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
2 March 2026
A potential blockade of the Strait of Hormuz following the escalating US-Iran conflict risks disrupting Qatari LNG exports that underpin global gas markets, exposing Asia and other markets to sharp price spikes, cargo shortages and renewed reliance on dirtier fuels
2 March 2026
The South Asian consumer’s next move could tighten the Middle East oil market overnight
2 March 2026
Canadian independent’s evolving portfolio in Trinidad and Tobago gives it access to the Atlantic LNG market and a close-up view of developments in neighbouring Venezuela
27 February 2026
LNG would serve as a backup supply source as domestic gas declines and the country’s energy system comes under stress during periods of low hydropower output and high energy demand
