Stay Ahead, Stay ONMINE

Fueling the future of digital transformation

In partnership withInfosys Cobalt In the rapidly evolving landscape of digital innovation, staying adaptable isn’t just a strategy—it’s a survival skill. “Everybody has a plan until they get punched in the face,” says Luis Niño, digital manager for technology ventures and innovation at Chevron, quoting Mike Tyson. Drawing from a career that spans IT, HR, and infrastructure operations across the globe, Niño offers a unique perspective on innovation and how organizational microcultures within Chevron shape how digital transformation evolves.  Centralized functions prioritize efficiency, relying on tools like AI, data analytics, and scalable system architectures. Meanwhile, business units focus on simplicity and effectiveness, deploying robotics and edge computing to meet site-specific needs and ensure safety. “From a digital transformation standpoint, what I have learned is that you have to tie your technology to what outcomes drive results for both areas, but you have to allow yourself to be flexible, to be nimble, and to understand that change is constant,” he says. Central to this transformation is the rise of industrial AI. Unlike consumer applications, industrial AI operates in high-stakes environments where the cost of errors can be severe.  “The wealth of potential information needs to be contextualized, modeled, and governed because of the safety of those underlying processes,” says Niño. “If a machine reacts in ways you don’t expect, people could get hurt, and so there’s an extra level of care that needs to happen and that we need to think about as we deploy these technologies.” Niño highlights Chevron’s efforts to use AI for predictive maintenance, subsurface analytics, and process automation, noting that “AI sits on top of that foundation of strong data management and robust telecommunications capabilities.” As such, AI is not just a tool but a transformation catalyst redefining how talent is managed, procurement is optimized, and safety is ensured. Looking ahead, Niño emphasizes the importance of adaptability and collaboration: “Transformation is as much about technology as it is about people.” With initiatives like the Citizen Developer Program and Learn Digital, Chevron is empowering its workforce to bridge the gap between emerging technologies and everyday operations using an iterative mindset.  Niño is also keeping watch over the convergence of technologies like AI, quantum computing, Internet of Things, and robotics, which hold the potential to transform how we produce and manage energy. “My job is to keep an eye on those developments,” says Niño, “to make sure that we’re managing these things responsibly and the things that we test and trial and the things that we deploy, that we maintain a strict sense of responsibility to make sure that we keep everyone safe, our employees, our customers, and also our stakeholders from a broader perspective.” This episode of Business Lab is produced in association with Infosys Cobalt. Full Transcript  Megan Tatum: From MIT Technology Review, I’m Megan Tatum and this is Business Lab, the show that helps business leaders make sense of new technologies coming out of the lab and into the marketplace.  Our topic today is digital transformation, from back office operations to infrastructure in the field like oil rigs, companies continue to look for ways to increase profit, meet sustainability goals, and invest in the latest and greatest technology.  Two words for you: enabling innovation.  My guest is Luis Niño, who is the digital manager of technology ventures, and innovation at Chevron. This podcast is produced in association with Infosys Cobalt.  Welcome, Luis.  Luis Niño: Thank you, Megan. Thank you for having me.  Megan: Thank you so much for joining us. Just to set some context, Luis, you’ve had a really diverse career at Chevron, spanning IT, HR, and infrastructure operations. I wonder, how have those different roles shaped your approach to innovation and digital strategy?  Luis: Thank you for the question. And you’re right, my career has spanned many different areas and geographies in the company. It really feels like I’ve worked for different companies every time I change roles. Like I said, different functions, organizations, locations I’ve had since here in Houston and in Bakersfield, California and in Buenos Aires, Argentina. From an organizational standpoint, I’ve seen central teams international service centers, as you mentioned, field infrastructure and operation organizations in our business units, and I’ve also had corporate function roles.  And the reason why I mentioned that diversity is that each one of those looks at digital transformation and innovation through its own lens. From the priority to scale and streamline in central organizations to the need to optimize and simplify out in business units and what I like to call the periphery, you really learn about the concept first off of microcultures and how different these organizations can be even within our own walls, but also how those come together in organizations like Chevron.  Over time, I would highlight two things. In central organizations, whether that’s functions like IT, HR, or our technical center, we have a central technical center, where we continuously look for efficiencies in scaling, for system architectures that allow for economies of scale. As you can imagine, the name of the game is efficiency. We have also looked to improve employee experience. We want to orchestrate ecosystems of large technology vendors that give us an edge and move the massive organization forward. In areas like this, in central areas like this, I would say that it is data analytics, data science, and artificial intelligence that has become the sort of the fundamental tools to achieve those objectives.  Now, if you allow that pendulum to swing out to the business units and to the periphery, the name of the game is effectiveness and simplicity. The priority for the business units is to find and execute technologies that help us achieve the local objectives and keep our people safe. Especially when we are talking about our manufacturing environments where there’s risk for our folks. In these areas, technologies like robotics, the Internet of Things, and obviously edge computing are currently the enablers of information.  I wouldn’t want to miss the opportunity to say that both of those, let’s call it, areas of the company, rely on the same foundation and that is a foundation of strong data management, of strong network and telecommunications capabilities because those are the veins through which the data flows and everything relies on data.  In my experience, this pendulum also drives our technology priorities and our technology strategy. From a digital transformation standpoint, what I have learned is that you have to tie your technology to what outcomes drive results for both areas, but you have to allow yourself to be flexible, to be nimble, and to understand that change is constant. If you are deploying something in the center and you suddenly realize that some business unit already has a solution, you cannot just say, let’s shut it down and go with what I said. You have to adapt, you have to understand behavioral change management and you really have to make sure that change and adjustments are your bread and butter.  I don’t know if you know this, Megan, but there’s a popular fight happening this weekend with Mike Tyson and he has a saying, and that is everybody has a plan until they get punched in the face. And what he’s trying to say is you have to be adaptable. The plan is good, but you have to make sure that you remain agile.  Megan: Yeah, absolutely.  Luis: And then I guess the last lesson really quick is about risk management or maybe risk appetite. Each group has its own risk appetite depending on the lens or where they’re sitting, and this may create some conflict between organizations that want to move really, really fast and have urgency and others that want to take a step back and make sure that we’re doing things right at the balance. I think that at the end, I think that’s a question for leadership to make sure that they have a pulse on our ability to change.  Megan: Absolutely, and you’ve mentioned a few different elements and technologies I’d love to dig into a bit more detail on. One of which is artificial intelligence because I know Chevron has been exploring AI for several years now. I wonder if you could tell us about some of the AI use cases it’s working on and what frameworks you’ve developed for effective adoption as well.  Luis: Yeah, absolutely. This is the big one, isn’t it? Everybody’s talking about AI. As you can imagine, the focus in our company is what is now being branded as industrial AI. That’s really a simple term to explain that AI is being applied to industrial and manufacturing settings. And like other AI, and as I mentioned before, the foundation remains data. I want to stress the importance of data here.  One of the differences however is that in the case of industrial AI, data comes from a variety of sources. Some of them are very critical. Some of them are non-critical. Sources like operating technologies, process control networks, and SCADA, all the way to Internet of Things sensors or industrial Internet of Things sensors, and unstructured data like engineering documentation and IT data. These are massive amounts of information coming from different places and also from different security structures. The complexity of industrial AI is considerably higher than what I would call consumer or productivity AI.  Megan: Right.  Luis: The wealth of potential information needs to be contextualized, modeled, and governed because of the safety of those underlying processes. When you’re in an industrial setting, if a machine reacts in ways you don’t expect, people could get hurt, and so there’s an extra level of care that needs to happen and that we need to think about as we deploy these technologies.  AI sits on top of that foundation and it takes different shapes. It can show up as a copilot like the ones that have been popularized recently, or it can show up as agentic AI, which is something that we’re looking at closely now. And agentic AI is just a term to mean that AI can operate autonomously and can use complex reasoning to solve multistep problems in an industrial setting.  So with that in mind, going back to your question, we use both kinds of AI for multiple use cases, including predictive maintenance, subsurface analytics, process automation, and workflow optimization, and also end-user productivity. Each one of those use cases obviously needs specific objectives that the business is looking at in each area of the value chain.  In predictive maintenance, for example, we monitor and we analyze equipment health, we prevent failures, and we allow for preventive maintenance and reduced downtime. The AI helps us understand when machinery needs to be maintained in order to prevent failure instead of just waiting for it to happen. In subsurface analysis, we’re exploring AI to develop better models of hydrocarbon reservoirs. We are exploring AI to forecast geomechanical models and to capture and understand data from fiber optic sensing. Fiber optic sensing is a capability that has proven very valuable to us, and AI is helping us make sense of the wealth of information that comes out of the whole, as we like to say. Of course, we don’t do this alone. We partner with many third-party organizations, with vendors, and with people inside subject matter experts inside of Chevron to move the projects forward.  