At Enverus, we weren’t surprised when the world recently woke up to something many did not expect – record energy production across every source and, above all, record growth in electricity demand projections. Nothing has grabbed headlines related to future energy demand as the data center buildouts necessary to power artificial intelligence technology. The novelty of AI products such as ChatGPT help drive this news story but make no mistake – though it may appear a little slower than some expect, the future energy demand from this exploding use of cloud computing is very real.
Also real is the fact that the world consumption of oil, natural gas, and even coal – the world’s most carbon intense fuel – are at all-time highs. New energy sources such as wind and solar are growing rapidly, but traditional sources remain more than 90% of world supply and continue to grow – not decline. By 2030, the global population will have grown by half a billion people, GDP will have grown by 25%, and at the same time we see an acceleration in urbanization. Oil demand will have increased by 6 million barrels per day, equivalent to what Texas’ prolific Permian basin now produces. Natural gas demand will have increased by just over 40 billion cubic feet per day, or three times what the Haynesville in East Texas produces today.
As people in the developing world improve their quality of life, most of them will keep moving to cities, increasing global power demand by about 6,000 terawatt hours per year. To put that into perspective, it’s as much electricity as Canada, the U.S. and Mexico use today combined. By 2050, U.S. electricity demand itself will grow by about 40% more than we now use; data center load growth alone will add 150 gigawatts over that period. How much is that? Almost three times what is produced by the U.S. nuclear reactor fleet – the largest in the world.
As the CEO of the most trusted energy-dedicated SaaS company, I feel obligated to address the challenge we now face as we look down the road at the world’s future energy supply.
If we fail to act, we risk facing a multifaceted energy crisis characterized by increased emissions, widening global income disparities and heightened geopolitical tensions. So, how can we collaborate to ensure a sustainable future for the coming generations?
As an industry, we need greater investments in our energy systems to enable a practical, reliable and affordable expansion that supports both traditional and renewable energy sources. Government policy must foster a market that rewards energy security, efficiency and transparency for both producers, developers and consumers. Additionally, technological advancements must accelerate at a rate, at minimum, on par with the demands for economic growth and higher standards of living.
We know that we cannot do it alone. That’s why we collaborate so closely with thousands of our customers and strive to implement new technology as fast as we can. We also work to push the limits of innovation together with tech-leaders like Amazon Web Services, a standout leader in the commercialization of AI technology.
In the end, technology – something our grandparents called “know how” – is what we’ve used to improve things, including our energy supplies. AI is the most important technology we’ve ever created, because more than any other innovation, it will help us to use and develop even more technologies faster than ever. Think of artificial intelligence as “artificial know how.” It helps make the picture clear. It will also help us reduce the environmental impacts and improve the economics of traditional energy sources such as oil and gas. AI will certainly play a role in assisting the ongoing global revival of nuclear energy, too.
The challenges of solving for energy, the economy and the environment are significant, but our tools are also getting better every day – these days, dramatically so. At Enverus, we count ourselves incredibly lucky and fulfilled to be creating the technologies that will help our customers power the global quality of life as they and our employees create the future of energy together. Enverus remains committed to delivering innovative technology and driving intelligent connections. We are not just adapting to a new era for the energy sector; we are defining it by considering and shaping its future for our planet and the people that live on it.
