Us Energy Secretary tells me how the world can tackle an Energy Crisis that is returning to knock the Global Economy off track. Also on the show, india its one of the worlds Fastest Growing economies, so can home grown Airline Vistara cash in on growing demand for flights despite High Oil Prices. Im going to check in with its big boss. Wherever you werejoining me from Around The World, once again, a big hello and a warm welcome to the show. You know, as the war in ukraine rages, one of the most noticeable impacts for the rest of the world continues to be the soaring costs of our energy. As europe approaches the cold winter months, which typically causes demand for oil and gas to surge, millions, millions of households and businesses are worried aboutjust how they are going to afford to pay their bills. Politicians in europe and across the rest of the world are trying to take action to limit the economic damage, but also come up with long term solutions. Two numbers explain the scale of the problem. Last year russia was the worlds third biggest oil producer. And the second biggest producer of natural gas. Much of that was exported to europe. In fact, in 2020, russia was the source for 46 of all the coal used in the eu, 39 of gas, and 23 of oil. But europe doesnt want to buy it any more because it is funding russias invasion of ukraine. However, when you take such a significant amount of supply out of the global market, of course there is less to go around, then as you can see here, the benchmark prices for oil and gas have both soared in the last year. Its one of the main reason is the Global Economic growth forecast has been cut from 4. 3 to 3. 2 for this year by the imf. And because energy is moved Around The World unlike any other commodity, those increases have pushed up the cost of living everywhere. So that means that the cost of everything, from filling up your car, to heating your home, has gone up. The uk, germany, and spain are amongst the governments spending tens of billions because the cost of energy bills for consumers. So too is france, where despite Household Energy bills being limited to a 15 rise next year, consumers in paris are concerned about making ends meet. Translation | am a little worried, because i depend a lot on electricity for heating. So we have no visibility, we have doubts not only for the coming winter but we feel that way for the later months too. Translation we were worried about the rising prices that are going to happen, so we needed them to be capped, whether15 is enough, i dont know. We will see when the time comes. Its already not bad and we hope prices wont go up more in the future. And these higher prices, we have already seen, mean the Big Energy Companies are amongst the few winners from this crisis. In the first half of this year, five of the biggest western firms made a combined profit of more than 95 billion. That is almost three times what they made the same time last year. Given that nearly 514 billion of support for struggling businesses and households has been committed to by the governments of the eu and the uk, its Little Wonder they are looking to get hold of some of those profits. Translation there are Windfall Profits, excess profits which are made by Energy Producers who simply take advantage of the situation whereby the very expensive price for gas determines the price of electricity. Therefore they earn a lot of money. So we firmly resolved to change the Market Structure in such a way that these Windfall Profits no longer occur. Or that they are skimmed off. And when it comes to the future, are working on plans to how their economy without depending on russia. The crisis means that despite the scars of the fukushima disaster, evenjapan is taking another look at nuclear and across europe radical measures such as turning off Street Lights and stopping the use of hot water in public buildings have become reality. Putins war has stoked an Energy Crisis in europe that continues to have huge repercussions. In response we move swiftly to have alternative supplies, accelerate the roll out of renewables and start reducing gas demand to ensure european citizens are safe for winter. But we are still confronted with a profound mismatch between supply and demand on the energy market. But its notjust europe struggling to make sure there is enough energy to go around, the problem stemming from russias invasion of ukraine have been felt across the world, with governments from japan to australia and america trying to tackle soaring energy bills. The worlds biggest producer and user of natural gas is the United States. So i have been speaking to president biden� s Energy Secretary about the worlds biggest economy can solve the crisis. A real pleasure having you on my show, thank you for your time. Jennifer can we start with this, the most obvious energy consequence of russias invasion of ukraine is the phasing out of russian natural gas supplies to europe. So as the worlds biggest gas producer, can the us do more to help . Right now we are exporting at Record Levels, except that we have one terminal down. Its our biggest, in freeport, texas, when that comes back on, it will increase our exports by an additional 20 stock that should happen in november. We also know the us is the worlds biggest use of natural gas, is there a way, therefore, that you think you can use less