Locator: 44521B.
Good morning! A shout-out to ISO-NE and ISO-New York, link here and link here:
- ISO-NE: in the big scheme of things oil, coal, hydro are all in the same ballpark as renewables. Wow.
As stated earlier in the blog:
- ISO-NE has a supply problem, self-inflected;
- ERCOT has a demand problem, a nice problem to have
Federal Reserve sued: Federal Reserve already making changes, but the Big Banks said, "too little too late," and will proceed with the lawsuit.
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Back to the Bakken
WTI: $70.05.
Wednesday, December 25, 2024: 45 for the month; 148 for the quarter, 676 for the year
- 40335, conf, Grayson Mill, Sponheim 31-34F 2H,
- 40334, conf, Grayson Mill, Sponheim 31-34F 1H,
- 40333, conf, Grayson Mill, Hopes 30-27F-3H,
- 40332, conf, Grayson Mill, Hopes 30-27F 2H
- 40331, conf, Grayson Mill, Hopes 30-27F 1H,
- 40198, conf, Grayson Mill, Hopes 30-27F 4H,
- 38491, conf, Petro-Hunt, State 153-95-17B-16-1H,
- 37666, conf, BR, Nordeng 1A MBH,
Tuesday, December 24, 2024: 37 for the month; 140 for the quarter, 668 for the year
- 40002, conf, Hess, GO-Hoyt-LE-157-97-2833H-1,
- 38490, conf, Petro-Hunt, State 153-95-17B-16-2H,
- 37584, conf, Enerplus, Niobium 147-93-09D-04H,
- 26491, conf, Grayson Mill, Wahus State 152-97-12-1-3H,
- 26490, conf, Grayson Mill, Wahus State 152-97-12-1-11,
RBN Energy: Natural gas producers, utilities, big-tech companies racing to power data centers. Archived.
The pace of data center development accelerated in 2024, raising
questions about how to power these energy-hungry behemoths.
Natural-gas-fired plants are a go-to approach to helping local utilities
provide the reliable, around-the-clock electricity that large-scale
data centers need. Now, two giant oil and gas companies, ExxonMobil and
Chevron, want to do something they’ve never done before: build gas-fired
plants and sell power exclusively to data centers. And some utilities
are partnering with big-tech companies on power plants of their own. In
today’s RBN blog, we’ll discuss data center power needs and the unusual
notion of building big gas plants to serve individual customers.
What’s a Data Center?
Let’s start with the basics. As we discussed in Storm Front,
a data center is the home for hundreds or even thousands of networked
computers that process, store and share data. Data centers — many of
them owned and operated by tech giants like Amazon, Google, Meta and
Microsoft (see photo below) — are among the most energy-intensive
building types, consuming up to 50 times the energy per
square foot of a typical commercial office building, with electrical
demand at larger facilities ranging from 100 megawatts (MW) to 2,000 MW.
[For perspective, we noted in Just Can’t Get Enough
that a city the size of Lubbock, TX, (population 267,000) requires
about 700 MW.] Demand for data centers has grown exponentially with the
expansion of artificial intelligence (AI) tools like ChatGPT and
Perplexity, which demand far more computational power — and energy —
than conventional Google searches.
The Interior of a Microsoft Data Center. Source: Microsoft
Now, we’ll dive into the news. Chevron and ExxonMobil announced
separately in December that they are each exploring ways to jump into
the electricity-supply business by using natural gas (with carbon
capture and sequestration, or CCS) to power data centers. Each said they
do not intend to put the electricity from these new plants on the
overall power grid; instead, the plants’ output would be dedicated to
the data center customer.