Microsoft’s Application of AI to Accelerate Oil & Gas Expansion

As artificial intelligence (AI) rapidly reshapes industries, the environmental toll of this technological revolution is escalating. Tech giants like Microsoft are leading the charge, but their AI expansion comes at steep climate costs. From energy-intensive data centers to the resource-heavy production of AI chips, every stage of this boom accelerates the climate crisis.

Read all parts of the blog series on Microsoft AI’s climate impacts:

Part 1: Unveiling the Hidden Emissions in AI Chip Manufacturing
Part 2: A Growing Climate Concern around Microsoft’s Expanding Data Center Operations
Part 3: Microsoft’s Application of AI to Accelerate Fossil Fuel Expansion

Fossil Free Microsoft Roadmap – Progress Tracker

Microsoft’s Application of AI to Accelerate Fossil Fuel Expansion

The use of AI in the oil and gas industry significantly amplifies Microsoft’s climate footprint by accelerating fossil fuel extraction and production. By improving precision and efficiency, AI enables oil companies to reduce costs and maximize output, intensifying the climate crisis. This acceleration locks in emissions that further drive global warming. By leveraging AI to boost fossil fuel operations, the industry not only perpetuates reliance on carbon-intensive energy but also undermines global efforts to transition toward renewable energy and achieve climate targets.

Microsoft has played a significant role in providing cloud computing resources and AI software tools to oil and gas producers for several years. In 2020, the company was found to have the largest number of contracts with oil and gas companies among its tech peers. Despite widespread criticism and concerns, Microsoft has continued to facilitate new oil and gas production projects, even as other tech companies, like Google, have ceased developing AI and machine learning tools for fossil fuel extraction.

A notable example of this is its collaboration with ExxonMobil’s XTO Energy subsidiary. With Microsoft’s AI support, the oil company aims to increase oil production by up to 50,000 oil-equivalent barrels per day by 2025. This expansion could lead to an additional 6.8 million metric tons of CO2 equivalent emissions annually, which is equivalent to the emissions from burning 84 billion pounds of coal. This ongoing partnership with the oil and gas sector has led to accusations of greenwashing. Critics argue that while Microsoft publicly commits to sustainability goals, its involvement in expanding fossil fuel extraction directly contradicts these commitments, undermining the company’s credibility.

Adding to the scrutiny, former employees of Microsoft have filed a shareholder resolution demanding that the company disclose the operational, reputational, and financial risks associated with its AI for Oil projects. This move reflects growing internal and external pressure on Microsoft to reconcile its stated sustainability goals with its actions supporting fossil fuel expansion.

Moreover, GHG emissions from Microsoft’s ongoing support of oil and gas projects, including those enabling fossil fuel expansion, is not reflected in the company’s official emissions reporting. This omission creates a significant accountability gap, allowing Microsoft to project a climate-friendly image while its partnerships actively exacerbate the climate crisis.

In sum, Microsoft has committed to investing in AI to accelerate sustainability solutions and to develop AI responsibly. However, the company’s high-speed AI revolution is accelerating the climate crisis. The company’s reported climate impacts do not fully account for the lifecycle emissions of its AI business. From chip manufacturing and model training to deployment and algorithmic applications, the climate impacts of AI across its entire lifecycle are likely far greater than reported. This raises serious concerns about Microsoft’s transparency and its ability to meet its climate goals. Given its scale and influence, Microsoft must take decisive steps to address its climate footprint. This includes:

• Full Assessment and Disclosure: Conducting a comprehensive assessment of the climate impacts of AI across its entire lifecycle and providing transparent emissions reporting to shareholders and the public.
• Transition to Renewable Energy: Committing to power all data centers and supply chains with 100% renewable energy by 2030.
• Ending Fossil Fuel Partnerships: Ceasing collaborations with fossil fuel companies to align its operations with global climate goals.

As a leader in AI and cloud technology, Microsoft has the potential to shape the industry’s climate responsibilities. By taking accountability for its climate footprint, the company can set a powerful example and play a pivotal role in addressing the urgent environmental challenges posed by its operations.

Roadmap to Fossil Free Microsoft

Microsoft must deploy a comprehensive approach that addresses both operational and supply chain emissions, and the usage of the products. These steps are critical for driving a complete transition to renewable energy, ensuring accountability, and aligning with global climate goals. By implementing these measures, Microsoft can lead the way in fostering a sustainable and resilient future.

Goal: Stop Providing Custom AI Services for Oil and Gas Projects
Publicly report on the scale and emissions of existing oil and gas projects supported by Microsoft
Immediately stop selling custom AI products that facilitate the development of oil and gas projects
Terminate existing contracts with oil and gas companies