If you want to understand why the current administration is obsessed with "energy addition," look no further than the recent chaos in the Middle East. While critics argue that doubling down on fossil fuels is a step backward, Interior Secretary Doug Burgum made a different case this week at the CERAWeek conference in Houston. He isn't just talking about lower gas prices at your local pump. He's arguing that American energy dominance is the only thing standing between global stability and absolute upheaval.
Energy isn't just a commodity. It’s a weapon of war and a tool for peace. When the U.S. produces more oil and gas than anyone else, it strips power away from adversaries who use energy as a leash. Burgum’s message was clear: the world is safer when America has the biggest "energy buffer."
The End of Energy Subtraction
For years, we’ve heard about the "energy transition." Burgum calls this "energy subtraction." It’s the idea that we can simply turn off reliable baseload power like coal and gas and replace it with weather-dependent sources without any consequences.
The administration’s shift toward "energy addition" is a direct response to the reality that global demand for power is skyrocketing. Between the massive energy needs of AI data centers and a world that refuses to stop growing, we need more of everything. Burgum pointed out that killing U.S. industries only pushes production to countries with lower environmental standards and higher geopolitical risks. It's a lose-lose.
Why the Strait of Hormuz Still Dictates Your Life
You might think what happens in a narrow waterway 7,000 miles away doesn't matter, but it does. The Strait of Hormuz sees 20 million barrels of oil pass through it every day. That’s 20% of the world’s supply. When tensions with Iran spike, that chokepoint becomes a noose for the global economy.
Burgum’s logic is simple. If the U.S. can flood the market with domestic supply, the "risk premium" that hostile nations charge the world disappears. On March 17, the White House circulated a paper arguing that Iranian influence adds up to $15 per barrel to global prices. By ramping up production in the Permian Basin and Alaska, the U.S. aims to eat that premium and provide a "supply buffer" that keeps prices stable even when the Middle East is on fire.
The One Billion Dollar Wind Gamble
One of the most controversial moves discussed in Houston was the administration’s $928 million deal with TotalEnergies. The U.S. is essentially paying the French energy giant to walk away from offshore wind leases in New York and North Carolina.
Why? Burgum says it’s a matter of national security and economic reality. He’s claimed that massive offshore turbines could interfere with radar systems meant to detect enemy drones. But more importantly, the administration wants that capital redirected into oil and gas. As part of the deal, TotalEnergies is plowing that money into the Rio Grande LNG terminal in Texas and Gulf of Mexico production.
- Baseload over intermittency: The administration is betting that natural gas provides the 24/7 reliability that wind can't match.
- Economic efficiency: They argue that offshore wind is too dependent on taxpayer subsidies and actually raises utility bills in the long run.
- Infrastructure focus: The pivot to LNG (Liquefied Natural Gas) allows the U.S. to export "freedom gas" to allies like Japan and South Korea, reducing their reliance on the Persian Gulf.
Rescuing Allies from Vulnerability
We aren't just doing this for ourselves. Our allies in the Pacific are terrifyingly dependent on energy from unstable regions. Burgum noted that countries like South Korea and Japan are "completely vulnerable." When the U.S. exports oil from Alaska or LNG from Texas, it provides a lifeline to these nations.
It’s a strategic shift. Instead of sending troops to guard foreign oil fields, the U.S. is sending tankers. This reduces the leverage that Russia and China have over our friends. If Japan can buy its gas from Texas rather than being bullied by regional adversaries, the entire Indo-Pacific becomes more stable.
The Permian Basin as a Strategic Reserve
The Permian Basin in Texas and New Mexico is the engine of this strategy. With over 100 billion barrels of potential oil, it’s being treated as a global reserve. But geology isn't the problem—permitting is.
Burgum bragged that the administration has slashed environmental review times from years to, in some cases, just 12 to 24 days. They’ve approved over 6,000 drilling permits on federal land to keep the "drill baby drill" momentum alive. It’s an aggressive, some would say reckless, pace. But for an administration that views energy as the foundation of national security, the risk of slow-walking a permit is greater than the risk of drilling.
The Reality of Global Demand
The hard truth is that renewable energy, despite the hype, only accounts for a fraction of global consumption. While solar and wind are growing, they aren't replacing the massive amount of oil and gas the world needs to function. The Trump administration’s stance is that we should stop pretending otherwise.
By focusing on "energy dominance," the U.S. is positioning itself as the world’s primary gas station. It’s a position that offers incredible diplomatic power. If we can keep the world's energy prices low, we limit the ability of "petro-dictators" to fund their agendas.
If you’re watching energy markets, don't just look at the price of crude today. Look at the permitting speed in the Permian and the expansion of LNG terminals on the Gulf Coast. That's where the real geopolitical chess match is being played. To stay ahead of the curve, keep an eye on federal lease sales in the "Gulf of America" and the progress of the National Energy Dominance Council’s partnerships in the Indo-Pacific. These are the levers that will determine if the world stays safe—or falls into upheaval.