There are several other areas beyond industrial AI that we are looking at. AI really is a transformation catalyst, and so areas like finance and law and procurement and HR, we’re also doing testing in those corporate areas. I can tell you that I’ve been part of projects in procurement, in HR. When I was in HR we ran a pretty amazing effort in partnership with a third-party company, and what they do is they seek to transform the way we understand talent, and the way they do that is they are trying to provide data-driven frameworks to make talent decisions.  And so they redefine talent by framing data in the form of skills, and as they do this, they help de-bias processes that are usually or can be usually prone to unconscious biases and perspectives. It really is fascinating to think of your talent-based skills and to start decoupling them from what we know since the industrial era began, which is people fit in jobs. Now the question is more the other way around. How can jobs adapt to people’s skills? And then in procurement, AI is basically helping us open the aperture to a wider array of vendors in an automated fashion that makes us better partners. It’s more cost-effective. It’s really helpful.  Before I close here, you did reference frameworks, so the framework of industrial AI versus what I call productivity AI, the understanding of the use cases. All of this sits on top of our responsible AI frameworks. We have set up a central enterprise AI organization and they have really done a great job in developing key areas of responsible AI as well as training and adoption frameworks. This includes how to use AI, how not to use AI, what data we can share with the different GPTs that are available to us.  We are now members of organizations like the Responsible AI Institute. This is an organization that fosters the safe use of AI and trustworthy AI. But our own responsible AI framework, it involves four pillars. The first one is the principles, and this is how we make sure we continue to stay aligned with the values that drive this company, which we call The Chevron Way. It includes assessment, making sure that we evaluate these solutions in proportion to impact and risk. As I mentioned, when you’re talking about industrial processes, people’s lives are at stake. And so we take a very close look at what we are putting out there and how we ensure that it keeps our people safe. It includes education, I mentioned training our people to augment their capabilities and reinforcing responsible principles, and the last of the four is governance oversight and accountability through control structures that we are putting in place.  Megan: Fantastic. Thank you so much for those really fascinating specific examples as well. It’s great to hear about. And digital transformation, which you did touch on briefly, has become critical of course to enable business growth and innovation. I wonder what has Chevron’s digital transformation looked like and how has the shift affected overall operations and the way employees engage with technology as well?  Luis: Yeah, yeah. That’s a really good question. The term digital transformation is interpreted in many different ways. For me, it really is about leveraging technology to drive business results and to drive business transformation. We usually tend to specify emerging technology as the catalyst for transformation. I think that is okay, but I also think that there are ways that you can drive digital transformation with technology that’s not necessarily emerging but is being optimized, and so under this umbrella, we include everything from our Citizen Developer Program to complex industry partnerships that help us maximize the value of data.  The Citizen Developer Program has been very successful in helping bridge the gap between our technical software engineer and software development practices and people who are out there doing the work, getting familiar, and demystifying the way to build solutions.  I do believe that transformation is as much about technology as it is about people. And so to go back to the responsible AI framework, we are actively training and upskilling the workforce. We created a program called Learn Digital that helps employees embrace the technologies. I mentioned the concept of demystifying. It’s really important that people don’t fall into the trap of getting scared by the potential of the technology or the fact that it is new and we help them and we give them the tools to bridge the change management gap so they can get to use them and get the most out of them.  At a high level, our transformation has followed the cyclical nature that pretty much any transformation does. We have identified the data foundations that we need to have. We have understood the impact of the processes that we are trying to digitize. We organize that information, then we streamline and automate processes, we learn, and now machines learn and then we do it all over again. And so this cyclical mindset, this iterative mindset has really taken hold in our culture and it has made us a little bit better at accepting the technologies that are driving the change.  Megan: And to look at one of those technologies in a bit more detail, cloud computing has revolutionized infrastructure across industries. But there’s also a pendulum ship now toward hybrid and edge computing models. How is Chevron balancing cloud, hybrid, and edge strategies for optimal performance as well?  Luis: Yeah, that’s a great question and I think you could argue that was the genesis of the digital transformation effort. It’s been a journey for us and it’s a journey that I think we’re not the only ones that may have started it as a cost savings and storage play, but then we got to this ever-increasing need for multiple things like scaling compute power to support large language models and maximize how we run complex models. There’s an increasing need to store vast amounts of data for training and inference models while we improve data management and, while we predict future needs.  There’s a need for the opportunity to eliminate hardware constraints. One of the promises of cloud was that you would be able to ramp up and down depending on your compute needs as projects demanded. And that hasn’t stopped, that has only increased. And then there’s a need to be able to do this at a global level. For a company like ours that is distributed across the globe, we want to do this everywhere while actively managing those resources without the weight of the infrastructure that we used to carry on our books. Cloud has really helped us change the way we think about the digital assets that we have.  It’s important also that it has created this symbiotic need to grow between AI and the cloud. So you don’t have the AI without the cloud, but now you don’t have the cloud without AI. In reality, we work on balancing the benefits of cloud and hybrid and edge computing, and we keep operational efficiency as our North Star. We have key partnerships in cloud, that’s something that I want to make sure I talk about. Microsoft is probably the most strategic of our partnerships because they’ve helped us set our foundation for cloud. But we also think of the convenience of hybrid through the lens of leveraging a convenient, scalable public cloud and a very secure private cloud that helps us meet our operational and safety needs.  Edge computing fills the gap or the need for low latency and real-time data processing, which are critical constraints for decision-making in most of the locations where we operate. You can think of an offshore rig, a refinery, an oil rig out in the field, and maybe even not-so-remote areas like here in our corporate offices. Putting that compute power close to the data source is critical. So we work and we partner with vendors to enable lighter compute that we can set at the edge and, I mentioned the foundation earlier, faster communication protocols at the edge that also solve the need for speed.  But it is important to remember that you don’t want to think about edge computing and cloud as separate things. Cloud supports edge by providing centralized management by providing advanced analytics among others. You can train models in the cloud and then deploy them to edge devices, keeping real-time priorities in mind. I would say that edge computing also supports our cybersecurity strategy because it allows us to control and secure sensitive environments and information while we embed machine learning and AI capabilities out there.  So I have mentioned use cases like predictive maintenance and safety, those are good examples of areas where we want to make sure our cybersecurity strategy is front and center. When I was talking about my experience I talked about the center and the edge. Our strategy to balance that pendulum relies on flexibility and on effective asset management. And so making sure that our cloud reflects those strategic realities gives us a good footing to achieve our corporate objectives.  Megan: As you say, safety is a top priority. How do technologies like the Internet of Things and AI help enhance safety protocols specifically too, especially in the context of emissions tracking and leak detection?  Luis: Yeah, thank you for the question. Safety is the most important thing that we think and talk about here at Chevron. There is nothing more important than ensuring that our people are safe and healthy, so I would break safety down into two. Before I jump to emissions tracking and leak detection, I just want to make a quick point on personal safety and how we leverage IoT and AI to that end.  We use sensing capabilities that help us keep workers out of harm’s way, and so things like computer vision to identify and alert people who are coming into safety areas. We also use computer vision, for example, to identify PPE requirements—personal protective equipment requirements—and so if there are areas that require a certain type of clothing, a certain type of identification, or a hard hat, we are using technologies that can help us make sure people have that before they go into a particular area.  We’re also using wearables. Wearables help us in one of the use cases is they help us track exhaustion and dehydration in locations where that creates inherent risk, and so locations that are very hot, whether it’s because of the weather or because they are enclosed, we can use wearables that tell us how fast the person’s getting dehydrated, what are the levels of liquid or sodium that they need to make sure that they’re safe or if they need to take a break. We have those capabilities now.  Going back to emissions tracking and leak detection, I think it’s actually the combination of IoT and AI that can transform how we prevent and react to those. In this case, we also deploy sensing capabilities. We use things like computer vision, like infrared capabilities, and we use others that deliver data to the AI models, which then alert and enable rapid response.  The way I would explain how we use IoT and AI for safety, whether it’s personnel safety or emissions tracking and leak detection, is to think about sensors as the extension of human ability to sense. In some cases, you could argue it’s super abilities. And so if you think of sight normally you would’ve had supervisors or people out there that would be looking at the field and identifying issues. Well, now we can use computer vision with traditional RGB vision, we can use them with infrared, we can use multi-angle to identify patterns, and have AI tell us what’s going on.  