Derrick and Packer follow the AI build-out as it stops asking the grid for power and starts buying private gas-fired grids, pipe and plant-floor models from the oil patch. The question all episode: what got signed, versus what is actually ordered, permitted or running. In this episode: * Venture Global’s power islands: frame agreements (Oct 15) with GE Vernova and Baker Hughes Energy Services for up to 16 new 720 MW power island units plus transformer equipment, and a “pathway” to up to 10 GW of new compute capacity by the end of 2034, subject to customer commitments. It builds on about 4.5 GW of existing island-mode generation (6 power islands ordered, in construction or operating). The first purchase order is expected by the end of 2026. No customer, site or price has been named. * Rigs and gas: Baker Hughes counts hit 2026 highs in the week ended Oct 9 (Permian 274, U.S. 603, the first U.S. count of 600+ since May 2024), then the Permian slipped to 272 with the U.S. flat at 603. RBN Energy puts Permian gas at a record ~23.9 Bcf/d (week ended Oct 12), with ~2.3 Bcf/d of new takeaway online this year and Blackcomb expected to add ~2.5 Bcf/d by year-end. * Texas: TCEQ’s Oct 19 letter to the governor says it has paused permits for infrastructure directly supporting data centers, is screening pending applications, and is suspending claimed authorizations “where possible.” Public Citizen says some data-center-related permits kept moving; TCEQ says those stormwater permits were suspended (per the Texas Tribune). The pause still reaches behind-the-meter generation, and ERCOT’s audit is expected around mid-December. * AI: Seeq and Applied Computing pair Orbital (which the company calls “the first foundation model built for energy operations”) with Seeq analytics, starting with KBR’s INSITE platform. No performance numbers were disclosed. SLB signs a 15-year DrillPlan well-planning agreement with TotalEnergies. Footnote: Cosmo Oil and GE Vernova sign an MoU to beta-test generative-AI asset performance management in refinery maintenance. * Collision Zone: Oracle’s Project Jupiter and Transwestern’s Green Chile line (FERC docket CP26-80). It covers 17.77 miles of 24-inch pipe and ~400 MMcf/d of firm service to fuel a fuel-cell microgrid. FERC staff’s EA recommends a finding of no significant impact with conditions, and there was no final order as of mid-October. When there’s no grid behind you, the gas chain is the uptime guarantee. * Field Report and Build List: read the docket, not the deck. Try a narrow docket watcher, and start documenting compression and gathering uptime now. Sources consulted for this episode: * Venture Global — New agreements to support expansion of grid-independent power network (2026-10-15) * Oil & Gas 360 — Baker Hughes rig count (2026-10-16) * PB Oil and Gas Magazine — Permian (274), U.S. (603) reach highest rig counts of 2026 (2026-10-13) * RBN Energy — Gas production high in the Permian and poised for more growth (2026-10-12) * Office of the Texas Governor — Governor Abbott Directs TCEQ To Halt Data Center Permits (2026-09-21) * TCEQ — Response to Gov. Abbott Sept. 21 directive on data centers (PDF, 2026-10-19) * The Texas Tribune — Critics say some data center plans still moved forward (2026-10-20) * The Texas Lawbook — Abbott orders statewide pause on Texas data center permits (2026-10-07) * Seeq — Seeq and Applied Computing partner to advance industrial AI for energy operations (2026-10-13) * SLB — SLB awarded digital drilling contract by TotalEnergies (2026-10-08) * Cosmo Oil — MoU with GE Vernova on refinery asset maintenance (2026-10-08) * Pipeline & Gas Journal — Oracle renews push for expedited FERC order on Green Chile pipeline (2026-10-14) Commentary in the episode is Derrick and Packer’s read, and it’s labeled as such. The numbers come from the sources. We couldn’t confirm Venture Global’s first permit filings at recording time. If that changes, or if ERCOT’s audit changes the Texas picture, we’ll say so on the show. If this helped you tell a menu from an order, a rating or short review wherever you listen helps other folks in the patch find us. Silicon & Shale — where the oil patch meets the algorithm. siliconandshale@gmail.com This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit siliconandshale.substack.com
