Oily Stuff

“The reality is that if you can’t dispose of barrels, you can’t produce barrels.”

Next problem with all this AI data center shit? Where is all the natural gas going to come from to generate the electricity. Associated gas from tight oil wells in the Permian is also subject to well interference, and bench degradation/pressure depletion. Associated gas EURs are declining, in spite of higher initial GOR. Gas well gas from tight oil wells with high initial GOR rates is also less productive from an EUR standpoint. There is a little south of 60,000 wells in the Permian already banging into each other and I hope you are sitting down...associated gas production does not last forever either. 

Data centers come at a price and the American consumer will shoulder that price.