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[00:00]
Indiana University Narrator
Indiana University strengthens tomorrow's workforce with practical, real world experience. IU grads make a difference in your community, serving as teachers, nurses and engineers who rise to tomorrow's challenges and meet them. Learn more at iu. Edu Impact
[00:20]
Chris Wright
Bloomberg Audio Studios Podcasts Radio
[00:24]
Indiana University Narrator
News US Energy Secretary Chris Wright speaking
[00:27]
Chris Wright
with Bloomberg Television anchor Annmarie Hordern at
[00:30]
Indiana University Narrator
the Bloomberg Energy Executive Briefing.
[00:34]
Chris Wright
Let's take a listen right now. Blowing off nuclear bombs right now. Let's just forget about it and move on. But he wasn't willing to do that. He was, he said we have to solve that problem. I'm not going to hand my, my successor a nuclear armed Iran. And so there's dialogue back, of course, you know, they, for 47 years they are wedded to being, to becoming nuclear armed and for whatever crazy reason to export their Islamic revolution and the whole world, everyone, everyone converted or dead. It's an ideology that doesn't work well with other nations, with other people and of course Disastrous for the 90 million Iranians that live under that regime. So that's sort of the broader backdrop.
[01:21]
Bloomberg Television Anchor Annmarie Hordern
I guess it's just hard to understand if, is this a real inflection point? Only because the president has said about 40 times then since this conflict started that we were close to a peace deal and then a peace deal never happened.
[01:33]
Chris Wright
Iran says things that they'll agree to, things that work for us and then, and then they don't. You know, of course, look, the regime is fragmented, there's different power sources there. So it's a complex situation. And he's a negotiator too, Right. So you've got to understand the communications, share information, they also share messaging. But the one piece of leverage, the only piece of meaningful leverage Iran has had has been to interrupt the flows of energy flowing out of the Persian Gulf. Right. We had 20 million barrels a day, round numbers flowing out before the conflict started through the east west pipeline and the UAE pipeline. Close to 5 million barrels of that has been diverted. We've got increased production. That was pretty easy to do. A few other places I think in round numbers you had maybe a 14 million barrel a day flow gap, which is a big flow gap of oil going out of the, going out of the Gulf at the start of this conflict. Early on in this conflict, we have a military effort that we've not talked a lot about that started more recently to get cargoes out, you know, because President Trump said at the beginning they're not going to have a nuclear weapon and will restore energy flows in the United States with or without Iran. He always prefers the diplomatic arm and he works tirelessly on that. But we also have the, we have the most powerful military in the world. We've destroyed most, but not all of their military capabilities. And we're just going to restore flows ourselves. And flows today, a close approaching half of the gap, and they're rising. So ultimately we will restore flows with or without them.
[03:15]
Bloomberg Television Anchor Annmarie Hordern
So 7 million barrels a day are getting out right now.
[03:19]
Chris Wright
That's a rough estimate, rough average of where we are right now. And it's rising.
[03:24]
Bloomberg Television Anchor Annmarie Hordern
So what kind is this oil? Is it products, fertilizer?
[03:28]
Chris Wright
Mix of the two.
[03:29]
Bloomberg Television Anchor Annmarie Hordern
And it's being done with the US Military?
[03:32]
Chris Wright
Correct.
[03:34]
Bloomberg Television Anchor Annmarie Hordern
So are ships turning off their transponders or is the military escorting them? Is it by air, is it by sea?
[03:44]
Chris Wright
Most of it's hard to transport crude by air.
[03:48]
Bloomberg Television Anchor Annmarie Hordern
Well, I mean, protective, but, but yes,
[03:54]
Chris Wright
the military protection is there. It's actually, it's actually going remarkably well. And of course, this is just the US Innovation, US Military power solving a problem. And, and we'll continue to solve that problem. So think of that impact that has on the dynamics if I'm in Iran. And of course, what are. They're not concerned about Iranian people. Right. They're concerned about their regime and their selves personally. They, so they have a little bit of a narrower focus on what they care about. But they've, they've thought they have this great leverage over the United States of America, of course, isn't really leverage over us. It's leverage over the world economy. But they're losing that leverage right now. They are rapidly and will continue to lose that leverage. So you would think that their urgency to do a deal is rising and it is rising. They realize, you know, the jig is going to be up before too long. We, what can they get?
[04:50]
Bloomberg Television Anchor Annmarie Hordern
How much Iranian crude is getting out right now?
[04:52]
Chris Wright
Zero.
[04:53]
Bloomberg Television Anchor Annmarie Hordern
No Iranian crude is able to escape.
[04:55]
Chris Wright
No.
[04:55]
Bloomberg Television Anchor Annmarie Hordern
So if this deal were to happen, would the United States let Iranian crude go through the Strait of Hormuz?
[05:02]
Chris Wright
Well, it depends on the deal. But, but of course, that, that, that is a, that is a give we would certainly be willing to do. Absolutely. You know, if Iran gets rid of their, their nuclear program achieves what we want us to do. Yeah. Their crude would be allowed to flow again. Absolutely.
[05:17]
Bloomberg Television Anchor Annmarie Hordern
So, so that would be lifting of sanctions, basically.
[05:19]
Chris Wright
Iranian oil, their crude was flowing before, you know, during sanctions, unfortunately, same thing in Venezuela. You know, the world puts sanctions on, then the world doesn't enforce the sanctions because it's hard to enforce sanctions. But if you really believe in the sanctions, you need to enforce them. So you could see partial lifting of sanctions on Iran would likely be on the give side for the United States.
[05:43]
Bloomberg Television Anchor Annmarie Hordern
According to Iranian press, the deal says within 30 days the street would open, the blockade would be lifted. Is that your understanding? And if it is true, what does it look like then in 30 days, if we're already getting 7 million barrels through, how much higher could you see the flow rate?
[06:00]
Chris Wright
I mean, the flow rate would, would return to whatever is commercially, you know, makes sense there. So, but you know, that you're clearly going to see after this conflict, people to say Iran can never play that card again. You'll probably see some new pipeline infrastruct built. You'll certainly see continued innovations in military technology from the United States to defang more easily and more quickly Iran's ability to interrupt the flows, as they've done there. But yeah, before, certainly after an agreement is reached, you'll see free flow of traffic of all products out of the Gulf or whatever. You'll see that either way, if there is no deal with Iran, eventually we would restore that militarily full flow as well.
[06:44]
Bloomberg Television Anchor Annmarie Hordern
Prices have been relatively depressed given the intensity of the conflict. I believe we're down 20% on Brent since April. Prices this morning were in the 80s. What is the driving force behind this?
[06:58]
Chris Wright
It's amazing the difference in attitude and positioning of a president. President Trump came into office and said, I want lower energy prices, I want more energy production. I want to embrace American allies around the world. But Persian Gulf energy producers, I should never call it Persian Gulf, the Arabian Gulf, I slipped up there. But the Biden administration, you know, you know, scorned them, said we're going to end the hydrocarbon industry. You know, just that rhetoric, that chilling rhetoric, that shunning of our allies. When Russia invaded Ukraine, there was almost no interruption of flow of Russian crude. There was natural gas via pipeline into Europe, but there was not a meaningful reduction, reduction of Russian oil or oil product exports. And we had gasoline prices a dollar a gallon higher than we have today with this large interruption of flows. I think that's President Trump's leadership in saying we care about energizing the world and we're going to do whatever it takes to supply the world. You know, obviously we were released not just in the United States, but around the world. Stocks from Strategic Petroleum reserves Fed to extensions of the Jones act waiver to allow crude supply from the Gulf coast, where it's coming from your region.
[08:14]
Bloomberg Television Anchor Annmarie Hordern
Will you do another extension. Actually, that's an audience question.
[08:17]
Chris Wright
It's what we'll do. Whatever it takes to keep energy prices as low as possible for the American people. California has chosen to impose on their people wildly high gasoline, diesel and electricity prices. Just crazy. And so a lot of people would say, well, we shouldn't care. That's a blue state. We're here for 340 million Americans in every state across the country. So the Jones act waiver has been enormously helpful for California, the west coast, the northeast coast of the United States as well. So it's allowing the free flow of that traffic. We turn back on a platform producing 50,000 barrels a day offshore. California wells are already there. Infrastructure is already there. It grew California oil production by 20%. That's a big deal. That's a meaningful amount of flows. And it sends a message that this, this administration is going to help the flow of energy around the world. People are surprised that oil prices throughout all this have not gone to the extreme levels many expected.
[09:21]
Bloomberg Television Anchor Annmarie Hordern
Isn't also because China is cutting some of their imports. Was there a conversation between the Chinese and the White House about this?
[09:31]
Chris Wright
