Post by
retiredcf on Nov 21, 2024 3:18pm
More Nuttall
AI and oil.(A Commentary)
21/11/2024
Almost no interconnection. Main uses for oil are not for power generation. Natural gas and, long-term, nuclear tie into AI. The buildout of AI and data centres is real.
In the US, power demand was flat for 14 years; this is the first year with an incline. If demand in the US is expected to grow by 25% by 2040, where will the power come from? What about nuclear? Well, it makes a lot of sense, but you'd have to build 126 reactors, and that will be over decades. Wind and solar sources are not practical. That leaves natural gas.
Many people see nat gas as a bridge. But we're not bridging to anything; natural gas is going to carry the baseload for many years to come. That's why people are getting more bullish on it.
Eric Nuttall