"The Right Way For Trump To Ditch The Paris Agreement" With Dr. Steven Koonin, Stanford University’s Hoover Institution

Today we were thrilled to visit with Dr. Steven Koonin, Senior Fellow at Stanford University’s Hoover Institution, for the final COBT episode of 2024. Dr. Koonin joined the Hoover Institution this year following 12 years at NYU, serving as a professor in the Schools of Business, Engineering, and Physics. Before his tenure at NYU, Dr. Koonin served as the Under Secretary for Science at the U.S. Department of Energy in the Obama Administration. Our discussion was particularly timely as Dr. Koonin recently authored an Op-Ed in the Wall Street Journal entitled “The Right Way for Trump to Ditch the Paris Agreement” (linked here). Dr. Koonin is also the author of “Unsettled: What Climate Science Tells Us, What It Doesn’t, And Why It Matters.” Today marks Dr. Koonin’s third appearance on COBT (previous episodes include April 20, 2022 linked here and May 17, 2021 linked here). It was fantastic to hear Dr. Koonin’s perspective on energy, climate, and the future as we close out 2024 and look ahead to 2025. As you will hear, he has lots of great thoughts about a broad range of things! In our conversation, we explore the need for a global course correction in energy and climate policy, the opportunities and challenges of having more business-minded individuals in government, the disconnect between the scientific community and public policy, and the importance of transparency and effective communication by government leaders to explain energy and climate policy issues more clearly to the public. We discuss key points from Dr. Koonin’s Op-Ed, including his proposed actions for the Trump Administration if they were to withdraw the US from the Paris Agreement, the implications of Europe’s energy strategies and their lasting consequences, and Dr. Koonin’s suggestions to restructure the Loan Programs Office to prioritize research and development of scalable, economically viable technologies. Dr. Koonin shares his observations on fusion energy as a potentially transformative energy source and the opportunities and challenges involved, talks about intriguing advances in energy storage, and touches on other technological innovations including underground coal gasification with carbon sequestration. We also cover the US’s role in setting an example for energy policy and improving global energy access, Dr. Koonin’s outlook for 2025, and more. It was a wide-ranging and insightful discussion. Thank you Dr. Koonin for joining! Mike Bradley kicked off the show by highlighting the performance of a handful of commodity and equity prices since Dr. Koonin last appeared on COBT (4/19/22). The 10-year bond yield (~4.4%) surged last week, sending it back to previous Trump post-election highs. It’s consensus that the FED will cut interest rates by a quarter point at Wednesday’s FOMC Rate Decision meeting, but what’s not consensus and what bonds are trying to handicap, is the path forward for interest rates in 2025. On the broader equity market front, markets took a bit of a breather last week and are mixed/modestly lower this week given that investors are laser-focused on the FOMC Meeting, especially Chairman Powell’s Post Conference dialogue on future interest rate policy. On the crude oil market front, WTI rallied ~$4/bbl (to ~$71/bbl) last week but continues to trade in a very tight trading band (~$68-$71/bbl) given that fundamentals still seem to point to a 2025 global supply surplus. On the gas market front, although the news came out after our COBT recording, the DOE’s long-waited “Updated Final Analyses on LNG Exports” was released. The analysis stopp