# AI Is The Shale Boom All Over Again | Robert Mullin

**URL:** <https://www.artofsm.art/t/ai-is-the-shale-boom-all-over-again-robert-mullin/26520>\
**Category:** Content Creators\
**Tags:** market-talk-with-geo, finance, investment\
**Created:** [20 October 2026 21:09 UTC](https://www.artofsm.art/t/ai-is-the-shale-boom-all-over-again-robert-mullin/26520 "2026-10-20T21:09:52Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![merefield](https://www.artofsm.art/user_avatar/www.artofsm.art/merefield/32/74_2.png) [@merefield](https://www.artofsm.art/u/merefield)\
**Post date:** [20 October 2026 21:09 UTC](https://www.artofsm.art/t/ai-is-the-shale-boom-all-over-again-robert-mullin/26520/1 "2026-10-20T21:09:52Z")

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[![](https://www.artofsm.art/uploads/default/original/3X/3/e/3e29b61dd4b188c1bf38afaac8f9de8d9d65af54.jpeg "AI Is The Shale Boom All Over Again | Robert Mullin") ](https://www.youtube.com/watch?v=rgKtKXpCnzI)

Robert Mullin compares the current AI boom to the shale oil boom, highlighting investment risks tied to uncertain compute costs and suggesting a potential capital shift back to undervalued energy and resource sectors facing structural supply constraints. He advocates for focusing on resource companies with strong fundamentals and AI integration, particularly in geopolitically favorable regions, while expressing caution on certain commodities and emphasizing the enduring value of hard assets amid ongoing economic uncertainties.

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**Author:** ![merefield](https://www.artofsm.art/user_avatar/www.artofsm.art/merefield/32/74_2.png) [@merefield](https://www.artofsm.art/u/merefield)\
**Post date:** [20 October 2026 21:34 UTC](https://www.artofsm.art/t/ai-is-the-shale-boom-all-over-again-robert-mullin/26520/3 "2026-10-20T21:34:31Z")

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In this insightful discussion, Robert Mullin draws a compelling parallel between the current AI boom and the shale oil boom, highlighting similar investment behaviors such as heavy upfront capital expenditure and the race for market share. Mullin emphasizes the uncertainty surrounding the future price of compute power, contrasting it with the relatively more predictable oil market during the shale boom. He suggests that if cracks appear in the AI investment narrative, capital might pivot back to more tangible assets like energy and resources, which he believes are currently undervalued and overlooked by the broader market.

Mullin expresses a strong conviction that the current inflation and supply constraints in energy and resources are structural rather than transitory. He points to tightening oil inventories, geopolitical risks, and emerging fertilizer shortages due to sulfur supply issues as indicators of a prolonged period of under-supply. This environment, he argues, favors investments in resource companies with high cash flows and shareholder-friendly management, particularly in regions like the North Sea and Latin America, where political shifts may lead to more pragmatic energy policies.

On the energy sector, Mullin highlights Schlumberger as a standout company effectively integrating AI into its operations, with a significant portion of its business dedicated to digital and AI-driven services. He also discusses the tanker market’s current profitability, noting the divergence between companies that efficiently capitalize on high rates and return cash to shareholders versus those that do not. While cautious on refiners due to high valuations and uncertain margin sustainability, Mullin remains bullish on producers in geopolitically favorable regions and on the potential for new offshore developments, especially in Brazil.

Regarding other commodities, Mullin is moderately bearish on North American natural gas and copper, citing ample supply and potential economic slowdowns, while showing interest in nickel and nitrogen-based fertilizers due to supply constraints and rising input costs. He also expresses skepticism about rare earth companies, warning of potential oversupply as governments heavily invest in domestic production. In precious metals, he acknowledges the recent volatility but sees gold equities as attractive for the medium term, anticipating a significant upward move linked to broader economic pressures.

Overall, Mullin advocates for a resource-focused investment approach in a world where traditional low-inflation, low-interest rate environments are unlikely to return soon. He encourages investors to consider companies that combine strong fundamentals with exposure to AI-driven productivity gains in the resource sector. His pragmatic and experienced perspective offers a counterbalance to the tech-centric market narrative, emphasizing the enduring value and potential of hard assets amid ongoing global uncertainties.