Get to Know Alix Steel

Veteran financial journalist Alix Steel brings two decades of storytelling expertise and a sharp executive messaging focus to DrivePath Advisors. 

by Kent Robertson

We’re thrilled to welcome Alix Steel to our team. With a career spanning Bloomberg, TheStreet, and interviews with leading CEOs, Alix brings a rare blend of industry insight, media savvy, and a passion for energy markets. I sat down with Alix to discuss her journey from financial journalism to shaping corporate narratives, what drew her to DrivePath, and how she plans to help our clients uncover—and share—their most compelling stories. 

Kent Robertson: You’ve had an impressive career in financial journalism and broadcasting—from Bloomberg to TheStreet. What drew you to energy markets and storytelling in the first place?  

Alix Steel: I got into energy through gold, of all things. I was covering the precious metal in 2008, and it was a great window into the economic crisis at the time. From gold it was silver, then industrial metals, then finally oil. I remember the day I learned there was more than one oil grade! I found it fascinating, especially as it powers everything in our lives. From there, the energy transition/addition came into focus, and there was a perfect overlap between oil and the transition. I love learning everything about the energy industry from lateral length to LNG exports to solar panel supply chains to transformers. The nerdier the better.  

KR: How has your experience as an on-air anchor and reporter shaped the way you think about executive communications and messaging? 

AS: I can see through the BS! I know when there is no message, when the CEO doesn’t feel secure, when there are only talking points.  

KR: What attracted you to DrivePath Advisors, and how does this role align with where you want to take your career next?  

AS: For my next career, I wanted something that would use the skill set I honed over 20 years and learn new ones. It was pretty simple but very hard to find. I assumed energy was out because I don’t live in Texas so I truly thought that I would wind up doing internal and external communications for hedge fund or mutual fund. After looking for 1.5 years, Gordon was the last person I talked to. What sealed the deal for me was that DrivePath is all energy, all day and I loved focusing on one industry with the fastest changing landscape. The other selling point was the people, the caliber of work, attention to detail and strategic thought is, quite frankly, stunning. Everyone works together, there is no ego and everyone gets their hands dirty. From that perspective, I could offer a lot to the team and learn even more. 

KR: Having interviewed countless executives, what gaps or challenges do you see in how companies communicate their narratives—and how do you hope to address them here? 

AS: I think traditionally energy companies never wanted to talk, never wanted to tackle any negative headlines – that strategy eventually backfired. There is a need to talk in a culture that doesn’t like to. As we move toward adding even more forms of energy into the mix, it becomes even more important for companies to differentiate themselves. 

Also, for a while U.S. shale companies could rely on their production or acreage or lateral length to impress investors, but that story is nearing its last chapters. We can all agree that the world needs affordable dependable energy, but we can’t agree on how to get there. We need the energy companies to tell us how they fit into that world. I can help find that narrative. 

KR: From your time covering markets and interviewing CEOs, what separates compelling corporate storytelling from forgettable messaging?  

AS:  

Do: have 1-3 main points you want to get across.  
Don’t: try to say everything everywhere all at once. 

Do: talk like a real person. 
Don’t: talk in jargon.  

Do: seem happy to be there, fake it ‘til you make it. 
Don’t: act like you are having a root canal. 

KR: What’s one piece of advice you’d give to a CFO or CEO preparing for a high-stakes interview or earnings call? 

AS: Don’t shy away from the hard answers and be genuine. Give as much detail and honesty as you can, know where you want to drive the conversation, but don’t run away from the tough stuff. If you can be honest with analysts and shareholders when the going is tough, they will believe you when you say things will get better. And be human! There is a reason everyone hangs on Jamie Dimon’s every word on an earnings call, and he doesn’t always deliver the positive.  

Please join us in welcoming Alix to DrivePath Advisors as we continue to set the standard for strategic counsel in the energy industry.

An Electrified U.S. Economy Demands Bold Actions and Clear Messaging from the Power Sector

The U.S. economy can only grow as fast as it can be powered. Our economic ambitions to lead in artificial intelligence, to onshore manufacturing, and to ensure energy independence and security all depend on one thing: more electricity.

by Melissa McHenry

At the 2025 EEI Annual Meeting in New Orleans, technology, energy and political leaders delivered a clear message to the power sector: move faster or risk falling behind. Future success will depend on innovation, collaboration, and clear communication as the power sector reinforces its role in U.S. economic growth and competitiveness. 

Innovation as an Imperative Economic Narrative 

Oracle CEO Safra Catz set the stakes bluntly: “You are deciding your future right now. You are going to be asked to take more risk, move more quickly and invest a lot more.” 

Her message was clear: AI-driven industries depend on reliable electricity. The power sector must position itself as the foundation of economic and technological advancement while shifting public perception. "You’ve been consistent. You’ve been dependable. Now, you’re being asked to be bold," she said.  

