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Economy

A CNN report that hasn’t been published yet. Interview with Alex Epstein of Energy Talking Points

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24 minute read

A CNN reporter interviews me about my political work

A behind-the-scenes look at my work with candidates and elected officials

In mid-February, a CNN reporter who had been following Ron DeSantis’s primary campaign, and had heard the campaign refer positively to my work, reached out to me to learn more about the behind-the-scenes work I do with candidates and elected officials.

I thought readers of this newsletter would enjoy learning more about this work—which, as you will see, is non-partisan, non-exclusive, and principled: my team and I will advise any major politician or candidate who asks, and will only deliver messaging and policy ideas we believe are pro-freedom and pro-human.

(I am keeping the identity of the reporter anonymous, and I am further protecting the person by paraphrasing their questions in my own words so that no specific phrases are attributable to them. Note also that CNN has not yet published my comments.)


CNN Reporter

What kinds of opportunities do you think exist for a Republican president in terms of energy and environmental policy?

Alex Epstein

I do a lot of advising of people in politics, and it actually has no partisan affiliation. So I’ll advise anyone from any party and I never support any candidate. I’ve advised multiple of the presidential candidates and I would advise Biden if he asked me (he hasn’t asked me for any advice yet).

My interest is in pushing what I call energy freedom policies—which we could get into the details of—which I think would be very good for the country.

CNN Reporter

What are energy freedom policies, and how do you go about advising policymakers to put them into practice?

Alex Epstein

The basic idea of energy freedom is that the key to both energy abundance and everything that comes with it, including prosperity here and around the world—but also coming up with long term alternatives to fossil fuels—is ultimately to be free to produce and use every form of energy.

I believe there’s a near term imperative to have as much energy as possible. I don’t think we should be restricting fossil fuel use. But I also think there’s a lot of things we can do to get out of the way of alternative forms of energy. So I’m personally agnostic in terms of what form of energy wins; I just want the most cost-effective thing to win.

For example, in the realm of alternatives, what we really need are alternatives that can be globally cost-competitive, such that China, India, etc., will voluntarily adopt them, versus the current state of affairs where China has 300-plus new coal plants in the pipeline designed to last 40-plus years because that’s the cheapest thing.

So that’s the broad idea. I can send you some links on this, but I’ve broken it down into five key policy areas. And then there are a lot of detailed policies within that. But the broad frame—and again, I can send you documents—but “Liberate responsible domestic development” is one of them. And so, that basically means: allow America to build things quickly. Right now, China can build a subway station in nine hours. We can’t build a yoga studio in nine months. So basically, getting all of the anti-development stuff out of the way. And again, this is energy agnostic. It’s not just for fossil fuels, but a lot of the changes apply to fossil fuels.

Number two is: “End preferences for unreliable electricity.” I think there are a lot of bad policies that favor unreliable electricity, so solar and wind without really accompanying battery storage or other backup. And so I advocate a suite of policies that I think would allow all forms of energy to compete to provide reliable electricity.

The third one is: “Reforming environmental quality standards to incorporate cost-benefit analysis.” Most people don’t know this, but right now, EPA is literally not allowed to consider the cost of its policies. And I think that just violates basic rules, and it guarantees that we do things that are bad for our economy and for health, because wealth is health. And if you can’t consider the cost of your policies, and you can only consider the benefits, then you’re always going to tend toward more anti-industry stuff. So there’s a suite of reforms there.

Number four is: “Address CO2 emissions long term by liberating innovation not punishing America.” So I sort of indicated this before, but I don’t believe in short term restrictions on fossil fuels. I think basically anything we do to restrict ourselves just harms America, and doesn’t do anything to make low carbon alternatives cost-competitive. So I think all the action should be in things like liberating nuclear, liberating deep geothermal, and a lot of this is in the “Liberating responsible domestic development.” If you make that a lot easier, you make it easier to do these other things, these alternatives.

And then the fifth one is kind of a specification on the fourth, but it’s “Decriminalize nuclear,” because I think nuclear energy is the most persecuted form of energy. It has a really tragic history where it used to be cost-effective and now it’s not, because of irrational regulations that have made it 10 times more expensive and yet have added zero safety benefit. They’ve in fact harmed our safety in many ways by depriving us of clean, safe nuclear energy. And so I think there’s a whole suite of reforms necessary for that.