If you keep thinking about the human senses, that’s sight, but you can also use sound through ultrasonic sensors or microphone sensors. You can use touch through vibration recognition and heat recognition. And even more recently, this is something that we are testing more recently, you can use smell. There are companies that are starting to digitize smell. Pretty exciting, also a little bit crazy. But it is happening. And so these are all tools that any human would use to identify risk. Well, so now we can do it as an extension of our human abilities to do so. This way we can react much faster and better to the anomalies.  A specific example with methane. We have a simple goal with methane, we want to keep methane in the pipe. Once it’s out, it’s really hard or almost impossible to take it back. Over the last six to seven years, we have reduced our methane intensity by over 60% and we’re leveraging technology to achieve that. We have deployed a methane detection program. We have trialed over 10 to 15 advanced methane detection technologies.  A technology that I have been looking at recently is called Aquanta Vision. This is a company supported by an incubator program we have called Chevron Studio. We did this in partnership with the National Renewable Energy Laboratory, and what they do is they leverage optical gas imaging to detect methane effectively and to allow us to prevent it from escaping the pipe. So that’s just an example of the technologies that we’re leveraging in this space.  Megan: Wow, that’s fascinating stuff. And on emissions as well, Chevron has made significant investments in new energy technologies like hydrogen, carbon capture, and renewables. How do these technologies fit into Chevron’s broader goal of reducing its carbon footprint?  Luis: This is obviously a fascinating space for us, one that is ever-changing. It is honestly not my area of expertise. But what I can say is we truly believe we can achieve high returns and lower carbon, and that’s something that we communicate broadly. A few years ago, I believe it was 2021, we established our Chevron New Energies company and they actively explore lower carbon alternatives including hydrogen, renewables, and carbon capture offsets.  My area, the digital area, and the convergence between digital technologies and the technical sciences will enable the techno-commercial viability of those business lines. Thinking about carbon capture, is something that we’ve done for a long time. We have decades of experience in carbon capture technologies across the world.  One of our larger projects, the Gorgon Project in Australia, I think they’ve captured something between 5 and 10 million tons of CO2 emissions in the past few years, and so we have good expertise in that space. But we also actively partner in carbon capture. We have joined hubs of carbon capture here in Houston, for example, where we investing in companies like there’s a company called Carbon Clean, a company called Carbon Engineering, and one called Svante. I’m familiar with these names because the corporate VC team is close to me. These companies provide technologies for direct air capture. They provide solutions for hard-to-abate industries. And so we want to keep an eye on these emerging capabilities and make use of them to continuously lower our carbon footprint.  There are two areas here that I would like to talk about. Hydrogen first. This is another area that we’re familiar with. Our plan is to build on our existing assets and capabilities to deliver a large-scale hydrogen business. Since 2005, I think we’ve been doing retail hydrogen, and we also have several partnerships there. In renewables, we are creating a range of fuels for different transportation types. We use diesel, bio-based diesel, we use renewable natural gas, we use sustainable aviation fuel. Yeah, so these are all areas of importance to us. They’re emerging business lines that are young in comparison to the rest of our company. We’ve been a company for 140 years plus, and this started in 2021, so you can imagine how steep that learning curve is.  I mentioned how we leverage our corporate venture capital team to learn and to keep an eye out on what are these emerging trends and technologies that we want to learn about. They leverage two things. They leverage a core fund, which is focused on areas that can seek innovation for our core business for the title. And we have a separate future energy fund that explores areas that are emerging. Not only do they invest in places like hydrogen, carbon capture, and renewables, but they also may invest in other areas like wind and geothermal and nuclear capability. So we constantly keep our eyes open for these emerging technologies.  Megan: I see. And I wonder if you could share a bit more actually about Chevron’s role in driving sustainable business innovation. I’m thinking of initiatives like converting used cooking oil into biodiesel, for example. I wonder how those contribute to that overall goal of creating a circular economy.  Luis: Yeah, this is fascinating and I was so happy to learn a little bit more about this year when I had the chance to visit our offices in Iowa. I’ll get into that in a second. But happy to talk about this, again with the caveat that it’s not my area of expertise.  Megan: Of course.  Luis: In the case of biodiesel, we acquired a company called REG in 2022. They were one of the founders of the renewable fuels industry, and they honestly do incredible work to create energy through a process, I forget the name of the process to be honest. But at the most basic level what they do is they prepare feedstocks that come from different types of biomass, you mentioned cooking oils, there’s also soybeans, there’s animal fats. And through various chemical reactions, what they do is convert components of the feedstock into biodiesel and glycerin. After that process, what they do is they separate un-reactive methanol, which is recovered and recycled into the process, and the biodiesel goes through a final processing to make sure that it meets the standards necessary to be commercialized.  What REG has done is it has boosted our knowledge as a broader organization on how to do this better. They continuously look for bio-feedstocks that can help us deliver new types of energy. I had mentioned bio-based diesel. One of the areas that we’re very focused on right now is sustainable aviation fuel. I find that fascinating. The reason why this is working and the reason why this is exciting is because they brought this great expertise and capability into Chevron. And in turn, as a larger organization, we’re able to leverage our manufacturing and distribution capabilities to continue to provide that value to our customers.  I mentioned that I learned a little bit more about this this year. I was lucky earlier in the year I was able to visit our REG offices in Ames, Iowa. That’s where they’re located. And I will tell you that the passion and commitment that those people have for the work that they do was incredibly energizing. These are folks who have helped us believe, really, that our promise of lower carbon is attainable.  Megan: Wow. Sounds like there’s some fascinating work going on. Which brings me to my final question. Which is sort of looking ahead, what emerging technologies are you most excited about and how do you see them impacting both Chevron’s core business and the energy sector as a whole as well?  Luis: Yeah, that’s a great question. I have no doubt that the energy business is changing and will continue to change only faster, both our core business as well as the future energy, or the way it’s going to look in the future. Honestly, in my line of work, I come across exciting technology every day. The obvious answers are AI and industrial AI. These are things that are already changing the way we live without a doubt. You can see it in people’s productivity. You can see it in how we optimize and transform workflows. AI is changing everything. I am actually very, very interested in IoT, in the Internet of Things, and robotics, the ability to protect humans in high-risk environments, like I mentioned, is critical to us, the opportunity to prevent high-risk events and predict when they’re likely to happen.  This is pretty massive, both for our productivity objectives as well as for our lower carbon objectives. If we can predict when we are at risk of particular events, we could avoid them altogether. As I mentioned before, this ubiquitous ability to sense our surroundings is a capability that our industry and I’m going to say humankind, is only beginning to explore.  There’s another area that I didn’t talk too much about, which I think is coming, and that is quantum computing. Quantum computing promises to change the way we think of compute power and it will unlock our ability to simulate chemistry, to simulate molecular dynamics in ways we have not been able to do before. We’re working really hard in this space. When I say molecular dynamics, think of the way that we produce energy today. It is all about the molecule and understanding the interactions between hydrocarbon molecules and the environment. The ability to do that in multi-variable systems is something that quantum, we believe, can provide an edge on, and so we’re working really hard in this space.  Yeah, there are so many, and having talked about all of them, AI, IoT, robotics, quantum, the most interesting thing to me is the convergence of all of them. If you think about the opportunity to leverage robotics, but also do it as the machines continue to control limited processes and understand what it is they need to do in a preventive and predictive way, this is such an incredible potential to transform our lives, to make an impact in the world for the better. We see that potential.  My job is to keep an eye on those developments, to make sure that we’re managing these things responsibly and the things that we test and trial and the things that we deploy, that we maintain a strict sense of responsibility to make sure that we keep everyone safe, our employees, our customers, and also our stakeholders from a broader perspective.  Megan: Absolutely. Such an important point to finish on. And unfortunately, that is all the time we have for today, but what a fascinating conversation. Thank you so much for joining us on the Business Lab, Luis.  Luis: Great to talk to you.  Megan:  Thank you so much. That was Luis Niño, who is the digital manager of technology ventures and innovation at Chevron, who I spoke with today from Brighton, England.  That’s it for this episode of Business Lab. I’m Megan Tatum, I’m your host and a contributing editor at Insights, the custom publishing division of MIT Technology Review. We were founded in 1899 at the Massachusetts Institute of Technology, and you can find us in print on the web and at events each year around the world. For more information about us and the show, please check out our website at technologyreview.com.  This show is available wherever you get your podcasts, and if you enjoyed this episode, we really hope you’ll take a moment to rate and review us. Business Lab is a production of MIT Technology Review, and this episode was produced by Giro Studios. Thank you so much for listening. 

