When Google earlier this year announced that it would stop making AI products for the oil and gas industry, prompted by a revelatory report by Greenpeace, it was a signal that, like banks, Big Tech may start distancing itself from the fossil fuel industry. But not everyone has been so suggestible: IBM just announced a partnership with Schlumberger in cloud computing. Tech and oil may still have a future together, and that might be good for everyone, even Greenpeace. The IBM-Schlumberger partnership, which also includes Red Hat, is focused on cloud services and aims to accelerate the oil industry's shift to a more digital mode of operation.
"The energy industry is transforming as organizations look for efficient new ways to power their operations, adopt digital technologies to create a competitive advantage, and innovate and integrate workflows to make faster and better decisions," the chief executive of Red Hat said in the press release announcing the tie-up.
Indeed, the energy industry is transforming, and the pandemic has been a sort of a kick in the backside to accelerate this transformation. As Covid-19 cases sent platform and field workers packing and emptied offices, many day-to-day operations in the industry went remote. This was possible thanks to digital technology, including cloud. In fact, some of the trends that the pandemic created may become long-term as they save costs at a time where every dollar matters.
It seems that oil and tech go pretty well together. IBM is not the only tech giant to team up with an oil major recently. Just a month ago, Microsoft opened up its cloud platform to Petrobras. The Brazilian company had been testing the platform even before the crisis, but when it struck, and the company had to have staff work from home, it fast-tracked the deployment of the platform, an industry executive told Bloomberg in August.
What these partnerships basically do for oil is they make exploration drilling a lot more accurate and production much more efficient. This is, of course, good for the industry because it ultimately saves costs. But accurate exploration drilling and efficient production is also good from an environmental standpoint: it means less drilling and cleaner drilling.
Microsoft was also a target of Greenpeace criticism in May when the organization published its "How Tech Companies are Helping Big Oil Profit from Climate Destruction" report that led to Google'spartialpullout from the oil and gas industry. Unlike it, Microsoft stood its ground.
Related: Citi Bank Sees $60 Oil In 2021
"The significance and complexity of the task ahead is incredible and will require contributions from every person and organization on the planet," the tech giant said in a blog post in January this year, in which it pledged to become carbon negative by 2030.
"That's why we are committed to continuing to work with all our customers, including those in the oil and gas business, to help them meet today's business demands while innovating together to achieve the business needs of a net zero carbon future. Continued improvement in standards of living around the world will require more energy, not less. It's imperative that we enable energy companies to transition, including to renewable energy and to the development and use of negative emission technologies like carbon capture and storage and direct air capture."
Some might say this is simply a justification for Microsoft's continued business with the oil industry, but the company certainly has a point: global energy demand, despite the pandemic, will continue rising over the long term. Every authority on energy, including the IEA, agrees that this demand will be impossible to satisfy with solar and wind farms alone. It makes sense, then, to help oil and gas companies become cleaner.
The IBM-Schlumberger partnership promises "seamless access to a hybrid cloud platform in all countries across the globe for deployment in any basin, for any operator," according to Schlumberger CEO Olivier Le Peuch. This would certainly help streamline many operations, and streamlining operations tends to reduce carbon emissions by its very definition. And there are other things with which Big Tech can help Big Oil: carbon trackers, for example, are all the rage now that investors are pressuring oil companies into making their carbon footprint public.
Greenpeace applauded Google's decision to stop making AI products for Big Oil. But the move meant Google willingly gave up Big Oil's business. The company is large enough to not feel any negative effect from this, perhaps. Still, it appears that at least two of Google's peers are of a more pragmatic bend. The industry's shift to a lower-carbon footprint hinges on digital technology. Some of it Schlumberger and the rest of the majors can develop on their own, but it's always betterand things happen fasterif you have help. The marriage of Big Oil and Big Tech has the potential to benefit everyone, not just the two industries involved in it.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
