Before a multitude of oil and gas executives on Monday, Chris Wright, the new U.S. Energy Secretary, spoke a shameless critique of Biden’s administration’s administration’s energy policies and efforts to combat climate change and promised a « 180 -degree pivot. »
Wright, a former fracking executive, has appeared as the most forceful promoter of President Trump’s plans expand the production of American oil and gas and dismantle virtually all federal policies aimed at slowing down global warming.
« I wanted to play a role in reverse what I think has been a very poor direction in energy policy, » said Mr. Wright while kicking off to Ceraweek by S&P Global Conference in Houston, the largest annual meeting in the country’s energy industry. « The previous administration policy focused myopically on climate change, with people as simply collateral damage. »
Mr. Wright’s speech was welcomed with enthusiastic applause.
It was quite different from a year ago, when Jennifer Granholm, the energy secretary during the administration of Biden, I talked to The same meeting as the transition to lower carbon forms of energy such as wind, plot and batteries were unstoppable. « Even when we are the largest oil and gas producer in the world, » said Mrs. Granholm, « the expansion of the energy domain of America to clean energy is amazing. »
Mr. Wright, however, was rejected from the renewable power, which said he had only a small role in the world’s energy mix. Currently, natural gas supplies 25 percent of raw energy worldwide, before it becomes electricity or some other use. He said the wind and the solar supply only about 3 percent. He said that the gas also had several uses: it could be burned in ovens to heat houses or use -for fertilizers or other chemicals, which were difficult to replicate with other sources of energy.
« Beyond the scale and the evident cost problems, there is simply no physical way that the wind, the solar and the batteries could replace the numerous uses of natural gas, » said Mr. Wright.
Wright has argued that there is a Moral case for fossil fuels, To say that they are crucial to relieve global poverty and to move too quickly to reduce risks to increasing energy prices worldwide. He has denounced the efforts of countries to stop adding greenhouse gases to the atmosphere until 2050, calling that « sinister goal ».
In a conference in Washington last weekMr. Wright said African countries needed more energy of all kinds to prevent poverty, including coal, the most polluting fossil fuel. « We have had years of western countries saying that they do not develop coal, coal is bad, » he said. « That’s just a nonsense. »
On Monday in Houston, other oil and gas executives echoed Mr. Wright’s observations, launching oil and gas as the best solution for impoverished people from developing nations around the world.
« There are billions of people on this planet that still live sad, short and difficult lives because they live in energy poverty, and this is a shame, » said Michael Wirth, CEO of Chevron. « It should be unacceptable, but accessibility had left the conversation, at least in the West. »
In recent years, much of the world has invested a lot in renewable energy. Last year, nations invested about 1.2 trillion dollars in wind, solar, batteries and electric grids, slightly more than the $ 1.1 trillion they spent on oil, gas and coal infrastructure, and coal, conform to the International Energy Agency.
But Mr. Wright warned against a change in renewable energy that he said was likely to be expensive. « Everywhere the wind and solar penetration have increased significantly, the prices increased, » he said.
This is not always true. Texas has seen slightly decrease electricity prices For the last decade, the wind and the plot have grown rapidly and now supply more than a quarter of the state power. The costs of wind turbines and solar panels have dropped hastily in the last decade. But some places, such as California and Germany, have seen that electricity prices increase significantly while increasing the use of renewable energy.
Some conference energy executives were more optimistic about renewable energy. John Ketchum, the CEO of Nextera Energy, the largest wind and solar energy producer in the United States, said that renewables were essential to meet the increasing demand for electricity in the United States in the coming years, especially because there was a great decline for new turbines burning natural gas.
Renewable energy « is cheaper and available right now, » said Ketchum. « When you look at the gas as a solution, as an example, to put your hands on a gas turbine and get it really built on the entire market, you really are looking at 2030 or later. »
In his speech, Mr. Wright abruptly criticized Biden’s administration for slowing the growth of natural gas exports. Last year, the Energy Department Approval stopped of new terminals This export liquidated him natural gas, saying he was concerned about environmental impacts and prices for more gas shipping abroad. Despite the pause, the United States was still the largest natural gas exporter in the world in 2024.
Monday, Mr. Wright signed the fourth export approval since Mr. Trump took office, Expand an approval For the Delfin terminal on the coast of Louisiana. Said the administration of Biden Review of gas exports I had only found modest impacts on the world and national prices of the United States.
On the topic of climate change, Mr. Wright said he did not deny that the planet was warming up, calling « climate realistic ».
But he added that the increase in greenhouse gas emissions of burning fossil fuels, which have increased world average temperatures to their highest levels. In at least 100,000 years – They were a « side effect to build the modern world ».
« In fact, we have raised the world concentration of atmospheric CO2 by 50 percent in the process of doubling human life expectancy, raising almost every citizen of the world to crush poverty, launch modern medicine, » he said. « Everything in life involves compensation. »
Mr. Wright did not engage in the disadvantages of climate change, including the growing risks of heat waves, drought, floods and species. Did not address the costs of adapting to a hotter planet, which expert Estimation could reach trillion dollars Only for developing countries this decade.
Instead, Mr. Wright rebuilt Britain for reducing his greenhouse gas emissions faster than any other rich country, saying that he had pushed him to the key industries abroad.
« I find it sad and somewhat ironic that once the powerful Steel and Petrochemistry industries in the United Kingdom have been displaced in Asia where the same products will occur with higher greenhouse gas emissions, then loaded on a diesel ship in the United Kingdom, » said Mr. Wright. « The net result is higher prices and fewer jobs for the citizens of the United Kingdom, the highest greenhouse gas emissions and all this is called climate policy. »
Wright said he was not against low carbon energy and supports advanced forms of nuclear energy and Geothermal powerthey follow multiple startups in the United States.
But he said that the approach of the administration’s administration’s energy would not spread to wind farms, quoting the opposition in some communities. President Trump has faced wind farms, saying that they cause cancer. The administration has stopped approved For wind farms in public lands and federal waters and threatened to block projects in private lands.
« The wind has been distinguished because it has had a uniquely poor record of increasing prices and achieving increasing citizen outrage, whether you are a farm or in a coastal community, » said Wright. « So the wind is a bit different. »
Trump administration policies are not uniformly popular between oil and gas producers. Many companies have warned that Mr. Trump’s rates on steel and aluminum could increase prices for essential materials, such as the pipes used to align the new wells, while the constant threat of rates on Canadian oil could increase the prices of midwest refineries.
Mr. Wright mainly raised questions about rates, saying « it is very soon » and said that inflation was low during Mr. Trump’s first term.
Ivan Penn Reports provided
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