It’s all about collaboration to solve the energy trilemma; to maintain the balance and momentum as we move forward together.

Mr. Simonelli smiled as he walked on stage and welcomed the industry back to Florence after a three-year absence through the COVID-19 pandemic. He introduced the theme of Balance and Momentum, saying that the energy trilemma—affordability, sustainability, and security—was out of balance. Citing recent floods in New Zealand and Pakistan, and Europe’s extreme summer, he said reminders are everywhere that climate change is real, and that the energy industry must maintain momentum to address it and reduce emissions.

Three Hard Truths

1. Without major acceleration of current technologies being deployed and development of future technologies, the industry will not meet net-zero targets.
2. Reliance on hydrocarbons will not disappear, so efficiency matters.
3. There’s no path to net-zero without partnerships, integrated thinking, and common sustainability standards.

After recapping the Three Hard Truths that have shaped Baker Hughes’ strategy for the energy transition, he dove into some practical details about how the company will move through the coming decades.

Transforming our core

Baker Hughes has reduced its own emissions by 23% since 2019 and continues to drive improvements. The company reorganized from four product companies to two business segments, and launched various technologies to continue driving down Scope 1, 2, and 3 emissions.

Investing for growth

• New solutions expanding on Baker Hughes’ digital ecosystem, providing new levels of efficiency, performance, and emissions reduction for oilfield, gas, and industrial segments.
• Leucipa™ an automated field production solution will enable proactive oil and gas production management.
• Cordant™ will offer an integrated suite of asset performance management and process optimization solutions for energy and industrial customers.
• Investment and collaboration with Corva will provide intelligent rig visualization and drilling operations.

Positioning for new energy frontiers

• Twelve recent investments in companies such as Net Power and Mosaic to apply capabilities in the new energy mix— hydrogen, clean integrated power, and CCUS.
• New MOU with FFI for hydrogen, geothermal, and ammonia opportunities.
• A focus on people and culture—recruiting from other industries to ensure Baker Hughes has the essential change agents, and the right capabilities within its people.

Mr. Simonelli closed by saying that Baker Hughes believes in the power of what it can achieve in collaboration with its customers and other partners—to balance the energy trilemma and move forward with momentum.