In partnership withInfosys Cobalt

In the rapidly evolving landscape of digital innovation, staying adaptable isn’t just a strategy—it’s a survival skill. “Everybody has a plan until they get punched in the face,” says Luis Niño, digital manager for technology ventures and innovation at Chevron, quoting Mike Tyson.

Drawing from a career that spans IT, HR, and infrastructure operations across the globe, Niño offers a unique perspective on innovation and how organizational microcultures within Chevron shape how digital transformation evolves. 

Centralized functions prioritize efficiency, relying on tools like AI, data analytics, and scalable system architectures. Meanwhile, business units focus on simplicity and effectiveness, deploying robotics and edge computing to meet site-specific needs and ensure safety.

“From a digital transformation standpoint, what I have learned is that you have to tie your technology to what outcomes drive results for both areas, but you have to allow yourself to be flexible, to be nimble, and to understand that change is constant,” he says.

Central to this transformation is the rise of industrial AI. Unlike consumer applications, industrial AI operates in high-stakes environments where the cost of errors can be severe. 

“The wealth of potential information needs to be contextualized, modeled, and governed because of the safety of those underlying processes,” says Niño. “If a machine reacts in ways you don’t expect, people could get hurt, and so there’s an extra level of care that needs to happen and that we need to think about as we deploy these technologies.”

Niño highlights Chevron’s efforts to use AI for predictive maintenance, subsurface analytics, and process automation, noting that “AI sits on top of that foundation of strong data management and robust telecommunications capabilities.” As such, AI is not just a tool but a transformation catalyst redefining how talent is managed, procurement is optimized, and safety is ensured.

Looking ahead, Niño emphasizes the importance of adaptability and collaboration: “Transformation is as much about technology as it is about people.” With initiatives like the Citizen Developer Program and Learn Digital, Chevron is empowering its workforce to bridge the gap between emerging technologies and everyday operations using an iterative mindset. 

Niño is also keeping watch over the convergence of technologies like AI, quantum computing, Internet of Things, and robotics, which hold the potential to transform how we produce and manage energy.

“My job is to keep an eye on those developments,” says Niño, “to make sure that we’re managing these things responsibly and the things that we test and trial and the things that we deploy, that we maintain a strict sense of responsibility to make sure that we keep everyone safe, our employees, our customers, and also our stakeholders from a broader perspective.”

This episode of Business Lab is produced in association with Infosys Cobalt.

Full Transcript 

Megan Tatum: From MIT Technology Review, I’m Megan Tatum and this is Business Lab, the show that helps business leaders make sense of new technologies coming out of the lab and into the marketplace. 

Our topic today is digital transformation, from back office operations to infrastructure in the field like oil rigs, companies continue to look for ways to increase profit, meet sustainability goals, and invest in the latest and greatest technology. 

Two words for you: enabling innovation. 

My guest is Luis Niño, who is the digital manager of technology ventures, and innovation at Chevron. This podcast is produced in association with Infosys Cobalt. 

Welcome, Luis. 

Luis Niño: Thank you, Megan. Thank you for having me. 

Megan: Thank you so much for joining us. Just to set some context, Luis, you’ve had a really diverse career at Chevron, spanning IT, HR, and infrastructure operations. I wonder, how have those different roles shaped your approach to innovation and digital strategy? 

Luis: Thank you for the question. And you’re right, my career has spanned many different areas and geographies in the company. It really feels like I’ve worked for different companies every time I change roles. Like I said, different functions, organizations, locations I’ve had since here in Houston and in Bakersfield, California and in Buenos Aires, Argentina. From an organizational standpoint, I’ve seen central teams international service centers, as you mentioned, field infrastructure and operation organizations in our business units, and I’ve also had corporate function roles. 

And the reason why I mentioned that diversity is that each one of those looks at digital transformation and innovation through its own lens. From the priority to scale and streamline in central organizations to the need to optimize and simplify out in business units and what I like to call the periphery, you really learn about the concept first off of microcultures and how different these organizations can be even within our own walls, but also how those come together in organizations like Chevron. 

Over time, I would highlight two things. In central organizations, whether that’s functions like IT, HR, or our technical center, we have a central technical center, where we continuously look for efficiencies in scaling, for system architectures that allow for economies of scale. As you can imagine, the name of the game is efficiency. We have also looked to improve employee experience. We want to orchestrate ecosystems of large technology vendors that give us an edge and move the massive organization forward. In areas like this, in central areas like this, I would say that it is data analytics, data science, and artificial intelligence that has become the sort of the fundamental tools to achieve those objectives. 

Now, if you allow that pendulum to swing out to the business units and to the periphery, the name of the game is effectiveness and simplicity. The priority for the business units is to find and execute technologies that help us achieve the local objectives and keep our people safe. Especially when we are talking about our manufacturing environments where there’s risk for our folks. In these areas, technologies like robotics, the Internet of Things, and obviously edge computing are currently the enablers of information. 

I wouldn’t want to miss the opportunity to say that both of those, let’s call it, areas of the company, rely on the same foundation and that is a foundation of strong data management, of strong network and telecommunications capabilities because those are the veins through which the data flows and everything relies on data. 

In my experience, this pendulum also drives our technology priorities and our technology strategy. From a digital transformation standpoint, what I have learned is that you have to tie your technology to what outcomes drive results for both areas, but you have to allow yourself to be flexible, to be nimble, and to understand that change is constant. If you are deploying something in the center and you suddenly realize that some business unit already has a solution, you cannot just say, let’s shut it down and go with what I said. You have to adapt, you have to understand behavioral change management and you really have to make sure that change and adjustments are your bread and butter. 

I don’t know if you know this, Megan, but there’s a popular fight happening this weekend with Mike Tyson and he has a saying, and that is everybody has a plan until they get punched in the face. And what he’s trying to say is you have to be adaptable. The plan is good, but you have to make sure that you remain agile. 

Megan: Yeah, absolutely. 

Luis: And then I guess the last lesson really quick is about risk management or maybe risk appetite. Each group has its own risk appetite depending on the lens or where they’re sitting, and this may create some conflict between organizations that want to move really, really fast and have urgency and others that want to take a step back and make sure that we’re doing things right at the balance. I think that at the end, I think that’s a question for leadership to make sure that they have a pulse on our ability to change. 

Megan: Absolutely, and you’ve mentioned a few different elements and technologies I’d love to dig into a bit more detail on. One of which is artificial intelligence because I know Chevron has been exploring AI for several years now. I wonder if you could tell us about some of the AI use cases it’s working on and what frameworks you’ve developed for effective adoption as well. 

Luis: Yeah, absolutely. This is the big one, isn’t it? Everybody’s talking about AI. As you can imagine, the focus in our company is what is now being branded as industrial AI. That’s really a simple term to explain that AI is being applied to industrial and manufacturing settings. And like other AI, and as I mentioned before, the foundation remains data. I want to stress the importance of data here. 

One of the differences however is that in the case of industrial AI, data comes from a variety of sources. Some of them are very critical. Some of them are non-critical. Sources like operating technologies, process control networks, and SCADA, all the way to Internet of Things sensors or industrial Internet of Things sensors, and unstructured data like engineering documentation and IT data. These are massive amounts of information coming from different places and also from different security structures. The complexity of industrial AI is considerably higher than what I would call consumer or productivity AI. 

Megan: Right. 

Luis: The wealth of potential information needs to be contextualized, modeled, and governed because of the safety of those underlying processes. When you’re in an industrial setting, if a machine reacts in ways you don’t expect, people could get hurt, and so there’s an extra level of care that needs to happen and that we need to think about as we deploy these technologies. 

AI sits on top of that foundation and it takes different shapes. It can show up as a copilot like the ones that have been popularized recently, or it can show up as agentic AI, which is something that we’re looking at closely now. And agentic AI is just a term to mean that AI can operate autonomously and can use complex reasoning to solve multistep problems in an industrial setting. 

