HOUSTON — The officials leading President Donald Trump’s energy agenda made clear to oil, gas and mining executives this week that they have an ally in Washington who intends to make it as easy as possible for them to drill in federal lands and waters.
Interior Secretary Doug Burgum told executives gathered for the world’s largest energy conference that the Trump administration does not view climate change as an existential threat. Energy Secretary Chris Wright said rising global temperatures are simply a byproduct of developing the country’s national resources to support economic growth and national security.
Burgum leads Trump’s recently established National Energy Dominance Council and Wright serves as his deputy on the interagency body tasked with boosting production. Burgum was effusive in his praise of the oil and gas industry during remarks delivered at CERAWeek by S&P Global conference.
“I’m going to share two words that I do not think that you have heard from a federal official in the Biden administration during the last four years. And those two words are thank you,” said Burgum, who previously served as governor of North Dakota, a state that produces 1.2 million barrels of oil per day.
Burgum leaned on his experience as software company executive to lay out his view of the interior department’s role. The department under his leadership views the companies developing resources on federal lands as “customers” who are contributing revenue to the nation’s “balance sheet,” Burgum said.
“If someone was sending me revenue, they weren’t the enemy. They were the customer,” Burgum said. The administration loves anyone who wants to harvest timber, mine for critical minerals, graze cattle, or produce oil and gas on federals, the interior secretary said.
Royalties sent from lease agreements on federal land will help the U.S. pay down its national debt and balance the budget, Burgum said. “You’re the customer,” the interior secretary told the executives.
The value of nation’s abundant natural resources far outweighs its $36 trillion in debt, Burgum said. If financial markets understood the value of America’s natural resources, the 10-year long-term interest rate would come down, Burgum claimed.
“The interest rates right now are one of the biggest expenses we have as a country,” Burgum said. “So one of the things that we have to do is unleash America’s balance sheet, and President Trump is helping us do that,” he said.
Burgum slammed the Biden administration’s focus on climate change as an “ideology.” He said the Trump administration views Iran acquiring a nuclear weapon and China winning the artificial intelligence race as the two existential threats facing the U.S. rather than global warming. Wright said Biden had a “myopic” and “quasi religious” belief in reducing emissions that hurt consumers.
Burgum and Wright dismissed policies that support a transition from fossil fuels to renewable energy, arguing that wind and solar won’t be able to meet rising energy demand in the coming years from artificial intelligence and re-industrialization.
“There is simply no physical way that wind, solar and batteries could replace the myriad uses of natural gas. I haven’t even mentioned oil or coal yet,” Wright said at the conference. Wright previously served as CEO of oilfield services company Liberty Energy and a board member at nuclear startup Oklo.
Oil execs see allies in Washington
Oil executives are enthusiastic about the change of administrations in Washington, returning the praise they received from Trump’s energy team during the week.
ConocoPhillips CEO Ryan Lance said Wright and Burgum “understand the business,” describing them as the best energy team the U.S. has seen in decades. TotalEnergies CEO Patrick Pouyanné said he was “impressed by the quality of our counterparts.” Chevron CEO Mike Wirth said the industry is “seeing some reality come back to the conversation.”
“For years, my message has been, we need a balanced conversation about affordability, reliability and the environment, and focusing only on climate leads us to ignore the first two,” Wright said.
The executives all referred to the Gulf of Mexico as the Gulf of America, following Trump’s executive order to rename the body of water. The president issued an order on his first day to repeal Biden’s ban on offshore drilling in 625 million acres of U.S. coastal waters.
BP CEO Murray Auchincloss briefly slipped before correcting himself when discussing how generative AI is helping with exploration: “We started doing this in the Gulf of Mexico, uh America, and we spread that to other nations as well.”
But Trump’s calls to “drill, baby, drill” are running up against market reality. The CEOs of Chevron and Conoco said U.S. oil production will likely plateau in the coming years after hitting new records under the Biden administration.
“Chasing growth for growth’s sake has not proven to be particularly successful for our industry,” Wirth said. “At some point, you’ve grown enough that you should start to move towards a plateau, and you should generate more free cash flow, rather than just more barrels.”
Lance sees U.S. oil production plateauing later this decade and then slowly declining.
“Maybe it’s time to go back to exploring the Gulf of America,” Pouyanné said. “The new administration is opening the Gulf. It has been slowed down after the Macondo drama,” he said, referring the Deepwater Horizon oil spill, the largest in the history of marine drilling operations.
U.S. oil producers are scheduled to meet with Trump next week, industry lobby group American Petroleum Institute said in statement.
