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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Oil and gas fracking executive Chris Wright, President-elect Donald Trump's nominee to serve as energy secretary, enjoyed a friendly 2.75-hour hearing before the Senate Energy & Natural Resources (ENR) Committee Wednesday. The ENR hearing was briefly interrupted four times by climate change protestors shouting "L.A. is on fire," but the questioning from the senators had no rhetorical fireworks.
Wright, chief executive at Liberty Energy Incorporated (NYSE:LBRT) (Denver, Colorado), described himself as "a tech geek turned tech nerd turned lifelong energy entrepreneur." He said his three primary goals, if confirmed, would be to:
Part of the reason for Wright's friendly treatment by the panel could be because of his track record: He has said numerous times that global concentrations of carbon dioxide (CO2) are rising, and that's due to fossil fuel consumption. However, he also said this is not a crisis. For more on that, see October 4, 2024, article - Conference Speakers Decry 'False Narratives' on Global Warming, Oil & Gas.
That put senators from California and Colorado, which have experienced wildfires scientists have said have become more extreme due to climate change, in a bind: Each senator was given only five minutes to ask questions of the nominee, with the option of a second round of five minutes, hardly enough time to dive deeply into climate science. Even so, it was clear Wright was no climate change denier. Most of the senators only asked Wright if he'd support home-state energy projects if confirmed as DOE secretary, which he said he expected to.
The nominee also supported an "all of the above" energy strategy, including fossil fuels, renewables and nuclear energy. Republican members of the panel took potshots at the Biden administration's efforts to "dismantle American energy" and "reduce energy activity," in the words of panel chair Mike Lee (R-Utah). Biden, Lee claimed, favored "ideology over innovation security and affordability."
There was a lot said about energy innovation at Wednesday's hearing. Wright restated his view that new, advanced electricity generation in the form of small modular reactors (SMRs) would play a greater role in limiting CO2 emissions than renewable energy. He also supported further federal research into advanced geothermal technologies as well as carbon capture, sequestration and use (CCUS), mainly for use in enhanced oil recovery (EOR) projects.
Several times Wright repeated his view that "energy is everything, it's the essential agent of change. A low-energy society is a poor society. A high-energy society can bring health and wealth." Greater energy availability leads to greater energy use, which is tied to improved health and wealth around the world, he said, echoing a point he has made in several industry events. He said there were 2 billion people in the world who cook their food and heat their homes with wood, dung or charcoal, leading to an estimated 2 million preventable deaths per year.
Increased exports of U.S.-produced liquefied petroleum gas (LPG), or propane, could alleviate the energy poverty in the developing world. The problem is "entirely solvable," he said, noting that U.S. propane production has quadrupled in recent years, making the U.S. the world's largest exporter. He said further gains were achievable.
He also noted that most of the CO2 reductions that have taken place in recent years have come from natural gas displacing coal in electric fuel generation.
Wright also supported lifting the Biden administration's year-long "pause" on permitting for new liquefied natural gas (LNG) export terminals. "Twenty years ago, we were the largest importer of LNG. Now we're the world's largest exporter. More of Europe's replacement gas (after the embargo against Russian gas) came from the U.S." In response to a senator, he said he would weigh the impact that lifting the pause could have on domestic energy affordability.
"The previous administration viewed energy as a liability instead of the immense national asset it is," Wright told the panel. "Federal policies have made it too easy to stop projects and very hard to start and complete them." He said he would prioritize "cutting red tape" and expediting the construction of energy infrastructure.
"The more energy infrastructure we have, the better it is for America and Pennsylvanians," Wright said in response to a question from Sen. Dave McCormick (R-Pennsylvania)."The East Coast is at a significant disadvantage when it comes to LNG exports." He made it clear that removing those disadvantages was one of his priorities.
He also fretted over the state of the electric grid. "It's the most pressing problem we have," he said. "Infrastructure has been stymied by (the) permitting process. We need to find a way to protect the voices of local communities while also moving projects forward."
No energy choice is without tradeoffs, Wright continued, adding that measures solely focused on reducing CO2 emissions may not fully consider how that could damage energy reliability. He added he was very concerned about energy affordability as well, citing a statistic that 10% of U.S. households have received a disconnection notice from their energy utilities over the last 12 months.
"The U.S. electric grid is one of the engineering marvels of the world," Wright said. "For more than a century it has lowered electric prices (in real terms) and improved electric reliability. However, that trend is being reversed: Prices are rising and reliability is falling. I want to get us back to the long-term trend of falling prices and rising reliability."
When asked about potential controversial moves from the White House, such as efforts to claw back federal funding for renewable energy or electric vehicle (EV) credits, his response was anodyne: "I will follow the laws and statutes of the U.S." He sidestepped some potential controversies, saying it was "too early" for him to provide specifics on certain energy matters.
While Wright spoke frequently about energy security, energy reliability and energy affordability, there was scant discussion of the fourth proverbial leg of the energy stool: energy sustainability.
