The Future of Energy
As discussed at the Houston Energy Summit 2024
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The Future of Energy, as discussed at the Houston Energy Summit 2024, hosted by Salesforce and Deloitte Digital. Special thanks to Jason Olbekson for the invitation to speak and Mike Bechtel for a great opening presentation.
The energy industry is at the center of AI, as a provider of the energy to feed this technology, and as rich environment to apply this technology. The industry's future of energy is bright!
A few ideas I left with from Mike's talk:
Embracing the Future: Act early in the face of exponential growth; recognize AI as "cognitive automation" and a tool for reducing mundane tasks ("less muck, more magic").
AI Potential & Challenges: Companies focus on cost efficiency (90%) over true innovation (1%); success depends on quality inputs ("garbage in = garbage squared") and strategic foundations like Shutterstock's GenAI model.
Innovation Perspective: Invention converts money to ideas, while innovation turns ideas into profit; prompt engineering bridges engineering and liberal arts for new, transformative applications.
My comments focused on three themes with the underlying message that โThe Future is Bright for Energyโ:
Growth: U.S. oil and gas supply remains critical to meeting rising global demand, while domestic power consumption shifts back to growth. Simultaneously, technologies like CCUS and hydrogen are emerging (navigating the "Hype Curve") as they gain momentum in reshaping the energy landscape.
Convergence: The convergence of big tech and energy is driving growth across the value chain, bridging the worlds of electrons and molecules. As new energy solutions gain traction alongside traditional energy systems, innovation and integration are reshaping the future of global energy markets.
Transformation: The energy sector is evolving with a focus on capital discipline, driving inventory-led M&A strategies as companies prioritize high-quality assets. This shift is accompanied by the unbundling of traditional value chains and the emergence of revenue-stacking opportunities, enabling innovative approaches to maximize returns in a competitive landscape.