Amazon Web Services AI datacentre in New Carlisle, Indiana
The AI industry’s coming dominance of oil and gas
Tech giants rather than oil majors could soon upend hydrocarbon markets, starting with North America
The leading AI firms plan to spend more than $600b in 2026 as they rush to open datacentres. Speed is everything. Price is no object. Many of the new projects will not be connected to the power grid but will rely on on-site electricity generation, and some 75% of the new facilities will use gas for this. The current forecasts for US gas demand do not account for this recent development. The surge in AI demand could push gas and perhaps diesel and jet fuel prices to new highs. Electric utilities and consumers will likely complain about the increases. US LNG exports will fall as supplies become uncompetitive with gas from countries such as Qatar and Australia, and liquefaction plants in the US
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