There's a lot of conversations between the White House and the Chinese and I won't, I won't talk about that. But you saw at the start of the conflict, China was a massive. They actually stepped up their purchases of crude oil. And as you see now, they're in a very different position where they've stopped building their spro, they've turned down some refineries. China has been a meaningful part of the, of the balancing force in this crisis.
[09:55]
Indiana University Narrator
Preparing for tomorrow's careers requires forward thinking education. Indiana University graduates are degrees above the competition, building on strong foundations to create new possibilities that make a difference where you live. IU trained nurses practice simulated emergencies before setting foot in a hospital. Future teachers gain guided classroom experience through IU before graduating high school. And IU engineering students solve modern technology challenges through cutting edge microchip research that impacts everything from cell phones to space travel. Developing a talented workforce isn't a side effect of an IU education. It's the outcome. Learn how IU supports workforce development at IU.edu/impact.
[10:40]
Bloomberg Television Anchor Annmarie Hordern
There was a recent Washington Post article, actually was yesterday about oil executives telling the White House and warning them that potentially prices are going to go higher soon. Are we living on inventories? Where do you see the inventories right now? How low are we?
[10:56]
Chris Wright
You know, it's different in different places. It's different oil inventories in the last few weeks in Asia are rising. And so in the United States, we have, we have stepped in to fill this void. We've seen incredible response from American oil and gas companies, not just raising production, but raising refinery throughput to, to a significant scale. In fact, if you look at the May data, the United States was by far the world's largest exporter of crude oil, 5.4 million barrels a day. Russia a little over 4 million. Saudi Arabia a little under 4 million. But United States producers have stepped up and from our reserves and from other stores to try to supply not just America, but the world. But we've also had the benefit of, you know, average gasoline prices in the US a little over $4 a gallon. It's a little under $10 a gallon in Europe and in Asia. So we've been much, we have not been completely isolated from the impacts of this, but we have been much more isolated than everyone else that's leaning in and being pro energy, that's Trump administration energy policy.
[12:01]
Bloomberg Television Anchor Annmarie Hordern
Has there been an ask or pressure from the White House on the industry to produce more?
[12:06]
Chris Wright
Pressure is the wrong word. But, but of course we dialogue with, with industry across all sectors in this economy. We're not, you know, they're pursuing some crazy agenda, as unfortunately the Biden administration was. We're there to engage with American businesses and help them grow their businesses. You know, whether, whether they're building artificial intelligence factories or new manufacturing plants or oil and gas or, or coal or electricity of any kinds. We want to see America thrive. We want to see energy production increase. We want to see prices to consumers go down. We want to see competitiveness to do business in the United States grow, higher wages, lower costs.
[12:47]
Bloomberg Television Anchor Annmarie Hordern
But there is a concern that potentially if we're running low on inventories and say we don't get a peace deal this weekend and we're back to potentially strikes or this lingers. The president in a recent interview said it could be closed until September. Then what happens if we get higher gasoline prices in America? Closer to $5 a gallon?
[13:08]
Chris Wright
Look, we've done everything we can since the day it started to both fix the existential problem. A nuclear armed Iran becomes a much larger threat to energy supplies, to peace, to commerce, that people just don't appreciate how critical that issue is. So to solve that fundamental problem, it's, it's coming at disruptions, it's coming at some costs. I think the Trump administration has managed them fabulously well. I think we'll continue to do that. We may use different levers going forward, but we will do Everything we can to get through to achieve the fundamental objective that we, that we will not fail on.
[13:48]
Bloomberg Television Anchor Annmarie Hordern
So what kind of levers? There's, there's rumors months ago about an export ban. I know you said that's not happening. That will never happen.
[13:56]
Chris Wright
No export bans. No export bans. A couple of reasons. Number one, we produce more, more than we consume. So what are we going to do? Shut in our wells and reduce our production down? Number two is a large part of the Trump administration diplomacy is to make America an energy superpower, which means to be a reliable supplier to our friends and allies abroad of oil, of natural gas, of coal, of next generation nuclear power plants, of fusion energy technology. We want to develop energy resources in this country to benefit Americans and to benefit our trade balance abroad and support our allies so they don't have to depend upon, on, on unstable, hostile, hostile supply.
[14:41]
Bloomberg Television Anchor Annmarie Hordern
There was a recent Reuters poll that showed 80% of Americans say the current gas prices are straining their household budget. Is the administration still pushing Congress? Look at a gas tax holiday, especially over the summer.
[14:53]
Chris Wright
It trade offs in all of these issues. But, but the overriding objective is lower energy costs for Americans across the board.
[15:02]
Bloomberg Television Anchor Annmarie Hordern
So is that a yes? I mean, is it still one of the tools in the toolbox?
[15:08]
Chris Wright
It's possible. It's possible.
[15:10]
Bloomberg Television Anchor Annmarie Hordern
Do you think Congress has the votes? You probably have to do it before the midterms.
[15:16]
Chris Wright
Yeah. Look where my bigger effort, my bigger effort right now in, in Congress is permitting reform. You know, we want to leave behind as much permanent change as we can so we won't go back to the energy foolishness we suffered under the Biden administration and it began under the Obama administration. We just got to stop this mindset that somehow making energy expensive in the United States and exporting our industries is somehow going to save the world from climate change. I've been looking at data and studying climate change for 20 years. It's just amazing how that issue, a real issue, but sort of a slow moving, actually not that big deal of a problem, has just become so politically dominant among the left in the United States and of course among across the board in Europe. I think we are moving that tie back. We just got to get back to focusing it is human being.
[16:05]
Bloomberg Television Anchor Annmarie Hordern
You hear a lot of Democrats now, especially ahead of the midterms, especially ahead of 2028, saying we should focus energy more about using an all of energy approach. Because they want to talk about affordability.
[16:15]
Chris Wright
Yes.
[16:16]
Bloomberg Television Anchor Annmarie Hordern
Less so about climate change. When it comes though to policies that the United States could do besides The Jones Waiver act, anything else that you think could be pretty short term on the horizon for this summer, things we're talking about.
[16:31]
Chris Wright
But not, not. We look, we look through ideas and decide if they're viable and we'll come out and engage in that. But of course, it is a constant dialogue with energy producers here. How can we be helpful? Like, you know, epa, we, we, we change the regulations for blending for gasoline this summer. That's going to meaningfully increase America's ability to produce gasoline. With our existing refinery capacity. That's going to be helpful.
[16:58]
Bloomberg Television Anchor Annmarie Hordern
There's also the drawdown, the spider. Do you have plans to refill it?
[17:02]
Chris Wright
Yeah. There's another, I would say, stark contrast. The previous administration sold, sold 200 million barrels of oil without an interruption of flow around the world, trying to push down prices for a midterm election. We've not sold a single barrel of oil. Every barrel of oil we have released has been a trade, it's been an exchange for a barrel coming back. And the exchanges we completed so far, this is not the current ones that are going on right now. I don't have the data on them. But to date, every barrel we've released, we've gotten 1.28 barrels coming back. So that's 35 to 40 million barrels of additional crude that will be in the SPRO at no cost to American taxpayers.
[17:46]
Bloomberg Television Anchor Annmarie Hordern
Where do you think the SPRO will be at the end of Trump's term?
[17:50]
Chris Wright
Much fuller than it was before we arrived. I would like it to be completely full. That's what it's there for, their price
[17:58]
Bloomberg Television Anchor Annmarie Hordern
level that you would want to go out and fill it up more.
[18:04]
Chris Wright
I, if there was, I certainly wouldn't share it. But, but, but also it's, it's, it's not as simple as that. You know, you've got to get money from Congress to fill the SPR and that's very challenging. There's not a great political constituency that wants to spend money today, you know, to prepare us for a problem way down the road. Which is exactly why no previous president would take Iran head on. Like in the short term, it's disruptive. Fixing long term problems, that's tough to do in politics. That's a unique thing about President Trump. He has the courage to take on this Iranian issue where all the news is short term, he's terrible. Iran's winning and all that. It's all, it's all wrong. It's all nonsense. We are living with higher energy prices. He takes all the, all the negative, but People don't certainly in the media in general don't think about these long term issues. He's engaging in a long term strategic issue that's going to better not just the Middle east, but the world for generations to come. And he's taken whatever the heat comes, you know, through a higher prices, but I think he's managed that quite well. So there's impacts are real, but again less impact on prices than just the foolish policies and rhetoric of the Biden administration.
