Bloomberg Audio Studios, podcasts, radio news. So here's the asis this morning. China raising tariffs to one hundred and twenty five percent on all US goods after the White House clarified China faces a one hundred and forty five percent tariff ray on exports to the United States. I'm pleased to say that joining us now is the seventeenth United States Secretary of Energy, self described energy nerd turned entrepreneur
now dedicated his time to public services. Miss the Secretary, Chris Wright, thank you very much for joining Bloomberg's surveillance this morning. We appreciate your time. We just wanted an initial reaction from you to the tariffs we heard retaliated by China overnight. What's your reaction this morning, Sir.
Oh, I think you see we're right in the midst of a negotiation. This is home territory for President Trump, both in his business career and his first term as president. You know, he reads the marketplace, he engages with people, he uses leverage, and we're going to get to a great result. We're seeing in the midst of it right now, but I'm quite optimistic about where we're going.
Well, the United States has already slash it's forecast for global oil demand. If we continue on this path of a trade war, do you expect demand to continue to decelerate?
Oh, Their prediction of the demise of demand growth for oil is older than I am. So Look, there's cyclical factors on economic growth that do impact that. The long term growth rate of oil little more than a million barrels of oil per day per year, has been going on for decades. I don't see any big change in that and the foreseeable future. You see a marketplace right now that is worried about economic growth, and I think you're seeing some softening and oil prices from that. But
I think that fear. I think that fear is misplaced. I think we're going to end out in a better economic situation than we went into this Trump term, I think by a long shot. Look, two things are driving tariff policy for President Trump. One is we've been very welcome to exports from other nations. We want other nations to be just as welcoming of US exports so we can grow our exports more in line with our imports. And President Trump wants to see America reindustrialize, investment, jobs,
and heavy industry back in our country. Both those are going to be wonderful for the United States.
Well, it's not just a softening of oil prices, mister secretary. I'm sure you've seen that since Trump's inauguration, prices are down more than ten dollars. At what level do you think you can see drill baby drills? The President likes to call it when it comes to shale producers, because what we're hearing is that they cannot do this if price is fall below fifty dollars a barrow.
Yeah.
Look, investment decisions of oil and gas companies in the US and abroad are based on a little bit of multi year view of oil and gas prices. They're not moved based on the spot price of oil today, or oil last week or oil next week. So these are
longer term decisions that are being made. We saw oil and gas prices move down immediately after President Trump was elected, and that was the market seeing, oh yes, all the nonsense that's tried to kill the oil and gas industry, promised it'll be over soon, stopped giving permits on federal lands. All that stuff is going away, and so there's much more of a green light on production so if you put more supply into a marketplace, you're going to get
lower prices. Now we're seeing, as they said, that sort of extra fear of world economic growth in the next few months over the tariff dialogue. That's real fear, But I think the marketplace may be discounting the wrong answer here. We're going to see very very positive economic growth in the next few years, But is it still realistic?
Were talking about adding the United States adding another three million barrels of production at these prices.
Well, I think you're referring to Scott Besson's plan there, and his three millions was three million barrels of oil equivalent. Most of that growth will come from natural gas, and of course the domestic demand for natural gas with the growth of AI resourcing, manufacturing, and our surging exports. Boy, yes, we will grow oil equivalent production by at least that much during President's term, but we will also grow oil production and other liquid natural gas liquid production in the
United States as well. So absolutely are we going to see strong growth in American energy production one hundred percent.
Mister Secretary, You've been on a tour in the Middle East for about two weeks since our understanding that before Saudi Arabia decided to add even more barrels to the market, there was a conversation, a dialogue between the Trump administration and the Kingdom. Can you give us a sense of what the dialogue looked like. Is the United States supportive of OPEC plus adding more barrels to this market.
Yeah, we don't directly coordinate on oil production policies or whatever. That's certainly an OPEX purview. But I don't think anyone in the world misunderstands President Trump's desire to see more energy produced, therefore lower prices and more economic activity. Absolutely, that's President Trump's agenda. Look at his agenda can be summarized as prosperity at home and piece abroad. Lower oil prices help both of those, and the piece abroad that's
the most concern right now. In the region where I am in the Middle East is Iran. Iran. Over during the Biden administration, oil prices were higher. There was sort of an appeasement attitude and no strong enforcement of sanctions, enormous funding de Hamas to Hezbollah, to the Huthis, and a rapid advancement of their nuclear program. President Trump's agenda is exactly the opposite of that. It's peace through strength. But we simply cannot and will not accept a nuclear armed Iran.
Well, when it comes to Ron, we saw even more sanctions on the regime yesterday. When it comes to these oil sanctions, the President has said he wants to go back to maximum pressure. Is that part of the conversation you're having with golf allies on this tour that they'd be willing to step in if some of those Iranian barrels come off.
The market just from the United States production itself and the size of the global oil market today. Absolutely, we can tolerate squeezing out Iranian exports that And of course do all the Gulf neighbors want the same thing we want?
Yes.
Do they fear a nuclear armed Iran? Absolutely? Do they think now is the time to turn the screws and end Iran's nuclear weapons program? Absolutely? But yeah, can the world tolerate that? Absolutely? Ten years ago, twenty years ago, could this have happened? No? But today we both have large American oil production, better relations with our neighbors, and a strong resolute leader. In forty years of trouble, forty
five years of trouble from Iran. We've never had a better chance to reduce Iranian power, reduce Iranian tyranny in the Middle East, and we don't want to miss that opportunity.
Mister Secretary. The President has said a lot, even recently to me on Air Force One. He likes that. Guess oil prices are coming down. Do you and the President have a price in.
No, my whole life, I've avoided predicting prices or dictating prices. You know, we have a wonderful free market economy. That's what makes the world wealthier. That's what allows consumers to continually re express choices in every direction. So no, there's no formula for a good oil price. There's just a broader belief that lower cost diesel, lower cost gasoline, lower cost home heating, lower cost electricity, all of those are
good for American consumers and good for businesses. That's President Trump's energy agenda, and I'm here to implement it.
Miss the Secretary, appreciate your time this morning, this evening way. You thank you very much for being with blimpbacks Tava. The Energy Secretary there, Chris Wright,