Counting own goals: High-level assessment of the economic relationship between the ICT and the Oil and Gas sectors and its environmental implications

A new study published on arXiv by researchers Gauthier Roussilhe, Béatrice Dromard, and Srinjoy Mitra quantifies the hidden environmental cost of the ICT sector's financial relationship with the Oil & Gas (O&G) industry. Using input-output analysis of economic data from 2000 to 2022, they found that on average 2% of annual ICT financial flows go to O&G companies, rising to over $4 for every $1 sent to renewables in 2022. The paper argues that while ICT's own carbon footprint is well-studied, the 'added emissions' from digitalizing O&G operations—like AI-driven exploration and pipeline monitoring—have been largely ignored.

The study also traces a causal link between the current generative AI boom and the O&G sector, noting that early GPU technology development was closely tied to oil and gas applications. With the massive growth of generative AI, the authors warn that ICT's financial dependence on O&G could amplify environmental harm. They propose a classification framework for digital activities in O&G to help future assessments, and present case studies estimating potential added emissions. The paper lays groundwork for defining this 'own goal' relationship that predates AI hype, urging the tech industry to account for its indirect environmental impacts.