The shale solution: Protecting national security with domestic energy supply

Speaking before energy executives and stakeholders, Burgum made the case that America’s energy policy is vital not only to the country’s prosperity but also to national security and global peace. 

Closing out the multi-day Shale Insight Conference hosted by the Marcellus Shale Coalition in Erie, Burgum cast natural gas production as the cornerstone of the Trump Administration’s priorities, a pathway to what he called America’s “golden age of prosperity” and a powerful geopolitical tool. 

Pennsylvania now ranks among the nation’s top energy producers, supplying more than 20% of America’s natural gas, he noted. 

Burgum warned against energy policies that shut down base load such as gas and nuclear plants, and prioritize highly subsidized, intermittent, and unreliable renewable sources of electricity, arguing such policies have led to higher costs and less reliability. 

He also argued that our existential threat is “not one degree of climate change,” rather, it’s the proliferation of nuclear weapons and the global AI arms race. 

Historically, the U.S. and its allies, Burgum explained, have heavily depended on oil and gas imports from the Middle East. This reliance made us vulnerable to geopolitical instability and allowed adversaries, such as Iran and Russia, to use energy sales to fund conflicts and exert influence. 

Our energy abundance strengthens national security and helps promote peace because adversaries have less financial power to fund wars and terrorism, he said. And our allies can rely on stable, secure energy from the United States.

Francesco Gea, executive managing director for Global E&P of Repsol – a Spain-based company operating in dozens of other countries, echoed this sentiment during the summit when he underscored Repsol’s commitment to U.S. shale as a part of its diversified, multi-energy strategy. He pointed to America’s open, stable market and solid investment fundamentals, while acknowledging obstacles such as infrastructure limitations.

He also stressed that natural gas is vital for both American and European energy security, noting that Repsol has doubled its U.S. purchases this year. These exports, he said, are critical to reducing Europe’s past dependence on foreign suppliers like Algeria and Russia, and he affirmed Repsol’s intent to expand its U.S. presence. 

While renewables will play an important role in the future, said Gea, nations cannot depend on them alone to meet all our energy needs. Relying on other countries not only risks moving industrial capabilities out of Europe but may also simply shift emissions elsewhere, often to places with less efficient management. 

“As energy producers, we have a responsibility to consider the broader societal and environmental impacts of these choices, which Europe is already experiencing,” he said. 

He credited the innovation and productivity of the U.S. shale industry with making America the world’s largest net exporter, eliminating its reliance on Middle Eastern oil and gas, while noting that China has become the largest importer. 

Burgum also expressed concerns about China, portraying the nation as a major competitor in both energy production and technological advancements, particularly in AI. He emphasized the importance of U.S. energy abundance and innovation in maintaining a competitive edge. 

He cautioned that China, already the world’s largest producer of electricity, is rapidly expanding its capacity. “They opened 93 GW [gigawatts] of coal power in a single year, and they’re also doing nuclear and hydro…they can throw electricity at this AI arms race.” 

Much of that energy growth, he warned, is being directed towards their AI ambitions and they are closing the gap. “And on the software side of it…what they do is they just steal our IP [intellectual property]. Whatever model we have from any American company is going to be showing up in their product in six months.”

Electricity is now worth more than ever, because it can be turned into intelligence, he said. 

An AI factory, he explained, combines our best and fastest chips with artificial intelligence software. “When you add electricity, you manufacture intelligence…and the finished product can be shipped on a fiber optic cable to wherever it wants to go.” 

“That GPT, that general purpose technology, is something everyone can use,” he added.

Burgum stressed the massive scale of investment pouring into AI, noting that the five largest tech companies plan to spend $384 billion next year on AI factories, power generation, chip production, and facilities. 

He emphasized this single-year investment is larger than the combined capital spending of U.S. industries like automotive, shipbuilding, or oil and gas. 

These tech giants, he said, want to spend in the U.S. to ensure secure domestic supply for the intelligence they’re creating and will become the energy sector’s largest customers. Yet, he observed that although some utility leaders are forward-looking, many remain ill-equipped for the rise in electricity demand.

He was critical of a regulatory and investment culture centered on predictable returns instead of innovation and growth. To meet the challenge of doubling power generation in the coming decade, he suggested utilities adopt a more entrepreneurial mindset. 

This, he said, is why the National Energy Dominance Council was established – to coordinate across agencies and help solve the industry’s problems. 

In his final remarks Burgum told the crowd they are doing amazing work and making a difference, not only for the U.S., but for the world. 

“What the industry is doing is literally helping every American,” he said. “You are helping to bring peace abroad when we can use energy diplomacy, and you are helping to ensure prosperity at home with reliable, affordable energy.”