30/09/2024 by OilStoreAdministrator
Mike Wirth, the CEO of oil major Chevron, has said that the proliferation of AI (artificial intelligence) will drive an increasing demand for electricity in the coming year.
Wirth was delivering a keynote address in Houston to open the yearly Gastech conference when he said:
“Natural gas will help power the rapid growth of artificial intelligence with its insatiable demand for reliable electricity. [This] means AI’s advance will depend not only on the design labs of Silicon Valley, but also on the gas fields of the Permian Basin.”
Chevron, which makes the Texaco lubricant and grease range, has substantial oil and gas production assets in the Permian Basin. Other midstream and upstream shale operators have also pointed out data centres as a likely source of demand for gas-fired power generation.
For example, Toby Rice, the CEO of EQT, previously identified them as being a more stable and promising source of natural gas demand than exports of liquefied natural gas (LNG). In addition, S&P Global Commodity Insights analysts have estimated that the demand for electricity from large industries, including data centres, in the lower 48 US states could rise from 800 GW in 2023 to 870 GW in 2024.
A gigawatt of demand would require approximately a million metric tons of LNG each year to fuel gas-fired generators, although some of this extra demand may be met from renewable sources. Some analysts also point out, however, that demand growth may be less than anticipated, especially if innovations result in data centres becoming more energy efficient.
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