Vibhu Kaushik, Head of Worldwide Energy at Amazon Web Services, reinforced this urgency: “Utilities must rethink how they operate. The traditional model of energy delivery is evolving, and those who fail to integrate AI, cloud computing and automation will struggle to keep up.” 

Communications must highlight how transformative investments support economic growth, enhance security, improve grid efficiency and ultimately lower costs. The industry’s ability to effectively make this case to regulators, customers, public officials and other stakeholders will determine its ability to evolve faster than it has in the past.  

Collaboration is Critical 

Unprecedented demand growth isn’t just a technical challenge—it’s political, economic, and social. Louisiana Governor Jeff Landry emphasized why a collaborative approach is essential. 

“We cannot afford to work in silos. Whether it’s grid modernization, affordability or resilience, government, industry, and innovators must work together to maintain reliability while meeting growing demand,” Landry said.  

Landry also highlighted the importance of regional partnerships. "States must collaborate on energy solutions. The demand surge we’re seeing isn’t confined to one region—it’s a national challenge. We need to share best practices, streamline regulatory approvals and ensure that investments are made where they’re needed most." 

Landry pointed to regional partnerships and public-private collaborations as key models for success. Sharing best practices, streamlining regulatory approvals and targeting investments effectively will determine whether the sector can keep pace with demand. 

"The energy transition is happening now, and it’s happening fast. If we don’t work together—across industries, states, and sectors—we risk falling behind." 

Communication as a Competitive Advantage 

Strategic messaging will determine the industry’s ability to thrive during this period of unprecedented challenge and opportunity. Power sector leaders must control the narrative about the industry’s ability to innovate and meet the energy demands of the future, reinforcing these key themes:  

• Innovation is a necessity, not a risk. 

• Infrastructure investment is critical for economic growth, competitiveness and security. 

• Collaboration is the only path forward. 

The stories told today will shape the power sector’s economic position tomorrow. The industry’s role in enabling AI-driven growth and national resilience must be communicated strategically and effectively—or risk being undervalued. 

Connect with me and the team on email or LinkedIn to learn more.

Shareholder Activism Reset the IR Playbook. Are you ready?

Sipping that first cup of morning Joe, you see it. An open letter to your shareholders. While you were aware of their concerns, you didn’t believe their ownership position, or conviction, could lead to a public plea for change. 

by Steve Campbell

Are you ready to handle your activists?

Shareholder activism is on the rise, with more than 250 public campaigns in U.S. markets in 2024. While often seen as disruptive to the company, there is no doubt that it has proven to be an effective way to influence strategic direction, CEO transition, board refreshment and industry consolidation.

While you can never predict when this might happen to you, every IRO should take these steps to get and stay ahead of any activist threats:

Don’t settle with just sell side conversations. Reach out to all long-term investors.
Sure, we all attend industry conferences and hit our favorite non-deal roadshow stops. While it appeases the sell side, it’s not sufficient to fully understand owner perceptions and alignment with corporate vision.

Shareholder outreach should be an intentional, annual effort to dialogue with investors around issues well beyond how many widgets you sell, barrels you produce or quarterly profit margins.

Long-term investors want to understand your strategy and discuss the key drivers behind long-term value creation. These include goals and alignment with NEO compensation, governance, board skillsets and ongoing refreshment. Outreach meetings should include select board members (lead director and compensation chair), legal and investor relations, but exclude the CEO (hard to discuss your own compensation). Key findings will make for better proxy disclosures, educate the board and drive positive change across the enterprise.

Be your own activist to prepare.
Activism preparedness is a healthy process, creating a forum to discuss asset or operational weaknesses, strategic direction, gaps in governance and underperformance metrics relative to peers. Without the stress of an activist at the door, put yourself in the activist mindset to develop a list and a proactive plan to timely address each. Best-in-class IR programs partner with their financial consultants, investment banks and counsel to create, and regularly refresh, the list.

Give your board an active role in activist preparation.
To avoid surprises, ensure your board is both informed and involved. In addition to annual outreach, a subset of the board should be charged with activism preparedness. This group can also serve as an initial point of contact for potential activists, working to address concerns and plan a constructive path forward.

Invite key shareholders into the boardroom. Engage in a discussion around what attracted them to your story, as well as the catalysts that would drive an increase, or decrease, in their ownership position. While always insightful for the board, these dialogues also serve to strengthen buyside alliances that could be useful during a potential contested proxy campaign down the road.

Reset your IR playbook.
A thoughtful and timely response to shareholder issues is imperative-whether behind the scenes, or publicly. Understand IRO, advisor, board and management responsibilities well in advance. Create a framework for an initial response that can be issued within 24 hours, if required. Oftentimes, the effectiveness of a company’s early response to its shareholders can meaningfully influence the direction of the campaign.

So, are you ready?

If you need help taking the first step to update your IR playbook, know that we’ve been in your shoes. We’ve developed solid shareholder outreach campaigns, created actionable defense plans and effectively guided IROs, management teams and boards through these reputational events.

Connect with me and the team on email or LinkedIn to learn more.

