Igor Borisenko/iStock via Getty Images
Years of insufficient investment in the oil zone, among other factors, probably require years of spending growth To meet future demand forecasts, Baker Hughes (NASDAQ:BKR) President and CEO Lorenzo Simonelli said on Monday.
Baker Hugs (BKR) continues to believe that the early stages of a multi-year rebound in global activity have begun, and will likely result in a second straight year of double-digit increases in exploration and production spending around the world, the chief executive said in company report. earnings conference callaccording to S&P Global Platts.
In the short term, Simonelli said he sees China’s reopening, combined with Europe’s need to top up gas storage supplies, playing a critical role in keeping global gas and LNG markets tight, while in the long term , “we remain bullish on the structure.” growth outlook for natural gas and LNG as the world seeks to reduce emissions and displace coal consumption.
Geographically, the Middle East is the most promising country, with activity set to increase in several countries this year and likely next, while visibility remains limited in North America due to capital discipline and supply chain scarcity. supply that has reduced the availability of drilling and fracturing equipment, Simonelli also said.
“After a record year in 2022 for flex orders, we expect another strong year in 2023, as well as a significant increase in subsea tree awards,” the CEO said on the call.
Baker Hughes (BKR) reported adjusted earnings and revenue in the fourth quarter that slightly missed estimates.
