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Energy secretary rejects windfall tax, questions carbon-capture economics and defends diesel exports
Summary
Chris Wright told CNBC he opposes windfall taxes on energy companies, described carbon-capture as economically unviable under current assumptions, and said the administration will continue diesel exports while using waivers (Jones Act) to move fuel domestically to ease shortages.
At the Golden Pass site, reporters pressed U.S. Energy Secretary Chris Wright on several domestic policy issues. Wright flatly rejected proposals for a windfall tax on energy companies, saying higher taxes would reduce production "and if you increase the tax on something, you get less of it." When asked whether that would help short-term pain for consumers, he answered, "No."
On carbon-capture projects, Wright questioned the economics. "It costs hundreds of dollars a ton to capture and inject it underground," he said, adding that even high assumptions about the social cost of carbon do not make the math work for widespread deployment under current conditions.
Reporters also asked about diesel exports and potential shortages in California. Wright said the administration will keep diesel exports flowing and argued that banning exports would force refineries to cut output and would not benefit U.S. prices. He noted the administration had waived the Jones Act to facilitate moving fuel domestically and said refineries in Jefferson County were sending diesel and jet fuel to California.
Anchor Joe Kernan had framed the exchange by stressing how hard it is to displace fossil fuels in the global economy; Wright echoed that hydrocarbons remain central to current energy needs.
