Last week, at the
Daniel Energy Partners
Thrive Conference, I had the pleasure of participating in a fireside chat with Bill Herbert from
Capital Group
. It was an opportunity to discuss the macro forces shaping the energy system, how those dynamics are translating into real customer decisions, and the role
Baker Hughes
continues to play in the future of sustainable energy development.
Here are a few key takeaways from our discussion:
✅ Energy demand fundamentals remain strong. Amid ongoing geopolitical and market noise, one reality remains unchanged: the world will continue to need more energy – and it must be cost‑effective, lower‑emissions and increasingly efficient. At Baker Hughes, we have spent years solidifying our strategy, strengthening our operational blueprint, and planning for multiple scenarios. That preparation gives us confidence in our ability to deliver continued growth through a wide range of external conditions.
✅ Natural gas is a transition and destination fuel. It plays a critical role in meeting growing global energy demand while supporting decarbonization objectives – and we are seeing increasing alignment around that view. By 2040, we expect global natural gas demand to grow by nearly 20%, with LNG demand increasing at an even faster rate of 75%. This backdrop creates a constructive environment for Baker Hughes, particularly given our leadership in LNG, gas infrastructure, and services.
✅ Power demand is accelerating – especially for data centers. The rapid growth of data centers, alongside demand for distributed power in oil & gas applications, represents a sizable and expanding market opportunity. Reliable, flexible and lower‑emissions power solutions will be critical, and Baker Hughes is well positioned to support customers across a range of use cases, fuels and technologies.
✅ Our New Energy portfolio continues to scale. Orders have increased five‑fold since 2021. Last year we achieved $1.3B of New Energy orders, and expect $1.4–$1.6B this year. We are targeting $6–7B by 2030. With a broad portfolio spanning CCUS, clean power, hydrogen, geothermal and emissions abatement, we see significant optionality and opportunity as these markets develop.
✅ Our OFSE portfolio is intentionally built for durability. We have purposely shaped it to be more resilient and less cyclical, with a stronger international footprint and a higher weighting toward production. As upstream spending matures, customers are increasingly prioritizing brownfield activity and OPEX over large greenfield developments. By 2030, we expect roughly 80% of the world’s oil and gas production to come from mature fields – creating a significant opportunity for differentiated solutions across the full lifecycle of these assets.
Thank you to Daniel Energy Partners for hosting a great conference, and to Bill for an engaging and thoughtful discussion.
#DEPTHRIVE #EnergyConference #EnergyIndustry #EnergyTransition #WeAreBakerHughes #TheEnergyEquation