[19:20]
Bloomberg Television Anchor Annmarie Hordern
Do you think the psychology has changed? It used to be that opec, Saudi Arabia, now the UAE has left was the swing producer of the central bank of oil. Why wouldn't it be the United States?
[19:31]
Chris Wright
Well we produce far, far more than Saudi Arabia. In fact, you know the way people report 100 million, 205 million barrels of demand, that's liquid fuels. Crude oil is the biggest component of that. But it's just one piece of that. If you look at total liquid fuel, the United States is 24 million barrels a day of production in a world of about 100 and 506 million of demand. So yeah, we are the big dog in energy production, but it's all by businesses here. We don't decide at a government level, our production levels. So we never play a role as a short term swing producer. We do lean in as we are right now. But I think Saudi Arabia's role in the oil markets likely will continue as it has. They have been willing and with a few partners, but mostly Saudi Arabia, they have played a sort of central bank role of oil. I think the net impact of that overall has been positive.
[20:25]
Bloomberg Television Anchor Annmarie Hordern
But do you think their hand has been weakened with the Emiratis leaving the group?
[20:29]
Chris Wright
Sure, sure, sure. Less, less oil will be controlled in that OPEC fashion. UAE is a major oil producer, super successful economy in that country and there is investing and growing their productive capacity. Kuwait is leaning in and growing their productive capacity. People just getting out of this silly mindset like the goal was to hit peak demand for oil. Right now we're all there's 7 billion people that don't live like us, sorry about them. You know, it's just crazy how much, how far off a human focused and a math focused dialogue we're in. I'm thrilled that the world is swinging back to common sense. Sense is thinking long term we need massively more oil in the world, massively more natural gas, massively more energy to continue to grow our economy, to re industrialize our industry and to lift everyone's standard of living up around the world.
[21:23]
Bloomberg Television Anchor Annmarie Hordern
An audience question. Also I'm curious to get your take on is American investment regarding Venezuela. I was there in Caracas. So you, you were the first secretary to go to Venezuela since the capturing of Nicolas Maduro. What is the status now? When was the last time you spoke to Delsey Rodriguez? Do you expect more American companies to go produce there?
[21:44]
Chris Wright
Lots of American companies going down there. A lot of business we are working. My team and including myself is in regular communication with Delsey. You know, 25 years go in the wrong direction. You know that that's it is Venezuela is another case. Amazing how low it sunk. Eight million people leaving millions leaving Venezuela to go to Portugal, poorer countries. So you know, is it Norway today? It's not Norway yet, but the pivot, that change in the improvement in the conditions in Venezuela is going quite well right now. A lot of work to be done there. But oil exports out of Venezuela have more than doubled since January 2nd of this year. So that's also helpful. And of course, when most of the American refineries were built in the 60s and 70s, Venezuela was the largest exporter of oil in the world, third largest producer, biggest oil exporter. So a lot of our refineries were built to handle those lower cost, high viscosity crudes. So it's great news to see that production growing. I think you will see tremendous growth in Venezuelan production in the coming years. The thing about AI for business, it
[22:50]
Indiana University Narrator
may not automatically fit the way your business works. At IBM, we've seen this firsthand.
[22:57]
Chris Wright
But by embedding AI across hr, it's
[23:00]
Indiana University Narrator
and procurement processes, we've reduced costs by
[23:03]
Chris Wright
millions, slash repetitive tasks and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.
[23:18]
Bloomberg Television Anchor Annmarie Hordern
Another question from the audience is about the surge in power demand for data centers. Why is the Trump administration not embracing all sources of power, including renewables?
[23:27]
Chris Wright
Well, embrace. Depends how you view the word embrace. The wind subsidies went on for 30.
[23:33]
Bloomberg Television Anchor Annmarie Hordern
President Trump doesn't like windmills.
[23:35]
Chris Wright
No, he doesn't like windmills, but he doesn't. Look, a lot of people don't like windmills. You know, the public pushback across the heartland of America and certainly in the coastline of America against wind power has been enormous. And the other thing, put in context wind power, think of how much money has been spent that. It's 1.5% of global energy. And everywhere it's got deep penetration. You know, Germany, Denmark, United Kingdom, Most expensive electricity prices in the world. Does President Trump want to have the most expensive electricity prices in the world? Absolutely not. Absolutely not. And the people, people look at this stuff wrong. They think of electricity like gasoline or oil, where you can store it and sort of use it because it doesn't work that way. So we look at the data. Oh my gosh. If you add up wind and solar last year, you know, they were 16 or 17% of electricity. They're meaningful for American electrons. Why don't we get more of those electrons on the grid? That's not the way to think about electricity. Electricity is all about what's the most efficient way to deliver at peak demand time. When we had that cold winter storm Fern that came down the end of January, probably the greatest test we've seen of the east coast electricity grade at peak demand time on January 27th in New England in the evening, 2% of New England's electricity came from wind, solar and batteries combined.3% of New England electricity came from burning trash and wood. Right. That's if you're there in the middle of the day when we don't really need you. All you're doing is saying some other producing. So source typically it's a natural gas power plant has to turn down. You know, you're not adding to the capacity of the grid unless you're reliably there at peak demand time. And as we as Democrats have pushed a little bit more heating to electrification, which is a horribly bad idea, it's a guaranteed way to make heating much more expensive. And we can't put nearly as much energy through our electricity grid as we can through our natural gas power pipeline network. But in case those policies are happening. So peak demand times are more and more going to the winter. You know, think of in New England and New York State, solar is irrelevant in the winter. And when you get a large cold front that comes in, it's a high pressure air mass that just sits there. Well, wind goes away too. So all that stuff you built, all those associated transmission lines, they don't add anything to the productive capacity of the grid. They produce electricity some of the time, but that's not what matters. You have to be there at peak demand time. We're going to put on new data centers and reshore manufacturing. We have to increase our capacity to reliably supply at peak demand time. We want to do that as economically, efficiently and as quickly as we can. We're doing everything we can to get nuclear going. That's coming. We had reactors already go critical but in the short term, in the next few years, it's going to be natural gas, it's going to be expansion of existing capacity electricity. We're restarting three large nuclear power plants, we're operating a number of power plants, we're changing some foolish regulations. The only reason we didn't have to close the schools in Florida during that cold front is we said all that massive amount of backup generators, turn them on, don't wait till the lights go out, we have a blackout. And then turn them on. Just for your store, turn them on. And that's added capacity to the grid. So we're having to do some creative things so that we can enable reshoring of manufacturing here, meet this rising demand for AI and ultimately just change the way decisions are made at FERC and hopefully ultimately across state utility commissions. We changed mandate from affordable, reliable electricity for Americans and American industry. And we just got off track. And the country just went crazy, as Europe did, thinking somehow tweaking the American electricity grid was going to change global emissions. Just a colossal mistake.
[27:31]
Bloomberg Television Anchor Annmarie Hordern
This is a more sophisticated answer, the president saying, the windmills are not good for the birds. So I appreciate that. I just, just my final question, because I think I was the first reporter to ask you if you were going to go to Venezuela and you said yes. And then you went, would you be the first secretary to maybe, I don't know, go to Oman and see vessels come through or even maybe go to Iran at some point?
[27:55]
Chris Wright
It's funny, early on in this crisis, the president, who has an underappreciated, great sense of humor, we were at dinner, I don't remember. We were. And he said, have you told Leisure going to Iran yet?
[28:08]
Bloomberg Television Anchor Annmarie Hordern
Really?
[28:09]
Chris Wright
He did say that. He did say that. So, you know, who knows? Again, the goal is to drive progress. The goal is to drive improvement. If we get a reasonable resolution and we're implementing something, certainly possibility.
[28:21]
Bloomberg Television Anchor Annmarie Hordern
So on that trip with you, Secretary Wright, thank you so much for joining us.
[28:25]
Chris Wright
Get the news you need in just 15 minutes. Start your day with Bloomberg Daybreak, the podcast with a global view on the stories that matter. I'm Nathan Hager. And I'm Karen Moscow. Join us each morning for curated stories on current events, politics, business and foreign relations, plus one conversation on the day's biggest developments, all in just 15 minutes. Subscribe to Bloomberg Daybreak for a precise, thoughtful take on the stories that matter. Listen to Bloomberg Daybreak each morning on Apple, Spotify, or anywhere you listen.

