🛢️ Opportunity of the Decade

My family has been in the upstream oil & gas business for three generations now. We’re not directly involved in the transport of oil, or the transmission of gas. We don’t refine crude or process liquids. We don’t run a natural-gas-fired power plant.

But we do live in the same energy-guzzling world as everyone else.

And let me tell you, the energy demand numbers I'm about to share are simply wild.

We're not just talking about a slight uptick in energy use…

By 2027, the electricity consumed by AI could surpass the total energy use of entire nations.

A single AI model

Can drain as much juice as 130 American homes use in a year. Microsoft's carbon footprint has ballooned by 30% since 2020 due to AI, and Google's emissions have skyrocketed 50% since 2019.

This kind of growth isn’t something that can be covered by current energy production; it's going to require new power plants everywhere.

By 2026

AI will be chowing down on over 40% of the power in data centers. Almost half of our available electricity — just to keep AI humming.

And by 2027, AI might be responsible for 0.5% of the world's electricity - that's more than some countries use.

But here's the deal - AI doesn't take breaks. It needs power non-stop, every single day. When the sun's not shining or the wind's not blowing, AI's still demanding energy.

From 8 TWh to 52 TWh in just two years - that's the growth curve. A 550% increase in AI's power appetite by 2026, like adding five Chicagos to our grid in one go.

This isn't just about servers for LLMs

Our whole modern life runs on energy — yours and mine.

No natural gas, no fertilizers — no food.

Your gadgets? Made from oil.

And those deliveries you love? Powered by diesel.

Americans burn through 3 gallons of oil products every day.

Here's my take on why American energy's where the smart money is:

Energy isn't just about keeping our devices on; it's about powering our future. It's the backbone of our tech-driven world.

Oil and gas? They're not just resources; they're cash cows. With AI's endless need for power, we're looking at what might be the energy industry's biggest opportunity of the decade.

Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

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