At a time when some claim the world is approaching the end of the oil era, technological shifts suggest otherwise. At the heart of the digital revolution - from artificial intelligence (AI) to cryptocurrencies - emerge new economic activities that require vast data centers consuming energy on a scale many times greater than traditional industries. This trend strengthens the argument of oil producers that fossil fuels will remain essential for decades to come.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has repeatedly underscored this reality. He argued that AI expansion and the massive data centers supporting it will lead to a surge in global energy demand.
While renewable energy is growing, he stressed that the world will still need every available source of energy, including oil and gas, to meet the escalating requirements of advanced technologies.
Talk of abandoning oil altogether is unrealistic, he added.
Recent studies highlight just how energy-intensive new technologies have become. AI data centers consume up to 20 times more power than conventional facilities due to the demands of training large models, handling big data, and continuous cooling.
Cryptocurrency mining operations, running specialized machines around the clock, further add to global consumption. Electric vehicles increase pressure on power grids through rapid-charging stations. Meanwhile, robotics, industrial automation, and immersive technologies such as virtual and augmented reality all require substantial energy resources.
According to OPEC, global data centers consumed 500 terawatt-hours of electricity in 2023 - more than double the average between 2015 and 2019. By 2030, that figure could triple to 1,500 terawatt-hours, equivalent to India’s total annual electricity use.
A McKinsey report, cited by the International Monetary Fund, forecasts that AI servers in the United States alone may consume over 600 terawatt-hours by 2030.
Such numbers suggest that oil and gas will not be easily phased out. On the contrary, demand for all forms of energy is likely to intensify.
Analysts: Oil is here to stay
Energy experts argue that oil will continue to play a central role in global markets. Saudi energy consultant Abdul Aziz Al-Muqbil pointed to four pillars underpinning Riyadh’s leadership in oil markets: cooperation with producers through OPEC; a flexible response to demand shifts, insulated from speculation; ensuring economic stability by securing reliable supplies; and expanding access to energy for development worldwide.
These strategies have shielded global oil markets from volatility, preventing shortages that might otherwise arise from climate-driven policy shifts, he remarked.
Former senior adviser at the Saudi Ministry of Energy, Dr. Mohammed Al-Sabban, echoed this view, rejecting the notion that oil will soon run out or lose relevance and describing such claims as Western propaganda.
With the world’s population growing, he argued, oil demand will rise, particularly in transportation, where renewables cannot easily substitute. He also criticized what he sees as contradictions in Western policies, such as phasing out oil while expanding coal use, a fuel he calls more harmful and less competitive.
Al-Sabban further dismissed fears of imminent depletion, noting steady increases in global reserves, often led by Saudi Arabia. He highlighted the Kingdom’s diversification strategy - developing oil, gas, renewables, nuclear power, and hydrogen - demonstrating readiness to meet global needs across the energy spectrum.