Energy Secretary Chris Wright Is 'Bullish' As Oil Prices Crater

Crude oil prices have come under pressure from ongoing trade tensions between the U.S. and China, which have cast uncertainty over global growth and fuel demand. Last week, Energy Secretary Chris Wright spoke positively about the oil and shale industry despite the steep drop in prices.

What to Know: Wright, a former CEO of Liberty Energy, Inc. LBRT with firsthand experience in the shale sector, told CNBC in an interview that he remains optimistic about the industry’s ability to adapt and prosper.

"The U.S. shale industry is going to survive and thrive," Wright said.

"But of course, investment decisions are going to be tailored if prices stay this low for a long period of time. But I'm quite bullish on the U.S. industry," he added.

Crude oil prices are down nearly 27% in 2025, trading below the key $65 per barrel threshold identified by the Federal Reserve Bank of Dallas as the break-even point for Permian Basin operators like Chevron Corp. CVX and Exxon Mobil Corp. XOM.

Still, Wright highlighted the oil industry's ability to innovate and referenced the 2014–2016 downturn when shale production surged amid weak demand.

"In 2015 and 2016 oil prices twice hit $28, and what happened? What did the U.S. shale industry do in that time — innovate, get smarter, drive their costs down, and that's what's happening right now," Wright said.

What Else: Energy analysts at Goldman Sachs recently reduced their oil forecasts for December 2025 to $62 per barrel for Brent and $58 for WTI, with additional downside expected in 2026. The analysts noted GDP downgrades and forecasts of a "stagnating" U.S. economy.

Adding to the pressure on oil prices, OPEC+ oil producers recently announced a massive production increase to 411,000 barrels per day next month. Meanwhile, the group cut its 2025–26 global oil demand growth forecast on Monday by 100,000 barrels per day due to slower growth resulting from Trump's tariffs.

OPEC said it expects 1.3 million barrels per day growth each year, still above estimates from others like the EIA of 900,000 and Goldman Sachs estimate of 500,000.

The United States Oil Fund USO, which tracks the daily price movements of light, sweet crude oil, was up 0.43% at the time of publication on Monday.

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