The energy sector is facing a technological revolution driven by generative AI and quantum computing. As AI models grow more advanced, data centers are consuming unprecedented amounts of energy, prompting industry leaders to seek reliable and low-carbon energy sources.
Tech giants are turning to nuclear energy to meet surging demand, while energy companies are positioning themselves as key players in the evolving intersection of energy and AI infrastructure. Major Oil and Gas companies, including Occidental Petroleum Corporation (OXY), are also advancing into the race to supply power for AI data centers.
However, Exxon CEO Darren Woods emphasizes that decarbonized natural gas plants offer a quicker solution compared to nuclear power. The outlook for 2025 oil market prices is mixed, with some analysts predicting a decline due to a looming surplus in the global market, while others foresee stronger demand and higher prices.
Occidental Petroleum Corporation (OXY) has bolstered its position in the Permian Basin through the acquisition of CrownRock, expanding its footprint and providing new opportunities for operational improvements. The company is also investing in low-carbon technologies, particularly direct air capture (DAC), with a 250,000-ton CO2 facility set to come online in mid-2025.
Despite OXY’s growth potential, the article concludes that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.
Source: https://finance.yahoo.com/news/why-occidental-petroleum-oxy-one-213925349.html