Read the rest here:
Big Tech Still Loves The Oil Business - OilPrice.com
- Report Sounds Alarm Over Growing Role of Big Tech in US Military-Industrial Complex - Common Dreams - April 18th, 2024 [April 18th, 2024]
- Big Tech's ad transparency tools especially X's are failing at their jobs, report finds - Mashable - April 18th, 2024 [April 18th, 2024]
- Big Tech Taps AI Agents to Drive Revenue Growth - PYMNTS.com - April 18th, 2024 [April 18th, 2024]
- National privacy standard eyed by Congress for data harvested by big tech companies Nebraska Examiner - Nebraska Examiner - April 18th, 2024 [April 18th, 2024]
- Big Tech is on a generative AI hiring spree - Fast Company - April 18th, 2024 [April 18th, 2024]
- Disruptive Innovation in the Era of Big Tech - HBR.org Daily - April 18th, 2024 [April 18th, 2024]
- Betting on US Big Tech? Top Earnings Reports to Watch in the Coming Week - FX Empire - April 18th, 2024 [April 18th, 2024]
- Big Tech Earnings Are Just Around the Corner - Meta Platforms (NASDAQ:META) - Benzinga - April 18th, 2024 [April 18th, 2024]
- WATCH LIVE: Will Cain holds panel to discuss Big Tech and Trump trial - Fox News - April 18th, 2024 [April 18th, 2024]
- Google fires 28 workers in aftermath of protests over big tech deal with Israeli government - The Bakersfield Californian - April 18th, 2024 [April 18th, 2024]
- Big Tech offices are getting smaller and that spells trouble for landlords - Quartz - April 18th, 2024 [April 18th, 2024]
- Asking Big Tech to police AI is like turning to 'oil companies to solve climate change,' AI researcher says - Fortune - April 18th, 2024 [April 18th, 2024]
- Big Tech Comes to Small Town: A Bitcoin Mining Story in Spur - CoinDesk - April 18th, 2024 [April 18th, 2024]
- Big Tech loses its appetite for office space, adding to landlords woes - Inman - April 18th, 2024 [April 18th, 2024]
- Google restructure leads to job cuts - Mobile World Live - April 18th, 2024 [April 18th, 2024]
- FTC's Lina Khan talks big tech monopolies on The Daily Show - The Ticker - April 18th, 2024 [April 18th, 2024]
- Digital public infrastructure will drive the future, not big tech: Amitabh Kant - BusinessLine - April 18th, 2024 [April 18th, 2024]
- Big tech is downsizing work space in another blow to office real estate | Mint - Mint - April 18th, 2024 [April 18th, 2024]
- UK Plans Talks With Big Tech to Limit Online Harm for Teens - Bloomberg - April 18th, 2024 [April 18th, 2024]
- Canada to Start Taxing Tech Giants in 2024 Despite US Complaints - Bloomberg - April 18th, 2024 [April 18th, 2024]
- US quarterly earnings to feature big growth in tech-related companies - Reuters - April 18th, 2024 [April 18th, 2024]
- Our View: Big Tech: Google continues to harm news groups for its own profit - Mankato Free Press - April 18th, 2024 [April 18th, 2024]
- Deepfake victims must punish Big Tech because Congress wont - The Hill - April 18th, 2024 [April 18th, 2024]
- Big tech kneecaps anyone researching it. The online harms bill needs to remove barriers to analysis - Policy Options - April 18th, 2024 [April 18th, 2024]
- Global future will not be driven by big tech but by India's DPI: Amitabh Kant - Moneycontrol - April 18th, 2024 [April 18th, 2024]
- Kids Code bills prompt epic showdown between regulators, activists and big tech firms - Biometric Update - April 18th, 2024 [April 18th, 2024]
- Tech Firms Retreating From Office Market - The Real Deal - April 18th, 2024 [April 18th, 2024]
- UKs antitrust enforcer sounds the alarm over Big Techs grip on GenAI - TechCrunch - April 18th, 2024 [April 18th, 2024]
- Time for government to regulate big tech - ACS - April 18th, 2024 [April 18th, 2024]
- UK Markets Authority Warns of AI Market Capture by Big Tech - BankInfoSecurity.com - April 18th, 2024 [April 18th, 2024]
- 2023 Boosts Big Techs AI monopoly? Google, Microsoft, Nvidia, and others wield money power - HT Tech - January 2nd, 2024 [January 2nd, 2024]
- Alphabet (GOOGL) and Meta Shows Power of Ads Over Subscriptions - Bloomberg - January 2nd, 2024 [January 2nd, 2024]
- Looking Beyond The 'Magnificent 7' Analysts Just Upgraded These Three Large-Cap Stocks - Anheuser-Busch - Benzinga - January 2nd, 2024 [January 2nd, 2024]
- Mapping the Biggest Tech Talent Hubs in the U.S. and Canada - Visual Capitalist - January 2nd, 2024 [January 2nd, 2024]
- Google, Meta, other tech giants slash DEI-related jobs, resource groups in 2023: Report - Fox Business - January 2nd, 2024 [January 2nd, 2024]
- South Koreas proposed tech regulations would be a gift to China - The Hill - January 2nd, 2024 [January 2nd, 2024]
- Outlook 2024: Big changes to expect in personal tech - The Indian Express - January 2nd, 2024 [January 2nd, 2024]
- Big Tech Dumped $17 Billion Into AI Companies in 2023 Despite Frozen Market - The Messenger - January 2nd, 2024 [January 2nd, 2024]
- Why OpenAI signals the start of the post-Christensen startup world - Tech.eu - January 2nd, 2024 [January 2nd, 2024]