So those are the broad areas and then in each area, you know, my team and I are hard at work detailing, “Hey, what are the key reforms?” And one thing just to note is that I don’t hold any political office, I never will, I don’t lobby for anyone, I don’t endorse anyone, I set up everything so I’m quite independent.

So what I try to do is just say what I think is right, and then persuade people as much as possible. And fortunately a lot of people listen to me, but I have no power over anything officially—but that also allows me to just say what I think is right. So, I’m not under the illusion that everyone is going to do exactly what I think, but they do listen.

And then to your question about what’s happened: I’ve only been working with politicians since really 2020, and we’ve done it through a vehicle called Energy Talking Points—which, everyone can see the messaging at EnergyTalkingPoints.com—and we have only recently in the last 6 to 12 months started getting into policy advice.

We have some policy stuff in the works with a few different offices, and certainly we’ve advised multiple Presidential candidates on policy ideas, but I don’t think we’ve yet seen these energy freedom policies pursued, really put forward, to the extent we’ll see it in the next year or two. Whereas we have seen, I think, quite a bit of my messaging being used.

CNN Reporter

Why has the nuclear energy space become so toxic in recent years?

Alex Epstein

If you look at where nuclear was at its peak, it’s arguably in the late 60’s when you’re really getting cost-competitive with coal. But, you know, safer and cleaner than coal—and I’m a big advocate of coal. I mean, I’m a big advocate of anything that can produce additional cost-effective energy. But I think nuclear was in the realm of out-competing coal back then.

And it has a lot of inherent advantages. It’s very dense. The fuel supply is abundant, the fuel is cheap, safer to mine obviously, doesn’t emit anything harmful in the air. But it was demonized as a unique safety threat, whereas I think in reality—and I talked about this in my book Fossil Future and on EnergyTalkingPoints.com—I think it’s actually uniquely safe.

And we’re doing a lot of work on this in terms of our nuclear policies that we’re working on. But I think the green movement, which is very tied to the anti-fossil-fuel movement, really demonized it to the point where people equated nuclear power with nuclear bombs, thought of it as uniquely dangerous and then set up a whole regulatory infrastructure including the Nuclear Regulatory Commission, where the whole focus was on making nuclear infinitely safe beyond any fearmonger’s imagination, versus making it available.

And so they thought, in practice, the best way to make it safe was to make it non-existent. And that’s why since the NRC came into existence in 1975, we didn’t have one new nuclear plant go from conception to completion until last year. And those plants were many times over budget in Georgia.

So I think it’s a 50 year plus problem and when I talk to any politician, what I just tell them is, “You have to be willing to consider fundamental reforms of the NRC and perhaps replacing it with something else, because the status quo is so bad.” Often politicians just like saying that they like things, or kind of tinkering at the margins, saying, “Hey, we’ll give it some funding,” or you know, “We’ll invest in this research,” and I think you have to fundamentally stop treating nuclear as a uniquely dangerous form of energy.

There’s a whole bunch of things that need to be done, but I’m glad people are talking about it more positively. But the policy, we’re in a policy catastrophe with it. I don’t believe any significant progress will be made until we radically change the policy.

CNN Reporter

Have you spoken to DeSantis personally?

Alex Epstein

So, without going into much detail, since most of this stuff is confidential, I have spoken to him before, and I’ve spoken to his team before. And I would say that what you see publicly is reflected privately in the sense of: he and they are very detail-oriented, particularly in terms of implementation.

They’re very interested in: How do you actually get these things to work? And I think that’s something that is very good and it’s something that I try to become better at myself. I mean, there are plenty of things that I disagree with Ron DeSantis about, but I respect that detail-orientation, and I think it explains the ability to get things done in practice.

CNN Reporter

What candidates did you advise this cycle?

Alex Epstein

I won’t say specifically, but a lot of them I either talk to—I always tried to talk to the individual or the team, and that happened in many of the cases. I mean in general we, this project I call Energy Talking Points, we advise something like at this point over 200 major offices. Last year I probably advised 75-plus major politicians. So, I talk to a lot of people to various degrees, and again, I don’t do anything for them except offer them messaging and policy—but I think we do quite a good job with that and I think that’s why they listen. Or, sometimes they listen; definitely not always.

