New US Energy Secretary downplays the risk of tariffs on oil imports

US Energy Secretary Chris Wright was recently confirmed and spoke with CNBC just now.

He was asked about oil coming in from Canada.

Wright: Obviously the Canadian energy system is integrated with the US system. I don’t think we’re going to see that change. As the President has said, this is a drug war, this is about concerns and security on our border. This is to get everyone’s attention and focus on how we can reduce criminals and fentanyl coming across our borders. I think that’s moving in the right direction.

CNBC: It doesn’t sound like you think those tariffs are coming.

Wright: I don’t know what the future will bring there but we’ve got very productive dialogue right now.

That doesn’t sound like tariffs to me either.

Separately, he was asked about if profits for oil companies would be destroyed by pumping more and lowering the cost of oil, which Trump and Bessent have said are priorities.

“If you lower the cost of operation, there is a lot of fat in the cost of operation. If you lower that, that’s going to flow through to lower prices but not necessarily lower profits,” he said.

I wonder if the US doesn’t aim for some kind of special tax break on oil companies or for oil company capex.

Finally, he said the future of nuclear is “very bright”.

This article was written by Adam Button at www.forexlive.com.