Big Tech could use its cloud computing dominance to influence Big Oil

What’s happening? Google has agreed a Saudi Arabian cloud services deal with a division of state-run oil producer Aramco, risking a staff backlash over potential fossil fuel links and accusations of human rights abuses, Bloomberg has reported. In 2018, the same year Crown Prince Mohammed bin Salman was linked to the murder of journalist Jamal Khashoggi, Google issued a set of public principles that included banning AI systems that contravened “international law and human rights”. The tech firm’s systems in Saudi Arabia could be used to spy on people or prevent freedom of expression, said former Google researcher Jack Poulson.

Why does this matter? A growing demand for climate action is forcing both Big Tech and the oil sector to reconsider how business is conducted. Activists are placing pressure on the former to wash their hands of fossil fuels – a Greenpeace report, for example, recently detailed how Big Tech partnerships are assisting in obtaining oil and gas profits.

Following this report, Google announced it would no longer supply oil and gas firms with AI services. It maintained, however, these companies would still have access to its cloud computing platform.

Aramco is currently the largest oil producer in the world. Though it’s unveiled a $500m fund to promote renewable technologies, CEO Amin Nasser predicts a recovery in demand for oil in the second half of 2021 and has suggested hydrocarbons will maintain a comfortable position alongside alternative energy options.

While Google is facing criticism for working with Aramco, the reality is there are few other options when it comes to securing cloud computing services. Reports suggest only a handful of companies – Google among them – have the resources to maintain the infrastructure required to provide such offerings. The likes of Amazon, Microsoft and Google spend up to $15bn each year on cloud operations.

Lateral thought from Curation – Big Tech could, of course, turn its back on energy majors, by refusing to provide critical technologies, but in doing so may impact the energy supply for many globally – at least until 100% renewable power is a possibility. Perhaps it could use its dominance of areas like cloud computing, however, to put pressure on Big Oil to decarbonise at a faster rate?

Additionally, some Big Tech firms are justifying their work with energy majors by claiming their technology is being used as part of the mission towards decarbonisation. Microsoft, for example, has recently faced criticism for supplying Petrobras with cloud computing services. Both companies, however, claim the technology is being used to reduce Petrobras’ carbon footprint.

Share This Post

You might also like

Oil and gas

Billions of tonnes of carbon to be emitted by 20 nations’ proposed oil and gas projects by 2050: report

What’s happening? The top 20 global oil and gas producers are poised to release 173 billion tonnes of carbon emissions ...

Read more

Sam Robinson
September 19, 2023

Avatar photo
Plastic

UNEP issues first draft of global treaty to cut plastic pollution

What’s happening? The UN Environment Programme (UNEP) has published its first draft of a global treaty to end plastic pollution by ...

Read more

Nicola Watts
September 14, 2023

Avatar photo
Iceberg in water

As the ice melts in the Arctic, concerns grow over its exploitation

What’s happening? As the Arctic's drifting sea ice steadily diminishes, the area becomes more vulnerable to fishing, shipping, mining, and pollution. ...

Read more

Dillon Creedon
September 8, 2023