Chevron is turning Permian Basin stranded gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigawatt power plant for Microsoft's AI data center.
Bloomberg Intelligence
Chevron is turning Permian Basin stranded gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigawatt power plant for Microsoft's AI data center.
TL;DR
Chevron and Microsoft signed a 20-year deal to build a 2.67-gigawatt natural gas power plant in the Permian Basin to fuel a West Texas data center [1] — Kevin Crowley "Chevron is turning stranded Permian Basin natural gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigaw…" 01:48 , marking a new revenue stream for an oil major. AbbVie's $10.9 billion all-cash acquisition of Apogee Therapeutics [2] — Sam Fazeli "Big pharma runs at 30%+ operating margins across the board. Even Pfizer, whose stock has halved from pandemic peaks, generates enormous cas…" 11:41 adds an eczema drug to a portfolio already generating $50B+ from Skyrizi and Rinvoq. CRH's $8.5 billion Arcosa deal makes it the largest US aggregates producer [3] — Spencer Liberman "CRH just did something it has never done before: a single deal bigger than $4 billion. The $8.5 billion Arcosa acquisition makes CRH the la…" 17:23 . Former Atlanta Fed President Dennis Lockhart reflects on Alan Greenspan's legacy and praises Kevin Warsh's hawkish Fed debut. Key takeaway: remote stranded gas in the Permian is becoming a competitive moat for AI data center power.
Chevron signs a 20-year power deal with Microsoft for a West Texas AI data center. AbbVie acquires Apogee Therapeutics for $10.9B. CRH acquires Arcosa for $8.5B. Former Atlanta Fed President Dennis Lockhart reflects on Alan Greenspan's legacy and Kevin Warsh's Fed debut.
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Kevin Crowley explains how Chevron's deal with Microsoft turns stranded Permian Basin gas into a 2.67GW behind-the-meter data center power supply, marking a new business for the oil major. [1] — Kevin Crowley "Chevron is turning stranded Permian Basin natural gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigaw…" 01:48
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Sam Fazeli discusses AbbVie's bid for eczema drug developer Apogee, its $50B+ immunology revenue base, pharma's cash generation strength, and emerging frontiers in neuroscience and women's health. [1] — Sam Fazeli "The entire pharma world is chasing obesity drugs worth $100 billion. But AbbVie's two immunology drugs — Skyrizi and Rinvoq — are already a…" 10:08
Sponsor messages from Public.com, Venture Global LNG, and 4imprint promotional products.
Spencer Liberman breaks down CRH's landmark Arcosa deal, its vertically integrated strategy, aggregates pricing power through economic cycles, and CRH's growing data center construction portfolio. [1] — Spencer Liberman "CRH just did something it has never done before: a single deal bigger than $4 billion. The $8.5 billion Arcosa acquisition makes CRH the la…" 17:23
Sponsor messages from Public.com, Venture Global LNG, and 4imprint promotional products.
Dennis Lockhart, former Atlanta Fed president, reflects on Greenspan's 18.5 years as Fed chair, his legendary data mastery, and how long success may have bred the blind spots that allowed the 2008 financial crisis. [1] — Dennis Lockhart "Greenspan presided over 15 years of the Great Moderation — and it may have been his undoing. Hyman Minsky's paradox: long periods of stabil…" 25:17
Lockhart praises Warsh's balanced hawkish hold and 5 task forces, then warns against assuming oil prices revert to pre-war levels as inflationary pressures may persist. [1] — Dennis Lockhart "Kevin Warsh pulled off a difficult balancing act in his first FOMC meeting: launching 5 reform task forces while reaffirming the committee'…" 28:30
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Chapter 2 · 01:46
Kevin Crowley explains how Chevron's deal with Microsoft turns stranded Permian Basin gas into a 2.67GW behind-the-meter data center power supply, marking a new business for the oil major. [1] — Kevin Crowley "Chevron is turning stranded Permian Basin natural gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigaw…" 01:48
Chevron is turning stranded Permian Basin natural gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigawatt power plant for Microsoft's AI data center. The project is 100% behind the meter, no utility involved, no impact on local ratepayers.
Chevron signed a 20-year agreement with Microsoft to supply natural gas-fired power to a proposed West Texas data center.
Project Kilby is expected to ramp up to 2.67 gigawatts over time, enough to power more than 530,000 Texas homes.
The proposed West Texas data center is located about 400 miles west of the Dallas-Fort Worth area, in the heart of the Permian Basin.
Chevron says the project is 100% behind the meter, meaning no utility is involved and local ratepayers are unaffected.
Early on, big tech preferred renewables for data centers and building near population centers. But the sheer scale of AI compute demand is forcing a pragmatic turn to natural gas — and remote locations with cheap, abundant energy are now competitive advantages.
