01:43 PM EDT, 05/06/2024 (MT Newswires) -- Chevron ( CVX ) Chief Executive Officer Mike Wirth expects a surge in natural gas demand driven by escalating electricity needs from artificial intelligence and data centers, CNBC reported Monday.

"It's a little hard to quantify right now because this is evolving so quickly on the AI side," Wirth told CNBC in an interview.

Wirth emphasized the need for a dependable and cost-effective backup power generation to support the transition to electric vehicles, heating and manufacturing as well as the rising demand from data centers.

Wind and solar offer affordable options, but natural gas remains the most reliable baseload supply, Wirth said.

Natural gas will meet approximately 60% of the new electricity demand from data centers, while renewables will cover the remaining 40%, according to a Goldman Sachs forecast, CNBC reported.

Chevron ( CVX ) did not immediately respond to MT Newswires' request for comment.

Shares of Chevron ( CVX ) were up 1.2% in recent Monday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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