without it, the ai boom will bust.
The content we consume every day is overwhelming. If we don’t protectively filter, our brains are overloaded and wrecked with decision-fatigue by lunch. Every day. It’s seriously exhausting to try and find a signal in the noise.
And this was true before Artificial Intelligence! I used to think that Ai will most certainly push us past the brink of total information overload meltdown.
Maybe that’s still a possibility. But, personally, I have found a measure of relief through the adoption of Ai.
Integrating it into my daily routine has been nothing short of transformative. Whether tackling complex problems at work or hitting some intricate topics at home, Ai has become a cognitive amplifier, enhancing my ability to think critically and creatively.
I spend a lot of time thinking and evaluating strategy and performance. With Ai, I am more efficient and effective because I can quickly create context and conversation with myself (through the Ai “guy”). I have more clarity in my decisions and less decision-fatigue.
This personal value and the resulting demand for Ai has become electric (pun intended) throughout all of humanity. As the reliance on artificial intelligence compounds daily, so does the demand for the infrastructure and power required to feed it. And that compounding demand is reshaping our global energy landscape.
Yet, Ai would cease to exist without one critical resource in the power supply chain it is so deeply dependent on…fuel.
The largest source of fuel powering our grid? Natural Gas.
Here are seven reasons why natural gas is critical to the boom, and why it represents one of the savviest investments in today’s volatile economy.
1) The Energy Appetite of AI and Cryptocurrency Is surging.
Imagine a colossal library that magically expands its shelves every second to accommodate an ever-growing collection of books. This fantastical library requires an immense amount of energy to not only light its endless aisles but also to instantaneously catalog and retrieve volumes upon request.
Similarly, Ai data centers and cryptocurrency mining operations function as these boundless libraries of the digital age, necessitating vast computational power and, consequently, substantial energy consumption.
The U.S. Energy Information Administration (EIA) projects that U.S. power consumption will reach record levels in 2025 and 2026, driven by rising demand from data centers. Data center power demand could double by 2030 to 35 gigawatts. That’s equivalent to adding 40 million U.S. homes to the electric grid…an average of 8 million EVERY year.
The IEA forecasts that U.S. data centers will increase their electricity consumption by 30% between 2022 and 2026—rising from 200 TWh to nearly 260 TWh. That’s roughly 6% of the country’s total demand.
Goldman Sachs estimates that $50 billion in new generation capacity will be needed to meet demand from data centers, with about 3.3 Bcf/d of gas demand added by 2030. Data centers are already consuming 2% of the world’s electricity—and this is just the beginning.
While demand forecasts, really any forecast, are obsolete the moment they are published, my preliminary research would indicate there may be a hole in the forecasting formulas of these demand prognosticators as there is no evidence supporting a formula adjustment for a compounding effect. That’s trippy stuff.
In the event that some of us may be wondering how natural gas and electricity are connected, your answer is in the next section.
2) Natural Gas Is the Workhorse of the Digital Age.
The rapid expansion of data centers and energy-hungry tech requires stable, scalable, and dispatch-able power. Generating power requires a fuel source. And the number one fuel source, at 42% of the total fuel source for grid power, is Natural Gas.
Furthermore, Natural Gas is the only fuel source available that can scale and manage a reasonable eco-impact. “Renewables” (solar, wind, hdyro) don’t scale. Nuclear is a good fuel source, but it remains a long play that doesn’t scale as quickly as the demand forecast. Coal is limited and it is still relatively difficult to mine.
Unlike wind and solar, Natural Gas can be turned on and off like a light switch. In a world where milliseconds matter (especially in AI and financial systems), that kind of reliability is non-negotiable.
Natural Gas is the clear leader in terms of supply-side readiness to be the fuel workhorse powering this emerging digital age.
Connecting fuel to power to utilization…
Data centers are often built in regions where gas can be piped in directly to dedicated on-site generators or nearby combined-cycle power plants. East Daley Analytics forecasts that data center-driven power projects will increase gas demand by 6 Bcf/d by 2030. Kinder Morgan believes that number could rise to 10 Bcf/d depending on AI adoption speed.
3) Global Demand Is Climbing—And the U.S. Is Ready to Deliver.
Shell’s LNG Outlook 2025 projects global LNG demand will surge 60% by 2040, reaching up to 718 million metric tons per year. Countries like China, India, South Korea, and across Europe are expanding import terminals and diversifying away from Russian gas.
The U.S.—with its vast shale plays and infrastructure—is well-positioned. Export facilities like Plaquemines LNG and Corpus Christi LNG Stage 3 are expanding rapidly.
And this global shift didn’t happen by accident. During the Trump administration, pro-growth energy policies accelerated the LNG export boom. LNG permitting was fast-tracked, restrictions on exports to non-FTA countries were lifted, and the Department of Energy symbolically dubbed natural gas “molecules of freedom.”
4) Commodity Prices Are Stabilizing Above a Sustainable Floor.
