The continuing U.S. and Israeli war against Iran and the rapid expansion of data centers and AI dominated the conversation at this year’s CERAWeek energy conference in Houston.
Rising prices of crude and refined products were a major theme, with many speakers citing concerns about the lingering market impacts of the war, even if it were to end in the short term. The Trump administration, seeking to head off potential fuel disruptions and further increases in gasoline prices, announced Wednesday that it was issuing a waiver making E15 gasoline available nationwide starting May 1. Similar waivers have been issued by the EPA each year since 2022.
In addition to the war, nearly every discussion, regardless of topic, eventually turned to data centers and AI, where speed to market is the major focus. According to one panelist, of a hyperscaler’s top five priorities, the first four have become speed, speed, speed and cost. Because there’s such a rush to get data centers online, many sites are opting against relying on grid connections and combined cycle gas turbines (and long wait times; see I Will Wait) and pursuing other options, like reciprocating engines and behind-the-meter power. While about 90% of the generation being added to the U.S. power grid has been renewables this year, panelists said almost all behind-the-meter additions have been natural gas.
Interest in products like low-carbon hydrogen and ammonia remains, with some highlighting its role in supply security over decarbonization, but there is little market appetite for a “green premium” and projects need certainty on planning and regulations to advance. As noted in this week’s Hydrogen Billboard, Brett Perlman, CEO of Gulf Energy Catalyst, said the Gulf Coast has unique advantages when it comes to infrastructure, natural gas resources, storage, traditional power generation and renewables penetration, plus an extensive customer base. “All the pieces are here,” Perlman said. Rick Beuttel of Woodside Energy said the Gulf Coast’s confluence of strengths helps make initiatives like the Beaumont New Ammonia project in South Texas economically viable. But Jason Lanclos of Louisiana Energy Development said more needs to be done to increase certainty, transparency and coordination when it comes to project permitting, with states needing to “move at the speed of business.”
