Jason Bordoff

So now you're looking at the whole world and you're saying there's energy risk all around.

What do I want to do?

I want to insulate myself, right?

After the 1970s,

one of the main things we did to increase energy security was actually more cooperation and more interconnectedness.

We created the International Energy Agency for Diplomacy.

We had 30 or so countries that agreed to hold strategic stocks together in case there was an emergency and release them together.

And we created this well-functioning market we talked about before.

So we were all interconnected.

If there's a supply shock halfway around the world, market forces can reallocate supply.

I think in this world of collapsing geopolitical order and competition and risk,

Countries will increasingly say, we need to take care of ourselves.

We need to think a little more in an autarkic sense, focus much more on the domestic production of energy, reduce imports and reduce interconnection to other parts of the world.

And I think that has significant implications geopolitically and for energy prices.

It is very expensive if you want to make all your solar panels or do all your mining and refining and processing of critical minerals within your own country.

I think in the immediate moment, obviously, it's painful for China to pay much higher energy prices.

China gets about half of its oil through the Strait of Hormuz, about a third of its liquefied natural gas, and they're paying more for it just like everyone else.

I do think they're as well or better prepared than many to deal with that.

They've built up a

huge strategic reserve of oil of about a billion and a half barrels while the United States has been selling ours off because of the misperception on both sides of the aisle that the shale revolution makes us insulated from all of this stuff.