WEBVTT - Galvanize Climate Solutions Co-Executive Chair/Co-Founder Tom Steyer Talks Clean Energy

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

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<v Speaker 2>Donald Trump's next cabinet beginning to take shape. Trump picking

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<v Speaker 2>former New York Congressman Lead Zelden to lead the Environmental

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<v Speaker 2>Protection Agency. Trump's saying, Zelden will quote ensure fair and

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<v Speaker 2>swift deregulatory decisions. They'll be enacted in a way to

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<v Speaker 2>unleash the power of American businesses. Joining us now as

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<v Speaker 2>Tom Steyer, former Democratic presidential candidate, of course and the

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<v Speaker 2>co founder of Galvanized Climate Solutions, thank you so much

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<v Speaker 2>for joining us around the table. So we're going to

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<v Speaker 2>get a Trump two point out. Potentially, they're going to

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<v Speaker 2>roll back a lot of the work the Biden administration did.

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<v Speaker 2>When it comes to the energy transition, how much does

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<v Speaker 2>it matter because the market is already off to the races.

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<v Speaker 1>Well, let's talk for a second about what's really driving

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<v Speaker 1>the energy transition, which is economics, prices and markets. Over

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<v Speaker 1>the last four years, solar prices have gone down by

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<v Speaker 1>sixty percent. Solar sales have gone up four x. If

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<v Speaker 1>you look at what's happened to batteries last year, just

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<v Speaker 1>in one year they have in China, the price had

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<v Speaker 1>If you look at what's going on in terms of

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<v Speaker 1>ev sales. We look at it in the United States,

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<v Speaker 1>still going up, but not going up that fast. If

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<v Speaker 1>you look at what's going on in China, they went

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<v Speaker 1>up eleven percent month over month. They went up fifty

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<v Speaker 1>percent year over year. When you look around the world,

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<v Speaker 1>what's going on is abundant renewable energy. That is actually

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<v Speaker 1>the story. What we're seeing in the world is a

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<v Speaker 1>huge move to renewable energy and the energy transition happening

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<v Speaker 1>much faster than people in the United States understand. While

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<v Speaker 1>we're talking about oil and gas, which is basically a

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<v Speaker 1>stagnant market.

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<v Speaker 3>So what does that mean to have a drill baby

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<v Speaker 3>drill policy at a time where you already have peak

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<v Speaker 3>oil domestic production in the US and you have this

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<v Speaker 3>transformation you're talking about.

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<v Speaker 1>So let's put some numbers on it so that we

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<v Speaker 1>can really understand what we're talking about. The US is

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<v Speaker 1>the biggest oil and gas producer in the world. World

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<v Speaker 1>we do about thirteen and a half million barrels a day.

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<v Speaker 1>If we do drill babeled baby drill, we could take

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<v Speaker 1>thirteen and a half and move it to fourteen. In

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<v Speaker 1>the context of the world oil market, we're doing about

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<v Speaker 1>one hundred and two million barrels a day. That is,

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<v Speaker 1>this is a stagnant market. Even Opek thinks that the

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<v Speaker 1>total amount of oil sales will go up by eight

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<v Speaker 1>percent in the next twenty five years. Solar sales went

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<v Speaker 1>up four x in the last four years. So what

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<v Speaker 1>we're really seeing is an exploding clean energy market. We're

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<v Speaker 1>not going to ever, We're not running out of oil

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<v Speaker 1>and gas. But what we're seeing is an abundance of

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<v Speaker 1>renewable energy and an abundance of new technologies that are

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<v Speaker 1>competing on price. You know, I wrote a book Cheaper, Faster, Better,

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<v Speaker 1>How We Win the Climate War, And really that's all

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<v Speaker 1>we're seeing is market forces business. How do you win

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<v Speaker 1>cheaper it's cheaper, faster, it's faster and better. And so

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<v Speaker 1>when we look around the world, governments can't repeal markets.

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<v Speaker 1>China can't repeal markets, neither can Donald Trump. What we're

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<v Speaker 1>seeing is people around the world acting based on prices,

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<v Speaker 1>what's in their own interest and what's the best product.