So with that in mind, going back to your question, we use both kinds of AI for multiple use cases, including predictive maintenance, subsurface analytics, process automation, and workflow optimization, and also end-user productivity. Each one of those use cases obviously needs specific objectives that the business is looking at in each area of the value chain. 

In predictive maintenance, for example, we monitor and we analyze equipment health, we prevent failures, and we allow for preventive maintenance and reduced downtime. The AI helps us understand when machinery needs to be maintained in order to prevent failure instead of just waiting for it to happen. In subsurface analysis, we’re exploring AI to develop better models of hydrocarbon reservoirs. We are exploring AI to forecast geomechanical models and to capture and understand data from fiber optic sensing. Fiber optic sensing is a capability that has proven very valuable to us, and AI is helping us make sense of the wealth of information that comes out of the whole, as we like to say. Of course, we don’t do this alone. We partner with many third-party organizations, with vendors, and with people inside subject matter experts inside of Chevron to move the projects forward. 

There are several other areas beyond industrial AI that we are looking at. AI really is a transformation catalyst, and so areas like finance and law and procurement and HR, we’re also doing testing in those corporate areas. I can tell you that I’ve been part of projects in procurement, in HR. When I was in HR we ran a pretty amazing effort in partnership with a third-party company, and what they do is they seek to transform the way we understand talent, and the way they do that is they are trying to provide data-driven frameworks to make talent decisions. 

And so they redefine talent by framing data in the form of skills, and as they do this, they help de-bias processes that are usually or can be usually prone to unconscious biases and perspectives. It really is fascinating to think of your talent-based skills and to start decoupling them from what we know since the industrial era began, which is people fit in jobs. Now the question is more the other way around. How can jobs adapt to people’s skills? And then in procurement, AI is basically helping us open the aperture to a wider array of vendors in an automated fashion that makes us better partners. It’s more cost-effective. It’s really helpful. 

Before I close here, you did reference frameworks, so the framework of industrial AI versus what I call productivity AI, the understanding of the use cases. All of this sits on top of our responsible AI frameworks. We have set up a central enterprise AI organization and they have really done a great job in developing key areas of responsible AI as well as training and adoption frameworks. This includes how to use AI, how not to use AI, what data we can share with the different GPTs that are available to us. 

We are now members of organizations like the Responsible AI Institute. This is an organization that fosters the safe use of AI and trustworthy AI. But our own responsible AI framework, it involves four pillars. The first one is the principles, and this is how we make sure we continue to stay aligned with the values that drive this company, which we call The Chevron Way. It includes assessment, making sure that we evaluate these solutions in proportion to impact and risk. As I mentioned, when you’re talking about industrial processes, people’s lives are at stake. And so we take a very close look at what we are putting out there and how we ensure that it keeps our people safe. It includes education, I mentioned training our people to augment their capabilities and reinforcing responsible principles, and the last of the four is governance oversight and accountability through control structures that we are putting in place. 

Megan: Fantastic. Thank you so much for those really fascinating specific examples as well. It’s great to hear about. And digital transformation, which you did touch on briefly, has become critical of course to enable business growth and innovation. I wonder what has Chevron’s digital transformation looked like and how has the shift affected overall operations and the way employees engage with technology as well? 

Luis: Yeah, yeah. That’s a really good question. The term digital transformation is interpreted in many different ways. For me, it really is about leveraging technology to drive business results and to drive business transformation. We usually tend to specify emerging technology as the catalyst for transformation. I think that is okay, but I also think that there are ways that you can drive digital transformation with technology that’s not necessarily emerging but is being optimized, and so under this umbrella, we include everything from our Citizen Developer Program to complex industry partnerships that help us maximize the value of data. 

The Citizen Developer Program has been very successful in helping bridge the gap between our technical software engineer and software development practices and people who are out there doing the work, getting familiar, and demystifying the way to build solutions. 

I do believe that transformation is as much about technology as it is about people. And so to go back to the responsible AI framework, we are actively training and upskilling the workforce. We created a program called Learn Digital that helps employees embrace the technologies. I mentioned the concept of demystifying. It’s really important that people don’t fall into the trap of getting scared by the potential of the technology or the fact that it is new and we help them and we give them the tools to bridge the change management gap so they can get to use them and get the most out of them. 

At a high level, our transformation has followed the cyclical nature that pretty much any transformation does. We have identified the data foundations that we need to have. We have understood the impact of the processes that we are trying to digitize. We organize that information, then we streamline and automate processes, we learn, and now machines learn and then we do it all over again. And so this cyclical mindset, this iterative mindset has really taken hold in our culture and it has made us a little bit better at accepting the technologies that are driving the change. 

Megan: And to look at one of those technologies in a bit more detail, cloud computing has revolutionized infrastructure across industries. But there’s also a pendulum ship now toward hybrid and edge computing models. How is Chevron balancing cloud, hybrid, and edge strategies for optimal performance as well? 

Luis: Yeah, that’s a great question and I think you could argue that was the genesis of the digital transformation effort. It’s been a journey for us and it’s a journey that I think we’re not the only ones that may have started it as a cost savings and storage play, but then we got to this ever-increasing need for multiple things like scaling compute power to support large language models and maximize how we run complex models. There’s an increasing need to store vast amounts of data for training and inference models while we improve data management and, while we predict future needs. 

There’s a need for the opportunity to eliminate hardware constraints. One of the promises of cloud was that you would be able to ramp up and down depending on your compute needs as projects demanded. And that hasn’t stopped, that has only increased. And then there’s a need to be able to do this at a global level. For a company like ours that is distributed across the globe, we want to do this everywhere while actively managing those resources without the weight of the infrastructure that we used to carry on our books. Cloud has really helped us change the way we think about the digital assets that we have. 

It’s important also that it has created this symbiotic need to grow between AI and the cloud. So you don’t have the AI without the cloud, but now you don’t have the cloud without AI. In reality, we work on balancing the benefits of cloud and hybrid and edge computing, and we keep operational efficiency as our North Star. We have key partnerships in cloud, that’s something that I want to make sure I talk about. Microsoft is probably the most strategic of our partnerships because they’ve helped us set our foundation for cloud. But we also think of the convenience of hybrid through the lens of leveraging a convenient, scalable public cloud and a very secure private cloud that helps us meet our operational and safety needs. 

Edge computing fills the gap or the need for low latency and real-time data processing, which are critical constraints for decision-making in most of the locations where we operate. You can think of an offshore rig, a refinery, an oil rig out in the field, and maybe even not-so-remote areas like here in our corporate offices. Putting that compute power close to the data source is critical. So we work and we partner with vendors to enable lighter compute that we can set at the edge and, I mentioned the foundation earlier, faster communication protocols at the edge that also solve the need for speed. 

But it is important to remember that you don’t want to think about edge computing and cloud as separate things. Cloud supports edge by providing centralized management by providing advanced analytics among others. You can train models in the cloud and then deploy them to edge devices, keeping real-time priorities in mind. I would say that edge computing also supports our cybersecurity strategy because it allows us to control and secure sensitive environments and information while we embed machine learning and AI capabilities out there. 

So I have mentioned use cases like predictive maintenance and safety, those are good examples of areas where we want to make sure our cybersecurity strategy is front and center. When I was talking about my experience I talked about the center and the edge. Our strategy to balance that pendulum relies on flexibility and on effective asset management. And so making sure that our cloud reflects those strategic realities gives us a good footing to achieve our corporate objectives. 

Megan: As you say, safety is a top priority. How do technologies like the Internet of Things and AI help enhance safety protocols specifically too, especially in the context of emissions tracking and leak detection? 

Luis: Yeah, thank you for the question. Safety is the most important thing that we think and talk about here at Chevron. There is nothing more important than ensuring that our people are safe and healthy, so I would break safety down into two. Before I jump to emissions tracking and leak detection, I just want to make a quick point on personal safety and how we leverage IoT and AI to that end. 

We use sensing capabilities that help us keep workers out of harm’s way, and so things like computer vision to identify and alert people who are coming into safety areas. We also use computer vision, for example, to identify PPE requirements—personal protective equipment requirements—and so if there are areas that require a certain type of clothing, a certain type of identification, or a hard hat, we are using technologies that can help us make sure people have that before they go into a particular area. 