Wright, who spent years in solar power before Liberty, said "our energy systems need to evolve. New energy technologies are the only pathway to address climate change."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Wright, chief executive at Liberty Energy Incorporated (NYSE:LBRT) (Denver, Colorado), described himself as "a tech geek turned tech nerd turned lifelong energy entrepreneur." He said his three primary goals, if confirmed, would be to:
- "unleash American energy at home and abroad to restore (American) energy dominance,"
- have the U.S. "lead the world in innovation and technology breakthroughs," and
- "build things in America and remove barriers to progress."
Part of the reason for Wright's friendly treatment by the panel could be because of his track record: He has said numerous times that global concentrations of carbon dioxide (CO2) are rising, and that's due to fossil fuel consumption. However, he also said this is not a crisis. For more on that, see October 4, 2024, article - Conference Speakers Decry 'False Narratives' on Global Warming, Oil & Gas.
That put senators from California and Colorado, which have experienced wildfires scientists have said have become more extreme due to climate change, in a bind: Each senator was given only five minutes to ask questions of the nominee, with the option of a second round of five minutes, hardly enough time to dive deeply into climate science. Even so, it was clear Wright was no climate change denier. Most of the senators only asked Wright if he'd support home-state energy projects if confirmed as DOE secretary, which he said he expected to.
The nominee also supported an "all of the above" energy strategy, including fossil fuels, renewables and nuclear energy. Republican members of the panel took potshots at the Biden administration's efforts to "dismantle American energy" and "reduce energy activity," in the words of panel chair Mike Lee (R-Utah). Biden, Lee claimed, favored "ideology over innovation security and affordability."
There was a lot said about energy innovation at Wednesday's hearing. Wright restated his view that new, advanced electricity generation in the form of small modular reactors (SMRs) would play a greater role in limiting CO2 emissions than renewable energy. He also supported further federal research into advanced geothermal technologies as well as carbon capture, sequestration and use (CCUS), mainly for use in enhanced oil recovery (EOR) projects.
Several times Wright repeated his view that "energy is everything, it's the essential agent of change. A low-energy society is a poor society. A high-energy society can bring health and wealth." Greater energy availability leads to greater energy use, which is tied to improved health and wealth around the world, he said, echoing a point he has made in several industry events. He said there were 2 billion people in the world who cook their food and heat their homes with wood, dung or charcoal, leading to an estimated 2 million preventable deaths per year.
Increased exports of U.S.-produced liquefied petroleum gas (LPG), or propane, could alleviate the energy poverty in the developing world. The problem is "entirely solvable," he said, noting that U.S. propane production has quadrupled in recent years, making the U.S. the world's largest exporter. He said further gains were achievable.
He also noted that most of the CO2 reductions that have taken place in recent years have come from natural gas displacing coal in electric fuel generation.
Wright also supported lifting the Biden administration's year-long "pause" on permitting for new liquefied natural gas (LNG) export terminals. "Twenty years ago, we were the largest importer of LNG. Now we're the world's largest exporter. More of Europe's replacement gas (after the embargo against Russian gas) came from the U.S." In response to a senator, he said he would weigh the impact that lifting the pause could have on domestic energy affordability.
"The previous administration viewed energy as a liability instead of the immense national asset it is," Wright told the panel. "Federal policies have made it too easy to stop projects and very hard to start and complete them." He said he would prioritize "cutting red tape" and expediting the construction of energy infrastructure.
"The more energy infrastructure we have, the better it is for America and Pennsylvanians," Wright said in response to a question from Sen. Dave McCormick (R-Pennsylvania)."The East Coast is at a significant disadvantage when it comes to LNG exports." He made it clear that removing those disadvantages was one of his priorities.
He also fretted over the state of the electric grid. "It's the most pressing problem we have," he said. "Infrastructure has been stymied by (the) permitting process. We need to find a way to protect the voices of local communities while also moving projects forward."
No energy choice is without tradeoffs, Wright continued, adding that measures solely focused on reducing CO2 emissions may not fully consider how that could damage energy reliability. He added he was very concerned about energy affordability as well, citing a statistic that 10% of U.S. households have received a disconnection notice from their energy utilities over the last 12 months.
"The U.S. electric grid is one of the engineering marvels of the world," Wright said. "For more than a century it has lowered electric prices (in real terms) and improved electric reliability. However, that trend is being reversed: Prices are rising and reliability is falling. I want to get us back to the long-term trend of falling prices and rising reliability."
When asked about potential controversial moves from the White House, such as efforts to claw back federal funding for renewable energy or electric vehicle (EV) credits, his response was anodyne: "I will follow the laws and statutes of the U.S." He sidestepped some potential controversies, saying it was "too early" for him to provide specifics on certain energy matters.
While Wright spoke frequently about energy security, energy reliability and energy affordability, there was scant discussion of the fourth proverbial leg of the energy stool: energy sustainability.
Wright, who spent years in solar power before Liberty, said "our energy systems need to evolve. New energy technologies are the only pathway to address climate change."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