Earned Media’s Quiet Comeback in the Age of AI

Earned media matters, maybe more than ever, as investors, journalists, policymakers turn to AI for their search needs.   

by Brian Price

Generative AI is changing how people discover and understand energy companies, and what that means for communicators. We tested a few common queries: one on investor sentiment trends, another on LNG’s role in the global energy mix. What stood out wasn’t the answers themselves, but where they came from. The models leaned not on investor decks or company content, but on news coverage, analyst commentary and long-form interviews. 

That raised a bigger question: Where do these models get their information? The deeper we looked, the clearer it became: AI doesn't invent insight; it assembles what’s already out there. And increasingly, one of the most powerful inputs isn’t your website. It’s what others say about you. 

In other words: earned media matters, maybe more than ever. 

As ChatGPT, Gemini and Perplexity become go-to tools for investors, journalists, policymakers and job candidates, companies need to start thinking of earned media like a new kind of SEO. The stories written about you—by credible, independent sources—feed the engines shaping today’s search behavior. They establish tone, reinforce positioning and fill gaps in understanding in ways owned content alone can’t replicate. 

That’s a shift worth pausing on. 

Over the past decade, as newsrooms shrank and digital distribution fragmented, brands turned inward. They built audiences through owned channels, influencer collaborations and targeted paid strategies. Media relations wasn’t abandoned, but it was deemphasized—often seen as inefficient, too transactional or simply not worth the effort. But generative AI has challenged that calculus. 

It’s given earned media a refreshed strategic relevance, one that many communicators didn’t see coming. Because in this new ecosystem, it’s third-party credibility from news and podcasts that feed the models, shape narratives and frame how your company shows up in everything from AI queries to Wikipedia entries. And even in quick-turn research reporters now conduct, especially as specialist beats have thinned across newsrooms. 

This matters in places like Wikipedia, too—another increasingly AI-surfaced source where neutrality is key and citations are everything. And what do Wikipedia editors lean on? You guessed it: quality earned media coverage from reputable sources. 

At DrivePath, we were built for this moment. Our team blends deep energy subject matter knowledge with media experience and long-standing relationships. We help clients close narrative gaps and prepare for better conversations—not just with reporters, but with the AI models that shape what those reporters (and everyone else) see. 

Because in today’s media ecosystem, reputation still starts with what others say about you. The difference is how far—and how fast—that story travels next. 

Follow me and my team on LinkedIn to get the latest on Pathways.

Suspicious Chinese Solar Equipment should have Lawmakers considering pragmatism over politics

Suspicious Chinese solar equipment should have lawmakers considering pragmatism over politics

Reuters reported this month that rogue communication devices have been found in Chinese solar power inverters 

by Kent Robertson

Energy reliability is energy security, and Sarah McFarlane from Reuters has a story on suspicious solar equipment that everyone thinking about energy, and energy security, should read.  

Without jumping to conclusions, it's clearly a reminder that supply chains matter. Moreover, as lawmakers contemplate changes to the IRA, consider what will be lost if U.S. attempts to bring energy infrastructure manufacturing back onshore are derailed. 

America currently doesn't make enough of anything domestically to be truly energy dominant. From copper, or any other critical material, to transmission lines and transformers, to specialized pipes and pipeline. The list goes on and on. 

Now that there is a national security imperative to scale AI infrastructure, the need to incentivize domestic production-all forms of energy, as well as the equipment needed to produce it-means we need to put pragmatism ahead of politics. 

Read more about our take on Energy Pragmatism from Dave Samson.

Is SAF Ready for Takeoff?

Why Sustainable Aviation Fuel (SAF) Won’t Take Off Without Structural Support

by Kent Robertson

The push for Sustainable Aviation Fuel (SAF) is gaining momentum as airlines and policymakers search for ways to reduce aviation’s carbon footprint. A recent analysis by BCG outlines some of the barriers to SAF adoption—high costs, limited production capacity, and the need for policy intervention. However, one critical factor is largely overlooked: the role of airline passengers in driving demand.

This omission is understandable. The flying public has consistently shown extreme price sensitivity when purchasing airline tickets. While corporate sustainability programs and eco-conscious travelers may express interest in greener air travel, most passengers prioritize cost over climate concerns. Studies on consumer behavior in the airline industry demonstrate that even a slight increase in ticket prices can push travelers toward cheaper alternatives.

Carbon offset programs, which allow passengers to pay a small fee to mitigate their flight’s emissions, have seen minimal uptake. If history is any indication, voluntary SAF adoption is unlikely to gain traction without external pressure.  

This cost sensitivity presents a fundamental challenge: if passengers won’t pay for SAF, who will? Airlines, already operating on razor-thin margins, have little incentive to voluntarily bear the additional expense. Without regulatory mandates or structural incentives, the industry’s SAF transition will remain slow and fragmented.

