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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Claiming the demand strains from data centers and artificial intelligence may be overwhelming, the American Petroleum Institute (API) called for an all-hands-on-deck approach to energy.
"The scale of America's energy need is breathtaking, and we have the opportunity to power that future," API President and Chief Executive Officer Mike Sommers said Wednesday before the Economic Club of Pittsburgh.
Sommers said data centers alone will soon add a 51-gigawatt (GW) burden to the power sector. Speaking in Pittsburgh, he claimed that was the equivalent of 103% of the total power capacity in Pennsylvania.
Natural gas accounts for about 40% of the electricity on the grid. The U.S. Energy Department said natural gas used in the power sector averaged 37.6 billion cubic feet per day (Bcf/d) in January, about 20% higher than the five-year average.
The Energy Information Administration (EIA), the Department of Energy's statistical office, said U.S. electricity consumption expanded year-on-year by 2% in 2024, ending a 20-year standstill.
"We forecast it will continue growing by 2% in both 2025 and 2026, mostly as a result of demand from new semiconductor and battery manufacturing factories and from data centers," the EIA stated.
Shane Mullins, Industrial Info's vice president of energy market solutions, said he expects the demand from data centers alone could double from the API's estimate by 2030.
Capitalizing on the pro-fossil fuels agenda from U.S. President Donald Trump, Sommers at the API said the United States is on the cusp of writing its next chapter in energy.
"To rebuild our failing infrastructure, we need sensible permitting reform. We need to green-light LNG exports and process pending applications," Sommers said. "We need to open up leasing, onshore and offshore, and ensure the American people's federal lands and waters are working for them."
Those talking points mirror many of the U.S. president's. Trump has suspended offshore wind energy leases, while advocating for more oil and gas drilling at home. One of his first acts of office was to reverse a pause on permits for new exports of liquefied natural gas (LNG) that was enacted by his predecessor.
The United States is already the world leader in crude oil production, natural gas production and exports of LNG. Production and export levels were on pace to increase even before Trump returned to the White House.
Sommers in his address in Pittsburgh made no mention of the looming tariffs on energy imports from Canada and Mexico, the top two crude oil exporters to the United States, respectively. Trump pledged to go ahead with tariffs starting the first week of March. Trump, who campaigned on lowering consumer prices, acknowledged in early February that there would be some economic pressures resulting from any tariffs on top North American trading partners, however.
Much of the midstream infrastructure in North America is integrated, with the oil fields in Alberta tied to the Great Lakes states through a series of pipelines operated largely by Canadian energy company Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta).
Sommers in early February added his voice to a growing chorus of those expecting a fallout from Trump's trade policies.
"Energy markets are highly integrated, and free and fair trade across our borders is critical for delivering affordable, reliable energy to U.S. consumers," he said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"The scale of America's energy need is breathtaking, and we have the opportunity to power that future," API President and Chief Executive Officer Mike Sommers said Wednesday before the Economic Club of Pittsburgh.
Sommers said data centers alone will soon add a 51-gigawatt (GW) burden to the power sector. Speaking in Pittsburgh, he claimed that was the equivalent of 103% of the total power capacity in Pennsylvania.
Natural gas accounts for about 40% of the electricity on the grid. The U.S. Energy Department said natural gas used in the power sector averaged 37.6 billion cubic feet per day (Bcf/d) in January, about 20% higher than the five-year average.
The Energy Information Administration (EIA), the Department of Energy's statistical office, said U.S. electricity consumption expanded year-on-year by 2% in 2024, ending a 20-year standstill.
"We forecast it will continue growing by 2% in both 2025 and 2026, mostly as a result of demand from new semiconductor and battery manufacturing factories and from data centers," the EIA stated.
Shane Mullins, Industrial Info's vice president of energy market solutions, said he expects the demand from data centers alone could double from the API's estimate by 2030.
Capitalizing on the pro-fossil fuels agenda from U.S. President Donald Trump, Sommers at the API said the United States is on the cusp of writing its next chapter in energy.
"To rebuild our failing infrastructure, we need sensible permitting reform. We need to green-light LNG exports and process pending applications," Sommers said. "We need to open up leasing, onshore and offshore, and ensure the American people's federal lands and waters are working for them."
Those talking points mirror many of the U.S. president's. Trump has suspended offshore wind energy leases, while advocating for more oil and gas drilling at home. One of his first acts of office was to reverse a pause on permits for new exports of liquefied natural gas (LNG) that was enacted by his predecessor.
The United States is already the world leader in crude oil production, natural gas production and exports of LNG. Production and export levels were on pace to increase even before Trump returned to the White House.
Sommers in his address in Pittsburgh made no mention of the looming tariffs on energy imports from Canada and Mexico, the top two crude oil exporters to the United States, respectively. Trump pledged to go ahead with tariffs starting the first week of March. Trump, who campaigned on lowering consumer prices, acknowledged in early February that there would be some economic pressures resulting from any tariffs on top North American trading partners, however.
Much of the midstream infrastructure in North America is integrated, with the oil fields in Alberta tied to the Great Lakes states through a series of pipelines operated largely by Canadian energy company Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta).
Sommers in early February added his voice to a growing chorus of those expecting a fallout from Trump's trade policies.
"Energy markets are highly integrated, and free and fair trade across our borders is critical for delivering affordable, reliable energy to U.S. consumers," he said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
