|
US Energy Secretary Chris Wright highlighted the administration's policy focus on expanding domestic oil, natural gas, refining capacity, and grid infrastructure to sustain economic expansion and counter geopolitical disruptions.
The only way to a better America is more energy addition. Do we want to reshore manufacturing to the United States? Do we want to lead China in AI and get the benefits in drug discovery and reducing health care costs? Absolutely. But this is going to need tens, maybe hundreds of gigawatts of new electric generating capacity. This administration is all in on that, Wright stated, speaking to Fox News. He noted that the primary pressure on consumer fuel costs stems from constraints in global refining capacity rather than crude availability. He noted that the Russia-Ukraine conflict has cut Russian refining output by around 40 per cent, while tensions in the Middle East have disrupted product flows. "The biggest problem right now with gasoline and diesel prices is refineries, because the Russian refineries are devastated, like 40% down from where they were before. We've lost some capacity in the Middle East that's not bringing products to market. During the Biden administration, they celebrated closing over a dozen United States refineries and Governor Gavin Newsom in California in the last 12 months forced the closure of two more refineries," Wright said. He added that federal authorities are working to reverse regulatory constraints and support the construction of the first new domestic refinery in decades. "It's that missing refining capacity is what's given that extra boost to prices and we're working to build the first new refinery in the United States in decades," Wright added. Addressing broader electrification needs, Wright pointed to the recent "SPARK announcement, which combines USD 2 billion dollars from the Department of Energy with over 3 billion dollars in private capital to expand national grid transmission. The initiative aims to lower household electricity bills across more than 100 million Americans by improving the efficiency of existing generating assets. Wright emphasized that scaling manufacturing and retaining a technological edge in artificial intelligence requires tens or hundreds of gigawatts of new generation capacity. "Natural gas is our biggest source of electricity. We've stopped the closure of coal plants. We have nuclear plants that we're restarting, new nuclear plants that will soon be under construction," Wright stated, adding that next-generation geothermal energy is also advancing rapidly. He pointed to shifting public opinion on nuclear energy, noting that two-thirds of the public now favors nuclear power, with strong backing among people under 40. He noted that early commercial reactors remain among the safest power sources globally, while next-generation reactors offer even higher safety standards. Wright maintained that after 20 months in office, the administration halted the closure of more than 30 gigawatts of coal power and expanded output to the point where the US produces more oil than Russia and Saudi Arabia combined, and more natural gas than Iran, Russia, and China combined. While maritime flows through the Strait of Hormuz average nearly 13 million barrels per day, Wright reiterated that global markets remain linked, leaving domestic policy focused on removing regulatory barriers, opening federal lands and offshore areas, and driving long-term energy addition. (ANI)
|