We’re also using wearables. Wearables help us in one of the use cases is they help us track exhaustion and dehydration in locations where that creates inherent risk, and so locations that are very hot, whether it’s because of the weather or because they are enclosed, we can use wearables that tell us how fast the person’s getting dehydrated, what are the levels of liquid or sodium that they need to make sure that they’re safe or if they need to take a break. We have those capabilities now. 

Going back to emissions tracking and leak detection, I think it’s actually the combination of IoT and AI that can transform how we prevent and react to those. In this case, we also deploy sensing capabilities. We use things like computer vision, like infrared capabilities, and we use others that deliver data to the AI models, which then alert and enable rapid response. 

The way I would explain how we use IoT and AI for safety, whether it’s personnel safety or emissions tracking and leak detection, is to think about sensors as the extension of human ability to sense. In some cases, you could argue it’s super abilities. And so if you think of sight normally you would’ve had supervisors or people out there that would be looking at the field and identifying issues. Well, now we can use computer vision with traditional RGB vision, we can use them with infrared, we can use multi-angle to identify patterns, and have AI tell us what’s going on. 

If you keep thinking about the human senses, that’s sight, but you can also use sound through ultrasonic sensors or microphone sensors. You can use touch through vibration recognition and heat recognition. And even more recently, this is something that we are testing more recently, you can use smell. There are companies that are starting to digitize smell. Pretty exciting, also a little bit crazy. But it is happening. And so these are all tools that any human would use to identify risk. Well, so now we can do it as an extension of our human abilities to do so. This way we can react much faster and better to the anomalies. 

A specific example with methane. We have a simple goal with methane, we want to keep methane in the pipe. Once it’s out, it’s really hard or almost impossible to take it back. Over the last six to seven years, we have reduced our methane intensity by over 60% and we’re leveraging technology to achieve that. We have deployed a methane detection program. We have trialed over 10 to 15 advanced methane detection technologies. 

A technology that I have been looking at recently is called Aquanta Vision. This is a company supported by an incubator program we have called Chevron Studio. We did this in partnership with the National Renewable Energy Laboratory, and what they do is they leverage optical gas imaging to detect methane effectively and to allow us to prevent it from escaping the pipe. So that’s just an example of the technologies that we’re leveraging in this space. 

Megan: Wow, that’s fascinating stuff. And on emissions as well, Chevron has made significant investments in new energy technologies like hydrogen, carbon capture, and renewables. How do these technologies fit into Chevron’s broader goal of reducing its carbon footprint? 

Luis: This is obviously a fascinating space for us, one that is ever-changing. It is honestly not my area of expertise. But what I can say is we truly believe we can achieve high returns and lower carbon, and that’s something that we communicate broadly. A few years ago, I believe it was 2021, we established our Chevron New Energies company and they actively explore lower carbon alternatives including hydrogen, renewables, and carbon capture offsets. 

My area, the digital area, and the convergence between digital technologies and the technical sciences will enable the techno-commercial viability of those business lines. Thinking about carbon capture, is something that we’ve done for a long time. We have decades of experience in carbon capture technologies across the world. 

One of our larger projects, the Gorgon Project in Australia, I think they’ve captured something between 5 and 10 million tons of CO2 emissions in the past few years, and so we have good expertise in that space. But we also actively partner in carbon capture. We have joined hubs of carbon capture here in Houston, for example, where we investing in companies like there’s a company called Carbon Clean, a company called Carbon Engineering, and one called Svante. I’m familiar with these names because the corporate VC team is close to me. These companies provide technologies for direct air capture. They provide solutions for hard-to-abate industries. And so we want to keep an eye on these emerging capabilities and make use of them to continuously lower our carbon footprint. 

There are two areas here that I would like to talk about. Hydrogen first. This is another area that we’re familiar with. Our plan is to build on our existing assets and capabilities to deliver a large-scale hydrogen business. Since 2005, I think we’ve been doing retail hydrogen, and we also have several partnerships there. In renewables, we are creating a range of fuels for different transportation types. We use diesel, bio-based diesel, we use renewable natural gas, we use sustainable aviation fuel. Yeah, so these are all areas of importance to us. They’re emerging business lines that are young in comparison to the rest of our company. We’ve been a company for 140 years plus, and this started in 2021, so you can imagine how steep that learning curve is. 

I mentioned how we leverage our corporate venture capital team to learn and to keep an eye out on what are these emerging trends and technologies that we want to learn about. They leverage two things. They leverage a core fund, which is focused on areas that can seek innovation for our core business for the title. And we have a separate future energy fund that explores areas that are emerging. Not only do they invest in places like hydrogen, carbon capture, and renewables, but they also may invest in other areas like wind and geothermal and nuclear capability. So we constantly keep our eyes open for these emerging technologies. 

Megan: I see. And I wonder if you could share a bit more actually about Chevron’s role in driving sustainable business innovation. I’m thinking of initiatives like converting used cooking oil into biodiesel, for example. I wonder how those contribute to that overall goal of creating a circular economy. 

Luis: Yeah, this is fascinating and I was so happy to learn a little bit more about this year when I had the chance to visit our offices in Iowa. I’ll get into that in a second. But happy to talk about this, again with the caveat that it’s not my area of expertise. 

Megan: Of course. 

Luis: In the case of biodiesel, we acquired a company called REG in 2022. They were one of the founders of the renewable fuels industry, and they honestly do incredible work to create energy through a process, I forget the name of the process to be honest. But at the most basic level what they do is they prepare feedstocks that come from different types of biomass, you mentioned cooking oils, there’s also soybeans, there’s animal fats. And through various chemical reactions, what they do is convert components of the feedstock into biodiesel and glycerin. After that process, what they do is they separate un-reactive methanol, which is recovered and recycled into the process, and the biodiesel goes through a final processing to make sure that it meets the standards necessary to be commercialized. 

What REG has done is it has boosted our knowledge as a broader organization on how to do this better. They continuously look for bio-feedstocks that can help us deliver new types of energy. I had mentioned bio-based diesel. One of the areas that we’re very focused on right now is sustainable aviation fuel. I find that fascinating. The reason why this is working and the reason why this is exciting is because they brought this great expertise and capability into Chevron. And in turn, as a larger organization, we’re able to leverage our manufacturing and distribution capabilities to continue to provide that value to our customers. 

I mentioned that I learned a little bit more about this this year. I was lucky earlier in the year I was able to visit our REG offices in Ames, Iowa. That’s where they’re located. And I will tell you that the passion and commitment that those people have for the work that they do was incredibly energizing. These are folks who have helped us believe, really, that our promise of lower carbon is attainable. 

Megan: Wow. Sounds like there’s some fascinating work going on. Which brings me to my final question. Which is sort of looking ahead, what emerging technologies are you most excited about and how do you see them impacting both Chevron’s core business and the energy sector as a whole as well? 

Luis: Yeah, that’s a great question. I have no doubt that the energy business is changing and will continue to change only faster, both our core business as well as the future energy, or the way it’s going to look in the future. Honestly, in my line of work, I come across exciting technology every day. The obvious answers are AI and industrial AI. These are things that are already changing the way we live without a doubt. You can see it in people’s productivity. You can see it in how we optimize and transform workflows. AI is changing everything. I am actually very, very interested in IoT, in the Internet of Things, and robotics, the ability to protect humans in high-risk environments, like I mentioned, is critical to us, the opportunity to prevent high-risk events and predict when they’re likely to happen. 

This is pretty massive, both for our productivity objectives as well as for our lower carbon objectives. If we can predict when we are at risk of particular events, we could avoid them altogether. As I mentioned before, this ubiquitous ability to sense our surroundings is a capability that our industry and I’m going to say humankind, is only beginning to explore. 

There’s another area that I didn’t talk too much about, which I think is coming, and that is quantum computing. Quantum computing promises to change the way we think of compute power and it will unlock our ability to simulate chemistry, to simulate molecular dynamics in ways we have not been able to do before. We’re working really hard in this space. When I say molecular dynamics, think of the way that we produce energy today. It is all about the molecule and understanding the interactions between hydrocarbon molecules and the environment. The ability to do that in multi-variable systems is something that quantum, we believe, can provide an edge on, and so we’re working really hard in this space. 

Yeah, there are so many, and having talked about all of them, AI, IoT, robotics, quantum, the most interesting thing to me is the convergence of all of them. If you think about the opportunity to leverage robotics, but also do it as the machines continue to control limited processes and understand what it is they need to do in a preventive and predictive way, this is such an incredible potential to transform our lives, to make an impact in the world for the better. We see that potential. 

