On December 12, Financial Associated Press reported (Editor: Xiaoxiang) that the two major energy giants in the USA— $Chevron (CVX.US)$ and $Exxon Mobil (XOM.US)$ executives stated on Wednesday that they are considering entering the Electrical Utilities industry and discussing the use of Henry Hub Natural Gas and carbon capture technology to provide power for AI Datacenters in the Technology sector.

Jeff Gustavson, President of Chevron New Energy, revealed in an interview at an Industry conference that Chevron has been in negotiations for over a year regarding providing Henry Hub Natural Gas power generation and carbon capture technology to Datacenters.

Before Gustavson made the above remarks, Exxon Mobil also announced similar news on Wednesday—the company stated that it is working to provide low-carbon electricity for Datacenters by combining carbon capture technology with natural gas power plants by the end of this decade (before 2030).

Gustavson stated that the company is studying this issue, and Chevron's experience in supplying Henry Hub Natural Gas and operating gas-fired power plants enables it to effectively meet the booming power demands of Datacenters.

This aligns with many of our capabilities—Henry Hub Natural Gas, construction, operation, and providing low-carbon power to customers through CCUS (Carbon Capture, Utilization, and Storage), geothermal, and other technologies,” said Gustavson.

Business expansion

The American Oil Company previously only produced power for its own operations. However, during the current surge in demand, they are attempting to enter a broader electricity market.

With the rise of AI, many American Technology giants are currently investing in AI infrastructure. According to data compiled by the media, $Alphabet-A (GOOGL.US)$ 、$Microsoft (MSFT.US)$、$Amazon (AMZN.US)$and$Meta Platforms (META.US)$It is estimated that over 200 billion USD will be invested next year, most of which will be used for the construction of Datacenters.

The latest December Short-Term Energy Outlook report released this week by the USA Energy Information Administration (EIA) shows that in 2024 and 2025, American Electric Power consumption is expected to set new historical records. The EIA expects total electricity consumption in the USA to increase to 4,086 billion kilowatt-hours this year and further increase to 4,165 billion kilowatt-hours next year. Consumption in both 2024 and 2025 will exceed the previous record of 4,067 billion kilowatt-hours in 2022.

The urgent demand for electrical power has prompted the USA Electrical Utilities Industry to invest in new Henry Hub Natural Gas infrastructure and pushed fossil fuel power plants to delay retirement.

At the same time, this urgent demand has even led some large Technology companies to retract commitments focused on combating climate change. These companies had previously requested their energy-intensive AI Datacenters to use only renewable Energy sources such as Wind Energy and CECEP Solar Energy.

编辑/jayden