WATCH: U.S. energy secretary Chris Wright says Trump has trick up sleeve to ease oil prices amid Iran war
Secretary of Energy Chris Wright stated during a “Meet The Press” interview Sunday that the U.S. is taking several actions — including increasing oil production in deep blue California — to mitigate rising fuel costs due to the conflict in Iran.
After the military strikes of Operation Epic Fury began Feb. 28, Iran sought to block U.S. transport vessels from passing though the Strait of Hormuz, the waterway separating the country from the Gulf States through which an estimated 20% of the world’s oil demand usually flows. The reduction in shipping volume has led to the surge of oil prices in the following weeks.
“We have done many, many actions to mitigate that price rise,” Wright told host Kristen Welker during his appearance on her show. “You saw the announcement of a coordinated release of 400 million barrels of oil with over 30 nations of the world participating in that. We’ve had allies in the Middle East that moved oil overseas before the conflict started.”
“Heck, we just announced yesterday bringing on a meaningful amount of oil production in the state of California from offshore that California has fought foolishly to prevent new American oil to go into their own state,” the Trump administration energy secretary continued. “And we said, ‘Enough is enough,’ and we’ve got new oil production coming on in California. So lots of actions we’re taking to mitigate this price rise.”
WATCH:
Wright’s department on Friday ordered Sable Offshore Corp., an oil company based in Texas, to restart a pipeline system in California. The move was made “to address supply disruption risks caused by California policies that have left the region and U.S. military forces dependent on foreign oil,” a Friday press release from the Department of Energy (DOE) reads.
“California once supplied nearly 40 percent of U.S. oil production, but decades of radical state policies targeting reliable energy sources have driven a decline in domestic output while fuel demand remains among the highest in the nation,” the DOE press release states. “Today, more than 60 percent of the oil refined in California comes from overseas, with a significant share traveling through the Strait of Hormuz—presenting serious national security threats.”
Democratic California Gov. Gavin Newsom, a loud critic of the oil and gas industry and staunch supporter of so-called “green” energy policies, blasted the move by the DOE as an “attempt to illegally restart a pipeline whose operators are facing criminal charges and prohibited by multiple court orders from restarting.”
“California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy,” the governor and rumored 2028 presidential candidate said in a Friday statement.
Also during the interview, Wright told Welker he thinks the conflict with Iran ending in a few weeks is “the likely time frame.”
“The price of a barrel of oil closed above $103 on Friday. And the Iranians are warning of prices hitting $200 a barrel. Mr. Secretary, should Americans be bracing for— should they be worried that this war will actually drive the price of oil above $200 a barrel?” Welker asked Wright.
The energy secretary immediately took issue that the NBC News host cited projections by the Islamic theocracy.
“So Iran for 47 years has called the United States ‘the great Satan,’” he said. “So because they call us ‘the great Satan’ — I don’t think we are the great Satan; in fact, clearly we’re not — so I don’t listen much to Iranian projections of what’s going to happen.”
“So, that’s a no? So, that’s a no?” Welker jumped in.
“But there is disruption to the flow in a very important waterway,” the secretary continued, referring to the Straight of Hormuz. “And depending upon the timing and the manner in which this conflict comes to an end, we’re going to see some elevated pricing until we get there.”
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