In the current era, where the global energy landscape is constantly evolving and technological waves are surging, the “Cambridge Energy Week” international conference has become an important window to observe the cutting-edge trends and developments in the energy field. At this year’s “Cambridge Energy Week,” which concluded on March 14 in Houston, natural gas and artificial intelligence (AI) were spotlighted as two key topics, sparking widespread attention and in-depth discussions within and outside the industry.
Natural Gas: The Growth Engine of Today and a Key Energy for the Future
US Secretary of Energy, Chris Wright, gave a speech at the conference, clearly stating that natural gas has been the fastest-growing energy source over the past 15 years. It now accounts for 25% of global primary energy supply and has become a key focus for the rapidly developing petrochemical industry. This data directly highlights the significant role natural gas plays in the current global energy system.
Experts at the conference analyzed in depth, stating that aside from energy security considerations, the rise of artificial intelligence has driven the construction of data centers, which has become one of the biggest drivers of natural gas demand growth. From the perspective of energy demand characteristics of data centers, they require a stable, efficient, and relatively low-cost energy supply. Natural gas power generation has significant advantages in this regard. Compared with other energy sources, natural gas power generation is more flexible, making it better able to handle the fluctuating power demands of data centers. Furthermore, with continuous technological advancements, the efficiency of natural gas power generation has been improving, and emissions have been effectively controlled.
Many institutions have made predictions about the future demand for natural gas. S\&P Global predicts that global demand for liquefied natural gas (LNG) will increase by 40% over the next five years. This forecast is grounded in solid market support. On the one hand, the rapid development of emerging economies has driven a continuous rise in energy demand. Natural gas, being a relatively clean and efficient energy source, has become the preferred choice for many countries in the energy transition process. For example, in some Asian countries, in order to meet the growing electricity demand and reduce carbon emissions, LNG receiving stations are being actively planned and constructed, and LNG imports are increasing. On the other hand, with the growing emphasis on environmental protection globally, many countries and regions have set strict carbon emission targets. This has provided natural gas with a broad market space to replace coal and other traditional high-pollution energy sources. In some European countries, the share of coal-fired power generation is being gradually reduced, while the share of natural gas power generation is being increased to optimize the energy structure and reduce carbon emissions.
Artificial Intelligence: A New Variable in Energy Demand and a New Engine for Industry Transformation
- AI Driving Energy Demand Growth
The rapid development of artificial intelligence has a profound impact on global energy demand. The CEO of the Abu Dhabi National Oil Company, Jaber, pointed out that AI application energy consumption is 10 times that of a regular search server and is growing exponentially. By 2030, the electricity demand of data centers in the US alone will double and account for over 10% of the country’s total electricity consumption.
Globally, the electricity consumption of data centers is growing rapidly. By 2024, data centers will account for approximately 1.5% of global electricity consumption, reaching around 415 terawatt-hours (TWh). The International Energy Agency (IEA) predicts that by 2030, the electricity demand of global data centers will more than double, reaching about 945 TWh, and by 2035, it is expected to rise to approximately 1200 TWh. - AI’s Diverse Applications in the Energy Sector
In the oil and gas exploration and development field, AI technology is deeply integrated into all stages. For example, Saudi Aramco has developed more than 420 AI-related applications. In the Jafurah shale gas project, AI has increased single-well production by more than 30%. Similarly, China National Petroleum Corporation, in collaboration with Huawei, developed an “intelligent drilling system” that improved reservoir drilling encounter rates to 85%, increasing single-well production by 30%.
In the power sector, AI plays an important role in power generation, grid scheduling, user energy conservation, and renewable energy utilization. AI helps optimize power generation efficiency, intelligently schedule electricity, reduce user electricity costs, and enhance the utilization of renewable energy. In the energy management field, AI enables real-time monitoring and accurate forecasting of energy production and consumption, optimizing resource allocation and improving efficiency.
Synergistic Development and Challenges of Natural Gas and AI
- Opportunities for Synergistic Development
Natural gas can provide stable electricity to data centers driven by AI. In turn, AI technology can help improve the efficiency of natural gas exploration, extraction, transportation, and utilization, driving intelligent management in the natural gas industry. The synergy between the two can optimize the energy structure, reduce carbon emissions, and promote the sustainable development of the energy industry. - Challenges Faced
The surge in electricity demand for data centers due to AI presents significant pressure on energy infrastructure, requiring upgrades and improvements to both power grids and natural gas supply facilities. The widespread application of AI in the energy industry faces challenges such as low digitalization rates, a shortage of interdisciplinary talent, and obstacles like lack of standardization in technology integration and long commercialization cycles. Moreover, data security and privacy protection in AI applications are pressing issues. If energy enterprise data is leaked, it could lead to significant losses. Furthermore, the carbon emissions generated by natural gas usage and data center operations must not be overlooked, and there is an urgent need to explore green and low-carbon development models.
The “Cambridge Energy Week” focused on natural gas and AI, which profoundly impacts the global energy sector. Although there is immense potential for synergistic development, numerous challenges remain. Collaborative efforts from all parties are required to address issues such as infrastructure development, technological innovation, data security, and environmental concerns, to create a clean, efficient, and secure energy future.