Chapter 4 · 09:08
Sam Fazeli discusses AbbVie's bid for eczema drug developer Apogee, its $50B+ immunology revenue base, pharma's cash generation strength, and emerging frontiers in neuroscience and women's health. [1] — Sam Fazeli "The entire pharma world is chasing obesity drugs worth $100 billion. But AbbVie's two immunology drugs — Skyrizi and Rinvoq — are already a…" 10:08
AbbVie already has the biggest immunology franchise in pharma with Skyrizi and Rinvoq heading toward $50B+ in combined revenue. Buying Apogee for $10.9 billion gives it a foothold in atopic dermatitis — a massive and underserved eczema market.
AbbVie agreed to acquire Apogee Therapeutics for $10.9 billion in cash to expand its anti-inflammatory drug portfolio.
AbbVie's offer for Apogee Therapeutics represents a roughly 49% premium to Apogee's closing price of $90.38.
The entire pharma world is chasing obesity drugs worth $100 billion. But AbbVie's two immunology drugs — Skyrizi and Rinvoq — are already approaching $50 billion combined. Inflammation is a pharma goldmine that doesn't get nearly enough attention.
AbbVie's two drugs, Skyrizi and Rinvoq, are approaching well over $50 billion in combined revenue, rivaling the obesity drug market.
Big pharma runs at 30%+ operating margins across the board. Even Pfizer, whose stock has halved from pandemic peaks, generates enormous cash with low leverage. These are cash-rich companies, and large all-cash acquisitions are entirely within reach for almost all of them.
Pfizer's share price has halved since pandemic peaks, yet the company still generates substantial cash flow with relatively low leverage.
Immunology is well-mapped. Obesity is crowded. The next great pharmaceutical frontier is neuroscience — the brain remains largely a black box, but new biology is unlocking it fast. That's where the next wave of breakthrough drugs will come from.
Women's health has historically received far less pharmaceutical attention than it deserves. The FDA's removal of the black box warning on hormone replacement therapy is now unlocking new commercial interest — and changing how the industry thinks about estrogen-based treatments.
Chapter 6 · 17:23
Spencer Liberman breaks down CRH's landmark Arcosa deal, its vertically integrated strategy, aggregates pricing power through economic cycles, and CRH's growing data center construction portfolio. [1] — Spencer Liberman "CRH just did something it has never done before: a single deal bigger than $4 billion. The $8.5 billion Arcosa acquisition makes CRH the la…" 17:23
CRH just did something it has never done before: a single deal bigger than $4 billion. The $8.5 billion Arcosa acquisition makes CRH the largest US aggregates producer at 265 million tons per year, and positions it as the vertically integrated one-stop shop for US construction.
CRH agreed to acquire US construction services company Arcosa for $8.5 billion, the largest deal in CRH's history.
Following the Arcosa deal, CRH becomes the largest US aggregates producer at approximately 265 million tons per year.
CRH made approximately 38 acquisitions in the prior year, totaling about $4 billion, mostly bolt-on deals before the record Arcosa transaction.
CRH is currently working on over 100 data center projects, representing a growing high-demand growth avenue.
Aggregates — the crushed stone, sand, and gravel used in roads and concrete — maintain pricing power even when cement and asphalt decline. In down cycles, aggregates still grow prices. That's the rarest quality in building materials and why CRH is doubling down.
Chapter 8 · 24:48
Dennis Lockhart, former Atlanta Fed president, reflects on Greenspan's 18.5 years as Fed chair, his legendary data mastery, and how long success may have bred the blind spots that allowed the 2008 financial crisis. [1] — Dennis Lockhart "Greenspan presided over 15 years of the Great Moderation — and it may have been his undoing. Hyman Minsky's paradox: long periods of stabil…" 25:17
Greenspan presided over 15 years of the Great Moderation — and it may have been his undoing. Hyman Minsky's paradox: long periods of stability breed the overconfidence that causes instability. Greenspan's light regulatory touch and deep belief in markets left him blind to the real estate crisis forming in his final years.
Alan Greenspan served as Federal Reserve chairman for 18 and a half years, from 1987 to 2006, and died at age 100.
For 15 of his 18.5 years as Fed chair, Greenspan presided over the Great Moderation, a period of sustained US economic expansion.
New Fed Chair Kevin Warsh launched 5 task forces in his first meeting, signaling institutional reform while reaffirming commitment to bringing inflation down.
Chapter 9 · 28:30
Lockhart praises Warsh's balanced hawkish hold and 5 task forces, then warns against assuming oil prices revert to pre-war levels as inflationary pressures may persist. [1] — Dennis Lockhart "Kevin Warsh pulled off a difficult balancing act in his first FOMC meeting: launching 5 reform task forces while reaffirming the committee'…" 28:30
Kevin Warsh pulled off a difficult balancing act in his first FOMC meeting: launching 5 reform task forces while reaffirming the committee's inflation-fighting commitment. His decision not to submit a personal forecast or dot was a quiet signal — and the SEP was the most hawkish document in the room.