Summary8 min read

Bloomberg Talks

Episode: US Energy Secretary Chris Wright Talks Oil Flows Through Strait of Hormuz

Host: Bloomberg Television Anchor Annmarie Hordern
Guest: US Energy Secretary Chris Wright
Date: June 12, 2026

Episode Overview

This episode centers on a high-stakes conversation with US Energy Secretary Chris Wright about the ongoing energy crisis in the Middle East, specifically focusing on oil flows through the Strait of Hormuz amid geopolitical tensions with Iran. It explores US military and diplomatic efforts to secure energy supplies, the impact on global oil prices, the role of sanctions, domestic energy strategy, and broader implications for global and American energy markets.

Key Discussion Points & Insights

1. The Geopolitical Backdrop: Iran, Oil, and Nuclear Tensions

Iran’s Leverage and US Strategy
- Iran has long used the "oil weapon," threatening global energy flow as leverage over the US and the world economy.
- The Biden administration is criticized for its approach, with Wright contrasting President Trump’s more assertive posture.
- Quote: "The only piece of meaningful leverage Iran has had has been to interrupt the flows of energy flowing out of the Persian Gulf." — Chris Wright [01:41]
- US military efforts are actively restoring oil flows despite Iranian attempts at disruption.
Nuclear Negotiations and the Sanctions Regime
- Iran’s stance on nuclear weapons complicates deal-making.
- A key US priority is preventing a nuclear-armed Iran, with willingness to consider sanctions relief if significant progress is made.
- Quote: "If Iran gets rid of their, their nuclear program achieves what we want us to do... their crude would be allowed to flow again. Absolutely." — Chris Wright [05:03]

2. Restoring Oil Flows and Military Intervention

Current Flow Status
- Roughly 7 million barrels/day are getting out of the Gulf currently, protected by the US military. [03:15–03:32]
- The US military is actively escorting ships to ensure flows continue.
- Quote: "The military protection is there. It's actually going remarkably well." — Chris Wright [03:53]
Iranian Oil Blockade
- As of the conversation, no Iranian oil is reaching the market. [04:51–04:55]
- Restoration of flow would be possible via either a diplomatic solution or sustained military intervention.

3. Market & Price Dynamics

Price Movements and Administration Rhetoric
- Despite intense conflict and reduced flows, Brent crude prices have only dipped by about 20% since April and remain in the $80s per barrel.
- Wright credits US leadership and proactive measures for stabilizing markets, contrasting Trump’s approach with Biden’s.
- Quote: "I think that's President Trump's leadership in saying we care about energizing the world and we're going to do whatever it takes to supply the world." — Chris Wright [07:20]
Strategic Oil Reserves and Domestic Production
- The US has boosted exports, outpacing Russia and Saudi Arabia, and is drawing on reserves prudently.
- Jones Act waivers have been significant in facilitating domestic oil flows, especially benefitting the West Coast and Northeast [08:16].

4. China, Demand Dynamics, and Global Coordination

China’s Role in Oil Markets
- China was buying more crude at the outset of the conflict but has since scaled back, helping balance the market.
- Wright avoids discussing White House-China conversations but identifies China as a crucial market balancer.
- Quote: "China has been a meaningful part of the balancing force in this crisis." — Chris Wright [09:53]

5. Managing US Energy Inventories

Inventories & Industry Response
- US industry has ramped up output and refining to fill global supply gaps.
- US gasoline remains around $4/gallon, while Europe and Asia see much higher prices. [10:56–11:37]
- Quote: "United States producers have stepped up and from our reserves and from other stores to try to supply not just America, but the world." — Chris Wright [11:13]
No Export Ban & Focus on Global Leadership
- The administration dismisses any oil export ban, emphasizing America's role as a global energy supplier.
- Quote: "Number two is a large part of the Trump administration diplomacy is to make America an energy superpower." — Chris Wright [13:58]

6. Potential Measures & Political Trade-Offs

Gas Tax Holiday & Permitting Reform
- Wright leaves open the possibility of a gas tax holiday, but stresses longer-term permitting and regulatory reform. [15:02–15:15]
- He critiques the prior administration's approach to energy and climate, arguing for pragmatism and affordability over aggressive decarbonization.
- Quote: "The overriding objective is lower energy costs for Americans across the board." — Chris Wright [14:54]

7. Strategic Petroleum Reserve (SPR) Management

SPR Refill Plans
- Wright criticizes previous SPR sales for political gain and asserts current releases are exchanges that will lead to a net increase in reserves.
- Quote: "Every barrel we've released, we've gotten 1.28 barrels coming back. So that's 35 to 40 million barrels of additional crude that will be in the SPR at no cost to American taxpayers." — Chris Wright [17:07]

