- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Big Oil eyes powering Big Tech's data center demand
Posted on 12/15/24 at 11:40 am
Posted on 12/15/24 at 11:40 am
quote:
NEW YORK, Dec 10 (Reuters) - Chevron Corp (CVX.N) and Exxon Mobil (XOM.N) are considering entering the electricity business, with the U.S. oil majors working on deals to use natural gas and carbon capture to power the technology industry's AI data centers, executives with the companies said separately on Wednesday.
Chevron has been in talks for more than a year about supplying natural gas-fired power, coupled with carbon capture technologies, to data centers, Jeff Gustavson, president of Chevron New Energies, said in an interview at the Reuters NEXT conference in New York.
Gustavson's comments follow a similar announcement by Exxon Mobil on Wednesday, which said it was working to provide data centers with low-carbon electricity by coupling carbon-capture with natural gas-fired power plants by the end of the decade.
quote:
The oil companies, which typically only produce electricity for their own operations, would enter the broader power market at a time of surging demand.
Growth in technologies like generative artificial intelligence is expected to propel U.S. electricity demand to hit record highs in 2025 after remaining flat for roughly two decades.
The urgent need for power has prompted the U.S. power industry to invest in new natural gas infrastructure and push for the delayed retirement of fossil-fuel power plants.
That rush for electricity has also led some big technology companies to walk back climate-focused pledges, which previously required the use of only renewable sources like wind and solar for their energy-intensive AI data centers.
LINK /
7
Posted on 12/15/24 at 11:42 am to ragincajun03
My company does this. What I think holds back big oil is that the Big AI data centers want to move fast as hell. Chevron takes 8 weeks to replace a nut on a wellhead because beaurocracy and safety. I don't think they can move fast enough for Tech. This industry is moving very fast. They will get fed up with big oil's barriers and move on to someone else.
This post was edited on 12/15/24 at 11:44 am
Posted on 12/15/24 at 11:44 am to Saunson69
I like this idea, though. Rather than allow these data centers to be a huge strain on the power grid infrastructure in the country, place them in places like the Permian, Haynesville and Marcellus where there's a shite ton of gas production and use that to fuel those complexes.
Posted on 12/15/24 at 11:47 am to ragincajun03
They aren't a strain on the grid. At least ones planned today, Most of these data centers have their own individual gas turbines associated just for them. The META one being built in NELA, Entergy is spending $3.2 billion in Capex on nat gas turbines just for the data centers. They aren't attached to the grid.
My company is attempting to build similar $ turbines just for data centers with CCS as well. Not tied to grid.
My company is attempting to build similar $ turbines just for data centers with CCS as well. Not tied to grid.
This post was edited on 12/15/24 at 11:49 am
Posted on 12/15/24 at 11:48 am to Saunson69
quote:
They aren't a strain on the grid. Most of these data centers have their own individual gas turbines associated just for them. The META one being built in NELA, Entergy is spending $3.2 billion in Capex on nat gas turbines just for the data centers. They are independent of the grid.
Interesting.
Thank you.
Posted on 12/15/24 at 11:50 am to ragincajun03
I'm unfamiliar with any power plants outside of industrial plants owned by oil and gas companies, utilities already have to buy the natural gas from them to run their plants, i wonder how much of an advantage it is for the oil and gas company to sell power generated by the natural gas vs natural gas alone
Posted on 12/15/24 at 11:51 am to ragincajun03
Virginia used to be the Mecca of data center land. That was until land cost per acre there is now $1,000,000/acre and the Power companies there take 7 years to get the power to them. That's why they are expanding to Louisiana, Mississippi is getting one. Way cheaper land, cheaper electricity, more nat gas, less state barriers, and the power companies can build these turbines and get them power faster than in Virginia.
I think Louisiana gets a lot of these because of the abundant nat gas, some want carbon capture sequestration with a carbon sink. Louisiana has great geology for carbon sinks, with reservoirs with Darcy permeability.
Most of the Inflation Reduction Act tax credits that aren't electrical vehicle, solar, or wind related benefit Louisiana. Especially the ones that are Hydrogen, Ammonia, Aviation Fuel, Carbon Sequestration because the nat gas abundance, permeability of rock here for CCS, deep water ports set up for it. The 45V IRA tax credit (Hydrogen & Ammonia). 45Q tax credit (carbon sequestration). 45Z tax credit (sustainable aviation fuel). Most of these announced projects are in South Louisiana. Some SETX.
I think Louisiana gets a lot of these because of the abundant nat gas, some want carbon capture sequestration with a carbon sink. Louisiana has great geology for carbon sinks, with reservoirs with Darcy permeability.
Most of the Inflation Reduction Act tax credits that aren't electrical vehicle, solar, or wind related benefit Louisiana. Especially the ones that are Hydrogen, Ammonia, Aviation Fuel, Carbon Sequestration because the nat gas abundance, permeability of rock here for CCS, deep water ports set up for it. The 45V IRA tax credit (Hydrogen & Ammonia). 45Q tax credit (carbon sequestration). 45Z tax credit (sustainable aviation fuel). Most of these announced projects are in South Louisiana. Some SETX.
This post was edited on 12/15/24 at 11:58 am
Posted on 12/15/24 at 11:52 am to Saunson69
quote:
will get fed up with big oil's barriers and move on to someone else.
What's the alternative?
Posted on 12/15/24 at 11:55 am to LSUBFA83
Entergy is building $3.2 Billion, 3 Nat Gas turbines for the META data center in NELA. Traditional power companies that have experience in building Nat Gas turbines.