Petter Winberg, Tesla crash safety architect, via LinkedIn
Tesla’s top crash safety architect, who helped the automaker achieve top safety scores for its entire car line-up, announced that he is leaving the automaker after 14 years.
We are talking about Petter Winberg, Tesla’s Principal Engineer for CAE crashing safety for the last decade.
After an extensive career at Volvo and SAAB, both car brands praised for their commitment to safety, Winberg joined Tesla in 2011 to work on the “crash safety development of Model S structure and side occupant restraints.”
At the time, Tesla was still working on the Model S, its first vehicle built entirely from the ground up, considering the original Roadster was based on the Lotus Elise.
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CEO Elon Musk aimed for “Tesla vehicles to be the safest on the planet,” and Winberg took the challenge seriously.
He led the development of the vehicle body and chassis structure for Model 3 and Model Y, as well as the crash structure for Model S and Model X.
All of these vehicles have received top safety crash scores from independent testers worldwide – quickly elevating Tesla’s brand into a leader in passive safety.
Winberg and his team deserve a lot of the credit for this.
The engineer also led the design of crash readiness and the energy-absorbing capacity of Tesla’s latest “gigacasting” and structural battery pack designs, for which he obtained patents. Other automakers have since adopted similar designs.
For those less technical who want to understand how good and respected Winberg is at Tesla, he has been working for Tesla remotely in Sweden for the last five years. That’s impressive in itself, considering how much Musk hates remote work. He previously emailed Tesla management to tell them that only exceptional employees would be eligible for an exemption to work remotely, which he would approve himself.
After 14 years at Tesla, Winberg announced last week that he is leaving (via LinkedIn):
Having developed Model S, S-DM, X, 3, Y, Y-SP as well as future crash architectures, I have decided now is the time to move on. Thank you Tesla, keep crushing it! What an incredible team, I will miss you all.
He didn’t elaborate on his reasons for leaving the automaker or announce another venture.
Electrek’s Take
While Tesla has received much criticism for the dangers of its Autopilot and “Full Self-Driving” systems, I don’t think anyone can question that Tesla vehicles perform extremely well in terms of passive safety.
Independent testing has proven it time and time again.
Tesla has led the way in taking advantage of designing electric vehicles from the ground up. Its skateboard-like powertrain design and lack of engine in the front allow for a giant crumple zone to absorb the energy in case of a crash.
A big thank you to Petter Winberg for his designs and leadership in improving Tesla’s passive safety. He has undoubtedly made the automotive industry safer and saved lives. Congratulations.
As for his departure, it’s certainly a blow for Tesla. As we previously reported, the company has suffered a significant exodus of talent over the last year, with a big part of its leadership leaving during and after a wave of layoffs last year.
Many predict that Tesla could again initiate another wave of layoffs in the coming months as its sales are crumbling worldwide.
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Its first vehicle, the SU7, is a smash hit. It now consistently delivers over 20,000 units a month, it has surpassed the Tesla Model 3, its closest competitor, and has a more than 30-week-long backlog of orders.
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The vehicle achieves more range and is cheaper than Model 3 while having additional features.
Last month, Xiaomi launched a new top-of-the-line version of the SU7: the SU7 Ultra.
The headline is that the $72,800 (529,900 RMB) has a powertrain packing up 1,526 horsepower. That’s absolutely insane. Xiaomi quotes a 0 to 100 km/h (0 to 62 mph) acceleration in just 1.98 seconds.
While the SU7 is meant more as a Model 3 competitor, the SU7 Ultra actually competes with Tesla’s flagship Model S Plaid in terms of performance.
They organized a drag race between the SU7 Ultra and Model S Plaid. Here it is:
As you can see, the SU7 Ultra slipped at the start, which is not surprising considering how much power it outputs, but it still managed to catch up and beat the Model S Plaid.
At over 1,000 horsepower, many, myself included, thought that it was a bit mad to offer a vehicle like the Model S Plaid with such supercar power for a relatively cheap price – RMB 814,900 (approximately $112,000 USD) in China and just $95,000 in the US.
But now, Xiaomi shakes things up even more by offering 1,500 horses for just a little more than $70,000. It’s mad.
Now, I can hear your thoughts: “but it’s just good in a straight line drag race like other EVs.” Think again, the SU7 Ultra prototype claimed the title as the fastest four-door sedan at the famous Nurburgring race track in Germany.
Electrek’s Take
Damn, the Chinese are good. Xiaomi has come hard with the SU7, but the crazy thing is that it’s just one of several Chinese top-of-the-line EVs coming out. Nio has the ET7, BYD has the U7, and there are many more.
These vehicles are all impressive in their own rights.
It’s easy to understand why American automakers are so scared and lobbied the US government for 100% tariffs on them.