8. America’s Global Role and OPEC’s Shifting Power

US as Top Producer, but not Central Bank
- US leads global liquid fuel production but doesn't function as a swing producer like OPEC/Saudi Arabia due to decentralized industry structure.
- Quote: "We are the big dog in energy production, but... we don't decide at a government level, our production levels. So we never play a role as a short term swing producer." — Chris Wright [19:33]
OPEC Fragmentation
- UAE and Kuwait are growing more independent, undermining OPEC's ability to control prices.
- Quote: "Less oil will be controlled in that OPEC fashion... People just getting out of this silly mindset like the goal was to hit peak demand for oil." — Chris Wright [20:29]

9. Venezuela: US Investment and Output Revival

Status Report
- US businesses are investing again; communications with Venezuelan officials are regular.
- Venezuela’s oil exports have more than doubled since January, which is framed as a success for supporting US refinery needs.
- Quote: "Oil exports out of Venezuela have more than doubled since January 2nd of this year. So that's also helpful." — Chris Wright [22:09]

10. Data Centers, Electricity Demand & Power Mix

Why Not More Renewables?
- Trump administration is not hostile to renewables, but is skeptical; wind and solar are seen as offering limited help at peak demand times.
- Wind is only 1.5% of global energy and areas with high penetration have the highest prices.
- Emphasis is instead on natural gas and nuclear, as well as innovative regulatory approaches to maintain grid stability and affordability.
- Quote: "If you add up wind and solar last year, you know, they were 16 or 17% of electricity. They're meaningful... but that's not the way to think about electricity... You have to be there at peak demand time." — Chris Wright [25:03]
- Pushback against electrification of heating, citing reliability and efficiency concerns.

Notable Quotes & Memorable Moments

On Iran's Leverage Fading:
- "They're losing that leverage right now. They are rapidly and will continue to lose that leverage. So you would think their urgency to do a deal is rising, and it is rising. They realize, you know, the jig is going to be up before too long." — Chris Wright [04:38]
On California’s High Prices and Federal Responsibility:
- "California has chosen to impose on their people wildly high gasoline, diesel and electricity prices. Just crazy... But we're here for 340 million Americans in every state." — Chris Wright [08:21]
On US Energy Philosophy:
- "We want to see America thrive. We want to see energy production increase. We want to see prices to consumers go down. We want to see competitiveness to do business in the United States grow, higher wages, lower costs." — Chris Wright [12:15]
On Renewable Subsidies and Energy Policy Scepticism:
- "The public pushback across the heartland of America and certainly in the coastline of America against wind power has been enormous... Germany, Denmark, United Kingdom, most expensive electricity prices in the world." — Chris Wright [23:34]
On Reshoring Manufacturing and Data Center Power:
- "We want to do that as economically, efficiently and as quickly as we can. We're doing everything we can to get nuclear going. That's coming. But in the short term, in the next few years, it's going to be natural gas, it's going to be expansion of existing capacity electricity." — Chris Wright [26:34]

Timestamps for Key Segments

| Timestamp | Segment/Topic |:-------------:|:---------------------------------------------------- | 01:33 | US leverage, restoring oil flows, and military role | 03:15 | Current status: 7 million barrels/day flowing, military escorts | 04:49 | Complete halt of Iranian crude exports | 05:43 | Prospects for restoring Strait flows and lifting blockade | 07:00 | Oil prices, market responses, impact of US leadership | 08:16 | Jones Act waivers, benefits for domestic producers | 09:30 | China's evolving oil imports and effect on the market | 10:40 | Industry warnings about inventories and price forecasts | 12:06 | White House-industry engagement, policy differences summary | 13:07 | Managing potential price spikes, crisis levers | 13:56 | Rejection of export bans, US as energy superpower | 15:02 | Gas tax holiday, regulatory and permitting reform | 17:02 | SPR policy: exchange strategy, levels, political hurdles | 19:30 | OPEC, US as top producer, swing producer role | 20:29 | UAE's OPEC exit, new producer independence | 21:43 | Venezuela investment, exports, and US refinery ties | 23:27 | Renewables, grid reliability, and data center demand | 25:03 | Peak demand reliability, grid management, nuclear in the mix | 27:55 | Lighter moment: Possibility of visiting Iran or Oman | -------------------| | | | | | | | | | | | | | | | | | | |

Tone & Language

The tone throughout is direct, policy-focused, and at times combative or critical—especially toward prior administration strategies and progressive energy policies. Wright mixes technical explanations with blunt political and economic assessments, providing a defense of current-administration approaches, and offering transparency on tactical energy issues.

Conclusion

This episode delivers a comprehensive, candid look at how the US government is responding to one of the most dangerous and complex global energy crises in recent memory. Secretary Wright combines policy critique, real-time operational updates, and strategic vision, emphasizing US leadership in securing global supply, resisting price shocks, and questioning prevailing narratives on energy transition and climate.

Listeners come away with an insider’s understanding of both the technical hurdles and political calculations shaping US and global energy markets amid 2026’s ongoing instability.

