HOUSTON — This week, officials driving President Donald Trump’s energy policies reassured oil, gas, and mining leaders that they have a supportive ally in Washington, eager to facilitate drilling on federal lands and waters.
Interior Secretary Doug Burgum informed executives at the world’s largest energy conference that the Trump administration does not see climate change as an immediate threat. Energy Secretary Chris Wright commented that rising global temperatures are merely a consequence of utilizing the country’s natural resources for economic growth and national security.
Burgum, who heads the newly formed National Energy Dominance Council, and Wright, his deputy, expressed strong support for the oil and gas sector during their speeches at the CERAWeek by S&P Global conference.
“I’ll share two words that I doubt you’ve heard from any federal official in the Biden administration over the past four years: thank you,” Burgum stated, highlighting his previous role as governor of North Dakota, a state that produces 1.2 million barrels of oil daily.
Drawing on his background in software, Burgum described the role of the Interior Department under his guidance, viewing companies extracting resources on federal lands as “customers” contributing revenue to the nation’s financial “balance sheet.”
“If someone is sending me revenue, they’re not the enemy. They are the customer,” Burgum stated. The administration is supportive of anyone seeking to harvest timber, mine for essential minerals, graze cattle, or produce oil and gas on federal lands, he added.
Burgum noted that royalties from lease agreements on federal land would aid in reducing the U.S. national debt and balancing the budget, emphasizing, “You are the customer.”
The significant value of the nation’s natural resources far surpasses its $36 trillion debt, Burgum asserted, claiming that if financial markets recognized this value, long-term interest rates would decrease.
“Right now, interest rates represent one of our most significant expenses as a nation,” Burgum remarked. “Thus, one of our key objectives is to leverage America’s balance sheet, and President Trump is supporting us in achieving this,” he explained.
Burgum criticized the Biden administration’s focus on climate change, labeling it an “ideology.” He argued that the Trump administration identifies Iran obtaining a nuclear weapon and China winning the AI race as the top existential threats to the U.S., not global warming. Wright described Biden’s stance on emissions reduction as “myopic” and “quasi-religious,” detrimental to consumers.
The two officials dismissed policies promoting a shift from fossil fuels to renewable energy, suggesting that wind and solar cannot fulfill the rising energy demands driven by artificial intelligence and re-industrialization.
“There is simply no feasible way for wind, solar, and batteries to replace the numerous applications of natural gas. I haven’t even addressed oil or coal yet,” Wright commented at the conference. Wright previously led Liberty Energy and is a board member at the nuclear startup Oklo.
Support for Oil Executives in Washington
Oil executives expressed their enthusiasm about the administrative shift in Washington, reciprocating the appreciation they received from Trump’s energy team during the week.
ConocoPhillips CEO Ryan Lance stated that Wright and Burgum “understand the business,” referring to them as the most competent energy team in decades. TotalEnergies CEO Patrick Pouyanné expressed his admiration for the caliber of their counterparts. Chevron CEO Mike Wirth noted that the industry is now witnessing a return to practical discussions.
“For years, my message has been that we need a balanced conversation regarding affordability, reliability, and the environment, whereas an exclusive focus on climate neglects the other two,” Wright remarked.
The executives collectively referred to the Gulf of Mexico as the Gulf of America, following Trump’s executive order to rename the waters, which included his directive on his first day to reverse Biden’s offshore drilling ban covering 625 million acres of U.S. coastal waters.
BP CEO Murray Auchincloss momentarily erred when highlighting how generative AI aids exploration, correcting himself by saying, “We began this in the Gulf of Mexico, uh America, and then expanded it globally.”
However, Trump’s “drill, baby, drill” mantra faces market realities. Chevron and Conoco executives noted that U.S. oil production is set to plateau in the coming years after reaching record highs under the Biden administration.
“Pursuing growth merely for the sake of growth has proven unfruitful for our industry,” Wirth stated. “Eventually, you reach a point of sufficient growth where the focus should shift towards plateauing and generating more free cash flow rather than increasing production volumes.”
Lance anticipates that U.S. oil production will plateau late this decade before entering a gradual decline.
“Perhaps it’s time to return to exploring the Gulf of America,” Pouyanné suggested. “The new administration is reopening the Gulf, which had faced delays following the Macondo incident,” he added, referencing the Deepwater Horizon oil spill, the largest marine drilling disaster in history.
Scheduled to meet with Trump next week are U.S. oil producers, as stated by the American Petroleum Institute, a prominent industry lobbying group.
