Energy Secretary Chris Wright sat down with The National News Desk's Matt Galka to talk about the high cost of energy.
Energy Secretary Chris Wright says he understands exactly what's on the minds of most Americans right now — the price they're paying at the pump — as the administration works to bring fuel costs under control amid pressure from both consumers and lawmakers.
"I think that relief started a week ago, but yes, this is an enormous challenge. The administration, the president asked me about it. Every time we talk, what are we doing? What are we doing?" Wright said.
Even as shipping traffic through the Strait of Hormuz near Iran has picked up in recent weeks, gas and diesel prices have remained stubbornly elevated, creating real strain for American consumers and businesses alike.
"The cost of diesel that is driving our farmers into debt. They are not sure if they are going to be able to afford to plant because of this record high cost of diesel," said Rep. Katherine Clark, D-Mass.
The persistent high prices have pushed some states to implement gas tax holidays, while candidates around the country have increasingly called for a diesel export ban as a way to bring domestic costs down. Wright acknowledged the appeal of that idea but warned of unintended consequences.
"There's been a call for a diesel export ban, and I get it. We should have low prices in the United States. The problem with that is if we abruptly stopped our exporting of diesel, it would also hurt our ability to produce gasoline in the United States," Wright said.
Instead, Wright said the administration has pursued a more targeted approach, working directly with major refiners. Asked about reports that he had pitched companies on a voluntary reduction in exports, Wright confirmed the effort was already underway.
"That is happening. Absolutely. We have the large refiners in the United States have agreed and have acted on not sending cargoes abroad and keeping more diesel in the United States. That's maybe what started some downward price pressure," he said.
The push to stabilize prices has also led to continued drawdowns of the nation's Strategic Petroleum Reserve. The reserve stood above 415 million barrels just before the war with Iran began, and has since fallen to around 284 million barrels. Wright defended the strategy, arguing the releases aren't a simple depletion of the country's reserves.
"In this crisis, as we release those barrels, we're not selling them or trading them. We give you a barrel today. You give us one and a quarter barrels back a year from now. So we're actually using these releases as a way to get that strategic petroleum reserve more full than it was at the start," he said.
The latest drawdown represents the final installment of a deal struck earlier this year, in which the U.S. committed more than 170 million barrels of oil to international partners in an effort to prevent global prices from climbing even higher than they already have amid the ongoing instability in the Middle East.