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Transcript79 lines

[00:00]
Indiana University Narrator
Indiana University strengthens tomorrow's workforce with practical, real world experience. IU grads make a difference in your community, serving as teachers, nurses and engineers who rise to tomorrow's challenges and meet them. Learn more at iu. Edu Impact
[00:20]
Chris Wright
Bloomberg Audio Studios Podcasts Radio
[00:24]
Indiana University Narrator
News US Energy Secretary Chris Wright speaking
[00:27]
Chris Wright
with Bloomberg Television anchor Annmarie Hordern at
[00:30]
Indiana University Narrator
the Bloomberg Energy Executive Briefing.
[00:34]
Chris Wright
Let's take a listen right now. Blowing off nuclear bombs right now. Let's just forget about it and move on. But he wasn't willing to do that. He was, he said we have to solve that problem. I'm not going to hand my, my successor a nuclear armed Iran. And so there's dialogue back, of course, you know, they, for 47 years they are wedded to being, to becoming nuclear armed and for whatever crazy reason to export their Islamic revolution and the whole world, everyone, everyone converted or dead. It's an ideology that doesn't work well with other nations, with other people and of course Disastrous for the 90 million Iranians that live under that regime. So that's sort of the broader backdrop.
[01:21]
Bloomberg Television Anchor Annmarie Hordern
I guess it's just hard to understand if, is this a real inflection point? Only because the president has said about 40 times then since this conflict started that we were close to a peace deal and then a peace deal never happened.
[01:33]
Chris Wright
Iran says things that they'll agree to, things that work for us and then, and then they don't. You know, of course, look, the regime is fragmented, there's different power sources there. So it's a complex situation. And he's a negotiator too, Right. So you've got to understand the communications, share information, they also share messaging. But the one piece of leverage, the only piece of meaningful leverage Iran has had has been to interrupt the flows of energy flowing out of the Persian Gulf. Right. We had 20 million barrels a day, round numbers flowing out before the conflict started through the east west pipeline and the UAE pipeline. Close to 5 million barrels of that has been diverted. We've got increased production. That was pretty easy to do. A few other places I think in round numbers you had maybe a 14 million barrel a day flow gap, which is a big flow gap of oil going out of the, going out of the Gulf at the start of this conflict. Early on in this conflict, we have a military effort that we've not talked a lot about that started more recently to get cargoes out, you know, because President Trump said at the beginning they're not going to have a nuclear weapon and will restore energy flows in the United States with or without Iran. He always prefers the diplomatic arm and he works tirelessly on that. But we also have the, we have the most powerful military in the world. We've destroyed most, but not all of their military capabilities. And we're just going to restore flows ourselves. And flows today, a close approaching half of the gap, and they're rising. So ultimately we will restore flows with or without them.
[03:15]
Bloomberg Television Anchor Annmarie Hordern
So 7 million barrels a day are getting out right now.
[03:19]
Chris Wright
That's a rough estimate, rough average of where we are right now. And it's rising.
[03:24]
Bloomberg Television Anchor Annmarie Hordern
So what kind is this oil? Is it products, fertilizer?
[03:28]
Chris Wright
Mix of the two.
[03:29]
Bloomberg Television Anchor Annmarie Hordern
And it's being done with the US Military?
[03:32]
Chris Wright
Correct.
[03:34]
Bloomberg Television Anchor Annmarie Hordern
So are ships turning off their transponders or is the military escorting them? Is it by air, is it by sea?
[03:44]
Chris Wright
Most of it's hard to transport crude by air.
[03:48]
Bloomberg Television Anchor Annmarie Hordern
Well, I mean, protective, but, but yes,
[03:54]
Chris Wright
the military protection is there. It's actually, it's actually going remarkably well. And of course, this is just the US Innovation, US Military power solving a problem. And, and we'll continue to solve that problem. So think of that impact that has on the dynamics if I'm in Iran. And of course, what are. They're not concerned about Iranian people. Right. They're concerned about their regime and their selves personally. They, so they have a little bit of a narrower focus on what they care about. But they've, they've thought they have this great leverage over the United States of America, of course, isn't really leverage over us. It's leverage over the world economy. But they're losing that leverage right now. They are rapidly and will continue to lose that leverage. So you would think that their urgency to do a deal is rising and it is rising. They realize, you know, the jig is going to be up before too long. We, what can they get?
[04:50]
Bloomberg Television Anchor Annmarie Hordern
How much Iranian crude is getting out right now?
[04:52]
Chris Wright
Zero.
[04:53]
Bloomberg Television Anchor Annmarie Hordern
No Iranian crude is able to escape.
[04:55]
Chris Wright
No.
[04:55]
Bloomberg Television Anchor Annmarie Hordern
So if this deal were to happen, would the United States let Iranian crude go through the Strait of Hormuz?
[05:02]
Chris Wright
Well, it depends on the deal. But, but of course, that, that, that is a, that is a give we would certainly be willing to do. Absolutely. You know, if Iran gets rid of their, their nuclear program achieves what we want us to do. Yeah. Their crude would be allowed to flow again. Absolutely.
[05:17]
Bloomberg Television Anchor Annmarie Hordern
So, so that would be lifting of sanctions, basically.
[05:19]
Chris Wright
Iranian oil, their crude was flowing before, you know, during sanctions, unfortunately, same thing in Venezuela. You know, the world puts sanctions on, then the world doesn't enforce the sanctions because it's hard to enforce sanctions. But if you really believe in the sanctions, you need to enforce them. So you could see partial lifting of sanctions on Iran would likely be on the give side for the United States.
[05:43]
Bloomberg Television Anchor Annmarie Hordern
According to Iranian press, the deal says within 30 days the street would open, the blockade would be lifted. Is that your understanding? And if it is true, what does it look like then in 30 days, if we're already getting 7 million barrels through, how much higher could you see the flow rate?
[06:00]
Chris Wright
I mean, the flow rate would, would return to whatever is commercially, you know, makes sense there. So, but you know, that you're clearly going to see after this conflict, people to say Iran can never play that card again. You'll probably see some new pipeline infrastruct built. You'll certainly see continued innovations in military technology from the United States to defang more easily and more quickly Iran's ability to interrupt the flows, as they've done there. But yeah, before, certainly after an agreement is reached, you'll see free flow of traffic of all products out of the Gulf or whatever. You'll see that either way, if there is no deal with Iran, eventually we would restore that militarily full flow as well.
[06:44]
Bloomberg Television Anchor Annmarie Hordern
Prices have been relatively depressed given the intensity of the conflict. I believe we're down 20% on Brent since April. Prices this morning were in the 80s. What is the driving force behind this?
[06:58]
Chris Wright
It's amazing the difference in attitude and positioning of a president. President Trump came into office and said, I want lower energy prices, I want more energy production. I want to embrace American allies around the world. But Persian Gulf energy producers, I should never call it Persian Gulf, the Arabian Gulf, I slipped up there. But the Biden administration, you know, you know, scorned them, said we're going to end the hydrocarbon industry. You know, just that rhetoric, that chilling rhetoric, that shunning of our allies. When Russia invaded Ukraine, there was almost no interruption of flow of Russian crude. There was natural gas via pipeline into Europe, but there was not a meaningful reduction, reduction of Russian oil or oil product exports. And we had gasoline prices a dollar a gallon higher than we have today with this large interruption of flows. I think that's President Trump's leadership in saying we care about energizing the world and we're going to do whatever it takes to supply the world. You know, obviously we were released not just in the United States, but around the world. Stocks from Strategic Petroleum reserves Fed to extensions of the Jones act waiver to allow crude supply from the Gulf coast, where it's coming from your region.
[08:14]
Bloomberg Television Anchor Annmarie Hordern
Will you do another extension. Actually, that's an audience question.
[08:17]
Chris Wright
It's what we'll do. Whatever it takes to keep energy prices as low as possible for the American people. California has chosen to impose on their people wildly high gasoline, diesel and electricity prices. Just crazy. And so a lot of people would say, well, we shouldn't care. That's a blue state. We're here for 340 million Americans in every state across the country. So the Jones act waiver has been enormously helpful for California, the west coast, the northeast coast of the United States as well. So it's allowing the free flow of that traffic. We turn back on a platform producing 50,000 barrels a day offshore. California wells are already there. Infrastructure is already there. It grew California oil production by 20%. That's a big deal. That's a meaningful amount of flows. And it sends a message that this, this administration is going to help the flow of energy around the world. People are surprised that oil prices throughout all this have not gone to the extreme levels many expected.
[09:21]
Bloomberg Television Anchor Annmarie Hordern