The path forward likely involves compromise. If air travel is going to become cleaner, SAF must be scaled significantly. Increased production will help reduce costs, but SAF is unlikely to ever reach price parity with conventional jet fuel under current market conditions. If consumers are unwilling to pay for SAF directly through ticket prices, they will ultimately pay for it indirectly—through taxes used to fund government incentives, subsidies, and regulatory programs that support SAF adoption.

The conversation around SAF must acknowledge this reality. Sustainable aviation will require a collective effort, where costs are distributed in ways that ensure progress without pricing out travelers. Ignoring the role of the flying public in this equation risks overestimating the potential for voluntary adoption and underestimating the need for broader policy intervention.

The Era of Pragmatism

A Realistic Approach To Navigating Today’s Volatile World

by Dave Samson

This is a time of change and uncertainty. The need for pragmatism has never been greater.

As we witness further polarization in political discourse, economic instability, technological disruption, and emerging global challenges, leaders from all walks of society must shift from overly aspirational visions to practical, doable solutions.

This pivot is not merely a philosophical exercise; it represents smart strategy that can define success or failure in today’s global environment.

In every sector of society, leaders are facing the tough reality that capturing opportunities means skillfully navigating political and social chaos. In a world where instability is now the norm, success demands not just resilience but also compromise and the vital application of practical solutions.

So, what else are we to learn from this sudden shift in business mindset?

“A good plan executed today is better than a perfect plan executed next week.” - General George S. Patton

In short, it means acknowledging that idealism, while motivating, often leads to dead ends in today’s highly polarized world. Instead of getting caught up in lofty aspirations that are often unachievable, it is important to focus on realistic, actionable outcomes. In other words, the time for perfect plans has been eclipsed by the necessity for engagement (even with those whom we might not agree or see eye-to-eye) and progress. The move from abstract ideals toward more pragmatic solutions can create timely and meaningful change.

The urgency for a more pragmatic approach in dealing with our most pressing challenges. Businesses, governments, and communities share a critical responsibility in how they come together to forge practical solutions that can effectively tackle the toughest challenges we all face.

Collaboration is key.  Finger pointing divides.

Rather than pursuing isolated or self-interested agendas, a coordinated effort that taps the strengths of our critical institutions can enhance resource allocation and amplify impact. Businesses can lead in technological innovation; governments can enact smart policies that promote progress; and communities can serve as advocates for accountability and community engagement. This collective approach highlights that in a world rife with complexity, it is our shared determination -- and forming coalitions of the pragmatic -- that will drive real progress.

Furthermore, embracing pragmatism empowers a broader understanding of stakeholder capitalism.

Investors and consumers alike are increasingly gravitating toward organizations that demonstrate a commitment to resolving the world’s toughest challenges — not through grandstanding but by delivering real, quantifiable results. Companies that exhibit agility in navigating today’s complicated landscape, respond rapidly to emerging data, collaborate with others, and iterate their strategies will ultimately win the support of their critical stakeholders.

The emergence of pragmatism as a guiding principle also presents unique opportunities for innovation. By acknowledging the nuanced realities of our environment, embracing a collaborative approach, and prioritizing actionable solutions, companies can thrive as they contribute to tangible advancements that benefit society at large.

We are at a pivotal moment in history, where combining common sense with a practical mindset can lead to real progress and shape a more resilient future.

As we transition to an era grounded in pragmatism, leaders must recognize that today’s challenges demand immediate attention and collaborative effort.

The path ahead requires vision matched with practicality to transform uncertainty into opportunities for growth, prosperity, and a better future for all.

Another CERAWeek has come and gone

Our DrivePath team recaps what we saw at CERAWeek 2025.

by Kent Robertson

Electricity providers were surging. Natural gas producers and transporters had some swagger. Oil companies were swirling. Cleantech was in the shadows. And the energy “transition” was being restated. 

If CERAWeek ‘24 was about learning how to spell AI, CERAWeek ‘25 was about figuring out how to power it. Electricity was the belle of the ball, buoyed by load growth, onshoring, and electrification. Even nuclear fusion was in the spotlight at a Wednesday dinner. 

The previous day, Constellation Energy CEO Joseph Dominguez sought to calm nerves about the near-term impact of AI on energy demand, but urged industry leaders to start planning for the next few decades, and to ensure they’re taking advantage of AI to optimize their own businesses too. 

“It’s critically important that we plant the seeds today for the technologies we’re going to need in the future,” Dominguez told the conference.  “Any company in this space that is not thinking about AI is not going to be around on this stage 10 years from now.” 

Natural gas, no longer a short-term bridge fuel, is now widely seen as a key power source for big tech’s energy-hungry ambitions as well as a geopolitical tool contributing to security and stability. 

Policy whiplash and geopolitical tensions cast a pall over the oil sector. Tariffs, the economy, and the prospect of more OPEC production left more questions than answers. 

In a sign of the financial times, cleantech companies saw their numbers notably drop off while data companies may have had their most robust presence to date. 

ONEOK Chief Executive Pierce Norton noted the circular nature of the conversation around AI, from how it is deployed to support energy production to how data centers are powered, in what U.S. Energy Secretary Chris Wright called an “energy-intensive manufacturing industry.” 

