Energy Secretary Chris Wright says "we are always open" for a nuclear agreement with Iran

[0:00] We begin today with the U.S. Secretary of Energy, Chris Wright, who joins us from Denver. [0:06] Mr. Secretary, it is Labor Day, and Secretary Besant had predicted we'd see $3 gas by September [0:13] 20th, depending on the Iran talks. Do you think we're going to be back at $3 in the next two weeks? [0:19] Well, we've passed peak demand time with Labor Day tomorrow, the end of the summer [0:27] driving season, and the Trump administration a couple weeks ago rolled out a change in [0:33] regulations that will allow American refiners to produce more gasoline and diesel with their [0:38] existing equipment. So seeing demand likely go down in the next few weeks and supply going up, [0:45] I think prices headed downward is not an unreasonable expectation. [0:50] What about the diesel fuel that trucks and trains rely so heavily on? We saw that record high price [0:57] of $5.89 a gallon this week. Is, for example, an export ban off the table? [1:03] You want to keep as much energy flowing as possible. The diesel situation has been challenging [1:12] because Russian refineries have suffered significant damage. Russia used to be a [1:17] meaningful exporter of diesel. Today, they don't export any diesel. And in fact, they've become [1:23] a meaningful importer of gasoline. So its global refining capacity is why gasoline and diesel prices [1:31] are high, even more than oil prices. And this is, for 17 years, Democrat policies have been attack [1:40] hydrocarbons, get as many refineries and coal plants closed. You could summarize their energy and [1:46] climate policies in two words, expensive energy. Well, you could also say Russia shouldn't have [1:52] invaded Ukraine and then they'd still be able to export. But to the point of what you're going [1:56] to do about it, are you looking in an export ban? We consider all options of how you can move prices [2:05] that are favorable for American consumers. But right now, we're leaning in on maximum production, [2:11] energy addition. Again, in gasoline, in diesel, in the electricity sector. The way to solve a supply [2:19] shortage is to grow supply. Okay. I want to ask you about Iran. You were on another network this [2:25] morning and you said the U.S. may not reach a nuclear deal with this current Iranian government [2:31] and may have to wait for a new regime. If that is the current assessment, should the American people [2:38] prepare themselves that the new normal will be these, for example, strikes like we saw just two [2:43] days ago on Iranian oil tankers? Are you shutting down diplomatic outreach? No, we were always open for [2:54] a deal. That's President Trump's goal, is always to have a negotiated settlement and not use a military [2:59] solution unless absolutely necessary. But the biggest role of our military in the region right now [3:06] is to stop the export of any Iranian crude or crude-related products, natural gas, [3:12] whatever. We are strangling their economy to try to bring either a change in policy from the existing [3:18] regime or a new regime. Their current strategy is slowly failing for them. Our exports of oil through [3:26] the Strait of Hormuz are at the highest they've been since the conflict started, but they're still [3:31] causing trouble. But what we can do is add supply in Alaska, in the Gulf, in Venezuela, everywhere we can [3:39] and continue to grow the rate of exports from the Middle East as well. But, I mean, to that point, [3:45] Secretary Besson said something like the Strait of Hormuz will be irrelevant in two years. It takes time to [3:50] build pipelines to avoid the strait. How do you go from $90 a barrel now back to where we were pre-war, [3:57] like $50 range? How quickly? You know, that's as soon as we can get barriers out of the way to grow [4:06] production. Venezuelan production is well ahead of schedule. 50% growth in oil exports in the eight [4:13] months we've been involved. That's pretty tremendous. Alaska has been sanctioned more than Iran by [4:18] Democratic politicians. We've got to unleash Alaska. And that's happening. The Gulf of America has enormous [4:25] oil and gas reserves there. Those are growing as well. And, of course, we're in constant dialogue [4:30] with the Canadians, our neighbors to the north. They've got huge room to expand oil production [4:34] capacity. So you're trying to center the world on bettering people's lives and economic growth in [4:40] the long run. Every month, production is growing. Every month, production is growing. [4:45] You mentioned Venezuela. Refineries is a bigger challenge. [4:48] Yeah. You mentioned Venezuela a few times there. [4:51] We're finding. [4:52] Sorry. Go ahead. [4:56] Go ahead, Margaret. Go ahead. [4:57] This is a problem with remote. We love having you in studio so we don't step on each other. I [5:01] apologize there. You mentioned Venezuela a few times. How is U.S. investment in Venezuelan oil [5:08] production consistent with American energy dominance and independence? [5:15] Well, first of all, it's the Western Hemisphere. It's America's. And the great thing about this deal the [5:21] United States did, no cost, zero cost to American taxpayers. But we're going to get massive amounts [5:27] of discounted oil price and ownership interest in some production there. But it's a win for [5:33] Venezuela as well because it helps the investment climate to draw more and more foreign capital in, [5:40] mostly American capital, but from elsewhere around the world, to grow their production, [5:45] lift the incomes and job opportunities for Venezuelans, and lower energy prices for the [5:51] United States. A classic win-win business deal. [5:54] But is it really sustainable if the deal is with an unelected and arguably illegitimate government [6:02] that has not committed to holding elections, which the U.S. says are a priority? How can you [6:09] instill confidence when it's a deal with Delce Rodriguez? [6:13] There will be elections, of course. Those are coming. But this is a win-win deal. [6:21] But this is a win-win deal. Any government that took power in Venezuela would say, wow, [6:25] we're going to draw more capital, grow our production, increase jobs and tax revenues in [6:30] Venezuela and tighten our relationship with the United States. That's a pretty big win. [6:35] I don't think it's that dependent upon which government is in power on whether that deal is a win. [6:40] So there's also a lot of refining capacity in Venezuela that we will see investment to drive [6:46] that back up. Under President Biden, we had over a dozen refineries closed in the United States, [6:51] and Gavin Newsom doubled down and strangled two more refineries in California in the last 12 months. [6:58] That's the way to expensive energy in the long term, not just during a conflict. [7:03] But just to button that up, you said there will be elections. Do you have a timeline for that? [7:07] Does this deal with the current government make it impossible, for example, for Maria Karina Machado, [7:14] a person who won the last election, to actually return, for democracy to return? [7:22] Oh, there are dialogues going on right now between the former leaders of the parliament, [7:27] the election that was the last sort of fair election in 2015. The opposition leaders that fled [7:33] the country are back in the country meeting with the existing powers. You need to get secure voter [7:39] roles. You need to have rule of law. We need to release the political prisoners and get the [7:43] conditions for free and fair elections. But those are coming. [7:47] Okay. But no time frame on that. Okay. I'm told by the producer that we are going to have to leave it [7:54] there. Secretary Wright, thank you.