Isn't also because China is cutting some of their imports. Was there a conversation between the Chinese and the White House about this?
[09:31]
Chris Wright
There's a lot of conversations between the White House and the Chinese and I won't, I won't talk about that. But you saw at the start of the conflict, China was a massive. They actually stepped up their purchases of crude oil. And as you see now, they're in a very different position where they've stopped building their spro, they've turned down some refineries. China has been a meaningful part of the, of the balancing force in this crisis.
[09:55]
Indiana University Narrator
Preparing for tomorrow's careers requires forward thinking education. Indiana University graduates are degrees above the competition, building on strong foundations to create new possibilities that make a difference where you live. IU trained nurses practice simulated emergencies before setting foot in a hospital. Future teachers gain guided classroom experience through IU before graduating high school. And IU engineering students solve modern technology challenges through cutting edge microchip research that impacts everything from cell phones to space travel. Developing a talented workforce isn't a side effect of an IU education. It's the outcome. Learn how IU supports workforce development at IU.edu/impact.
[10:40]
Bloomberg Television Anchor Annmarie Hordern
There was a recent Washington Post article, actually was yesterday about oil executives telling the White House and warning them that potentially prices are going to go higher soon. Are we living on inventories? Where do you see the inventories right now? How low are we?
[10:56]
Chris Wright
You know, it's different in different places. It's different oil inventories in the last few weeks in Asia are rising. And so in the United States, we have, we have stepped in to fill this void. We've seen incredible response from American oil and gas companies, not just raising production, but raising refinery throughput to, to a significant scale. In fact, if you look at the May data, the United States was by far the world's largest exporter of crude oil, 5.4 million barrels a day. Russia a little over 4 million. Saudi Arabia a little under 4 million. But United States producers have stepped up and from our reserves and from other stores to try to supply not just America, but the world. But we've also had the benefit of, you know, average gasoline prices in the US a little over $4 a gallon. It's a little under $10 a gallon in Europe and in Asia. So we've been much, we have not been completely isolated from the impacts of this, but we have been much more isolated than everyone else that's leaning in and being pro energy, that's Trump administration energy policy.
[12:01]
Bloomberg Television Anchor Annmarie Hordern
Has there been an ask or pressure from the White House on the industry to produce more?
[12:06]
Chris Wright
Pressure is the wrong word. But, but of course we dialogue with, with industry across all sectors in this economy. We're not, you know, they're pursuing some crazy agenda, as unfortunately the Biden administration was. We're there to engage with American businesses and help them grow their businesses. You know, whether, whether they're building artificial intelligence factories or new manufacturing plants or oil and gas or, or coal or electricity of any kinds. We want to see America thrive. We want to see energy production increase. We want to see prices to consumers go down. We want to see competitiveness to do business in the United States grow, higher wages, lower costs.
[12:47]
Bloomberg Television Anchor Annmarie Hordern
But there is a concern that potentially if we're running low on inventories and say we don't get a peace deal this weekend and we're back to potentially strikes or this lingers. The president in a recent interview said it could be closed until September. Then what happens if we get higher gasoline prices in America? Closer to $5 a gallon?
[13:08]
Chris Wright
Look, we've done everything we can since the day it started to both fix the existential problem. A nuclear armed Iran becomes a much larger threat to energy supplies, to peace, to commerce, that people just don't appreciate how critical that issue is. So to solve that fundamental problem, it's, it's coming at disruptions, it's coming at some costs. I think the Trump administration has managed them fabulously well. I think we'll continue to do that. We may use different levers going forward, but we will do Everything we can to get through to achieve the fundamental objective that we, that we will not fail on.
[13:48]
Bloomberg Television Anchor Annmarie Hordern
So what kind of levers? There's, there's rumors months ago about an export ban. I know you said that's not happening. That will never happen.
[13:56]
Chris Wright
No export bans. No export bans. A couple of reasons. Number one, we produce more, more than we consume. So what are we going to do? Shut in our wells and reduce our production down? Number two is a large part of the Trump administration diplomacy is to make America an energy superpower, which means to be a reliable supplier to our friends and allies abroad of oil, of natural gas, of coal, of next generation nuclear power plants, of fusion energy technology. We want to develop energy resources in this country to benefit Americans and to benefit our trade balance abroad and support our allies so they don't have to depend upon, on, on unstable, hostile, hostile supply.
[14:41]
Bloomberg Television Anchor Annmarie Hordern
There was a recent Reuters poll that showed 80% of Americans say the current gas prices are straining their household budget. Is the administration still pushing Congress? Look at a gas tax holiday, especially over the summer.
[14:53]
Chris Wright
It trade offs in all of these issues. But, but the overriding objective is lower energy costs for Americans across the board.
[15:02]
Bloomberg Television Anchor Annmarie Hordern
So is that a yes? I mean, is it still one of the tools in the toolbox?
[15:08]
Chris Wright
It's possible. It's possible.
[15:10]
Bloomberg Television Anchor Annmarie Hordern
Do you think Congress has the votes? You probably have to do it before the midterms.
[15:16]
Chris Wright
Yeah. Look where my bigger effort, my bigger effort right now in, in Congress is permitting reform. You know, we want to leave behind as much permanent change as we can so we won't go back to the energy foolishness we suffered under the Biden administration and it began under the Obama administration. We just got to stop this mindset that somehow making energy expensive in the United States and exporting our industries is somehow going to save the world from climate change. I've been looking at data and studying climate change for 20 years. It's just amazing how that issue, a real issue, but sort of a slow moving, actually not that big deal of a problem, has just become so politically dominant among the left in the United States and of course among across the board in Europe. I think we are moving that tie back. We just got to get back to focusing it is human being.
[16:05]
Bloomberg Television Anchor Annmarie Hordern
You hear a lot of Democrats now, especially ahead of the midterms, especially ahead of 2028, saying we should focus energy more about using an all of energy approach. Because they want to talk about affordability.
[16:15]
Chris Wright
Yes.
[16:16]
Bloomberg Television Anchor Annmarie Hordern
Less so about climate change. When it comes though to policies that the United States could do besides The Jones Waiver act, anything else that you think could be pretty short term on the horizon for this summer, things we're talking about.
[16:31]
Chris Wright
But not, not. We look, we look through ideas and decide if they're viable and we'll come out and engage in that. But of course, it is a constant dialogue with energy producers here. How can we be helpful? Like, you know, epa, we, we, we change the regulations for blending for gasoline this summer. That's going to meaningfully increase America's ability to produce gasoline. With our existing refinery capacity. That's going to be helpful.
[16:58]
Bloomberg Television Anchor Annmarie Hordern
There's also the drawdown, the spider. Do you have plans to refill it?
[17:02]
Chris Wright
Yeah. There's another, I would say, stark contrast. The previous administration sold, sold 200 million barrels of oil without an interruption of flow around the world, trying to push down prices for a midterm election. We've not sold a single barrel of oil. Every barrel of oil we have released has been a trade, it's been an exchange for a barrel coming back. And the exchanges we completed so far, this is not the current ones that are going on right now. I don't have the data on them. But to date, every barrel we've released, we've gotten 1.28 barrels coming back. So that's 35 to 40 million barrels of additional crude that will be in the SPRO at no cost to American taxpayers.
[17:46]
Bloomberg Television Anchor Annmarie Hordern
Where do you think the SPRO will be at the end of Trump's term?
[17:50]
Chris Wright
Much fuller than it was before we arrived. I would like it to be completely full. That's what it's there for, their price
[17:58]
Bloomberg Television Anchor Annmarie Hordern
level that you would want to go out and fill it up more.
[18:04]
Chris Wright
I, if there was, I certainly wouldn't share it. But, but, but also it's, it's, it's not as simple as that. You know, you've got to get money from Congress to fill the SPR and that's very challenging. There's not a great political constituency that wants to spend money today, you know, to prepare us for a problem way down the road. Which is exactly why no previous president would take Iran head on. Like in the short term, it's disruptive. Fixing long term problems, that's tough to do in politics. That's a unique thing about President Trump. He has the courage to take on this Iranian issue where all the news is short term, he's terrible. Iran's winning and all that. It's all, it's all wrong. It's all nonsense. We are living with higher energy prices. He takes all the, all the negative, but People don't certainly in the media in general don't think about these long term issues. He's engaging in a long term strategic issue that's going to better not just the Middle east, but the world for generations to come. And he's taken whatever the heat comes, you know, through a higher prices, but I think he's managed that quite well. So there's impacts are real, but again less impact on prices than just the foolish policies and rhetoric of the Biden administration.