CNN Reporter

What have you learned since you’ve entered the space of politicians who shape policy?

Alex Epstein

From my perspective, as somebody who considers himself more pro-freedom than both major political parties, I’ve been surprised at how open people are to more radical ideas if those ideas are explained in detail and have accompanying persuasive arguments.

One thing I try to do when I advise people is give them solutions, not just vague advice. So if I’m giving policy, give very specific guidance, give guidance on how to talk about it. And this is also true about messaging.

For example, one thing you saw—this is not me revealing anything because it was public—both Ron DeSantis and Vivek Ramaswamy, I can send you an article I wrote about this, but they talked about, you know, the 98% decline in climate-related disaster deaths. So this was at least mentioned by DeSantis in his energy speech in Midland, and Vivek mentioned it many, many times, sometimes mentioning my name and my book, Fossil Future.

And I think this is a really important point for people to understand: that empirically, we’re safer than ever from climate disasters. And I think people should think about why that is and what the implications are for the future.

I was impressed that leading politicians are willing to talk about that. And my experience with people like that is they’ll ask for references. At least some of them. And I was happy to see that the media felt the need to respond.

So we saw—I’ll send you this article—but we saw Reuters responded to it, the New York Times responded to it, PolitiFact responded to it. And none of them could answer the basic fact—they tried to sort of explain their way around it—but none of them refuted the basic fact. And I just thought, okay, I like that people are willing to say and do more pro-freedom and more principled things if somebody really helps them with the details. That was my hope when I started getting into politics and I am seeing that bear out to a significant extent.

CNN Reporter

Have you changed your approach over the years as you’ve watched the public react to your talking points?

Alex Epstein

I’ve been working on these issues for 17 years, so a lot of this stuff, I test it out in different kinds of ways—which is not the same, I mean, I’m not running millions of dollars worth of polls and stuff. But I test it out in front of different audiences. I see how people respond on social media.

I think people are open to a lot, so my own interest is what’s right and do the best job you can of persuading people of it. And there’ll be plenty of people who try to compromise that and dampen it. I don’t need to be the one to do it. I just try to make sure for everything I say, I can make, I think, a case that would persuade a reasonable person who was inclined to disagree with me but wasn’t dead-set on disagreeing with me.

If I have trouble doing that and I think the thing is right, then I try to get better at arguing for it. I don’t just give up. And just as a personal policy, I don’t ever advocate anything I don’t agree with, and I will never help a politician with something I don’t agree with. So for example, as I said, I’m not partisan, but if Republicans want to pass an import carbon tax, I will definitely not help them with that and I’ll publicly argue against them.

CNN Reporter

I noticed Elon Musk receiving some pushback from surprised conservatives, when he posted that the best way to address climate change is with a carbon tax.

Alex Epstein

Well, that’s been his position for a long time. I don’t think it really makes any sense. But what’s interesting I think about him—and I don’t actually attribute this to him taking over Twitter—he has dramatically moderated his hostility toward fossil fuels and his belief in climate catastrophe.

So he has some hostility now, and to some extent, his very rosy claims about solar and batteries, although those have been moderated the least; maybe there are commercial reasons for that. But he’s kind of, you know, if you look at when the Powerwall came out, he’s just like—and this is almost a direct quote—“burning fossil fuels and putting stuff into the atmosphere is the worst idea ever” and “the planet is on fire.” That’s what it looks like.

And it’s just kind of—and then we have this Powerwall and a million things he said about the Powerwall that didn’t come remotely true and would obviously not come remotely true if one knew anything at the time. But now his position [on climate] is sort of, “Yeah, you know, it’s not going to be a problem for a while, but it may be a problem eventually.” And he loves to say, “If I could push a button and get rid of oil and gas, I wouldn’t push the button, and in fact, we need more oil and gas in the US, short-term.”

So he’s become more moderated.

But yeah, carbon tax, that’s a standard thing that a lot of people believe in, so anyone who’s surprised with that just hasn’t followed him at all. And he’s not actually—whatever one thinks of the change in his views—he’s not like a standard conservative. He never was a standard liberal or a standard conservative, I don’t think.

CNN Reporter

Thank you for your time.

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Who owns Canada’s public debt?