Perhaps most evident was a shift in thinking about the future of energy, with energy “addition” displacing energy “transition.” No less than the IEA’s Fatih Birol said, "There is a need for oil and gas upstream investments, full stop.”  While some may discount the statement to political pragmatism, there’s no denying CERAWeek was a source of energy realism for anyone in search of it. 

One notable reality is the enduring demand for coal in a world that is still short of energy. “China will probably burn more coal this decade than the U.S. did in its whole history,” said Judson Kroh, president of Robindale Energy, as quoted by Javier Blas. 

Not to be outdone, newly installed U.S. Interior Secretary Doug Burgum told Bloomberg TV on the sidelines of CERAWeek that the United States should be restarting coal-fired power. 

The global energy system is experiencing dynamic change. Demand is rising due to many reasons, yet the fundamentals remain — affordable, reliable, cleaner energy is still needed and in greater quantities than before. Global emissions remain a legitimate issue, even if energy security is getting the attention. Solutions require partnership and compromise. 

Energy Secretary Wright said the impact of human advancement on climate pointed to inevitable “trade-offs” of prosperity and environmental impact. He added that the energy-enabled benefits enjoyed by around 1 billion people on the planet would ultimately start to reach the other 7 billion, meaning demand for all forms of energy would continue to grow. 

“We wear fancy clothes mostly made out of hydrocarbons. We travel in motorized transport. The extra lucky of us fly across the world to attend conferences.” 

As always, it’s the conversations on CERAWeek’s sidelines that are the most memorable. More than anything, the week is the industry’s family reunion and it’s always a pleasure to reconnect with colleagues and old friends. 

Follow me and the team on LinkedIn to get the latest on Pathways. 

CERAWeek 2025 Preview

Energy’s annual pulse check in a unique year

Next week, the leading lights of global energy will rendezvous in Houston. And so will our DrivePath team.

by Braden Reddall

The prominence of the annual CERAWeek conference has reached new heights over the past decade, alongside the emergence of the United States as the world’s largest oil and gas producer. Meanwhile, LNG continues to grow in global significance, and power demand is expected to increase worldwide at a pace few expected.

Among other things, the meeting provides energy leaders a chance to take stock of where the industry has been and, more importantly, where it’s going.

And this year offers a few unique issues for them to consider:

Technology and Oil: After years of pitting Big Tech vs Big Oil, energy observers now see the widely anticipated AI-driven energy demand driving a convergence of the two sectors. The impact on both technology and power producer shares when DeepSeek made its world debut offered a stark contrast to dramatic declarations in past years of data being the new oil. It turns out that going big on data – like everything else – requires a substantial amount of power, much of it fueled by natural gas. Markets now seem to recognize this.

Renewables reset: BP made headlines over the past few weeks with the oil major’s strategic refocus on its core business. The conversations at CERAWeek over the past several years have marked a clear shift toward having more renewables in the energy mix, so it will be interesting to see how the tone shifts following the high-profile course corrections by BP and others.

U.S. protectionism: With Donald Trump’s return to the White House, the United States finds itself in unfamiliar territory as Trump moves to raise trade barriers – including for energy. These tariffs may be bargaining chips for the famously deal-oriented president, or the start of a new normal. Either way, they will have serious implications for international trade, the global economy, and therefore the outlook for energy prices.

Natural gas bulls awaken: The past year has seen natural gas prices rise off the floor as a result of lower winter temperatures, power demand and steadily growing global demand for LNG. With oil prices softening, but stuck in a fairly narrow band for months, this is an odd reversal of fortune for natgas after years of rock-bottom prices before a spike that followed Russia’s invasion of Ukraine and then a drop back down to the previous low range. The Energy Information Administration expects Henry Hub spot prices to trend higher this year and next, assuming no big changes in LNG projects, weather, or …

Geopolitics: The outcome of talks to end the war in Ukraine will clearly have a potentially big impact on global energy prices, depending on what happens with the sanctions currently constraining Russian energy exports. Growing U.S. LNG export volumes have found a ready market in the absence of piped Russian gas to Europe, and the global market has had to find workarounds for sanctions against Russian crude oil. Layer on top of all this the implications from the U.S.-China rivalry and the prospect of renewed and/or expanded sanctions on Iran and Venezuela. With so many international energy players at CERAWeek, chatter in the hallways around the Hilton Americas could be spicier than usual this year.

U.S. politics: The annual visit of the U.S. Energy Secretary has become a closely watched part of CERAWeek, particularly with the sharp change in tone from one year to the next by the recently departed Energy Secretary, Jennifer Granholm. The opening plenary with Dan Yergin next Monday is likely to be a more familiar conversation for the audience, since the new Energy Secretary, Chris Wright, stepped down as Liberty Energy CEO before taking the job. On the other hand, considering Interior’s role in energy production on Federal lands, perhaps Secretary Doug Burgum’s session over lunch on Wednesday will be the place to be. And if you can’t make that, Yergin will talk to EPA Administrator Lee Zeldin over lunch on Thursday.

