Is the neglected gas the new investor darling through oil thanks to AI?

The dynamics have changed now, especially at the heart of the Schist Gassy Marcellus in Pennsylvania. The gas request begins to explode thanks to the food frenzy of the electricity of the data centers, the skyrocketing of liquefied natural gas exports (LNG) and pensions during aging coal guardian by relatively cleaner gases.

Many of the country’s best gas producers, in particular by expanding energy, EQT, range resources and antero resources, all major fingerprints and market capitalization values that have increased by 25% to 75% in the past 12 months.

Meanwhile, raw oil stocks are almost all down, mired in prolonged collapse of intermediate prices, lower demand growth and an increase in OPEC production increases.

“With the potential rich in resources in this basin (Marcellus) and the increasing demand component for AI and data centers and power, this puts us really well to help shape this AI revolution that will take place here in the United States,” said the CEO of Range Resources and President Dennis Degris Fortune.

A decade ago, the fortune of the gas industry focused on seasonality and the cold of each winter, said. “Now we are talking about power and data centers and to double mainly in the coming years. These are all large various demand components that really excite us to the sustainability of our business model.”

The Appalachian region – mainly the Marcellus and Uica shale plays in Pennsylvania, Virginia -Western and Ohio – produces just over a third of the country’s gas – and very little oil – with the proximity of the Virginie Data Center Alley and, now, more IA infrastructure infrastructure.

After a few decades in which American energy demand remained relatively stagnant, the consumption of domestic electricity should increase by 25% from 2023 to 2035 and around 60% from 2023 to 2050, largely by AI and data centers, according to the International Energy Agency.

Similarly, Record LNG exports doubly doubly ago by 2030. Based on new constructions in progress or green along the Côte du Gulf American, LNG exports should go from 15 billion cubic feet per day in 2024 to at least 30 billion per day by the end of 2030.

“It’s really night and day you look at the gas names against petroleum names,” said Gabriele Sorbara, energy analyst at Siebert Williams Shank & Co. “The fundamental gas principles are very strong. You are going to have massive rear winds.”

Appalachia technological boom

Antero’s president and chief executive officer Paul Rady said in his profits declared that industry is now expecting a 25% natural gas request by 2030, led by LNG growth, then by the thirst for power of the data center.

It is an astonishing jump for an American sector which draws 107 billion cubic feet of gas per day – double the amount since the boom of the country’s shale gas launched 20 years ago.

The best gas producers exceed all their production estimates this year with objectives to continue to accelerate at least the next two or three years. But they do it without huge spending hikes due to the operational efficiency acquired thanks to the drilling and the achievement of wells.

The resources of the range, for example, aim to develop its production of 20% by the end of 2027. But ranges it while operating only two drilling platforms. By way of comparison, Big Oil Giant and the main producer of the Permian basin, Exxon Mobil, has at least 35 platforms operating in the huge oil pool in western Texas.

“These wells (Marcellus) are simply massive,” said Sorbara.

Instead, the question points are focused on the exact extent of demand, calendar and gas pricing, making the players in relatively conservative gas when it comes to raising production, building new pipelines and hindering fixed price agreements with developers of data centers.

For example, since mid-June, the prices of natural gas and the values of the action have dropped a little due to the softer weather and the increase in gas storage levels. But that does not slow down the increase.

The range sends about half of its Pennsylvania gas to American exports of the Gulf and LNG coast, but, due to pipeline constraints, additional growth comes from the regional demand for the data center.

In July, Trump praised $ 92 billion in energy and investment in Pennsylvania hyperscalers, electricity generators and even more. The range, for example, has a new partnership with Imperial Land Industrial Park Developer in Pennsylvania to supply the production of gas electricity for data centers.

The Homer City complex in Pennsylvania will soon become the largest gas plant in the country. The huge coal -fired power plant east of Pittsburgh is converted into natural gas with 4.5 gigawatts of electrical capacity to serve a sprawling data center campus.

The largest Marcellus gas producer, EQT, recently signed offers to provide gas to Homer City and the Pennsylvania Electrication, also converted coal. And EQT provides pipeline services to supply the petrol factories planned in Virginia-Western in the heart of the country of coal.

“The cluster effect of these AI data centers and these ecosystems will only continue to rely on themselves,” said Toby Rice, CEO of EQT, in his call for results. “As the momentum increases in our operational footprint, we think that the opportunity could grow.

“One of the reasons why people select this region to build their data centers is that they are built above many gas infrastructure,” he added.

There may be a current bottleneck on gas turbines for the construction of power plants, but manufacturing is accelerating and most of the hyperscalers’ projects are a few years from the end.

The country’s first natural gas producer is little known to develop energy because it was formed only 10 months ago thanks to the combination of Chesapeake Energy and Southwestern Energy. Expand has huge presences in the Appalachians and in the north of the Schist of Gassy Haynesville of Louisiana near the Hubs of LNG.

“This is a fairly exciting period for natural gas,” said Expand CEO Nick Dell’osso when calling the second quarter results. “You have people recognizing the value that gas plays in the economy, the efficiency that gas creates for the growth of electricity demand, which is linked to our growing economy fueled by the innovation associated with AI.”

Gas players are more and more convinced that they will not explode. The Marcellus has had many reservations for decades as long as it does not overcome.

“We can do it for decades to come, and now you are talking about a request component (data center) which comes strongly on reliability, repeatability and inventory (of gas),” said the Range Range Fortune. Of course, the beach prosperous on the three, he said.