Interior Secretary Doug Burgum Talks Energy Plan

Summary

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.

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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."

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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.

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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)

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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.

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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.

Transcript

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[Interviewer Lisa]

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]

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]

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]

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.

[Interviewer]

But Baker Hughes is talking about drilling. Rig activity has fallen 16% since Trump took office this year. The President loves to talk about drill baby, drill. Do you expect that to change those numbers to change next year?

[U.S. Interior Secretary Doug Burgum]

Well, I think again, I'd have to take a look at the, at the numbers when we talk about drilling activity. In my home state of North Dakota, we had a number of, well, the well count was going down, but the miles of lateral productive rock could be going up. And so, you know, analysts have got to make sure that they're actually keeping up with how fast this industry is changing because we've got again, record production occurring right now and we expect to see records through, through 2026.

[Interviewer Lisa]

One area where you have seen price increases has been natural gas. Natural gas prices rising to the highest levels in the US going back to 2022. And a real question on how much the US can continue to export to places like Europe in the face of significantly higher prices here in the United States. How do you plan to sort of set policies so that the US can be a big exporter to places like Europe while not allowing prices to go up so significantly in the future?

[U.S. Interior Secretary Doug Burgum]

Well, again, the key is its supply and its infrastructure. We have places in the US Right now where again, there's not one price for gas in America, as you know, I mean, even though we've got the markets and we've got Henry Hub, but we've got, we've got widely ranging prices. I mean, even in the difference of price in Pennsylvania versus in New England because the lack of natural gas pipelines that have been blocked into places like New England. And when we think about, we think about markets, you're talking about AI and the capital spend and going against AI, where we're an AI factory, where we're, where we're actually creating and manufacturing intelligence. Those, those plants are going to go to the places where states have low electricity prices. And policies are setting price, not just markets. And we've got policies in blue states around our country. California, you mentioned California. 63% of California's oil is being imported from foreign countries because of blocking of PIP pipelines coming into that state. They have a record number of internal combustion cars in California. They have more internal combustion cars than any other state has cars. And yet two refineries have announced that they're shutting down in California because of policies, not because of lack of demand, not because of lack of consumers. And so what's going to happen, you're going to, you're going to have oil tankers and refined products coming into San Francisco Bay and coming into Long beach in record numbers. In California because of policies, they will have higher gas prices than virtually any other state. So again, we, we have a, we have a strategy in America to help every state. The Trump administration wants to have low affordable energy prices for everybody, whether it's heating your home or driving your car or producing electricity for AI. But we're going to need the collaboration from states to make sure. And if states don't want to collaborate on that, then you're going to see this trillion dollars of AI, a historic amount of spend, all going towards states that have pro policies that drive down prices.

[Interviewer]

Secretary, we've seen a significant increase in energy costs, especially for individuals who live near data centers. How is the US Going to do both at once, both support these initiatives, but also make sure consumers energy prices remain affordable?

[U.S. Interior Secretary Doug Burgum]

Well, if you said on the show, I mean the prices are, are in electricity are local, not national. And so there are the examples that you think we're, we're driving that analysis right now, and we're going to be publishing that from the White House, the National Energy Dominance Council, the Department of Energy, doing great work on that. But a lot of the higher prices that you're seeing are not related to the data centers. A lot of the data centers are going to be off the grid, behind the meter and then producing, adding more energy and then, and putting some of that energy onto the grid. So we could be actually increasing the supply in some of those areas where we've got increased pricing. It's because of the policies they pursued the last five years of having unreliable, intermittent and highly subsidized and projects including things like offshore wind, where people were spending $11 billion to create 1 gigawatt of intermittent, you know, versus spending 1 or 2 billion dollars to create 1 gigawatt of assured 7 by 24 hour power. So the policy choices of the last five years, driven by sometimes climate extremists, were the ones that were, that were, that are driving up the prices that you're seeing. I mean, electricity costs three times as much in New England as in North Dakota. That is not, that is not because of data centers. That's because of policies.

[Interviewer Lisa]

U.S. interior Secretary Doug Burgum, thank you so much.

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