Our DrivePath team will be on the ground in Houston for CERAWeek. If you would like to connect, please reach out via LinkedIn or via email at gpennoyer@drivepathadvisors.com.

Follow me and the team on LinkedIn to get the latest on Pathways.

The Power Industry’s Perfect Storm

The energy industry’s power complex — the generation, transmission and distribution of electricity — is facing a perfect storm.

by Melissa McHenry

After years of flat growth, power companies are seeing a surge in demand from a confluence of factors, including: increased electrification of the economy; growth in domestic manufacturing, particularly in the chips sector; the development of large data centers to power artificial intelligence (AI); and continued expansion of cryptocurrency mining.

Just one of those demand drivers — artificial intelligence — is projected to have an unprecedented impact.

By almost any measure, AI is on a hockey stick trajectory. By 2026, annual revenue for companies like Google or Microsoft from AI products is projected to run as high as $100 billion, with total AI investment at $1 trillion annually by 2027.

All of these AI products will come out of data centers, or “training clusters,” that build large-scale generative learning models and have huge energy requirements.

The potential power demand from AI is enormous, which is one reason some tech companies are partnering with energy providers to design and build their own behind-the-meter solutions – giving them faster access to reliable, flexible power supplies. Despite these custom solutions, the draw on established power companies will be significant. The International Energy Agency now sees global electricity demand rising around 4% annually through 2027, with consumption rising an "unprecedented" 3,500 terawatt-hours -- the equivalent of adding a Japan to the world's electricity consumption each year.

"We are in the early stages of the next supercycle: global investment into the electric power system," according to GE Vernova CEO Scott Strazik.

Although some questions have been raised about the ultimate power demand from AI given the emergence of DeepSeek, a more power-efficient competitor from China, the need for investment in power infrastructure to support AI growth is a given.

Constellation spokesman Paul Adams said that the company is excited to see advances in power efficiency that could “lower the unsustainable growth in energy demand to a more achievable level.”

“We must rationalize the demand, or we will continue to struggle to meet the nation’s energy demands, maintain grid reliability and reduce pollution,” he said.

Regardless of the size of AI’s impact, meeting this new demand won’t be easy.

Already, there’s a need to retrofit existing plants and the grid, particularly to harden them against the new reality of extreme weather.

Then, as more solar and wind sources are brought online, they will require investments in advanced battery storage capacity.

And, to top it off, existing supply chains, particularly those for transformers and raw materials, were already stressed even before AI accelerated the need for investment. “The demand for transformers and grid infrastructure is rising at an unprecedented scale and pace,” said Andreas Schierenbeck, CEO of Hitachi Energy while announcing an investment of more than $250 million USD by 2027 to expand global production of critical components for transformers. Whether it’s expansion of existing facilities or the siting of new ones, effectively managing the stakeholder and regulatory processes is critical.

At the end of 2023, for example, more than 11,000 energy projects were in “interconnection queues” waiting for approval from regional grid operators to begin construction. And, the amount of time that a project spends in the queue has jumped by 550 percent between 2015 and 2023, with an average time in line of three to five years. Without local and regulatory approval, projects simply can’t move forward.

For power companies, the future will require robust, transparent and data-driven communications and even more proactive stakeholder engagement.

The future of the American economy rests on energy. From feedstock to finished product, every link in the energy value chain is critical — maybe none more than power providers as the last link in the chain.

Although the challenges are formidable, with the right combination of investment, planning, regulatory reform, innovation — supported by robust, strategic communication — there’s no doubt they can be met.

Follow me and the team on LinkedIn to get the latest on Pathways.

Scaling the Energy Transition

When it comes to energy, scale matters.

by Gordon Pennoyer

In 1966, a social entrepreneur named Stewart Brand asked himself a question: “Why haven’t we seen a picture of the whole earth yet?” A year later, NASA fulfilled his request when it released a photo of the whole earth taken from the satellite ATS-3, an image soon named “Blue Marble.” In 1968, NASA astronaut William Anders took an equally iconic photo of the Earth while orbiting around the moon.

Both photos gave us a perspective of the planet that we’d never had before, impressing on us not just the scale of Earth, but the scale of the universe that surrounds us.

Here’s another way to appreciate scale: Hop in a car in New York and head toward San Diego. Driving the 2,762 miles between those two points is one of the best ways to experience the true scale of the North American continent. It’s immense.

Understanding scale is essential to human activity. Without a grasp of scale, our efforts to plan, measure and manage growth are handicapped, like navigating the dark with a flashlight instead of a floodlight.

So it is with the energy transition. Without appreciating the scale of the task — substituting zero-carbon sources of energy for fossil fuels — we face a wide range of risk, from economic to technological. Understanding the scale of the challenge helps shape decision-making, from capital allocation to regulatory regimes.

