Bloomberg Talks – Interior Secretary Doug Burgum Talks Energy Plan

Date: December 5, 2025
Host: Lisa (Bloomberg)
Guest: U.S. Interior Secretary Doug Burgum
Episode Theme: U.S. energy policy, production, and how technology and policy are shaping affordability, security, and the global energy market.

Episode Overview

This episode features a timely conversation with U.S. Interior Secretary Doug Burgum about the Trump administration’s national energy strategy. It covers how energy policy is adapting to the rising demands from artificial intelligence (AI), the complexities behind oil and gas production economics, infrastructure challenges, and efforts to keep energy prices affordable. Burgum dives into the interplay between policy, technological innovation, and global security as the U.S. seeks to maintain "energy dominance."

Key Discussion Points & Insights

1. The Importance of U.S. Energy Dominance

• U.S. energy policy now centers on "energy dominance," highlighted 23 times in the new national security plan.
• "Folks should think about energy dominance as the ability for the US to sell energy to our friends and allies so they don't have to buy it from adversaries, particularly those adversaries that are either funding terrorism or are funding wars…" (Doug Burgum, 00:52)
• The U.S. is now the largest oil producer and LNG exporter globally; this secures both economic prosperity and peace.

2. The Impact of AI on Energy Demand

• Burgum links surging electricity needs to AI, which converts energy directly into intelligence for all industries.
• "Never before in history have we been able to convert a kilowatt of electricity into intelligence." (Doug Burgum, 00:52)
• Suggests continued growth in demand for energy tied to AI investments and data centers.

3. Oil Production Economics and Drilling Viability

• With WTI crude under $60/barrel, some question continued drilling.
• Burgum claims removing regulatory "red tape" reduced operator costs by about 10%, making production at lower prices viable.
• Industry innovation, especially in shale (longer laterals, greater productivity per well), continues to cut costs and increase output.
• "The entire shale revolution has occurred through innovation and that innovation is going to continue and with AI applied to that, it's going to even get even better." (Doug Burgum, 02:16)

4. Measuring Production: Number of Rigs vs. Total Output

• Although rig activity is down by 16%, this does not equate to declining output; wells are more productive due to technological gains.
• "The well count was going down, but the miles of lateral productive rock could be going up." (Doug Burgum, 03:48)
• U.S. expects record energy production through 2026.

5. Natural Gas Pricing, Exports, and Infrastructure Policy

• Natural gas prices have risen, with regional variability due to pipeline infrastructure shortages (e.g., higher prices in New England vs. Pennsylvania).
• Blocked pipelines in some states, notably California, lead to higher imports of oil and high gasoline prices, despite record vehicle usage.
• "California...63% of its oil is being imported from foreign countries because of blocking of pipelines coming into that state." (Doug Burgum, 04:41)
• Energy policy, more than just market forces, is determining regional affordability and supply dynamics.

6. Ensuring Energy Affordability Amid AI Expansion

• Inquiry into rising energy costs near data centers.
• Burgum emphasizes that rising costs are local, not national, and more often due to prior "intermittent and highly subsidized" policies like offshore wind, not data centers themselves.
• Many data centers increasingly operate "off the grid" and may even boost local energy supply.
• "Electricity costs three times as much in New England as in North Dakota. That is not because of data centers. That's because of policies." (Doug Burgum, 07:01)
• The administration commits to ensuring that AI capital investments will favor states that support low-cost, reliable energy.

Notable Quotes & Memorable Moments

• On energy as national security:

  "It's absolutely essential. And this is part of the just announced national security plan... There's an entire section about energy dominance."
  (Doug Burgum, 00:52)

• On U.S. energy leadership:

  "The US Is an energy dominant country now, the largest oil producer in the world, largest LNG exporter in the world, and growing quickly with that strategy."
  (Doug Burgum, 00:52)

• On the link between energy prices and policy, not just markets:

  "So, you know, great for land management and great for energy production. And kudos to this industry. The entire shale revolution has occurred through innovation…"
  (Doug Burgum, 02:16-02:55)

  "Policies are setting price, not just markets. And we've got policies in blue states around our country..."
  (Doug Burgum, 04:41)

• On regional disparity in energy costs:

  "Electricity costs three times as much in New England as in North Dakota. That is not because of data centers. That's because of policies."
  (Doug Burgum, 07:01)

Timestamps for Critical Segments

• 00:52–02:05: Burgum explains the centrality of energy dominance to national security and the impact of AI on future demand.
• 02:16–03:34: Analysis of oil market economics, innovation in drilling, productivity improvements, and cost reductions.
• 03:48–04:15: Discusses reported declines in drilling rig activity and how output is still rising.
• 04:41–06:45: In-depth on natural gas pricing, export policy, and state-level barriers like pipeline restrictions—case study of California.
• 07:01–08:21: Discussion on rising energy costs near data centers, attribution to prior policy choices, and the administration’s approach to keeping consumer prices down.

Conclusion

This episode provided a comprehensive window into the Trump administration's energy strategy, emphasizing deregulation, infrastructure development, and collaboration with states to foster affordable, reliable energy. The conversation explained the complexities behind regional price disparities, the rise of AI, and innovation within the oil and gas industry. Burgum consistently attributed high costs and supply bottlenecks to policy decisions, not just market conditions, underscoring the administration’s intent to prioritize energy supply and affordability as cornerstones of national security and economic strength.