Chevron CEO Michael Wirth recently criticized U.S. President Joe Biden’s administration for policies that he believes are detrimental to the natural gas industry, particularly as it relates to the growing energy needs of artificial intelligence (AI) and data centers. His remarks come in response to new government policies aimed at ensuring that AI’s energy consumption does not undermine the nation’s climate goals.
Wirth pointed out that AI’s rapid advancement, including its power-hungry data centers, will rely heavily on energy sources like natural gas, especially from the Permian Basin, one of the largest U.S. oil and gas fields. This region not only plays a crucial role in oil production but also accounts for about 15% of the nation’s natural gas output. The Permian’s low-carbon natural gas offers a cleaner alternative to coal, which remains a major contributor to greenhouse gas emissions.
The Chevron CEO’s comments highlight a key issue in the AI and data center development space: the growing demand for reliable, large-scale power. AI requires vast computational power, which directly translates into increased energy consumption. As data centers expand to accommodate AI’s growth, their energy footprint also grows, and it is becoming increasingly clear that renewable energy sources alone may not be able to meet these escalating demands. Natural gas, as Wirth emphasized, provides a crucial bridge in meeting these energy needs while keeping emissions lower than those associated with coal.
Data centers, the backbone of AI infrastructure, are notorious for their massive energy consumption. According to some estimates, data centers already account for 1% of the world’s electricity consumption, and this figure is expected to rise dramatically as AI applications scale up. The complexity of training large AI models and the need for real-time processing requires enormous amounts of computing power, much of which is housed in energy-intensive data centers. This reality makes natural gas a vital component of the energy mix to support AI’s growth.
Wirth also pushed back against the Biden administration’s decision to pause approvals for liquefied natural gas (LNG) exports, arguing that this policy could lead to increased energy costs and hinder the energy transition by slowing down the shift from coal to cleaner alternatives like natural gas. He cited data from the International Energy Agency (IEA), which indicates that over a third of global greenhouse gas emissions in 2022 were caused by coal combustion. The switch from coal to natural gas, Wirth suggested, could represent one of the most impactful carbon reduction strategies globally, especially as AI and other industries increase their energy demand.
From an industry perspective, natural gas is seen as a flexible and scalable solution. Unlike renewable energy sources such as solar and wind, which are intermittent and dependent on weather conditions, natural gas offers a stable and predictable power supply. This makes it an ideal partner for powering data centers, which need continuous and reliable energy to function without interruption.
Wirth outlined three key pillars for ensuring a balanced energy future: political support for natural gas as part of a low-carbon solution, recognition of technological advancements in cleaner gas production, and collaboration between industries and governments to innovate for the energy transition. He emphasized that the energy transition must be balanced with realistic energy needs, especially with AI technologies requiring unprecedented levels of power.
Looking ahead, the role of natural gas in supporting AI’s expansion and broader data infrastructure will be essential. Without it, the shift to renewables may not be sufficient to meet the demands of this growing sector, potentially leading to energy shortfalls or increased reliance on dirtier sources like coal. The energy debate, particularly around natural gas, will continue to shape discussions about AI and data center development in the near future, as balancing technological progress with environmental responsibility remains a central challenge for policymakers and industry leaders alike.
