Transcript
Indiana University Announcer (0:00)
Indiana University is proving how higher education can create solutions with industry. We're working side by side with industry partners to fuel economic growth that powers a future ready workforce. Explore IU's impact at iu.edu impact.
Podcast Host (0:19)
Bloomberg Audio Studios Podcasts Radio News we do.
Interviewer Lisa (0:24)
Want to stick with energy. 28 Democratic California lawmakers writing a letter to the Trump administration condemning plans to boost oil drilling along the state's coastline. U.S. interior Secretary Doug Burgum joins us now. Secretary Burgum, thank you so much for being with us. I want to start with just how important it is right now for the United States to increase energy supplies across the board, not just with drilling, but across the board in the face of the demand coming from AI.
U.S. Interior Secretary Doug Burgum (0:52)
Well, good morning, Lisa. Yes, it's absolutely essential. And this is part of the just announced national security plan that the White House has released that, that secur mentions energy 23 times. There's an entire section about energy dominance. And 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, actively funding war machines. And so it's core to the strategy right now. But it's also, as you've talked about on the show, is about with AI because never before in history have we been able to convert a kilowatt of electricity into intelligence. The demand for that, regardless of stock prices or stock movements, the demand for AI, for intelligence applied to every job, every company, every industry is going to continue to increase the demand for electricity around the world. 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. It bodes well for the future of the US Both in terms of peace and in terms of prosperity.
Interviewer (2:05)
Secretary, I'm sure you're aware WTI is under $60 a barrel. What's the impetus for the oil and gas companies in the United States to continue drilling wells at this price level, which potentially could be a loss for them?
U.S. Interior Secretary Doug Burgum (2:16)
Well, I think one thing that we know that in Trump administration, we're cutting red tape so rapidly. We think that, you know, one of the early targets we had was cut 10% of the cost away from those producers just by cutting red tape. So if you think about, you know, 60 bucks today might be what 67 bucks was a year ago because of the, the, the, our ability to take cost out for those producers. And there's example after example, whether it's from the epa, the Department of Energy, Department of Interior, where we've been able to help reduce costs. And of course, this industry has been better than almost any in terms of gaining, you know, productivity. The shale producers now drilling 3 mile laterals instead of 2 mile laterals, up to 4 mile laterals in many places offshore. We've seen examples over of people driving, building 10 mile laterals when they're getting after the shale rock, all with the same small well pad on the surface. So, you know, great for, great for land management and great for energy production. And kudos to this industry. This, 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. So I see the leading companies are getting their costs down even as demand is going up.