Natural gas prices are showing signs of stabilizing at a higher floor. The once-common sub-$3/mcf environment is increasingly rare. Analysts now see a sustained floor of $4/mcf due to:
Structural demand from AI/data centers: These aren’t cyclical users—they’re structural. Demand is sticky and growing.
Global LNG contracts: Long-term LNG contracts are locking in export volumes and prices, tying U.S. production to international benchmarks.
Declining associated gas from oil wells: With tighter oil drilling economics, associated gas volumes from basins like the Permian are falling, reducing supply.
Infrastructure constraints: Midstream bottlenecks and delays in new pipeline construction are putting a cap on how fast gas can flow.
This new pricing environment gives upstream gas producers stronger visibility on cash flows and investment returns. And despite the substantial price softening for all hydrocarbon commodities, due to the Tariff War, Natural Gas pricing has shown some notable resiliance.
5) U.S. Infrastructure Is Already Scaling.
The United States is proactively expanding its natural gas infrastructure to accommodate increasing domestic consumption and burgeoning export opportunities. In 2024 alone, the U.S. completed several significant pipeline projects, increasing takeaway capacity by approximately 6.5 billion cubic feet per day (Bcf/d) in key production regions such as Appalachia, Haynesville, Permian, and Eagle Ford. Translation: enough power to run every household in Texas and Florida, combined, for a day. These developments are strategically designed to transport natural gas from production zones to demand centers along the U.S. Gulf Coast and the mid-Atlantic.
Notable projects include:
Louisiana Energy Gateway: A 1.8 Bcf/d pipeline slated for completion in late 2025, aimed at improving connectivity between production areas and LNG export terminals.
Southeast Supply Enhancement: Expected to add 1.6 Bcf/d of capacity by the fourth quarter of 2027, this project focuses on meeting the growing energy needs of the southeastern United States.
These infrastructure enhancements are pivotal in ensuring that natural gas can efficiently reach both domestic markets and international customers through LNG export facilities.
6) Natural Gas Is a Bridge Fuel with a Long On-Ramp.
In the global shift toward renewable energy, natural gas plays an indispensable role as a transitional fuel. Its lower carbon footprint compared to coal makes it a preferable option for power generation, effectively reducing greenhouse gas emissions.
Moreover, natural gas-fired power plants offer the flexibility needed to complement unreliable, intermittent renewable sources like wind and solar. This synergy ensures a stable and reliable energy supply, facilitating a smoother transition to a low-carbon energy system.
Innovations such as the Allam power cycle further enhance the environmental credentials of natural gas. This technology enables the generation of low-cost, low-emission electricity by capturing and reusing carbon dioxide emissions, thereby mitigating the environmental impact of natural gas consumption.
While renewables are growing, they still can’t support the base-load power requirements of heavy digital infrastructure. Natural gas is viewed as the cleanest fossil option—and a vital bridge between coal and full decarbonization.
Even in net-zero policy frameworks, natural gas plays a role. Paired with carbon capture, it’s getting a second wind in ESG portfolios.
7) Volatility Is Everywhere—But This Sector Has Tailwinds.
From tariffs, to high interest rates, and inflation to geopolitical tensions and tech stock churn, uncertainty is the theme of today’s markets. But the case for natural gas investment is anchored in tangible, long-term fundamentals:
U.S. leadership in production and export
Compounding global demand growth
Expectation for more predictable pricing trends
Tech sector pull-through
In an era marked by economic fluctuations and geopolitical tensions, natural gas investments have demonstrated notable resilience. The sector’s reduced correlation with crude oil prices has contributed to lower volatility, enhancing its appeal to income-focused and risk-averse investors.
As noted earlier in this article, the expansion of LNG exports serves as a significant tailwind for the U.S. energy sector. With six LNG export projects under construction, set to add capacity by the end of 2028, the U.S. is poised to strengthen its position in the global energy market.
Furthermore, the midstream segment, encompassing pipeline and storage infrastructure, offers stable cash flows and attractive yields. This stability is underpinned by long-term contracts and the essential nature of these assets in energy transportation and distribution.
If you're looking for a grounded, infrastructure-backed play in a world where headlines change every hour—natural gas might be your answer.
Conclusion.
The digital revolution, propelled by AI and cryptocurrency, is inextricably linked to surging energy demands. Natural gas stands at the forefront of meeting these needs, bolstered by supportive policies, reliable infrastructure, and growing global markets. Strategic investments in natural gas today aren’t just about energy—they’re about owning the backbone of tomorrow’s digital economy.
PetroVybe ONE is an oil and natural gas development project uniquely positioned to capitalize on the surging digital economy. Accredited Investors are welcome to explore the project for consideration as an Investor Partner. Partners who joined in 2024 received a tax deduction of 91%, applicable to offset ACTIVE income (capital gains and/or W2). The 10-year forecasted average annual cash-on-cash ROI is ~45%. A preview of the project can be found here.
Best,
Disclaimer. This blog is for education purposes only. It is not an offer to sell securities. I am not a financial advisor and I don’t play one on tv either.