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The Audit David Clinton's avatar David Clinton

Remember when thinking about our debt crisis was just scary?

During his recent election campaign, Mark Carney announced plans to add $225 billion (with a “b”) to federal debt over the next four years. That, to put it mildly, is a consequential number. I thought it would be useful to put it into context, both in terms of our existing debt, and of some social and political changes those plans could spark.

How much money does Canada currently owe? According to Statistics Canada’s statement of government operations and balance sheet, as of Q4 2024, that number would be nearly $954 billion. That’s compared with the $621 billion we owed back in 2015.

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How much does interest on our current debt cost us each year? The official Budget 2024 document predicted that we’d pay around $51 billion each year to just service our debt. But that’s before piling on the new $225 billion.

We – and the governments we elect – might be tempted to imagine that the cash behind public loans just magically appears out of thin air. In fact, most Canadian government debt is financed through debt securities such as marketable bonds, treasury bills, and foreign currency debt instruments. And those bonds and bills are owned by buyers.

Who are those buyers? Many of them are probably Canadian banks and other financial institutions. But as of February 2025, according to Statistics Canada, it was international portfolio investors who owned $527 billion of Canadian federal government debt securities.

Most of those foreign investors are probably from (relatively) friendly countries like the U.S. and U.K. But that’s certainly not the whole story. Although I couldn’t find direct data breaking down the details, there are some broadly related investment income numbers that might be helpful.

Specifically, all foreign investments into both public and private entities in Canada in 2024 amounted to $219 billion dollars. In that same year, investments from “all other countries” totaled $51 billion. What Statistics Canada means by “all other countries” covers all countries besides the US, UK, EU, Japan, and the 38 OECD nations.

The elephant in the “all other countries” room has to be China.

So let’s break this down. The $527 billion foreign-owned investment debt I mentioned earlier represents around 55 percent of our total debt.¹ And if the “all other countries” ratio in general foreign investments holds true² for federal public debt, then it’s realistic to assume that the federal government currently owes around 11 percent of its debt to government and business entities associated with the Chinese Communist Party.

By all accounts, an 11 percent share in a government’s debt counts as leverage. Given China’s recent history, our ability to act independently in international and even domestic affairs could be compromised. But it could also be destabilizing, exposing us to risk if China’s economy faces turmoil which could disrupt our ability to roll over debt or secure new financing.

Mark Carney’s plan to add another 20 percent to our debt over the next four years will only increase our exposure to these – and many more – risks. Canadian voters have made an interesting choice.

“Democracy is the theory that the common people know what they want, and deserve to get it good and hard.” – H.L. Mencken

1 Although I should note that, according to the government’s 2022-2023 Debt Management Report, “in 2022-23, non-resident investors held 29 per cent of Government of Canada securities”.
2 To be honest, there really isn’t enough data available to be confident in this assumption

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BUILD CANADA NOW: An Open Letter to the Prime Minister of Canada from Energy Leaders

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From EnergyNow.Ca

We can strengthen economic sovereignty and resilience: Unlock private-sector investment, responsibly develop our world-class natural resources, support climate action

The Rt. Hon. Mark Carney, PC, MP
Prime Minister of Canada

Dear Prime Minister Carney,

On behalf of Canada’s leading energy companies, please accept our congratulations on your election victory and appointment as Canada’s new Prime Minister.

This moment marks not only the first chapter for your government, but also a vital opportunity for our nation to come together around shared goals and build the trust necessary to get big things done. Together we can Build Canada Now and strengthen economic sovereignty and resilience, by unlocking private sector investment, through responsibly developing Canada’s world class natural resources and supporting climate action to reduce emissions. As business leaders in Canada, we look forward to working constructively with you and your cabinet to achieve our energy sector’s potential and our shared goal to position our country as a global energy superpower.

For context, global prosperity will continue to rely on oil and natural gas for decades to come. Regardless of whether absolute global demand will grow or weaken over time, the natural decline of oil and natural gas production requires ongoing investment to replace that decline. Without continued investment, global supply could fall by more than half within 10 years—the question is, in what producing countries will investment occur, and the economic benefits realized? With abundant resources, a strong commitment to environmental stewardship and responsible energy production, it should be Canada, and it should be now. Canada can be a global energy leader and secure long-term economic prosperity.