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<v Speaker 3>There is another large source of energy demand that's really

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<v Speaker 3>ramping up quickly besides the renewables, or it goes in

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<v Speaker 3>tandem with the renewables, and that's the energy needed to

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<v Speaker 3>power AI. Basically the amount equivalent to large cities needed

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<v Speaker 3>to power just maybe even just metas AI demand. When

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<v Speaker 3>you look at that, you look at the Trump White

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<v Speaker 3>House push or the coming White House for deregulation. Is

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<v Speaker 3>there red tape that needs to be cut anyway to

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<v Speaker 3>allow for this huge source of energy that's going to

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<v Speaker 3>be needed to power the future?

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<v Speaker 1>Of course there is. I mean when you look at

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<v Speaker 1>the United States, we are very very slow in terms

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<v Speaker 1>of permitting, We're very very slow in terms of adding

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<v Speaker 1>new clean energy products or oil and gas projects to

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<v Speaker 1>the grid. So yes, we have a very slow moving

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<v Speaker 1>process because so many people are allowed to weigh in.

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<v Speaker 1>It just takes so much time. And of course we

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<v Speaker 1>should be moving much faster. But when we really look

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<v Speaker 1>globally about where the new we're talking AI can move

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<v Speaker 1>US energy consumption by twenty percent over the next decade.

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<v Speaker 1>That's a huge move for us. But if you look

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<v Speaker 1>around the world, if you see what's happening in Asia,

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<v Speaker 1>Southeast Asia and South Asia, like in India, it is

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<v Speaker 1>going exponentially. They're going to do five times as much

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<v Speaker 1>electricity by twenty fifty five. Times as much. And so

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<v Speaker 1>when we really think about what's going on in terms

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<v Speaker 1>of what's driving prices, what's driving volumes around the world,

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<v Speaker 1>where the real business is, what we're seeing is it's

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<v Speaker 1>really in renewables.

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<v Speaker 4>And it's interesting. Just as we touch on on that

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<v Speaker 4>oil subject, OPAC has released their report oil consumption is

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<v Speaker 4>done eighteen percent since July. This is the fourth consecutive

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<v Speaker 4>cut that they have in terms of demand, and that's

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<v Speaker 4>to do the chinel. I want to focus on one

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<v Speaker 4>of the things that erks Donald Trump's Donald Trump, we

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<v Speaker 4>know is other people eating America's lunch and any move

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<v Speaker 4>that he makes to step back on I R which

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<v Speaker 4>has done very well in the Red States, by.

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<v Speaker 1>The way, overwhelmingly in the words in the Red States.

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<v Speaker 4>So just how aggressive a pullback is are going to be,

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<v Speaker 4>because I can tell you why, there's a lot of

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<v Speaker 4>European and global CEO city and I there are going

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<v Speaker 4>I'm ready to eat your lunch. If you don't want

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<v Speaker 4>to do if you don't want to build this business,

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<v Speaker 4>We're ready to do it.

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<v Speaker 1>Look, that is the point I'm trying to make, which

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<v Speaker 1>is America has to compete America if we're going to

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<v Speaker 1>this transition is happening. America should be leading it. This

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<v Speaker 1>is an absolute necessity for us to be the leading

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<v Speaker 1>economic country in the world, the leading political country in

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<v Speaker 1>the world. And I think it's going to be clear

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<v Speaker 1>no matter how mister Trump feels about what should happen,

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<v Speaker 1>what is happening is this transition, and American companies can

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<v Speaker 1>absolutely dominate here. But we have to choose to do it,

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<v Speaker 1>and we have to put the money into it, and

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<v Speaker 1>we have to put the manpower into it. So I

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<v Speaker 1>look at this as a great chance for business, and

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<v Speaker 1>it's just business. This is just about what is cheaper, faster,

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<v Speaker 1>and better, and that is traditionally what Americans have done

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<v Speaker 1>really well at.

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<v Speaker 4>Well, then what level of stimulus could we see from him?

