AI Becomes a Boost for Global Oil Demand, Not a Bridge to Net Zero

Core Insights - Artificial intelligence (AI) is predicted to enable the energy industry to access an additional one trillion barrels of oil, making extraction more economical [1][6] - The International Energy Agency has revised its peak oil prediction, now expecting oil to remain a significant part of the global energy mix until 2050 [2] - AI is viewed by climate activists as a hindrance to the transition to a net-zero energy system, as it facilitates the extraction of new oil deposits [3][4] Industry Perspective - For energy companies, AI represents a positive development, allowing for prolonged extraction of energy commodities at lower costs [1] - The production costs of oil extraction are rising due to inflation and natural reservoir depletion, but AI can help optimize extraction processes to maintain supply in response to resilient demand [5] Technological Impact - Wood Mackenzie utilized its AI-powered tool, Analogues, to identify reservoirs with the potential for significant gains in production, indicating that existing technologies can unlock an additional one trillion barrels from current fields [6]