AI impact on energy markets

Key takeaways:

– Technological advances have always been a major driver of energy transitions and transformations. Today, the same can be said of digital technologies particularly AI.

– To date, AI has been a marginal consumer of energy compared to other sectors and industries. However, its exponential growth will potentially put pressure on sources of energy supplies and carbon emissions.

– AI is not benefiting only green energy. Its impact has been notable on oil and gas operations making them more efficient and safer while improving their carbon footprint.

– While most people talk about the disruptive power of green energy technologies, shale has had a much more powerful impact as it has drastically global oil and gas trade, over a relatively short period.

– OPEC has been bullish on oil demand this year, yet weaker demand from China, growth of US shale supply, and the lack of compliance of key OPEC members is putting downward pressure on prices.