Trump’s Energy Secretary Says Fear Over Oil Prices Misplaced

US Energy Secretary Chris Wright said the selloff in the oil market is overblown, and he expects American crude produces to keep increasing production.

“You see a marketplace right now that is worried about economic growth,” Wright said during an interview on Bloomberg Television on Friday. “I think that fear is misplaced.”

Speaking from Abu Dhabi, Wright said the long-term growth trajectory for oil demand remains unchanged, and the US will ultimately have a stronger economy under President Donald Trump’s policies. The energy secretary added that he expects US oil production to keep growing, despite benchmark domestic crude futures falling 16% since Trump’s tariff announcement last week.

“We are going to see strong growth in American energy production — 100%,” said Wright, the former chief executive officer of a fracking company.

Oil prices have been in nosediving for much of the past week since Trump launched his trade war, sending West Texas Intermediate tumbling below the $65 per-barrel level that many companies need to break even on new wells. It has sown deep uncertainty — and in some cases resentment — among drillers who have been some of Trump’s biggest supporters.

Nonetheless, Wright said he expects the US to expand output by the equivalent of at least 3 million barrels during the president’s term, although most of that increase will come from natural gas, he noted.

The president, Wright said, he been absolutely clear about his desire for more fossil fuel production and, hence, lower prices.

“It could be summarized as prosperity at home and peace abroad — lower oil prices help both of those,” Wright said.