ADVERTISEABOUT USSUBMIT A STORYSUBSCRIBETERMS OF USEPRIVACY POLICY
Visit our family of Brands

Energy sector AI spending is set to soar to $13B, report says

eyes on ai

Deloitte predicts AI will represent 57 percent of IT spending by U.S. oil and gas companies in 2029. Photo via Unsplash.

Get ready for a massive increase in the amount of AI spending by oil and gas companies in the Houston area and around the country.

A new report from professional services firm Deloitte predicts AI will represent 57 percent of IT spending by U.S. oil and gas companies in 2029. That’s up from the estimated share of 23 percent in 2025.

According to the analysis, the amount of AI spending in the oil and gas industry will jump from an estimated $4 billion in 2025 to an estimated $13.4 billion in 2029—an increase of 235 percent.

Almost half of AI spending by U.S. oil and gas companies targets process optimization, according to Deloitte’s analysis of data from market research companies IDC and Gartner. “AI-driven analytics adjust drilling parameters and production rates in real time, improving yield and decision-making,” says the Deloitte report.

Other uses for AI in the oil and gas industry cited by Deloitte include:

  • Integrating infrastructure used by shale producers
  • Monitoring pipelines, drilling platforms, refineries, and other assets
  • Upskilling workers through AI-powered platforms
  • Connecting workers on offshore rigs via high-speed, real-time internet access supplied by satellites
  • Detecting and reporting leaks

The report says a new generation of technology, including AI and real-time analytics, is transforming office and on-site operations at oil and gas companies. The Trump administration’s “focus on AI innovation through supportive policies and investments could further accelerate large-scale adoption and digital transformation,” the report adds.

Chevron and ExxonMobil, the two biggest oil and gas companies based in the Houston area, continue to dive deeper into AI.

Chevron is taking advantage of AI to squeeze more insights from enormous datasets, VentureBeat reported.

“AI is a perfect match for the established, large-scale enterprise with huge datasets—that is exactly the tool we need,” Bill Braun, the company’s now-retired chief information officer, said at a VentureBeat event in May.

Meanwhile, AI enables ExxonMobil to conduct autonomous drilling in the waters off the coast of Guyana. ExxonMobil says its proprietary system improves drilling safety, boosts efficiency, and eliminates repetitive tasks performed by rig workers.

ExxonMobil is also relying on AI to help cut $15 billion in operating costs by 2027.

“There is a concerted effort to make sure that we’re really working hard to apply that new technology … to drive effectiveness and efficiency,” Darren Woods, executive chairman and CEO of ExxonMobil, said during a 2024 earnings call.

From Your Site Articles
Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Houston clean energy startup acquired by battery storage company FlexGen

m&a activity

A North Carolina company has acquired Houston-based Clean Energy Services, a provider of services for battery energy storage systems and utility-scale solar, for an undisclosed amount.

The buyer is Durham, North Carolina-based FlexGen Power Systems, a provider of battery energy storage software and services.

Clean Energy Services (CES), whose offices are at the Ion, will operate as a subsidiary of FlexGen. Existing CES customers will continue to receive services from CES without disruption or change, FlexGen says.

“Demand for reliable, high-performance power is accelerating, and customers need partners who can deliver at scale,” Kelcy Pegler, CEO of FlexGen, said in a news release. “The addition of CES strengthens our service platform and reinforces our leadership in energy storage technology.”

Ahmad Atwan and Constantine Triantafyllides co-founded CES in 2022. As a startup, CES had raised $8 million in venture capital, according to PitchBook.

“CES has achieved a market leadership position in battery storage services by focusing on reliable speed of service delivery and optimizing asset performance,” Atwan, the company’s CEO, added the release. “FlexGen and CES have been strong partners for years, and this transaction enables us to deliver more robust solutions across a complementary set of customers and markets.”

CES will continue to operate its remote operations center in Houston for over 1 gigawatt of solar assets and 4.5 gigawatt-hours of battery assets, while FlexGen will maintain its remote operations center in Durham.

Halliburton Labs names 4 new clean energy startups to incubator

green team

Four new companies have joined Halliburton Labs, the incubator for early-stage energy and climate startups run by Houston energy giant Halliburton.

Halliburton Labs provides the emerging companies with mentorship, industry connections, laboratory access and other resources as they work toward commercialization, according to a news release.

The four new members include:

  • Nandina REM, a Singapore-based company that delivers carbon fiber thermoplastics. It turns end-of-life assets into new, reliable, high-performance materials for the aviation, aerospace and defense industries in a fraction of the time of standard supply chains.
  • Noon Energy, a California-based company that delivers clean, reliable electricity with ultra-long duration energy storage. Its system uses solid oxide electrochemical cells and stores energy as abundant, flexible industrial gases.
  • Proof Energy, a Silicon Valley-based company developed by the Lawrence Berkeley National Laboratory that is commercializing next-generation metallic solid oxide fuel cell (M-SOFC) technology. Its system uses widely available fuels such as ethanol, methanol, ammonia, and natural gas as hydrogen carriers to enable lower-cost, low-emission commercial transportation, and also offers a zero-emission heating solution to preserve battery range in electric vehicles.
  • Tidal Metals, a New Jersey-based company that has developed technology to economically make decarbonized magnesium metal from seawater and electricity.

"Halliburton Labs exemplifies our commitment to advance a secure and pragmatic energy future," Jeff Miller, chairman, president and CEO of Halliburton, said in the news release. "We welcome these companies into our ecosystem, where they will gain access to the tools, expertise, and connections needed to scale their technologies."

Auckland-based Aquafortus Technologies and California-based Sunchem joined Halliburton Labs in September. With the addition of the four new members, the incubator currently supports six early-stage companies.

Read more about the incubator's 2025 cohort here.

Houston-area company to develop next-gen batteries for electric helicopters

emissions-free flight

Webster-based KULR Technology Group has announced a strategic co-development collaboration with Robinson Helicopter Company (RHC) to develop a next-generation, high-performance battery system for the eR66 battery-electric helicopter demonstrator.

KULR, an electronics manufacturing company, will serve as the developer of the advanced battery system for the eR66 platform. KULR will design and integrate a high-performance battery structure that uses its proprietary battery safety technologies and thermal management solutions, previously developed for aerospace and spaceflight applications.

California-based Robinson Helicopter Company is the world's leading manufacturer of civil helicopters. Its eR66 is expected to deliver zero-emission, affordable and quiet performance for “high-demand applications.”

“Robinson Helicopter has built more civil helicopters than any manufacturer on Earth, and their commitment to reliability is exactly the standard KULR’s battery architecture is designed to meet,” Michael Mo, CEO of KULR, said in a news release. “KULR’s battery systems have been qualified for NASA spaceflight. They were designed from day one for dual use: a primary flight cycle and a certified second life. The eR66 is where that architecture proves itself in rotorcraft.”

David Smith, president and CEO of Robinson Helicopter Company, cited the partnership as a shift in service for commercial and civil operations and touted the potential environmental benefits.

“By integrating electric propulsion, we aren't just reducing our environmental impact; we are unlocking critical new capabilities for life-saving missions,” Smith added in the release. “For use cases like rapid organ and tissue transport, the reduced acoustic signature and zero-emission profile ensure that time-sensitive, low-emission deliveries are faster, quieter, and more sustainable than ever before."

The companies say, through the partnership, they aim to:

  • Advance eR66 performance
  • Enhance aviation safety
  • Increase cost efficiency
  • Uphold American aerospace leadership
  • Support decarbonization
  • Promote circular economy principles
View All Listings