BRIEF-Goldman Sachs Says AI May Impact Oil Prices Over Next Decade

Reuters2024-09-03

Sept 3 (Reuters) - GOLDMAN SACHS:

* SAYS "WE HIGHLIGHT THAT AI MAY EVENTUALLY WEIGH ON OIL PRICES OVER THE NEXT DECADE BY BOOSTING OIL SUPPLY"

* SEES C.30% OF THE COSTS OF A NEW SHALE WELL COULD POTENTIALLY BE REDUCED BY AI, RESULTING IN A C.$5/BBL FALL IN THE MARGINAL INCENTIVE PRICE

* SAYS "A HYPOTHETICAL AI-CATALYZED 10-20% JUMP IN THE VERY LOW RECOVERY FACTORS OF US SHALE COULD INCREASE OIL RESERVES BY 8-20% (10-30BN BARRELS)"

* SAYS "WE ESTIMATE A RELATIVELY MODEST POTENTIAL AI BOOST TO OIL DEMAND IS VIA HIGHER INCOMES OF +0.7 MB/D OVER THE NEXT 10 YEARS"

* SAYS "THIS AI IMPACT ON OIL DEMAND IS MODEST COMPARED TO THE AI DEMAND IMPACT TO POWER AND NATURAL GAS"

* SAYS "THIS AI IMPACT ON OIL DEMAND IS LESS COMPARED TO NEGATIVE ESTIMATED EFFECTS ON OIL DEMAND FROM EVS (C.-8 MB/D) AND LOWER NATGAS PRICES (-2 MB/D) OVER NEXT 10 YEARS"

((Reuters.Briefs@thomsonreuters.com;))

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