- Opinion | Lindsey Graham and Elizabeth Warren: When It Comes to Big Tech, Enough Is Enough - The New York Times - July 29th, 2023 [July 29th, 2023]
- Globe editorial: Canada can't tackle Big Tech on its own - The Globe and Mail - July 29th, 2023 [July 29th, 2023]
- July jobs report and more Big Tech earnings are in the week ahead after markets notch historic run for Dow - CNBC - July 29th, 2023 [July 29th, 2023]
- A Setback in the F.T.C.'s Fight Against Big Tech - The New Yorker - July 29th, 2023 [July 29th, 2023]
- Be strong in the fight against Big Tech, Canada - Canada's National Observer - July 29th, 2023 [July 29th, 2023]
- Decoding volatility: Are big tech stocks as stable as we think? - CryptoSlate - July 29th, 2023 [July 29th, 2023]
- Patients think their health data will be leaked and don't trust big tech ... - Contemporary Pediatrics - July 29th, 2023 [July 29th, 2023]
- The Role of Artificial Intelligence in Big Tech Earnings Season - Fagen wasanni - July 29th, 2023 [July 29th, 2023]
- The problem with Big Tech's voluntary AI safety commitments - Emerging Tech Brew - July 29th, 2023 [July 29th, 2023]
- How the Crypto Market Prepares Ahead of Big Tech Earnings ... - BeInCrypto - July 29th, 2023 [July 29th, 2023]
- Tony Anscombe: It's Misleading to Ask if Big Tech Wants to Read ... - BroadbandBreakfast.com - July 29th, 2023 [July 29th, 2023]
- The Week Ahead: Fed, ECB and BoJ set rates, and Big Tech ... - Financial Times - July 29th, 2023 [July 29th, 2023]
- China's Big Tech making a comeback with Beijing offering fresh ... - The Straits Times - July 29th, 2023 [July 29th, 2023]
- Montgomery County school district sues Big Tech over youth mental ... - Washington Times - June 18th, 2023 [June 18th, 2023]
- Big Tech knows most Brits don't know how to protect their online ... - TechRadar - June 18th, 2023 [June 18th, 2023]
- The time for talk is over is time for action on data privacy - The Hill - June 18th, 2023 [June 18th, 2023]
- Meet the man calling out Big Techs climate hypocrisy - Corporate Knights Magazine - June 18th, 2023 [June 18th, 2023]
- Letter: UK watchdog's tough stance on Big Tech should reassure MPs - Financial Times - June 18th, 2023 [June 18th, 2023]
- Peter Thiel on Big Tech: A Throwback Lecture - Walter Bradley Center for Natural and Artificial Intelligence - June 18th, 2023 [June 18th, 2023]
- Big Tech Is Big Tobacco - The Lever - May 6th, 2023 [May 6th, 2023]
- Graham fires warning shot at Big Tech: Were going to unleash the courtrooms of America on you - Fox News - May 6th, 2023 [May 6th, 2023]
- Experts weigh the current cost of anticompetitive behavior in Big ... - NYU Law - May 6th, 2023 [May 6th, 2023]
- Big Tech lobbying on AI regulation as industry races to harness ... - Center for Responsive Politics - May 6th, 2023 [May 6th, 2023]
- 'Big Tech is knowingly fueling a mental-health crisis in this country ... - Morningstar - May 6th, 2023 [May 6th, 2023]
- EY's Abandoned Split Exposes Obstacles to Big Tech Consulting - Bloomberg Tax - May 6th, 2023 [May 6th, 2023]
- Apple CEO Tim Cook calls mass layoffs a last resort, as the company avoids the giant job cuts of its Big Tech peers - Yahoo Finance - May 6th, 2023 [May 6th, 2023]
- Big Tech stocks are flying! Which ones are the best buys today? - Motley Fool UK - May 6th, 2023 [May 6th, 2023]
- Why Indian start-ups have accused the Internet and Mobile Association of India of spreading Big Tech propaganda - The Indian Express - May 6th, 2023 [May 6th, 2023]
- Intimate Images Protection Update Big Tech Warned To Be Ready ... - BC INJURY LAW - May 6th, 2023 [May 6th, 2023]
- Apple Stock and Big Tech Are Winners. Why Cathie Wood's ARK Is Still a Loser. - Barron's - May 4th, 2023 [May 4th, 2023]
- White House officials will meet Big Tech CEOs as President Biden looks to tackle AI safety concerns - Yahoo Canada Finance - May 4th, 2023 [May 4th, 2023]
- The top 10 buzziest companies Gen Z wants to work fornone of them are in Big Tech, says new report - CNBC - May 4th, 2023 [May 4th, 2023]
- Apple Reports Earnings Today. What to Expect. - Barron's - May 4th, 2023 [May 4th, 2023]
- Big Tech Earnings: Time to Take Another Bite of Apple? - Yahoo Finance - May 4th, 2023 [May 4th, 2023]
- Vibe Check: Big Tech Is Losing Its 'Luster' For The Class Of 2023 Amid Mounting Layoffs And An Uncertain Economy - Forbes - May 4th, 2023 [May 4th, 2023]
- Lindsey Graham says Big Tech will kill online child safety bill, teases plan with Elizabeth Warren - Washington Times - May 4th, 2023 [May 4th, 2023]
- 'Break them open' new EU rules coming for Big Tech - TNW - May 4th, 2023 [May 4th, 2023]
- EY's Abandoned Split Exposes Obstacles to Big Tech Consulting - Bloomberg Law - May 4th, 2023 [May 4th, 2023]
- Open Source Communities Need More Than Funding From Big Tech - DevOps.com - May 4th, 2023 [May 4th, 2023]
- Night School, Class 3: Big Tech vs the insurgents - Financial Times - May 4th, 2023 [May 4th, 2023]
- MM View: The Big Tech monster is coming for you - but only if you let it - Money Marketing - May 4th, 2023 [May 4th, 2023]