Mark Avallone, president and founder of Potomac Wealth Advisors, elaborates on how investors expect artificial intelligence to boost corporate returns.
With the growth of artificial intelligence, which requires large amounts of electricity, global energy demand is predicted to skyrocket in the coming years.
The Wall Street Journal reported that big tech companies’ “obsession” with finding enough energy to power the AI boom was a hot topic at S&P Global’s CERA Week last month.
Wednesday, March 27, 2024, IAD71 Amazon Web Services data center in Ashburn, Virginia, USA. Amazon.com Inc. plans to spend nearly $150 billion on data centers over the next 15 years, giving the cloud computing giant more firepower. process e (Getty Images)
The U.S. power grid needs a major boost to power the nation’s proliferating data centers, and despite a push for renewable energy, wind and solar energy sources can’t keep up with demand. There is growing skepticism about whether this is the case. Now, traditional fossil fuels are being revisited.
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The Financial Times reported this week that producers believe the AI revolution will usher in a “golden age for natural gas,” with one executive telling the magazine: “Gas is a cost-effective solution that can be delivered 24/7, 365 days a year. It’s the only way to generate energy.” It’s the trusted force big tech companies need to power the AI boom. ”
A natural gas production facility located at the Ballona Wetlands in Playa del Rey, Los Angeles, California. (Citizen of the Planet/Universal Images Group via Getty Images/Getty Images)
But what if AI could help us find more energy to power ourselves?
Energy market analyst Phil Flynn said: FOX business Contributors say AI will have a major impact on the U.S. oil and gas industry, not only by making oil discovery more efficient, but also by helping produce in a cleaner way.
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“Artificial intelligence should take much of the guesswork out of field mapping and allow us to pinpoint drilling areas that will yield the most oil with the least carbon footprint,” Flynn said. Ta.
A crude oil pumpjack in the Permian Basin, Loving County, Texas, USA, November 22, 2019. (Reuters/Angus Mordaunt/File Photo/Reuters Photo)
He noted that there is even talk of using nuclear reactors to support power-generating drilling operations, which could significantly reduce greenhouse gas emissions from oil and natural gas production.
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“There are many ways AI can improve U.S. oil and gas efficiency,” Flynn reiterated. “The U.S. oil and gas industry is already using large-scale computer programs to map underground reservoirs. [which] Artificial intelligence can be improved. Of course, more efficient methods of drilling could also be improved. ”