We have reviewed your platform for governing Canada, particularly your ambition of building the fastest growing economy in the G7. As a major contributor to the Canadian economy, with significant untapped potential, the energy sector must play a pivotal role in your pursuit of this ambition. Growth in the Canadian oil and natural gas sector supports GDP growth, job creation, and tax revenue. Your focus on fostering energy independence and enhancing Canada’s energy infrastructure and clean technology, requires major sector investment and globally competitive energy and carbon policies. Over the last decade, the layering and complexity of energy policies has resulted in a lack of investor confidence and consequently, a barrier to investment – especially when compared to the United States, which is taking steps to simplify its permitting process.

In March, a subset of us wrote to you and the other federal leaders, outlining an urgent action plan needed to support ongoing and future investment from the energy sector in Canada. We note that many of these issues were talked about in your campaign and are of growing interest for Canadians as is evidenced by recent polling. The bullets below reflect our earlier action plan. Beneath each statement we have described opportunities to work together to deliver on our shared objectives.

  • Simplify regulation. The federal government’s Impact Assessment Act and West Coast tanker ban are impeding development and need to be overhauled and simplified. Regulatory processes need to be streamlined, and decisions need to withstand judicial challenges.”
    • Current regulatory processes are complex, unpredictable, subjective, and excessively long. These processes inhibit the ability of industry to make timely investments, add unnecessary costs and create uncertainty within capital markets. Aligned with your proposal to streamline the approval process, industry is committed to working with your government to ensure Canada can grow exports of oil and natural gas to other regions.
  • Commit to firm deadlines for project approvals. The federal government needs to reduce regulatory timelines so that major projects are approved within 6 months of application.”
    • Your proposal to have all federal regulatory authorities complete reviews of nationally significant projects within a two-year timeframe is a positive step, but insufficient. In our opinion, two years is still too long of a period for review and we must target a 6-month approval process to bring capital back to Canada. Additional clarity with regards to provincial jurisdiction is required. We believe that we can work together to accelerate this even further to accomplish urgent economic growth, while maintaining environmental standards and addressing Indigenous rights.
  • Grow production. The federal government’s unlegislated cap on emissions must be eliminated to allow the sector to reach its full potential.”
    • We continue to believe the federal government’s cap on emissions creates uncertainty, is redundant, will limit growth and unnecessarily result in production cuts, and stifle infrastructure investments. Together, we can drive investment into emissions reductions by simplifying the regulatory regime, establishing an attractive fiscal environment, and ensuring carbon policies protect our export industries.
  • Attract investment. The federal carbon levy on large emitters is not globally cost competitive and should be repealed to allow provincial governments to set more suitable carbon regulations.”
    • Recognizing the global nature of oil and natural gas, industry needs clear, competitive, and durable fiscal frameworks, including carbon policy and associated costs, sufficient to secure the required capital and incentivize investment in the sector. The current federal price and stringency trajectory results in uncompetitive costs compared to those we compete with to deliver our products to market.  Additionally, the potential benefits of a federal approach, like consistency across jurisdictions and connected carbon markets, has failed to materialize.  A solution is to revert back to the functioning system where provinces administer the policies and pricing to enable emissions-reduction investments, improve emissions performance, and maintain competitiveness.
  • Incent Indigenous co-investment opportunities. The federal government needs to provide Indigenous loan guarantees at scale so industry may create infrastructure ownership opportunities to increase prosperity for communities and to ensure that Indigenous communities benefit from development.”
    • Your intention of doubling Indigenous Loan Guarantee Program to $10 billion to support infrastructure ownership opportunities and increase prosperity for communities is aligned with our earlier recommendation. That being said, Indigenous loan guarantee programs are only effective if Canada fosters a competitive investment environment. We look forward to working with you on this initiative to grow the prosperity of Indigenous communities and earn their support for our shared ambitions.

The time is now to take action, signaling to the global investment markets that Canada is ready to move forward with achieving our shared vision of Canada as a leading global energy superpower.

We know the decisions in the coming months will have a lasting impact on Canada’s economic sovereignty, economy and global position, and that each of us—governments, industry, and Canadians—has a role to play. We can’t do it without each other.

The energy industry looks forward to working together, with you and your government, on an urgent basis, for the benefit of this country and Canadians nationwide.

Regards,

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