My job is to keep an eye on those developments, to make sure that we’re managing these things responsibly and the things that we test and trial and the things that we deploy, that we maintain a strict sense of responsibility to make sure that we keep everyone safe, our employees, our customers, and also our stakeholders from a broader perspective. 

Megan: Absolutely. Such an important point to finish on. And unfortunately, that is all the time we have for today, but what a fascinating conversation. Thank you so much for joining us on the Business Lab, Luis. 

Luis: Great to talk to you. 

Megan:  Thank you so much. That was Luis Niño, who is the digital manager of technology ventures and innovation at Chevron, who I spoke with today from Brighton, England. 

That’s it for this episode of Business Lab. I’m Megan Tatum, I’m your host and a contributing editor at Insights, the custom publishing division of MIT Technology Review. We were founded in 1899 at the Massachusetts Institute of Technology, and you can find us in print on the web and at events each year around the world. For more information about us and the show, please check out our website at technologyreview.com. 

This show is available wherever you get your podcasts, and if you enjoyed this episode, we really hope you’ll take a moment to rate and review us. Business Lab is a production of MIT Technology Review, and this episode was produced by Giro Studios. Thank you so much for listening. 

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Diversified Energy to acquire Birch Permian in $1.8-billion deal

Diversified Energy Co. has agreed to acquire Birch Permian Holdings Inc. and certain affiliated companies from affiliates of Elliott Investment Management LP for about $1.8 billion, expanding its position in the Permian basin and adding operated, producing assets to its portfolio. The acquisition is expected to increase Diversified’s production by about 35%, the company said in a release Sept. 2. Following closing, Diversified said operated gross production volumes are expected to total about 2.5 bcefd, or roughly 1.6 bcfed net. Birch’s assets currently produce about 68,000 boe/d net (about 409 MMcfed), consisting of 38% oil, 32% natural gas liquids, and 30% natural gas. The portfolio includes about 480 net wells across 46,000 net mineral acres in the Permian basin. The acquired properties contain proved reserves of about 1.17 tcfe and a reported PV-10 value of about $2 billion. The transaction also includes gathering, processing, and water-handling infrastructure. Midstream assets comprise 12 central production facilities, nine well gathering facilities, more than 60 miles of gathering pipeline, and five water disposal facilities connected by more than 80 miles of disposal and recycling pipelines. Processing capacity includes up to 345,000 b/d of oil and 310 MMcfd of gas. Diversified said the acquisition establishes a platform for further consolidation of mature, producing Permian assets consistent with its strategy of acquiring and managing proved developed producing (PDP) properties. The company also cited enhanced oil recovery (EOR) potential, noting the acquired position includes more than 150 permitted EOR locations. “This $1.8 billion acquisition is our largest in the company’s 25-year history,” said chairman and chief executive officer Rusty Hutson Jr. He said the assets provide a concentrated operated position in the Permian basin with integrated infrastructure and predictable cash flow characteristics. The acquisition is expected to be funded primarily through a privately rated asset-backed securitization originated

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Timor GAP acquires interest in Greater Sunrise

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OIES: Venezuela recovery hinges on infrastructure, power, investment rules

Venezuela has the resource base to rebuild oil production to about 3.3 million b/d over the next 10-12 years, but achieving that level will require major improvements in infrastructure, electricity supply, oilfield services, and the legal and fiscal framework for investment, the Oxford Institute for Energy Studies (OIES) said. In an August report, Venezuela’s Oil and Gas Industry: The Challenge of Sustainable Recovery, OIES said the central challenge is no longer whether Venezuela has sufficient petroleum resources, but whether it can rebuild the technical, institutional, and infrastructure conditions needed to convert those resources into sustained production. Venezuela has 303 billion bbl of proved crude oil reserves as of 2025, including 260.8 billion bbl of extra-heavy crude concentrated largely in the Orinoco Belt. The country also has an estimated 193.4 tcf of proved natural gas reserves, with about 87.8% associated with crude oil production. The scale of those resources contrasts sharply with current production. Venezuela produced less than 1 million b/d of crude in 2025, compared with roughly 3 million b/d around 25 years ago. Production began to recover in 2026, with average quarterly output increasing to 1.06 million b/d in second-quarter 2026 from about 943,000 b/d in fourth-quarter 2025. OIES said returning production to about 3.3 million b/d—the level Venezuela reached in 1998—is technically viable over a 10-12-year period. The figure, however, represents long-term production potential rather than a forecast. Achieving it would require sustained political transition, predictable fiscal terms, private capital and technology, infrastructure rehabilitation, reliable electricity and diluent supplies, and stronger institutions. Phased Orinoco development The report recommends a phased approach to developing the Orinoco resource base rather than treating the belt as a single homogeneous resource. Based on an unpublished 2023 study by Gomez and Garcia, OIES divides the resource base into about 71 billion bbl of

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Polish Oil and Gas Congress

The Congress (www.polishoilandgas.com) – under the slogan ‘Powering the future’ – will take place in Warsaw in October 21-22.  It is organised by ORLEN – a leading multi-energy company in the Central and Eastern European region. Energy is the key to security and development  In Central Europe, where renewable energy sources can meet between two-thirds and three-quarters of energy demand due to geographical conditions, natural gas remains a stabilising factor for the system. Today, access to gas and oil is a guarantee of the country’s security and a prerequisite for the stable functioning of the economy. The crises of recent years have made it abundantly clear to us just how crucial stable supplies are. More and more energy will be needed Global demand for electricity will continue to rise, mainly due to the development of energy-intensive digital technologies, the ongoing reindustrialisation of many regions of the world, and a sharp increase in energy consumption in developing countries. The International Energy Agency’s World Energy Outlook 2025 report, in one of the scenarios presented — ‘Current Policies’ — which describes a reality based on policies actually being implemented, rather than those merely announced — indicates that demand for oil and gas will remain high until the middle of the century, and that both commodities will remain a significant part of the global energy mix. Natural gas is supplied to industry, households and the energy sector. It is the basis for the operation of many combined heat and power plants, petrochemical plants and fertiliser plants. The outlook for the district heating sector is particularly significant, given the major role played by coal in its energy supply. Crude oil, on the other hand, forms the basis of the fuel industry, plastics production and, consequently, the majority of the economy. Looking at the situation from

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AI Puts Fiber on the Critical Path

Fiber Becomes Part of the Build A decade ago, DC Blox might have prioritized land near existing fiber from AT&T, Verizon, Zayo or another established network provider. That calculation is different today. As data center campuses have grown and hyperscalers have become a larger share of the customer base, Wabik said connectivity has increasingly become another construction package associated with the project itself. “If Zayo or Verizon or AT&T just happens to be there close by, that’s a good thing,” he said. “But fiber construction is inherently anymore just part of the construction component.” That changes the site-selection question from Is there fiber nearby? to Can fiber be built here at the scale and diversity the customer requires? For DC Blox, Wabik said that can mean assessing whether sufficient public right-of-way exists to establish three or sometimes four diverse fiber paths into a data center. That distinction is important, as AI workloads push infrastructure into markets where power, land and energy options may be more abundant than established carrier density. The hyperscalers themselves have also become major network builders. Wabik characterized them provocatively as today’s telecom providers, pointing to the scale of terrestrial fiber they commission as well as the growing role of companies such as Amazon, Google and Meta in subsea cable development. The point is less that traditional carriers have disappeared than that hyperscalers increasingly design, commission and control enormous portions of the connectivity required to support their own infrastructure. DC Blox now sees requests for 864-count fiber as routine and, in some cases, 1,728-count cable. That would have been difficult to imagine during an earlier era when a handful of fibers from an established carrier could satisfy a data center’s connectivity requirements. AI-Scale Fiber Gets Physical The scale becomes clearer when the discussion moves from abstract network

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Power First: AI Data Centers Become Energy Systems

