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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.

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CERAWeek 2026 to bring energy leaders to Houston to discuss tech and geopolitics

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CERAWeek returns this month, March 23-27, and will once again bring leading energy executives and government officials to Houston.

The 44th annual event will again host U.S. Secretary of Energy Chris Wright and U.S. Secretary of the Interior Doug Burgum.

Wright will participate in a plenary session focused on energy policy with Daniel Yergin, conference chair and vice chairman of S&P Global, on March 23. The following day, he will be featured in the Celebrating 10 Years of U.S. LNG reception with Jack Fusso, president and CEO, of Cheniere Energy. Both events are part of the Executive Conference track.

Burgum will participate in a leadership dialogue plenary session with Yergin on March 25. It is also part of the Executive Conference track. Burgum is also chairman of the National Energy Dominance Council, established by President Trump in 2025.

Top energy executives, many of whom are based in Houston, will also be featured prominently at the week-long event. Other speakers include:

  • Bill Blevins, director of grid coordination for the Electric Reliability Council of Texas (ERCOT)
  • Trevor Best, CEO of Syzygy Plasmonics
  • Marie Contour Carrere, executive director of the Rice Sustainability Institute
  • Ryan DuChanois, co-founder and CEO of Solidec
  • Reginald DesRoches, president of Rice University
  • Georgina Campbell Flatter, CEO of Greentown Labs
  • Jim Fitterling, chair and CEO of Dow Inc.
  • Vicki Hollub, CEO of Occidental Petroleum Corp.
  • Renu Katon, chancellor and president of the University of Houston
  • Ryan Lance, chairman and CEO of ConocoPhillips
  • Olivier Le Peuch, CEO of SLB
  • Patrick Pouyanné, chairman and CEO of TotalEnergies SE
  • Adrian Tromel, chief innovation officer and interim VP for Innovation at Rice University
  • Bobby Tudor, founder and CEO of Artemis Energy Partners and chairman of HETI
  • Wael Sawan, CEO of Shell plc
  • Lorenzo Simonelli, chairman and CEO of Baker Hughes Co.
  • Mike Wirth, chairman and CEO of Chevron Corp.
  • Jeremy Pitts, managing director of Activate Houston
  • And many others

This year, CERAWeek will center around the theme of Convergence and Competition: Energy, Technology and Geopolitics.

"Change is inescapable," Yergin said in a news release. "The global energy landscape—and to a large extent the entire global economy—is being fundamentally reshaped by the dual forces of convergence and competition. The race for AI is fusing the energy and technology industries like never before, bringing into sharp relief the need to align energy expansion with sustainable economic growth."

"Yet, the potential for collaboration and innovation is increasingly matched by the risk for collision and conflict in a world marked by geopolitical rivalry, tariffs and fragmented supply chains," he continued. "Reconciling an increasingly complex world with the growing demand for energy that is stable, secure and affordable is a complex reality that CERAWeek 2026 will tackle when global energy leaders meet in Houston."

Key topics of discussion will include:

  • Politics, Economics, Trade and Supply Chains
  • Policy, Regulations and Stakeholders
  • Oil Value Chain
  • Power, Renewables, Generation and Grid
  • AI and Digital
  • Minerals and Mining
  • Electrification Technologies
  • Investment and Financing
  • Chemicals and Materials
  • Business Strategies
  • The Innovation Ecosystem
  • Managing Emissions
  • Low-Carbon Fuels and Mobility
  • Climate and Sustainability
  • Workforce Strategy

The CERAWeek Innovation Agora track, which is the program's deeper dive into technology and innovation, will feature thought leadership on "AI, decarbonization, low carbon fuels, cybersecurity, hydrogen, nuclear, mining and minerals, mobility, automation and more," according to the release.

Agora Hubs will return this year and be divided into three zones: new energies, carbon and climate, and AI. The hubs will feature amphitheater-style sessions and panels. Agora Pods will allow energy startups to showcase their ideas in 20- to 30-minute presentations.

Additionally, CERAWeek will introduce a new program this year on Friday, March 27. Known as Look Forward, it will focus on economics, politics and technology.

See the full agenda for the week here. Find more information and register for the event here.

