker 3>We've got to get away from those Western European policies

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<v Speaker 3>of making intentionally making hydrocarbons expensive and energy subtraction policies.

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<v Speaker 3>The future of Europe, the dynamic growth of Europe, is

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<v Speaker 3>going to be in these Central and Eastern European nations

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<v Speaker 3>that lean into the President Trump's American agenda of more energy,

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<v Speaker 3>more economic growth, more opportunities for citizens.

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<v Speaker 1>Emory was alluding to this idea, this idea of potentially

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<v Speaker 1>having restrictions on exports, and this has been deployed before

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<v Speaker 1>in part because prices were going up and it increased

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<v Speaker 1>the price when we were exporting a significant part of

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<v Speaker 1>resources in the United States. How do you plan to

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<v Speaker 1>have exports continue to increase to us? Allies will not

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<v Speaker 1>necessarily having the ramifications of much higher prices here.

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<v Speaker 3>Because the refinery capacity we have in the United States

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<v Speaker 3>now is greater than all of the consumption in the

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<v Speaker 3>United States. If we didn't export our diesel and jet fuel,

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<v Speaker 3>we'd have to turn down our refineries.

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<v Speaker 5>Who would want to turn down their refining.

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<v Speaker 3>Capacity in today's world, We want them to. The higher

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<v Speaker 3>utilization they run, the higher throughput they run on, the

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<v Speaker 3>more efficient they are, they produce more products. That puts

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<v Speaker 3>a downward pressure on prices, not just in the United States,

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<v Speaker 3>but for everyone abroad. That's what America is about, bringing

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<v Speaker 3>more energy to the world and pushing prices down.

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<v Speaker 4>Mister Secretary, And you're announcing today Trump Peace pipelines. Will

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<v Speaker 4>it be something that all of our allies in Europe

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<v Speaker 4>can get a handle of.

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<v Speaker 5>Absolutely.

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<v Speaker 3>This Trump Peace Pipeline agenda is to grow the connection

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<v Speaker 3>between the nations of Europe.

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<v Speaker 5>Where I'm standing right here in Croatia.

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<v Speaker 3>These nations were at the end of Russian Soviet Union

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<v Speaker 3>energy system. They were at the behest they were beholden

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<v Speaker 3>to Russia. That's not a good place to be. What

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<v Speaker 3>we're doing here is expanding this pipeline network so they

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<v Speaker 3>can import oil and natural gas from the United States

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<v Speaker 3>and then transport it among the nations in this region,

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<v Speaker 3>so their economies can grow and they can realize lower

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<v Speaker 3>price for their citizens in greater economic futures. I think

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<v Speaker 3>the idea of the Trump Peace Pipeline, the peace pipelines,

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<v Speaker 3>there's many of these are huge. Well, we'll announce today

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<v Speaker 3>a couple of historic agreements in this.

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<v Speaker 5>Regard, Missus Secretary.

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<v Speaker 2>I know you've got a time window this morning, so

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<v Speaker 2>thanks for making sign for us. The Uman of sent

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<v Speaker 2>Energy Secretary there Chris right on the situation for global

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<v Speaker 2>energy and US energy doing a ton of heavy lifting