Baker Hughes boss urges ‘rewriting of the energy equation’

The chief executive of Baker Hughes has called for a “rewriting of the energy equation”.

What’s the equation that he’s talking about? It’s finding the right energy mix to meet the world’s industrial and prosperity ambitions.

Speaking at Baker Hughes’ annual meeting in Florence, Italy, Lorenzo Simonelli said the classic energy trilemma of sustainable, affordable and secure energy needed to be in sync with the needs of delivering economic growth, and this, he said, “is consistently challenged” by “growing population, a demand for energy that keeps on increasing… and three quarters of the world's population with the quest to be as prosperous as one quarter of the world's population”.

What Simonelli was really calling for was pragmatism. To use the solutions that are at hand to deliver a suite of technologies.

“It's not an either/or situation”, he said. “It’s not hydrocarbon versus renewable. It’s the expansive aspect of energy sources… geothermal, hydrogen, nuclear, wind, solar, natural gas: all together in an expansion that's necessary to fuel prosperity as we go forward.”

Geopolitical stresses

He said that in the geopolitical world of today, “depolarisation, regionalisation, fragmentation and conflict are ever current”, which meant the energy sector was “struggling to find that sustainability, security, and affordability that’s so desperately needed.”

He said rewriting the energy equation “starts by thinking differently on how we achieve industrial outcome through innovation, technology and collaboration”.

"We also need to make sure that we align globally: that we have stakeholders from government, regulatory authorities, NGOs and a framework that supports new radical industrial outcomes and energy expansion from all sources.”


He also stressed the importance of gas in the future energy mix, saying it was “not a transition fuel – it is a destination fuel. As you look at the growing demand that's out there, natural gas and LNG are a pathway to achieving success.”

What Simonelli is advocating is a holistic, systemic approach to the energy transition. One he concluded by describing as “working together cohesively to create an environment of solutions”. 


More from Baker Hughes annual meeting:
Baker Hughes and Hydrostor sign 1.4GW energy storage deal