of it so that there is more to share with other parts of the world . Actually we are sharing at Record Levels and we will continue to break records. Here is the thing, we are liquefying every molecule of natural gas where there is a terminal to liquefy it. We are using at full capacity, except for this one i mentioned that is down, but that will be up in november. We are at full capacity for exports and we want to be helpful and we have met the goals that the president initially set forth, by Early September in fact for this year, but we are going to continue obviously to be helpful so we can increase supplies to help in the price pressures. You have led the way in getting the g7 group of advanced economies to impose a price cap on russian oil and a similar plan for gas, that is on the table. Let me ask you this, without them being global agreements, and i mean having the major users like india and China Signing up, surely that means it will have a very limited impact. If president putin can still sell elsewhere . The whole point of this is to limit the amount of money that is going to russia, so that we dont continue to collectively fund the war. If we have a price cap, among the willing, and others who dont sign on, the leverage has increased, to reduce prices for themselves. We would think that this will have the impact of reducing prices, the price that goes to russia, reducing the profit level and still allowing the oil to flow so we dont see spikes increases which we saw at the very onset of the war. President putin has said, we will not supply oil, coal, not anything to countries that impose price caps. Would such a reduction to supply to the Global Markets not just make this whole crisis worse and continue pushing up prices . Well, that is the question, the countries that do not sign on the price cap, the oil will continue to flow. And it does, as i say, leverage to reduce their prices of purchase. We think that this is a smart way to be able to keep prices down so that we dont have people hurting this winter. As long as russian oil and gas is still being exported, how do you stop it ending up in the hands of modern day traders who move it around until someone is willing to buy it . We know that these traders, they have reputations for being a very good at hiding the origins of these cargoes . That is really great question, an important question. Its something i think all of these countries are looking at. How do we make sure that this is not exploited by those who have real knowledge of how the system works. We know that our country as well as the eu and others who are looking at this are also pursuing strategies to prevent that from happening. The likes of china, india, in particular india by record amounts of cheap russian oil, how do you stop the likes of those countries and their money flowing back to the kremlin, which is funding the war machine . Yes, well unless theyjust like they are going to do, they are independent countries, they will continue to purchase oil from russia at a discount. If there is a price cap, that really limits the amount of money that russia is able to extract, then it will increase the leverage of china and of india or anyone else who wants to buy russian oil, it gives them the ability to say, look, there is a price cap over there, were not going to pay more than they are paying. So its a mechanism that empowers them to lower their prices as well. Therefore it limits the amount of money that putin is making that then turns around to finance this. Recently we have had these major leaks from the military recently we have had these major leaks from the Nordstream Pipeline which was carrying russian gas to europe. The head of nato has called it an act of sabotage. Who does the Us Government think is to blame for that sabotage . We look forward to the investigation, the results, we hope its done expeditiously, it is highly unlikely that these incidents are coincidences. We think that it is an act of sabotage and we are looking forward to hearing who the perpetrator is. But you know, many or most are pointing the finger at russia . It seems that way, but again, we have to wait. Indeed. While we are on that, what do you think is the long term future of these pipelines . Do you think they will be fixed or is europes use of russian gas now a thing of the past . I think russia has proven itself to be an Unreliable Energy partner. It used to be reliable. No more. No country wants to take the risk of putting a significant amount of its Energy Demand to russias supply. It is clear, in fact this accelerates the eus push to become Energy Independent through clean energy. They are building up their own home grown energy. I am here at the iaea conference, every country is looking at the risks associated with putting too many eggs in one basket or putting too many eggs in the basket of Petro Dictators and the volatility of the fossil fuels that accrue from that. Everyone is looking at how i can become Energy Independent. We strongly suggest that should be through clean energy and all countries are thinking that as well. You have chaired the Global Clean Energy action forum in pittsburgh and that was a meeting of Industry Leaders and politicians from Around The World looking at future energy supply. I am wondering, is this crisis with russia, is it the catalyst that the world needs to