At CERAWeek by S&P Global, the annual Houston gathering of the top officials in the energy sector from around the world, this dynamic was on full display. In the main stage conversation, executives emphasized both the dramatic toll of the current crisis and its likelihood to continue. Time and again executives said that the price of oil had not risen substantially enough to reflect the scale of the growing crisis. At a minimum, recovery will take months and it’s more likely to last into 2027. “The fundamentals are very tight, and so the markets are trading on scant information,” said Chevron CEO Mike Wirth at a fireside chat Monday.
For close watchers of the energy sector, this may not be particularly new or surprising. Oil and gas companies have been reluctant to make big investments for much of the last decade, fearful that they may not be able to make a healthy return without sustained higher prices. And, despite President Donald Trump’s avowed support for oil and gas, many of his biggest decisions—from tariffs to armed conflict—have left the industry feeling confused and concerned.
“In terms of allocation of capital… it’s better not to invest in this one,” said Total CEO Patrick Pouyanné as he shared a dais with a gleaming Interior Secretary Doug Burgum at CERAWeek. Instead, he said, the company should “continue to invest in other things.”
In Houston this year, the main stage featured top executives from the world’s biggest tech firms. They talked up not just their investments in AI but also their enormous spending on energy.
These tech firms are engaging with the energy sector to serve their own power needs, but their choices—and the immense capital that comes along with those choices—will shape the market for everyone else. The capital allocation decisionspr made by big tech firms have the potential to bring new technologies to market (think of nuclear fusion or small modular reactors) with a few well executed and capitalized deals. And hyperscalers now have enough sway in the market to push power prices higher—or lower—based on where they set up shop and how they engage with the market.
This story is supported by a partnership with Outrider Foundation and Journalism Funding Partners. TIME is solely responsible for the content.
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