The largest industry in the world is energy. This sector encompasses the exploration, extraction, refining, production, transportation, and marketing of primarily oil and natural gas products, but also an increasing volume of renewable and other non-carbon alternatives. In 2024, the global oil and gas industry generated $5.25 trillion in revenue. If we add coal (the world’s ninth largest industry by revenue), total revenue generated by fossil fuels is more than $10 trillion. The second largest industry by revenue globally is life and health insurance carriers, at $4.6 trillion.

There are several reasons behind the massive scale of the oil and gas industry.

Fit-For-Purpose. Hydrocarbons — from oil to natural gas — are plentiful, and thanks to continuing technological advances, affordable. There are few other forms of energy besides nuclear that offer the same density (output per weight) as fossil fuels. They are easy to store and transport. And the uses of fossil fuels, in addition to power and transportation, are manifold. Fossil fuels are critical components in the production of materials that are essential for civilization, including ammonia (fertilizer), plastics, steel and concrete. If not for environmental externalities, which are significant when not offset, we would be hard-pressed to devise more effective modes of energy than fossil fuels.

Demographics. The world’s population is scaling up exponentially. In 1950, the world’s population was about 2.5 billion people; today it is nearly 8 billion. All those people want many of the same things: transportation, refrigeration, heating and cooling, light, and material comforts, all of which are made possible by energy, primarily fossil fuels. Simply put, energy is life, which is why energy use and human population have increased in nearly identical lines over the past century. Given this demographic trend, the future demand growth of fossil fuels is mixed, but significant. According to projections by the Rhodium Group, for example, while global demand for coal in the power sector is expected to fall by up to 55 percent, demand for natural gas is expected to grow by as much as 126 percent by 2100.

Human Progress. The foundation of human progress is economic activity, which requires energy. Each step-change in human progress, from the Agricultural Revolution to the Industrial Revolution, demanded more energy. Human enterprise is an infinitely renewable source of energy but requires measurable joules and watts to realize its ambitions. The next step-change in economic activity, for instance, promises to be the rise of artificial intelligence, which depends on massive amounts of data. Silicon Valley is entertaining the notion of trillion-dollar data centers to power AI. “Behind the scenes there’s a fierce scramble to secure every power contract still available for the rest of the decade, every voltage transformer than can possibly be procured,” wrote Leopold Aschenbrenner, a former senior executive at OpenAI. Goldman Sachs expects global data center power demand to grow 160 percent by 2030.

This is the kind of scale that faces the energy transition. It’s as if we must do several things at once: meet the voracious energy demands of demographics and human progress but do it with proven technology and sources that are clean, reliable and affordable — and do it as quickly as possible.

Weaning the world off fossil fuels is a good thing. So is investing in the future production of fossil fuels. This is not a paradox. Because of the size of the world’s energy infrastructure — and the importance of reliable, affordable energy to human progress — the rub is how well we manage the transition. If we stop investing in fossil fuels now, and substitutes don’t meet thresholds for reliability and affordability, it could lead to energy chaos. On the other hand, if a white swan rises up among alternative energy sources and fossil fuel demand collapses, the stranded investments could lead to financial chaos.

So, oil companies, by and large, are choosing the middle ground. They’re making smart, measured investments in alternatives, as well as adaptation technologies like carbon capture. They are exercising more discipline around capital allocation and project management. And they’re creating more flexibility through technologies such as fracking and enhanced oil recovery. Managing change at scale isn’t just about speed but also balance and efficacy.

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The New Energy Reality

There’s no question of where demand for energy is headed in the 21st century. There is a question of whether supply can meet the demand.

by Gordon Pennoyer

The 20th century was shaped by the rise of the Industrial Complex, which reordered society and enabled an unprecedented period of economic growth and prosperity.

The 21st century will be shaped by the Technology Complex, the application of big data, AI and quantum computing to all aspects of our lives, from manufacturing to finance, from data management to medicine, from the board room to the classroom. 

A massive potential for exponential growth in productivity, innovation and prosperity in the 21st century will be driven by this new Tech Complex, as well as by a surge of 25 percent in the world’s population, and a commensurate growth of the global middle class at a rate of 100 million people per year.

All of this requires energy. A lot of it.

Author Dan Yergin once remarked about his history of fossil fuels, “The Prize,” that despite his book’s historical frame of 100-plus years and its attendant cast of characters, from presidents and kings to wildcatters and scientists, there were really only two main characters — supply and demand.

There’s no question of where demand for energy is headed in the 21st century. There is a question of whether supply can meet the demand. Particularly, supply that is reliable, affordable, and low carbon.

The 20th century saw the rise of “Big Oil” to meet demand. The wildcatters of the early 1900s evolved into the large integrated energy manufacturers we know today as  BP, Chevron, ExxonMobil, Shell, and others that helped fuel the greatest rise in prosperity and living standards the world had ever seen.

Today’s modern energy complex is known as Big Oil because it is exactly that. Meeting energy demand today requires massive scale to manage risk along the E&P supply chain, manufacture resources into finished products and deliver that energy to end-users, reliably and efficiently. 