Oil prices have come down recently, and some see an inflation problem solving itself. But Dennis Lockhart warns against assuming pre-war price levels return. Inflationary pressures could persist — and any improvement could reverse quickly depending on geopolitical negotiations.
No indexed bits in this chapter.
Chevron is turning stranded Permian Basin natural gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigawatt power plant for Microsoft's AI data center. The project is 100% behind the meter, no utility involved, no impact on local ratepayers.
Greenspan presided over 15 years of the Great Moderation — and it may have been his undoing. Hyman Minsky's paradox: long periods of stability breed the overconfidence that causes instability. Greenspan's light regulatory touch and deep belief in markets left him blind to the real estate crisis forming in his final years.
This episode
Factual claims made this episode, and whether a source was named.
The Chevron-Microsoft data center project will ramp up to 2.67 gigawatts of capacity over time, enough to power more than 530,000 Texas homes.
The proposed West Texas data center is located approximately 400 miles west of the Dallas-Fort Worth area, in the heart of the Permian Basin.
Chevron describes the data center project as 100% behind the meter, meaning no utility is connected and local ratepayers are entirely unaffected.
AbbVie agreed to acquire Apogee Therapeutics for $10.9 billion in cash, representing a roughly 49% premium to Apogee's closing price of $90.38.
AbbVie's Skyrizi and Rinvoq are approaching well over $50 billion in combined revenue, making immunology comparable to the obesity drug market.
Major pharmaceutical companies broadly operate at 30%+ operating margins, giving them substantial cash generation capacity for large acquisitions.
Pfizer's share price has halved since the peaks of the COVID-19 pandemic, yet the company still generates substantial cash with relatively low leverage.
CRH agreed to acquire Arcosa for $8.5 billion, the largest acquisition in CRH's history, making it the largest US aggregates producer at approximately 265 million tons per year.
CRH completed approximately 38 acquisitions in the prior year totaling about $4 billion, almost all bolt-on deals, before the record Arcosa transaction.
CRH is currently working on over 100 data center projects, representing a growing high-demand segment of its construction portfolio.
Alan Greenspan served as Federal Reserve chairman for 18.5 years, from 1987 to 2006, and presided over the Great Moderation for roughly 15 of those years.
In his final 3 years as Fed chair, Greenspan may have missed the signs of the coming real estate crisis, partly due to over-reliance on his belief in market self-correction and a light regulatory touch.
Kevin Warsh launched 5 task forces in his first FOMC meeting as Federal Reserve chairman, signaling institutional reform intentions.
Kevin Warsh chose not to submit a personal interest rate forecast or dot in his first FOMC meeting, which Dennis Lockhart interpreted as a personal hawkish signal distinct from the committee's consensus view.
IBM's AI integration for HR questions enables a global workforce of 300,000 employees to resolve 94% of common HR questions through AI.
This episode
Former Federal Reserve chairman who died at age 100; remembered for presiding over the Great Moderation but also criticized for missing signs of the 2008 financial crisis.
New Federal Reserve chairman discussed for his first FOMC meeting, praised for balancing reform with collegiality while maintaining a hawkish hold on rates.
The name of the proposed Chevron-Microsoft natural-gas-powered West Texas data center expected to start producing power by 2028.
Irish building materials company agreed to acquire Arcosa for $8.5 billion, its largest-ever deal, becoming the largest US aggregates producer.
Signed a 20-year deal with Microsoft to power a West Texas data center using Permian Basin natural gas, entering the power business for the first time.
Agreed to acquire Apogee Therapeutics for $10.9 billion in cash to expand its anti-inflammatory drug portfolio into the eczema market.
US central bank discussed in the context of Alan Greenspan's legacy, Kevin Warsh's inaugural FOMC meeting, and current inflation policy debate.
Partnered with Chevron in a 20-year deal to receive natural gas-fired power for a proposed West Texas data center to support AI workloads.
US construction services and aggregates company being acquired by CRH for $8.5 billion in a record deal for the Irish building materials provider.
Agreed to be acquired by AbbVie for $10.9 billion; develops drugs for atopic dermatitis (eczema), at a 49% premium to its prior closing price.
Cited by Sam Fazeli as an example of a pharma company whose stock halved from pandemic peaks but still generates strong cash flow and low leverage.
US aggregates competitor to CRH cited alongside Vulcan as having shifted to an aggregates-focused portfolio strategy.
US aggregates competitor to CRH cited as having repositioned its portfolio to focus heavily on aggregates, similar to Martin Marietta.
AbbVie's immunology drug for rheumatoid arthritis and psoriasis, part of a portfolio approaching $50B+ in revenue alongside Skyrizi.
AbbVie's blockbuster immunology drug for psoriasis and rheumatoid arthritis, part of a duo with Rinvoq approaching $50B+ in combined annual revenue.
AbbVie's original flagship drug that established its immunology leadership before being succeeded by Skyrizi and Rinvoq.
The largest US oil field, located in West Texas, and the site of the proposed Chevron-Microsoft data center; generates abundant stranded natural gas.
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