Of course with this industry exploding, every company now including Chevron, wants in. Including company I work for.
Of course with this industry exploding, every company now including Chevron, wants in. Including company I work for.
This post was edited on 12/15/24 at 11:57 am
Posted on 12/15/24 at 12:00 pm to Saunson69
A lot of the companies building the IRA tax credit projects were initially concerned that Trump may get rid of the IRA thereby cancelling all of their projects.
However, a few studies were done to see what district/state to see these projects benefit, and 80% of them were in conservative districts/states. Something like 20 Congress conservative members have advocated for Trump not to cancel the IRA because it'd benefit their district. 20 GOP congress and all of Dem congress would make it hard for Trump to cancel.
Here's a map showing which states benefit: LINK Paywall here for Washington Post: LINK
He may cancel certain things like EV tax credits or such, but leave others.
Louisiana is a major beneficiary of the IRA tax credits.
However, a few studies were done to see what district/state to see these projects benefit, and 80% of them were in conservative districts/states. Something like 20 Congress conservative members have advocated for Trump not to cancel the IRA because it'd benefit their district. 20 GOP congress and all of Dem congress would make it hard for Trump to cancel.
Here's a map showing which states benefit: LINK Paywall here for Washington Post: LINK
He may cancel certain things like EV tax credits or such, but leave others.
Louisiana is a major beneficiary of the IRA tax credits.
This post was edited on 12/15/24 at 12:12 pm
Posted on 12/15/24 at 12:03 pm to Saunson69
quote:
Louisiana has great geology for carbon sinks, with reservoirs with Darcy permeability.
Also easy, centralized customers needing to have their emissions sequestered along the Mississippi, Calcasieu and San Jacinto rivers. Less pipeles miles needed to be constructed if you can find some large rural tracts relatively close to those centers to comprise your CO2 storage "complex".
Posted on 12/15/24 at 12:14 pm to Saunson69
quote:
They aren't a strain on the grid. At least ones planned today, Most of these data centers have their own individual gas turbines associated just for them. The META one being built in NELA, Entergy is spending $3.2 billion in Capex on nat gas turbines just for the data centers. They aren't attached to the grid.
except almost all of them are tied to the grid incase they have a power outage or need to do maintenance.
Posted on 12/15/24 at 12:17 pm to Saunson69
If I had to guess, that massive $12 bil project in Louisiana that is in a blue district has to be a river parish like St James. It won't be in Orleans parish bc too crowded. Is there any other blue parish besides Orleans and St James down there?
Either that or Venture Global's Plaquemine Parish LNG plant because they are doing CCS on that I believe. Is that district blue?
Either that or Venture Global's Plaquemine Parish LNG plant because they are doing CCS on that I believe. Is that district blue?
This post was edited on 12/15/24 at 12:19 pm
Posted on 12/15/24 at 12:24 pm to barry
My company is planning on building 2 CCGT turbines (only 1 need, but a backup) to have 99.99% uptime. The data centers require it today. I don't know how others are or if the ones built in past are connected to grid for downtime.
This post was edited on 12/15/24 at 12:27 pm
Posted on 12/15/24 at 12:27 pm to Saunson69
Things are moving fast .. Texas was promoting casinghead gas for power to the crypto mining companies.. they would pop up a warehouse.. get a bunch of nested computers and low cost power.
when crypto took a dive the miners ventured into cloud and now ai as additional sources of business.. the company in south la is hut8. Was a miner but diversifying also.
when crypto took a dive the miners ventured into cloud and now ai as additional sources of business.. the company in south la is hut8. Was a miner but diversifying also.
Posted on 12/15/24 at 12:27 pm to Saunson69
After 20 years in the business, I’ve noticed that we are painfully slow upstream - but midstream and downstream moves about as quickly as the regulatory environment will allow.
As an upstream guy, I’ve found this infuriating…but I kind of understand why this is: we’re a cost and mid- and downstream are a lot closer to the payday.
The CVX and XOM electricity plays may work out.
As an upstream guy, I’ve found this infuriating…but I kind of understand why this is: we’re a cost and mid- and downstream are a lot closer to the payday.
The CVX and XOM electricity plays may work out.
Posted on 12/15/24 at 1:08 pm to ragincajun03
I bought ng stocks expecting it. These data centers aet up in the rural areas for cheap fuel and labor
Posted on 12/15/24 at 1:24 pm to Saunson69
quote:
They aren't a strain on the grid. At least ones planned today, Most of these data centers have their own individual gas turbines associated just for them. The META one being built in NELA, Entergy is spending $3.2 billion in Capex on nat gas turbines just for the data centers. They aren't attached to the grid.
Not a strain on the grid except for backup power, but will be a strain on utility customers:
“Entergy’s filing said that costs for upgraded infrastructure not covered by the data center operator, either through electricity rates or separate agreements, would be spread across Entergy’s electricity customers in Louisiana. Although the utility says the proposed deal “largely insulates (Entergy’s) other customers from paying for the upgrades required” for the data center.”
Posted on 12/15/24 at 1:37 pm to ragincajun03
Give me nuclear or give me death
Posted on 12/15/24 at 1:37 pm to Saunson69
quote:And building power plants is 4+ year lead times and for smaller data centers, just getting the necessary transformers and power runs/utility hookups is 2.5-3 year lead times. I wonder when it would make sense where lead time is more important than cost. You could get a hydrogen powered data center set up in less than 12 months. But hydrogen is way more expensive than grid power. Is that ~2 year decrease in lead time worth it though?
My company does this. What I think holds back big oil is that the Big AI data centers want to move fast as hell.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News