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<v Speaker 4>What level of incentive could we see for these areas.

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<v Speaker 4>He's been very very very very heavy on the rhetoric

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<v Speaker 4>against a lot of the incentives that we're in the IRA,

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<v Speaker 4>et cetera. So how does he temper with that? How

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<v Speaker 4>does he balance this?

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<v Speaker 1>I really think that what's going to drive this is

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<v Speaker 1>American business, that it's not. Of course, the incentives of

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<v Speaker 1>the IRA were important in terms of deployment of solar,

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<v Speaker 1>of wind and the sale of evs. But the truth

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<v Speaker 1>is all of those things are going to keep happening globally.

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<v Speaker 1>All of those things are going to keep happening in

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<v Speaker 1>the United States. I mean, if you think about the

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<v Speaker 1>idea of solar prices going down by sixty percent, if

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<v Speaker 1>that would be oil going to thirty two bucks, from

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<v Speaker 1>eighty bucks to thirty two bucks, that didn't happen. But

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<v Speaker 1>you know something, it's not stopping down sixty We'll go

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<v Speaker 1>down another sixty percent and they'll be at the equivalent

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<v Speaker 1>of fifty fifteen bucks, Tommy, or the barrel of oil.

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<v Speaker 1>If the that's dominance.

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<v Speaker 2>If the private sector is doing this already, though, and

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<v Speaker 2>there was concerns that spending too much at a time

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<v Speaker 2>on inflation at one point during the Biden presidency hit

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<v Speaker 2>more than nine percent, then what was the point of

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<v Speaker 2>something like the Inflation Reduction Act. The former president future

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<v Speaker 2>president continues to talk about that he's happy with clean energy.

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<v Speaker 2>He has someone like Elon Musk surrounding him, but he

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<v Speaker 2>thinks it should be driven by the private sector.

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<v Speaker 1>It is going to be driven by the private sector.

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<v Speaker 1>It is driven by the private sector. I think when

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<v Speaker 1>I think about the inflation Reduction Act. I think about

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<v Speaker 1>an attempt to try to subsidize companies that are clean,

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<v Speaker 1>to try and put them on a level playing field

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<v Speaker 1>with companies that are polluting. That's really how I think

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<v Speaker 1>about it. But over time, when these prices come down,

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<v Speaker 1>the subsidies go the need for subsidies goes away, and

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<v Speaker 1>that's really what Let me give you one example. Over

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<v Speaker 1>the last three years, Texas has tripled the amount of

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<v Speaker 1>solar it uses Texas they are by far the biggest

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<v Speaker 1>wind producer in the United States. The four biggest wind

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<v Speaker 1>producers in the United States are all deep red states.

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<v Speaker 1>They're not doing it because they love the concept of renewables.

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<v Speaker 1>They're doing it because it's cheaper, because it's good business.

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<v Speaker 1>And that's what we're seeing is in fact, cheaper, faster,

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<v Speaker 1>better markets, prices, economics. That's what's driving this world. People

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<v Speaker 1>are talking, people are saying things, but really what's going

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<v Speaker 1>on behind the scenes is just you know, you guys

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<v Speaker 1>were talking about the dollar. What's driving the dollar? What's

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<v Speaker 1>driving interest rates, prices and markets? You can't revoke them.

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<v Speaker 1>We're in a world where, in fact, we are going

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<v Speaker 1>a very straightforward way and we can talk about it,

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<v Speaker 1>and the sentiment can move back and forth. But if

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<v Speaker 1>you look at the first Trump administration, actually clean energy

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<v Speaker 1>did really well.

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<v Speaker 2>It did.

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<v Speaker 1>Yes, there was a lot of rhetoric, there was a

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<v Speaker 1>lot of anger, there was a lot of emotion, but

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<v Speaker 1>the fact of the matter is the world just kept

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<v Speaker 1>powering right through it.

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<v Speaker 2>Tom, We thank you for your time this morning.

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<v Speaker 1>It's great to see you.

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<v Speaker 2>Tom Styr of Galvanized Climates Solutions