Houston team unveils model to manage e-waste and more news to know

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Editor's note: The top energy transition news for March includes the "missing link" in scaling e-waste recycling and Houston's future as a leader in CCUS. Plus, we preview the teams pitching at the Energy Venture Day competition during CERAWeek. Here are the five most-read EnergyCapitalHTX stories from March 1-15:

1. Houston researchers propose model to scale e-waste recycling

Jian Shi, Chuyue Wang and Kailai Wang have developed a model that aims to make recycling e-waste economically viable and help recover critical minerals needed for EVs. Photo courtesy UH.

The “missing link” in critical minerals may have been in our junk drawers all along, according to new research from the University of Houston. Jian Shi, an associate professor in the UH Cullen College of Engineering, and his team have unveiled a new supply chain model that aims to make e-waste economically viable and could help make large-scale recycling possible. Continue reading.

2. Houston positioned to lead in Carbon Capture Utilization (CCU), study shows

Jane Stricker reflects on four years at HETI. Courtesy photo

With global demand for energy production while lowering emissions continues to grow, Houston and the Gulf Coast region are uniquely positioned to lead with carbon capture, utilization and sequestration (CCUS). A new study developed by the Houston Energy Transition Initiative (HETI) in collaboration with Deloitte Consulting explores how the region can transform captured CO₂ into valuable products while supporting continued economic growth and industrial competitiveness. Continue reading.

3. Houston cleantech startup seeks $200M for superhot geothermal plant

nullHouston cleantech startup seeks $200M for superhot geothermal plant

Quaise Energy is developing Project Obsidian, a superhot geothermal plant in central Oregon. Rendering via quaise.com.

Houston-based Quaise Energy is looking to raise $200 million to support the development of a 50-megawatt superhot geothermal plant in Oregon. The company is seeking $100 million in Series B funding, plus an additional $100 million from grants, debt and project-level finance, a representative from the company tells EnergyCapital. Continue reading.

4. 40+ teams to pitch at annual CERAWeek clean energy competition

null40+ teams to pitch at annual CERAWeek clean energy competition

Houston-based HEXASpec took home the top TEX-E prize and $25,000 at last year's Energy Venture Day and Pitch Competition. Photo courtesy TEX-E.

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative (HETI), the Texas Entrepreneurship Exchange for Energy (TEX-E) and the Ion have named the 30-plus energy ventures and teams that will pitch at the 2026 Energy Venture Day and Pitch Competition during CERAWeek this month. The selected ventures are "driving efficiency and advancements toward the energy transition," according to the Rice Alliance. Continue reading.

5. Texas data center boom could strain water supply, new report warns

A new report shows that Texas data centers used 25 billion gallons of water in 2025. Photo via HARC report.

As data centers continue to boom throughout Texas, a new report from the Houston Advanced Research Center (HARC) warns that the trend could strain the state’s water supply. HARC estimates Texas data centers used 25 billion gallons of water in 2025—and that the demand for water will continue to rise to meet the needs of the 464 data centers currently in Texas, as well as 70 additional sites currently under development. Continue reading.

Italian clean energy co. selects The Woodlands for North American HQ

new HQ

An Italian renewable energy company has picked The Woodlands for its North American headquarters.

AB Energy USA will occupy about 11,000 square feet in The Woodlands Towers at The Waterway. The company expects to add about 45 jobs in The Woodlands this year. Beginning in 2027, AB Energy USA will add another 30 jobs over a five-year period.

The new headquarters will be the corporate and governance hub for all of AB Energy’s North American subsidiaries. AB Energy, an arm of Italy-based AB, supplies renewable natural gas systems for industrial, commercial and data center customers. AB has operated in the U.S. since 2014.

“Establishing our North American headquarters in the Energy Capital of the World is a strategic step in AB’s long-term commitment to the U.S. market,” Paolo Ruggeri, North American CEO for AB Energy USA, said in a news release. “Houston gives us access to world-class engineering and energy talent, and strengthens our ability to attract and grow a high-performing team.”

Jevon Gibb, CEO of The Woodlands Area Economic Development Partnership, said several markets competed for AB Energy’s North American headquarters.

“AB’s decision to establish its North American headquarters here demonstrates The Woodlands’ competitiveness for both international companies and energy sector leaders,” Gibb said.

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