really step up the transition to Carbon Free Energy if we are going to meet the paris Climate Change targets . I think it absolutely accelerates. It is more than a catalyst, it is really propelling these countries forward. The United States having just passed a very significant climate bill in the inflation reduction act, we are going to go to the conference of the parties in egypt next. In november, we will say, we have put our money where our mouth is in terms of our ability and our aspiration become Energy Independent through clean energy, we are hoping that other countries do the same, many are already down this path, many have said this target of getting to net zero Carbon Pollution by 2050 and that Means Investment in this sector. This sector is going to be 23 trillion by 2030. Every country should be putting their stake in and trying to get a piece of that market, because it is a huge economic opportunity, in addition to clearly an Energy Security imperative. Let me ask you, you talk about too many eggs in one basket, if i give you some examples. 46 of Global Uranium enrichment for Nuclear Power is in russian hands. Recently the iaea warned that china has an 80 share of the Solar Panel Manufacturing industry. So when it comes to moving to renewables, how can you ensure that the us and the rest of the world dont fall into a similar trap as a way that the Fossil Fuel Dependency on russia . This is an excellent point, this is why. I have a counterpart in ireland, mr ryan, who says that no country has known in fact this move to clean energy, could be part of a great peace plan thats every country is Energy Independent and produces its own energy. So its eggs are not in the basket of these Petrol Dictators or too reliant on fossil fuels that are so volatile that it hurts their citizens. The only thing you can be sure of is that energy costs with clean energy continue to go down, solar and wind are among the cheapest forms of energy now because of the drops in prices. The price of batteries, from storing clean energy, continue to drive exponentially. So we know that movement to clean helps the planet helps peoples pocket books, help the economy and helps Energy Security. Lets turn to oil. The us is the Worlds Biggest Oil producer and back in august you wrote it to seven major us oil refiners, urging them not to increase exports to europe and instead build up stocks in the us. As you know, critics say you are more interested in keeping us consumers happy with lower prices, ahead of novembers mid term elections than you are withstanding firm with europe in the face of russian aggression. Which is more important . That characterisation is inaccurate. We want to make sure that our citizens and our homes and businesses have the requisite supplies they need to get through this Hurricane Season which is upon us now in which people anywhere across the earth can see are hitting our country. We need to have enough security to be able to have our own energy use in these crises. We are also exporting both oil and gas at Record Levels, because we want to be strong allies and we will continue to do so both have to happen. When you look at the big energy firms in the first half of this year, bp, shell, chevron and exxon, theyve tripled those profits can better the last time last year, more than 95 billion, should those Companies Pay more tax . Given how much Financial Difficulties businesses and families are in . And other countries are evaluating this, but we want to see this to have them lower the prices at the pump. We want to see savings. In fact oil has come down per barrel. We want to see a requisite amount of reduction at the pump so that citizens are not hurting. All tools are on the table, a Windfall Profits tax i know has been considered by a number of countries, obviously the uk as well, we are evaluating. What we want to see as an end result is prices at the pumps diminished so that people not hurting. How do you force those companies to reduce those prices at the pub . This is a question, it is a question, it is every market, oil is traded on a free market. We want to pressure them to reduce it, verbal pressure is one thing about what they will want to call upon them as the American Companies as Good American citizens who are making huge amounts of profits. We dont want that huge amount at a profit to have triggering consequences either congressionally or elsewhere that will not be in their interest. We want them to be responsible and not be buying back shares instead of increasing production that will ultimately reduce prices because of increase in supply. All of that we are looking at for legislative tools as well as otherwise pressuring them. Let me end on this, venezuela has the Worlds Largest oil reserves, but it doesnt produce or export too much, in part due to us sanctions. Has it come now to reduce the sanctions . Im not going to get ahead of the white house on that. On that point, thank you very much for your time. We really appreciate it. Thank you so much. As we have been discussing, Soaring Energy To Due Process are a major cloud hanging over the Global Economy. Few industries are exposed as much as aviation. It also plays a vital role in growing our Global Economy. India, it is on course to be the worlds third biggest Aviation Market by around 2030 and that path is matched by home grown Airline Vista