[19:20]
Bloomberg Television Anchor Annmarie Hordern
Do you think the psychology has changed? It used to be that opec, Saudi Arabia, now the UAE has left was the swing producer of the central bank of oil. Why wouldn't it be the United States?
[19:31]
Chris Wright
Well we produce far, far more than Saudi Arabia. In fact, you know the way people report 100 million, 205 million barrels of demand, that's liquid fuels. Crude oil is the biggest component of that. But it's just one piece of that. If you look at total liquid fuel, the United States is 24 million barrels a day of production in a world of about 100 and 506 million of demand. So yeah, we are the big dog in energy production, but it's all by businesses here. We don't decide at a government level, our production levels. So we never play a role as a short term swing producer. We do lean in as we are right now. But I think Saudi Arabia's role in the oil markets likely will continue as it has. They have been willing and with a few partners, but mostly Saudi Arabia, they have played a sort of central bank role of oil. I think the net impact of that overall has been positive.
[20:25]
Bloomberg Television Anchor Annmarie Hordern
But do you think their hand has been weakened with the Emiratis leaving the group?
[20:29]
Chris Wright
Sure, sure, sure. Less, less oil will be controlled in that OPEC fashion. UAE is a major oil producer, super successful economy in that country and there is investing and growing their productive capacity. Kuwait is leaning in and growing their productive capacity. People just getting out of this silly mindset like the goal was to hit peak demand for oil. Right now we're all there's 7 billion people that don't live like us, sorry about them. You know, it's just crazy how much, how far off a human focused and a math focused dialogue we're in. I'm thrilled that the world is swinging back to common sense. Sense is thinking long term we need massively more oil in the world, massively more natural gas, massively more energy to continue to grow our economy, to re industrialize our industry and to lift everyone's standard of living up around the world.
[21:23]
Bloomberg Television Anchor Annmarie Hordern
An audience question. Also I'm curious to get your take on is American investment regarding Venezuela. I was there in Caracas. So you, you were the first secretary to go to Venezuela since the capturing of Nicolas Maduro. What is the status now? When was the last time you spoke to Delsey Rodriguez? Do you expect more American companies to go produce there?
[21:44]
Chris Wright
Lots of American companies going down there. A lot of business we are working. My team and including myself is in regular communication with Delsey. You know, 25 years go in the wrong direction. You know that that's it is Venezuela is another case. Amazing how low it sunk. Eight million people leaving millions leaving Venezuela to go to Portugal, poorer countries. So you know, is it Norway today? It's not Norway yet, but the pivot, that change in the improvement in the conditions in Venezuela is going quite well right now. A lot of work to be done there. But oil exports out of Venezuela have more than doubled since January 2nd of this year. So that's also helpful. And of course, when most of the American refineries were built in the 60s and 70s, Venezuela was the largest exporter of oil in the world, third largest producer, biggest oil exporter. So a lot of our refineries were built to handle those lower cost, high viscosity crudes. So it's great news to see that production growing. I think you will see tremendous growth in Venezuelan production in the coming years. The thing about AI for business, it
[22:50]
Indiana University Narrator
may not automatically fit the way your business works. At IBM, we've seen this firsthand.
[22:57]
Chris Wright
But by embedding AI across hr, it's
[23:00]
Indiana University Narrator
and procurement processes, we've reduced costs by
[23:03]
Chris Wright
millions, slash repetitive tasks and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.
[23:18]
Bloomberg Television Anchor Annmarie Hordern
Another question from the audience is about the surge in power demand for data centers. Why is the Trump administration not embracing all sources of power, including renewables?
[23:27]
Chris Wright
Well, embrace. Depends how you view the word embrace. The wind subsidies went on for 30.
[23:33]
Bloomberg Television Anchor Annmarie Hordern
President Trump doesn't like windmills.
[23:35]
Chris Wright
No, he doesn't like windmills, but he doesn't. Look, a lot of people don't like windmills. You know, the public pushback across the heartland of America and certainly in the coastline of America against wind power has been enormous. And the other thing, put in context wind power, think of how much money has been spent that. It's 1.5% of global energy. And everywhere it's got deep penetration. You know, Germany, Denmark, United Kingdom, Most expensive electricity prices in the world. Does President Trump want to have the most expensive electricity prices in the world? Absolutely not. Absolutely not. And the people, people look at this stuff wrong. They think of electricity like gasoline or oil, where you can store it and sort of use it because it doesn't work that way. So we look at the data. Oh my gosh. If you add up wind and solar last year, you know, they were 16 or 17% of electricity. They're meaningful for American electrons. Why don't we get more of those electrons on the grid? That's not the way to think about electricity. Electricity is all about what's the most efficient way to deliver at peak demand time. When we had that cold winter storm Fern that came down the end of January, probably the greatest test we've seen of the east coast electricity grade at peak demand time on January 27th in New England in the evening, 2% of New England's electricity came from wind, solar and batteries combined.3% of New England electricity came from burning trash and wood. Right. That's if you're there in the middle of the day when we don't really need you. All you're doing is saying some other producing. So source typically it's a natural gas power plant has to turn down. You know, you're not adding to the capacity of the grid unless you're reliably there at peak demand time. And as we as Democrats have pushed a little bit more heating to electrification, which is a horribly bad idea, it's a guaranteed way to make heating much more expensive. And we can't put nearly as much energy through our electricity grid as we can through our natural gas power pipeline network. But in case those policies are happening. So peak demand times are more and more going to the winter. You know, think of in New England and New York State, solar is irrelevant in the winter. And when you get a large cold front that comes in, it's a high pressure air mass that just sits there. Well, wind goes away too. So all that stuff you built, all those associated transmission lines, they don't add anything to the productive capacity of the grid. They produce electricity some of the time, but that's not what matters. You have to be there at peak demand time. We're going to put on new data centers and reshore manufacturing. We have to increase our capacity to reliably supply at peak demand time. We want to do that as economically, efficiently and as quickly as we can. We're doing everything we can to get nuclear going. That's coming. We had reactors already go critical but in the short term, in the next few years, it's going to be natural gas, it's going to be expansion of existing capacity electricity. We're restarting three large nuclear power plants, we're operating a number of power plants, we're changing some foolish regulations. The only reason we didn't have to close the schools in Florida during that cold front is we said all that massive amount of backup generators, turn them on, don't wait till the lights go out, we have a blackout. And then turn them on. Just for your store, turn them on. And that's added capacity to the grid. So we're having to do some creative things so that we can enable reshoring of manufacturing here, meet this rising demand for AI and ultimately just change the way decisions are made at FERC and hopefully ultimately across state utility commissions. We changed mandate from affordable, reliable electricity for Americans and American industry. And we just got off track. And the country just went crazy, as Europe did, thinking somehow tweaking the American electricity grid was going to change global emissions. Just a colossal mistake.
[27:31]
Bloomberg Television Anchor Annmarie Hordern
This is a more sophisticated answer, the president saying, the windmills are not good for the birds. So I appreciate that. I just, just my final question, because I think I was the first reporter to ask you if you were going to go to Venezuela and you said yes. And then you went, would you be the first secretary to maybe, I don't know, go to Oman and see vessels come through or even maybe go to Iran at some point?
[27:55]
Chris Wright
It's funny, early on in this crisis, the president, who has an underappreciated, great sense of humor, we were at dinner, I don't remember. We were. And he said, have you told Leisure going to Iran yet?
[28:08]
Bloomberg Television Anchor Annmarie Hordern
Really?
[28:09]
Chris Wright
He did say that. He did say that. So, you know, who knows? Again, the goal is to drive progress. The goal is to drive improvement. If we get a reasonable resolution and we're implementing something, certainly possibility.
[28:21]
Bloomberg Television Anchor Annmarie Hordern
So on that trip with you, Secretary Wright, thank you so much for joining us.
[28:25]
Chris Wright
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