The entire industry is being transformed by the advancement of artificial intelligence (AI), both jobs and the way we live. What doesn’t go unnoticed by those studying this technology is how much this entire digital revolution requires immense amounts of energy. Mike Wirth, CEO of Chevron, one of the world’s largest energy companies, raised a debate about how the race for AI is not only accelerating innovation but also putting pressure on energy systems around the world.
The AI R-race and the burden on energy demand
Today, AI has gone from being a laboratory tool to becoming an essential part of everyday life. Features like voice recognition on cell phones, or language models that process billions of interactions per second, all require large data centers to support such demand. Places like these are like computer cities, requiring constant cooling and an uninterrupted power supply.
According to the agenda raised by Chevron’s CEO, this exponential growth in the use of AI is already one of the factors driving energy consumption in recent years. Technology like this uses cables, turbines, generators, and fuels that consume a lot of energy. In this scenario, Chevron believes it is still impossible to abandon fossil fuels — which account for 80% of the world’s energy — to provide the energy needed for AI.
Between innovation and reality
Mike Wirth argues that, although many expect a rapid replacement by renewable sources, the scenario is not so simple. Despite advances in clean energy — such as green hydrogen and carbon capture — some of the solutions derived from this type of energy are not yet ready to support high global demand. The CEO further argues that, to invest in new technologies without abandoning traditional sources, it will be necessary to ensure things like domestic electricity, functioning transportation, and active AI servers.
US at the center of energy strategy
Also within the Chevron CEO’s speech, the businessman is betting on the United States as a forerunner of the global energy transition. His company has considerably increased domestic investments, which already amount to twice as much as international projects spent in the United States. In 2024 alone, approximately US$10 billion was invested in operations in the country, an unprecedented milestone in the company’s history.
The acquisition of Hess Corporation is one demonstration of this investment, which was approximately US$53 billion, expanding Chevron’s presence in the Gulf of Mexico and the Permian Basin. Some unprecedented projects, such as a green hydrogen storage facility in Utah, demonstrate that the United States is seeking to lead both in oil and emerging energy.
Despite this, the United States still faces barriers. The main ones are bureaucracy and delays in regulatory processes, which ultimately hinder the construction of new power plants and the entire infrastructure for new forms of energy. The country is one of the best placed to lead the energy revolution, but its own legislation ends up holding it back.
Energy and social inclusion
The oil and gas sector has numerous environmental impacts, making it essential for the energy transition to be undertaken responsibly. Initially, it is believed that a coexistence of different energy sources, such as coal, oil, gas, solar, wind, and nuclear energy, is necessary for adaptation. Global history proves that humanity has never abandoned an energy source, but rather added new options to its portfolio.
The speech involving Chevron’s CEO makes it clear that there is no problem with innovation, but that attention and care are needed in the energy transition. AI is changing the future, and this requires energy to change as well, and ignoring this need could ultimately lead to energy supply crises. For Wirth, the challenge is to balance sustainability, social inclusion, and economic pragmatism.