CERAWEEK: Streamlining US infrastructure is path to lower oil prices: US energy secretary

The Trump administration's main domestic strategy to reduce oil prices is to streamline the process for building energy-related infrastructure, US Energy Secretary Chris Wright said March 10.

"Drill baby drill requires build baby build," Wright said at press briefing at the CERAWeek by S&P Global energy conference in Houston. "The previous administration made it harder and harder to get permits to drill wells, to build pipelines, to build the infrastructure you need to go grow production, and we got the obvious result."

When you make it harder to do something, you get a little bit less of it and prices go up, Wright said.

"The Trump administration's goal is exactly the opposite, to encourage capital investment, make it easier to build infrastructure, therefore lower the cost of people making decisions to drill oil and gas wells, and therefore grow supply," he said. "More supply will lead to lower prices."

Alaska concerns

Wright was especially critical of the Biden administration's limitations on fossil fuel production in Alaska.

"During the last administration, there were far more restrictions on Alaska producing oil, gas and minerals than there were on Iran," he said. "We've sanctioned Alaska more than we've sanctioned Iran. So that, of course, is just nuts."

Wright said the administration is pleased to see that OPEC is returning barrels to the marketplace, but said he had no comment on whether it is coming fast enough to push down prices in the US.

OPEC+ confirmed March 3 a longstanding plan to start easing voluntary production cuts in April.

"It's very early on," Wright said. "We're only 50 days in, but the trend in energy prices has indeed been downward, and I think that's a market perception that yeah, America is open for business," he said. "America is going to allow producers to grow and expand and support our allies abroad."

It is too early to tell whether President Donald Trump's tariffs would drive up the prices for infrastructure, Wright said.

"I feel quite confident having a smart businessman every day working for America writ large, not an interest group or particular industry," Wright said. "I'm pretty optimistic about the outcome," he said.

The Trump administration plans to implement a global 25% tariff on aluminum and steel imports March 12.

Industry seeks durability

As Wright sought to contrast the Trump and Biden administrations' approach to energy, some in industry are seeking stability.

Chevron CEO Mike Wirth said a more "durable" energy policy is needed in the US.

"Swinging from one extreme to the other is not the right policy approach," Wirth said at CERAWeek.

Trump's recent executive orders on energy were "meant to send a signal," he said.

"We need to see some of this stuff put into legislation soon" because without that policies could swing back in the next administration.

Chevron is currently producing over 1 million b/d in the Permian Basin and plans to boost crude production in the Gulf of Mexico "over the next couple of years" from 200,000 b/d to 300,000 b/d, Wirth said.

"The opportunities in the United States are great," Wirth said. "That's where we are seeing growth."

S&P Global Commodity Insights analysts expect US oil production to rise to 13.9 million b/d in December 2026 from 13.5 million b/d in January 2025.