Washington, June 13 (IANS) US Treasury Secretary Scott Bessent said President Donald Trump's push for "energy dominance" is central to the administration's efforts to strengthen the economy, boost manufacturing and enhance national security, arguing that abundant domestic energy will be critical to winning the global race in artificial intelligence and advanced industries.
Speaking at the Petroleum Club of Houston on Friday, Bessent described energy as the foundation of the administration's economic agenda.
"I often describe this Administration's economic strategy as resting on three distinct but mutually reinforcing pillars: tax, trade, and deregulation," he said. "But beneath each of our priorities, indeed every dimension of our economic life, is a base layer that binds each of them: energy dominance."
Bessent used Texas and California as contrasting examples of how policy choices shape economic outcomes.
"Here in Texas, meanwhile, the contrast is so striking that it begins to feel like a tale of two states," he said, arguing that Texas has benefited from policies that encourage business growth and energy production.
"When capital, companies, and residents all move in the same direction, I believe that is less a trend than a verdict," Bessent said. "Texas has become America's center of gravity because it is fostering the conditions for families and businesses to flourish."
The Treasury Secretary said the administration has moved aggressively to expand oil and gas production since Trump returned to office. He said the government has opened "hundreds of millions of acres to oil and gas production", approved 6,000 new drilling permits and reduced regulatory burdens on the energy sector.
"The United States is now the world's largest producer and exporter of petroleum. In fact, we've never produced or exported so much energy," he said.
Bessent linked the administration's energy strategy to the rapid growth of artificial intelligence and efforts to bring manufacturing back to the United States.
"By 2040, the AI boom is expected to increase energy demand in the United States by fifty percent," he said.
"The AI race may be accelerated by the elegance of our code, but it will be won by the abundance of our energy."
He argued that the expansion of domestic manufacturing, encouraged by Trump's trade policies, will require reliable and affordable energy supplies.
"The factory activity sparked by the trade actions we've taken to reshore producers from abroad must be sustained by the resources we unleash here at home," Bessent said.
The Treasury Secretary also framed energy production as a strategic issue with global implications.
"Economic security is national security," he said.
Referring to recent tensions involving Iran and volatility in global energy markets, Bessent argued that increased U.S. production has reduced America's vulnerability to external shocks.
"As the Boston Fed affirmed last week, our domestic production has significantly blunted the economic impact of energy-price fluctuations. No foreign power can now so fundamentally disrupt our economy with the stroke of a pen," he said.
Bessent said growing demand for US energy exports has strengthened America's position among allies and trading partners. He noted that the European Union imported a record 57 per cent of its liquefied natural gas from the United States during Trump's first year back in office, while Asian countries signed more than $56 billion in new energy deals.
"As it turns out, the demand for American energy was there all along. We just needed an administration willing to meet it," he said.
The speech comes at a time when energy security has become an increasingly important issue globally, particularly after disruptions linked to conflicts in Europe and the Middle East. Many countries, including India, have sought to diversify energy supplies while balancing economic growth and climate commitments.
--IANS
lkj/rs
