Long Term Energy Cost Outlook 7/23/26

Summary

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Your Money Minute – Long Term Energy Cost Outlook (7/23/26)

Host: Jessica Ettinger, CNBC
Guest: Charlie Bobrinskoy, Vice Chairman, Ariel Investments
Runtime: ~1:30 minutes
Release Date: July 23, 2026

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Episode Overview

This concise episode dives into the shifting landscape of US energy production and consumption, with a focus on how emerging trends may impact energy costs for American consumers. Jessica Ettinger talks with Ariel Investments vice chairman Charlie Bobrinskoy about supply constraints, the state of strategic reserves, and the rising demand for energy due to data centers. The takeaway: Americans should brace themselves for potentially higher energy costs in the near future.

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Key Discussion Points & Insights

The US Energy Picture

• US as a Major Exporter:
  • The US is now one of the world's largest energy exporters, largely due to advances in fracking and horizontal drilling.

    “We are now supplying so much of the world's oil and gas that matters.”
    — Charlie Bobrinskoy (00:16)

• Not "Awash" in Oil:
  • Despite high production, the US is not oversupplied with oil. Consumption currently outpaces domestic pumping.

    “We are consuming more oil than we're pumping right now and that is going to lead to tight supplies, in my opinion.”
    — Charlie Bobrinskoy (00:39)

Strategic Reserves & Supply Risks

• Low Strategic Reserves:
  • The US Strategic Petroleum Reserve is at its lowest level in two decades.

    “Strategic reserves are at the lowest levels they've been at in two decades.”
    — Charlie Bobrinskoy (00:49)

• Reserve Refill Delays:
  • In hopes of geopolitical stability, authorities have delayed refilling these reserves.

    “People... have not been buying back to fill those strategic reserves because they've been optimistic that we were going to get an end to the conflict.”
    — Charlie Bobrinskoy (00:49)

Consumer Impact: Rising Costs

• Budget Implications:
  • Americans are advised to plan for higher overall energy costs in the future.

    “Americans may want to plan for higher energy prices in their budgets overall going forward.”
    — Jessica Ettinger (01:01)

Demand from Data Centers

• Energy-Hungry Data Centers:
  • The growth of data centers is expected to spike demand for energy, especially fossil fuels.

    “Don't underestimate the impact of data centers and their requirement for energy. It is going to be petroleum based, natural gas based and demand for those products is going to spike over the next three to five years.”
    — Charlie Bobrinskoy (01:08)

• Renewables Won’t Cover the Gap:
  • The US will not have sufficient solar and wind capacity in the near future to meet this demand; most will be covered by natural gas.

    “We are not going to have enough solar and wind to cover it. And so it is going to come from natural gas principally.”
    — Charlie Bobrinskoy (01:19)

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Notable Quotes & Memorable Moments

• Charlie Bobrinskoy on Tight Supplies:

  “We are consuming more oil than we're pumping right now and that is going to lead to tight supplies, in my opinion.”
  (00:39)

• On Strategic Reserves:

  “Strategic reserves are at the lowest levels they've been at in two decades.”
  (00:49)

• Forward Look on Data Centers:

  “Don't underestimate the impact of data centers and their requirement for energy...demand for those products is going to spike over the next three to five years.”
  (01:08)

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Timestamps for Key Segments

• 00:00 – 00:16: Setting the stage: Americans monitor gas prices, but should take a big-picture perspective
• 00:16 – 00:39: US as major exporter, but not oversupplied; implications for supplies
• 00:39 – 01:01: Low strategic reserves and delayed refill due to geopolitical optimism
• 01:01 – 01:19: Advice: plan for higher energy costs; data center demand and limits of renewables
• 01:19 – 01:27: Natural gas as the main supply solution
• 01:27 – 01:35: Stay informed about future energy costs at CNBC.com

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Summary Takeaway

Americans are urged to prepare for potentially rising energy costs, as tight supplies, low reserves, and a surge in data center power demand are unlikely to be mitigated soon by renewables. Most increased demand will be met by natural gas, not wind or solar—making a higher energy budget a smart move for households.

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Transcript

[Jessica Ettinger]

With a CNBC you money minute, I'm Jessica Edinger. Many Americans watch gas prices like a hawk. They know when they're up or down just a few cents a gallon. But one investor says to step back and see where energy might be going. Big picture,

[Charlie Bobrinskoy]

absolutely right about the change in US now being one of the world's largest exporters, all came about from fracking and horizontal drilling and we are now supplying so much of the world's oil and gas that matters. But what is not true is that we're awash in oil.

[Jessica Ettinger]

That's Ariel Investments vice chairman Charlie Bobrinskoy on cnbc. He says the US Is not rich in oil right now.

[Charlie Bobrinskoy]

We are consuming more oil than we're pumping right now and that is going to lead to tight supplies, in my opinion. And with oil heading north

[Jessica Ettinger]

and there's not much in reserve,

[Charlie Bobrinskoy]

strategic reserves are at the lowest levels they've been at in two decades. And people have been counting on have not been buying back to fill those strategic reserves because they've been optimistic that that we were going to get an end to the conflict.

[Jessica Ettinger]

Americans may want to plan for higher energy prices in their budgets overall going forward.

[Charlie Bobrinskoy]

Don't underestimate the impact of data centers and their requirement for energy. It is going to be petroleum based, natural gas based and demand for those products is going to spike over the next three to five years. We are not going to have enough solar and wind to cover it. And so it is going to come from natural gas principally.

[Jessica Ettinger]

You can keep up on energy and what you might be paying for it down the road. @cnbc.com I'm Jessica Ettinger, CNBC.

[Keith Lansford]

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and [e-mail] MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.