For decades, data centers consumed electricity much like other large commercial customers: power arrived from the utility, while batteries and diesel generators stood behind it to protect the load. AI is starting to break that model. As data center campuses grow toward hundreds of megawatts and, in some cases, gigawatt scale, developers are increasingly taking responsibility for an energy system that once sat largely outside the data center boundary. Natural gas supply, onsite generation, fuel cells, batteries, controls and the behavior of the compute load itself are increasingly becoming parts of the same infrastructure system. That was the central thread running through “Power First: The New Playbook for Delivering AI Data Centers,” an Aug. 4 session at the Data Center Frontier Trends Summit 2026 in Reston, Virginia. Moderated by Fengrong Li, Senior Managing Director at FTI Consulting, the panel brought together Jim Summers, CEO of GPC Infrastructure; Shankar Achanta, EVP and Chief Product and Technology Officer at FuelCell Energy; Judith Judson, Executive Vice President at Calibrant Energy; and Yuval Bachar, Founder and CEO of EdgeCloudLink. The discussion began with the immediate constraint — the grid cannot deliver capacity on the timetable AI developers increasingly require — but quickly moved beyond the familiar concept of “bridge power.” The larger question was what happens when the data center itself becomes an energy system. From Backup Power to Prime Power Behind-the-meter generation is not new. What has changed is its role and scale. “Traditionally, behind-the-meter generation has been for backup and the sizes were smaller,” Achanta said. “But what they’re seeing is the demand for the power is growing rapidly due to the data center load.” Interconnection queues, transmission limitations and equipment supply constraints are pushing onsite generation into what Achanta called the “front seat,” supplying primary power rather than waiting behind the

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NVIDIA Pushes DSX Deeper Into Data Center Infrastructure

The joint reference design appears in Trane’s Continuum Rubin DSX and Eaton’s Beam Rubin DSX platforms. The goal is a pre-coordinated architecture stretching from grid power to the chip rather than requiring developers and engineering teams to independently assemble electrical and mechanical systems for each project. The systems are also intended to exchange operating data. Rather than cooling and electrical systems responding independently, the systems can instead exchange leading indicators and respond more dynamically to changing operating requirements. This is an approach that closely mirrors NVIDIA’s larger DSX philosophy. Trane and Eaton are also designing the architecture to accommodate future liquid-cooling and direct-current power-distribution technologies. That future-proofing matters as rack power densities continue to rise. An electrical and cooling plant optimized for one GPU generation may otherwise become a constraint several hardware generations later. The Broader DSX Buildout The Lancium, Cloverleaf and Trane/Eaton agreements are part of a considerably wider expansion of the DSX ecosystem. Earlier deals show NVIDIA moving into many of the same infrastructure layers through partnerships spanning powered land, electrical design, digital twins and even project financing. In May, NVIDIA and IREN announced plans to support as much as 5 GW of DSX-aligned AI infrastructure across IREN’s global development pipeline, with the companies identifying IREN’s 2 GW Sweetwater campus in Texas as an expected flagship DSX deployment. NVIDIA also received a five-year right to purchase up to 30 million IREN shares at $70 each, representing a potential investment of as much as $2.1 billion. The infrastructure ecosystem has widened as well. Siemens, NVIDIA and Fluence, incorporating nVent design considerations, have developed a DSX Vera Rubin-aligned electrical, power and controls architecture extending from the utility connection to the rack. ABB is integrating digital models of medium-voltage switchgear, power-distribution equipment and UPS systems into the Omniverse DSX Blueprint, while Vertiv

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ERCOT Puts Texas AI Megawatts to the Test

Texas has no shortage of proposed data center megawatts. The harder question is how many of them are real. That distinction is becoming central to the Electric Reliability Council of Texas (ERCOT) as the state works through an unprecedented wave of AI, hyperscale and other large-load requests. In June, ERCOT said it was tracking more than 438 GW of proposed large loads, nearly 89% associated with data centers. By Aug. 3, Gov. Greg Abbott said ERCOT was considering approximately 474 GW of connection requests, roughly 90% from data centers and more than five times the system’s record peak demand. Neither figure represents a forecast of what will actually get built. And that is increasingly the point. ERCOT’s new Batch Zero process is beginning to put harder boundaries around Texas’ enormous development pipeline, asking which projects have enough maturity, technical information and commitment to warrant space in the transmission plan. At the same time, new requirements surrounding voltage ride-through and dynamic modeling are forcing another realization on the AI infrastructure industry: at hundreds of megawatts, a data center is no longer simply a customer at the edge of the grid. Its behavior can affect the grid itself. For developers, utilities and investors, Texas is becoming a large-scale test of what separates an announced AI campus from executable infrastructure. The Queue Is Not the Grid The sheer scale of ERCOT’s large-load queue can obscure how early many projects remain. ERCOT’s April 2026 monthly report offered a revealing snapshot. Large-load applications totaled 445.8 GW through 2033, but 321 GW had no studies submitted to ERCOT. Another 93.7 GW was under ERCOT review, while 22 GW had met the applicable Section 9.5 requirements. Against that enormous development funnel, ERCOT reported just 5.9 GW of observed energized large loads, with another 3.2 GW approved to

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DCF Trends Summit: AI Compresses the Data Center Hardware Lifecycle and Raises the Stakes for ITAD

The AI infrastructure race is largely a story about getting more computing into data centers faster. But the accelerated hardware cycle is creating an equally consequential problem at the other end of the rack: getting yesterday’s equipment back out while it is still valuable. GPU systems built around increasingly dense and specialized AI architectures are beginning to challenge traditional assumptions about IT asset disposition, or ITAD. Where conventional enterprise infrastructure might remain in service for three to five years, newer GPU platforms can face refresh cycles of 18 to 24 months, according to Josh Humm, Data Center Solutions Manager at Dynamic Lifecycle Innovations. That compression changes the economics as well as the mechanics of decommissioning. “The faster we can get the materials out of your building, the more it’s worth, the more we can return to your program,” Humm said. Humm joined DCF Contributing Editor Doug Black for a DCF Show podcast recorded at the third annual Data Center Frontier Trends Summit, held Aug. 4-6 in Reston, Virginia. Their conversation focused on a less visible part of the AI infrastructure buildout: what happens to servers, accelerators, memory, storage and networking gear when the next generation arrives. The answer increasingly touches facility operations, data security, logistics, sustainability and potentially millions of dollars in recoverable hardware value. AI Hardware Changes the Exit Path AI systems create some obvious physical challenges for decommissioning. Traditional ITAD teams accustomed to pulling 1U and 2U servers out of air-cooled racks may instead encounter liquid-cooling manifolds, substantially heavier systems and equipment requiring specialized rigging and handling procedures. Humm said some systems can weigh between 5,000 and 6,000 pounds. “We’re not pulling out just 1U, 2U servers out of racks anymore,” he said. Liquid cooling adds another layer. Removing infrastructure designed around direct-to-chip or other liquid-cooling architectures can

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Data Center Jobs: Engineering, Construction, Commissioning, Sales, Field Service and Facility Tech Jobs Available in Major Data Center Hotspots

Each month Data Center Frontier, in partnership with Pkaza, posts some of the hottest data center career opportunities in the market. Here’s a look at some of the latest data center jobs posted on the Data Center Frontier jobs board, powered by Pkaza Critical Facilities Recruiting. Looking for Data Center Candidates? Check out Pkaza’s Active Candidate / Featured Candidate Hotlist  CFD Engineer – Data Center Mechanical Design New York, NY (remote)This position is also available as a remote role anywhere in the U.S. in addition to key markets such as Cedar Rapids, IA; Kansas City, CA or White Plains, NY. Our client is an engineering design and commissioning company that has a national footprint and specializes in MEP critical facilities design. They provide design, commissioning, consulting and management expertise in the critical facilities space. They have a mindset to provide reliability, energy efficiency, and sustainable design expertise when providing these consulting services for enterprise, colocation and hyperscale companies. This career-growth minded opportunity offers exciting projects with leading-edge technology and innovation as well as competitive salaries and benefits.  Electrical Commissioning Agent – Data Centers Columbus, OH (limited travel) Non-traveling CxA positions available in: Indianapolis, IN; Cedar Rapids, IA; Phoenix, AZ; Atlanta, GA and Austin, TX. Traveling CxA based near any major airport, otherwise traveling to: New York, NY; White Plains, NY; Dallas, TX; Richmond, VA; Montvale, NJ; Charlotte, NC; Salt Lake City, UT; Kansas City, MO; Chesterton, IN or Chicago, IL. *** Also looking for a lead EE, ME CxA agents and CxA PMs. *** This opportunity is with a leading EPC company of data center design / build / commissioning solutions. This company provides a complete life cycle of solutions that are custom-fit to the requirements of their client’s mission-critical facilities. This opportunity provides a career-growth minded role with exciting projects with

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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