As AI-driven data centers rapidly proliferate, the oil and gas industry is seizing a new opportunity—not just as energy suppliers, but as key enablers of power-hungry digital infrastructure. From West Texas to global LNG markets, top U.S. operators are embracing strategic partnerships, low-carbon innovation, and diversified energy solutions to meet rising demand from hyperscalers and industrial tech players. The Permian Basin may soon become ground zero for the convergence of hydrocarbons and high-performance computing.
⚡ A Strategic Pivot: Oil Majors Enter the AI Energy Race
Darren Woods (ExxonMobil) made it clear: “We’re well positioned to meet surging demand from data centers for low-carbon power, and on a timetable that alternatives such as nuclear simply can’t match.”
Rather than become traditional utilities, Exxon is leveraging its carbon capture, transportation, and storage systems to offer tailored, decarbonized natural gas solutions. “There continues to be a very strong desire for data centers to be decarbonized,” Woods emphasized.
By 2028, Exxon expects to have its first data center site operational, and fully decarbonized by 2029—a sign of how energy production and digital infrastructure are becoming tightly linked.
🏭 Diamondback Energy: Gas-to-Power for Hyperscalers
Diamondback is moving aggressively to monetize stranded gas and improve margins. CEO Travis Stice explained,
“We’ve got abundant natural gas. We’ve got abundant surface acreage… Rather than continuing to get low margins on our gas and full boat on electricity, we’re trying to figure out a way to turn some of that gas into more value for shareholders.”
President Kaes Van’t Hof revealed they’re advancing a power JV with a large independent power producer (IPP) and a hyperscaler:
“We’re trying to pull together… a behind-the-meter gas power plant… using Diamondback gas.”
But this isn’t just a real estate play—Diamondback is prioritizing equity participation and gas supply:
“The land payment is the least important. The benefit would be equity participation in the plant and power side.”
Power independence is a financial driver too.
“We’ve spent $70–100 million per year on power for the last 5–6 years,” Van’t Hof noted.
🧠 AI Meets Oilfield Ops: Devon’s Tech Transformation
At Devon Energy, CTO Trey Lowe and COO Clay Gaspar are leaning into industrial AI:
“We’ve rolled out a brand-new platform… we’ve seen productivity boost from various domains up to 15% to 30%,” said Lowe.
“These are real examples… how do you optimize final frac on a well?… or use AI to give you a better geologic answer.”
Gas-to-data center opportunities are one part of a broader digital pivot. Devon’s $1B optimization strategy hinges on real-time analytics, sensors across thousands of wells, and a fully integrated technology stack.
Gaspar added:
“We continue to explore all avenues to create incremental value… embracing technology, driving efficiencies… that’s where I get most excited.”
🌍 Carbon Credits, NET Power, and DAC: Oxy’s Ecosystem Play
Vicki Hollub, CEO of Occidental Petroleum, is aligning decarbonization with data infrastructure demand:
“We recognize that we are in a pivotal moment… especially with the proliferation of data centers and AI.”
Occidental’s investments in NET Power and Direct Air Capture (DAC) will support hyperscalers demanding carbon removal credits:
“Oxy will be uniquely positioned… with our equity investment in NET Power and DAC at scale,” Hollub explained.
“The sales with Microsoft… represent the largest CDR block sale to date.”
Oxy is staking leadership in a compliance-grade carbon economy, targeting industries from data centers to aviation with scalable removal solutions.
🔌 Chevron’s Power Bet: Utility-Scale Energy for AI
Chevron CEO Mike Wirth is pushing ahead with a gigawatt-scale power solutions venture focused on U.S. AI data centers:
“There’s a tremendous amount of interest and activity.”
“We’re working toward an FID before the end of the year… Speed to market is an important differentiator.”
Chevron has already secured turbine pricing and is narrowing down sites, even as it navigates inflationary pressures. Wirth made it clear:
“These projects need to generate returns that will compete in our portfolio… If they can’t, we’ll consider alternatives.”
🌎 Global LNG and New Market Expansion
The strategy isn’t just domestic. ConocoPhillips’ LNG ambitions—driven by executives like Andy O’Brien and Ryan Lance—target high-growth regions in Europe, Asia, and Latin America.
“We’ll have a steady drumbeat of these [LNG] projects… NFE in 2026, then Port Arthur, NFS, and Willow in 2029,” said O’Brien.
International diversification is a hedge against regional volatility and a foundation for fueling AI growth beyond U.S. borders.
🧩 Final Thoughts: Partnerships Will Define the Next Phase
The rise of AI-powered infrastructure has created an opening for oil & gas operators to become energy orchestrators. As Diamondback’s Kaes Van’t Hof said:
“You could look at things on a fixed-price basis… a collar… an index. What separates us is our flexibility.”
The common thread across Exxon, Diamondback, Devon, Oxy, Chevron, and Conoco: collaboration. Whether through equity JVs, carbon tech partnerships, or behind-the-meter generation, the industry is shifting from extraction to integration.
TL;DR – Key Takeaways:
Operator Strategy Key Quote ExxonMobil Decarbonized gas & CO₂ storage to power data centers “We’re in early engineering… site up by 2028.” Diamondback Gas-to-power JV with hyperscaler, focus on equity and gas monetization “Stop selling your gas for zero.” Devon AI + real-time sensors = optimized production and new market access “Productivity boost… 15% to 30%.” Oxy Carbon removal credits via NET Power & DAC at hyperscale “Largest CDR sale to Microsoft.” Chevron Building gigawatt-scale AI power projects with speed & commercial focus “Working toward an FID this year.” ConocoPhillips LNG growth into global markets to meet energy transition demand “Steady drumbeat of LNG projects.”