But in the later half of the 20th century, scientists discovered that the energy needed for human development carried an unintended consequence. The release of greenhouse gas emissions such as carbon dioxide and methane were contributing to a rise in global temperatures and amplifying a phenomenon we now recognize as climate change.

So, the imperative today for Big Oil is two-fold: deliver larger supplies of energy to meet growing demand while reducing carbon all through the supply chain, from manufacturing to use.

Welcome to the energy transition.

Oil and gas companies today are rebuilding their engines while still flying 500 mph at 30,000 feet. They are delivering reliable supplies of energy from new and legacy operations at relatively affordable prices, while managing an array of geologic, operating, price and political risk. At the same time, they are bridging to a 21st-century energy model defined by lower carbon, energy efficiency and climate adaptation.

Chevron, for instance, produced more than 3 million barrels of oil a day in 2023, the highest production volume in the company’s 144-year history. At the same time, it launched a new investment fund of a half-billion dollars that will target the next generation of energy, including renewables and emerging innovations like distributed energy and circular carbon.

Big Oil is able to do this because scale matters. Large companies have the capacity to make big investments and take big risks. And both are required to make the transition from the fossil-fuel economy of the 20th century to the low-carbon economy of the 21st.

At the same time, we’re witnessing a new wave of emerging companies focused on developing alternative forms of renewable or zero-carbon energy sources — wind and solar, batteries, geothermal, advanced nuclear, hydrogen and other sources. Global investment in the low-carbon energy transition surged 17% in 2023, reaching $1.77 trillion, according to BloombergNEF.

We believe these two pathways — Big Oil and low-carbon innovation — aren’t running in parallel or even competing. They are in fact, over the long term, converging.

This convergence is already happening. Over time it will only accelerate. In fact, this convergence — the aggregation of experience, pragmatism, capital, ingenuity, imagination and risk-taking that Big Oil and the low-carbon complex bring to the table — is the most effective way that we can accelerate the energy transition without significant economic disruption.

Cost parity in this transition is essential. If legacy sources are priced too high through regulatory fiat, the economic consequence for consumers could be painful; on the other hand, if emerging sources are supported through excessive levels of government incentives it could be a burden on the public fisc. Balance, pace and recognition of market realities are vital to a successful energy transition.

The pathway to this convergence is inclusive. Energy is not an on/off or an either/or. We can’t simply switch off fossil fuels while we transition to solar or wind. Nor should we. Energy is a spectrum. Humanity’s first energy source was biomass. The discovery of fossil fuels changed history because they are plentiful, dense, and affordable. Now that we fully understand the externalities of fossil fuels, we’re expanding the energy spectrum, adding sources that are lighter, lower-carbon and in some cases, self-replenishing.

This pathway crosses boundaries — business boundaries, operating boundaries, and technology boundaries — in a quest for affordable, reliable, cleaner energy. 

It creates new alliances: public and private, incumbent and start-ups, old and new.

In Germany, for instance, steel manufacturer ThyssenKrupp is transitioning a large steel plant — which alone is responsible for 2.5 percent of Germany’s total carbon emissions — from coal to hydrogen through a blend of private capital and public investment. 

In addition to the capital discipline that Big Oil brings to the energy transition, it offers another valuable component: deep experience in managing risk at scale.

Big Oil understands big risk. In 2023, capex across oil, gas and power markets was nearly a quarter-trillion dollars. Spending on that level, with commensurate expectations of returns, requires superior risk management capabilities. This has bred an element of pragmatism in the industry that will be valuable in the high-risk, slow-returns environment of emerging energy sources.

A quarter of the way into the 21st century, we stand on the precipice of a fundamental transformation of the global economy, driven by technology, advanced manufacturing, artificial intelligence, infrastructure and other catalysts. Sustainable pathways toward a new ecosystem that will produce reliable, affordable, low-carbon energy supplies will be the foundation of this transformation.

DrivePath operates with a vision of this future — the convergence of old and new into something completely different. We understand the value exchange between old and new. We understand the time scale that it requires. And we understand that equal parts of pragmatism and ingenuity are needed to get there.

We bring a deep experience of market dynamics, market players, analysis, and foresight to help clients position themselves in this dynamic environment and navigate the pathways toward a new energy future.

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Introducing Pathways

There are a number of pathways to that future, all require compromise.

by Gordon Pennoyer

The global energy industry faces more challenges and opportunities than at any time in its 170-year history.

From rising demand to the imperative of carbon reduction, the industry is in a state of unprecedented transition. Managing change has become as much a core competency as drilling efficiency and demand forecasting. The energy industry — one of the most vital to society — must deliver for today while investing in the future.

There are a number of pathways to that future, all require compromise.

DrivePath believes the most effective pathways will be those that balance innovation with pragmatism and vision with experience.

Here, we’ll keep you current on those pathways, and some of the best thinking and innovations across the energy spectrum. Because the best way to prepare for the future is to understand the why. 

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