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The city of London has released a report showing drastic drops in air pollution since it expanded its Ultra Low Emission Zone, an area within the city where polluting vehicles must pay a congestion charge to visit.
The London Ultra Low Emissions Zone is an area within London where vehicles that do not meet modern emissions standards must pay an additional charge to drive. The charge is £12.50 (~$16) per day, and the restriction is enforced 24 hours a day.
It was first established under current London mayor Sadiq Khan in 2019, though had previously been announced in 2015 by Boris Johnson during his stint as London mayor.
While the area covered by the zone only encompassed Central London in 2019, Khan went on to expand it in 2021 and 2023, and it now covers all of Greater London, where around 9 million people live.
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Each of these expansions met with resistance and the ULEZ became a flashpoint during UK elections, including specifically the London mayoral election. Previous UK Prime Minister Rishi Sunak took a pro-pollution stance in opposing the zone, despite it originally being proposed by his own party. In the end, despite the criticism, more Londoners supported the plan than opposed it, and Khan weathered the storm and was re-elected.
This zone is separate from London’s congestion charge zone, which covers Central London and applies to all vehicles that enter. ULEZ is intended to reduce pollution, while the congestion charge is intended to reduce traffic (though also has an effect of reducing pollution).
The ULEZ restrictions are actually not all that strict, especially from the perspective of us here at an electric vehicle publication – most diesel and petrol (gasoline)-powered cars made within the last 10 and 20 years respectively qualify, despite that they still create significant tailpipe pollution.
Also, there are exemptions available for delivery vehicles, buses and so on.
Nevertheless, despite these exemptions, a recent report released by the city of London shows how well the ULEZ has worked at lowering pollution in London and making everyone healthier.
Report finds massive drop in pollution after ULEZ implementation
The report points out that two of the most dangerous aspects of vehicle emissions – nitrogen oxides, which are responsible for smog formation, and PM2.5, which are tiny particles that irritate the lungs – have dropped by almost a third compared to if ULEZ hadn’t been implemented, in only the few years that the policy has been in place.
Specifically, NO2 is 27% lower and PM2.5 is 31% lower in outer London. Nitrogen oxides (which includes both NO and NO2) as a whole are down 14%.
Some areas have seen even more significant declines, like Central London, the most densely populated area. It has seen a drop in NO2 levels of 54%.
All in all, 99% of air quality monitors around London have showed a reduction in pollution, so the new rules have benefitted everyone.
This is important because prior to the report’s period, some 4,000 people died in London each year due to toxic air pollution. If the most toxic parts of air pollution have reduced by almost a third, that should mean over a thousand lives saved per year as a result of these policies – and the associated misery and health costs that come along with.
And those benefits have been seen most by the communities that need it. In “deprived communities,” which tend to see the most pollution in the first place, there’s been an 80% reduction in people exposed to illegal levels of pollution.
The policy has also led to an associated reduction in carbon emissions, as one might expect. In five years, total carbon reduction has equalled the amount of carbon put out by roughly 3 million individual air trips between London and New York.
EVs are quite popular in the UK, with almost 3 out of every 10 cars sold being electric in 2024. That number continues to rise significantly, partially as a result of these policies. But also, high adoption is what makes policies like this possible – if EVs are already available and popular, it’s much easier for individuals to comply.
All in all, between June 2023 and September 2024, London saw 58% fewer non-compliant vehicles on the road, showing a significant shift in transportation patterns in just one year. This was helped by a £200m ($258m) scrappage scheme which helped pay to get 15,232 old vehicles off the road.
Electrek’s Take
We’ve seen similar moves like this from other cities and countries, and each time, they seem to work quite well.
Congestion pricing, which again is not quite the same as ULEZ, has been popular in a number of countries and cities, and has definitely resulted in lower pollution, less traffic, and easier trips – and it works quickly, too.
And, despite what those who have fallen victim to oil propaganda like to say (feel free to check the comments on our articles or social media sometimes, sigh), sure enough, electric vehicles are helping to clean the air a lot.
We’ve seen real-world results that areas with higher EV adoption see lower pollution, which shouldn’t be a surprise to anyone, except that, oil, one of the richest industries in the world with a lot of experience lying to you, has been trying to tell you otherwise.
It’s also unsurprising that when you disincentivize bad things, they go away. The world currently affords fossil fuels a subsidy of $7 trillion per year, and correcting for that subsidy by making them pay some of their fair share makes them less attractive to people. Maybe we should do more of that.
So it’s unsurprising to see London’s ULEZ working well, but it’s nice to have confirmation, particularly given the controversy around it at the time.
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