Data Is the New Oil and the Energy Sector Knows It

Back in 1933, when King Abdulaziz Ibn Saud signed the concession allowing American geologists to explore for oil in Saudi Arabia, it took fifteen years before they struck crude at the now-famous Dammam Well No. 7 in 1938. But with today’s advanced AI and digital mapping tools, that timeline could have been shortened to mere months or even weeks.

That’s the kind of impact artificial intelligence is beginning to have on the global oil and gas sector. Across the industry, from exploration and production to future-focused goals like decarbonization and energy transition, AI is being seen as a transformative solution.

At this year’s CERAWeek in Houston, one of the energy industry’s largest gatherings, AI dominated discussions. Nearly a quarter of all panels were dedicated to digital transformation, and the topic came up in nearly every session, reflecting its growing influence on the sector.

Nowhere is this enthusiasm more evident than among the Arabian Gulf producers.

Dr. Sultan Al Jaber, CEO of ADNOC, explained how AI is revolutionizing operations: “We’re now able to reduce seismic data analysis from months to mere hours. Our production forecasts are up to 90% more accurate, and we’re on track to make ADNOC the world’s most AI-driven energy company”.

Similarly, Aramco CEO Amin Nasser called AI “a game-changing enabler” for the industry.

Both Saudi Arabia and the UAE are backing up these statements with massive investments. National oil companies and energy ministries are integrating AI not just to refine exploration and production, but to better model energy demand, mitigate risks, and forecast market prices with greater precision.

At CERAWeek, speakers highlighted how AI can process vast datasets — from weather systems and shipping data to global economic indicators and even social media activity — to generate fast, sophisticated market predictions that outperform traditional methods.

It may sound like science fiction, but for Gulf nations, an AI-driven oil market is not just a possibility — it’s part of a larger strategy to evolve from energy exporters to data and technology leaders.

Both countries are embedding AI into their national development agendas. They’re not only using it to enhance operations but to gain competitive advantages in market trading and pricing models, with the potential to influence global benchmarks.

This raises a key question: Will global markets accept pricing models generated by AI systems developed in the Gulf? Are these nations simply promoting their own interests, or does their decades-long experience in oil markets give them a unique edge that AI can now amplify?

Regardless, the potential is undeniable — and not just for AI’s impact on energy, but the energy sector’s role in fueling the AI boom itself.

One of the other major themes of CERAWeek was the growing power demands of AI. Some projections suggest that, by next year, global data centers could consume as much electricity annually as Japan.

This is where the Gulf comes in again, not just by maintaining stable supplies of hydrocarbons, but by actively investing in the infrastructure that supports the AI ecosystem.

Recent multi-billion-dollar tech investments by Saudi Arabia’s Public Investment Fund and Abu Dhabi’s new MGX tech company reflect this dual strategy: maintain energy leadership while accelerating technological development.

AI is no longer the exclusive domain of Silicon Valley. It’s becoming essential to energy — and especially in the Gulf, where governments see it as central to future economic growth.
Back in 2017, The Economist declared that “data is the new oil” At the time, some dismissed the idea. But today, in a world shaped by pandemics, geopolitical shifts, and climate goals, that headline looks more prophetic than ever.