AI Could Make Big Oil Even Bigger
AI is changing energy systems, but data centers are only a small part of the impact. Much has been written and said about how the data center and AI boom are consuming and will consume increasingly higher shares of global electricity demand, and grids are struggling to meet soaring demand. Fossil Fuel Gains Could Outweigh Emissions Cuts from Renewables Arguably, a fundamental change in the energy…
A new paper published in npj Climate Action highlights how AI-driven productivity gains in fossil fuels could potentially outweigh the emissions reductions achieved through AI tools in the renewable energy sector. Despite the concern that AI-enabled efficiency in renewables could offset the growth in emissions from fossil fuels, the study suggests that AI could reinforce the incumbency of fossil fuel companies.
Energy companies, including major oil and gas firms, are already utilizing AI-enabled tools in their operations, and this trend is expected to grow, potentially unlocking nearly $500 billion in additional value for exploration and production companies between 2026 and 2030. While some barriers to widespread AI adoption in the upstream sector remain, the paper asserts that AI's analytical power complements but does not replace the irreplaceable subsurface expertise of energy professionals.
Notable companies such as ExxonMobil and Chevron have already started employing AI technology in their exploration efforts to identify new drilling opportunities, with the potential for substantial oil discoveries in regions like the Stabroek Block off the coast of Guyana.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
