Key takeaways from AM2024: a year to Energize Change

At the end of January, Baker Hughes hosted 2,000+ customers, investors, partners, media and industry leaders at its Annual Meeting (AM2024). This was the largest attendance in the event’s 25-year history, and the host city of Florence, Italy provided a forum to debate, discuss, and drive progress towards a balanced energy transition and a future of innovation. 

The theme for AM2024 was “Energizing Change” and here Baker Hughes Chairman and CEO, Lorenzo Simonelli delivers his opening keynote,  where he shares how Baker Hughes is energizing change in the energy and industrial sectors. 

From AM2024, there are four primary pathways to energize change and make meaningful progress for energy and industrial organizations in 2024. Each of these remains in focus for Baker Hughes:

Sustainable Energy Development

In his keynote, Simonelli shared the concept of Sustainable Energy Development (SED) with the audience. SED was first coined in the 1980s and has been defined as “growth that meets our needs without compromising the ability of future generations to meet theirs.” 

SED resonated with the audience as it takes the concept of the energy trilemma – balancing security, sustainability, and affordability – but adds in a fourth element – energy efficiency. The 2020s must be the decade of efficiency for industrial sectors, as it is paramount to achieving goals in support of the Paris Agreement. Simonelli encouraged the audience to focus on SED, rather than only the trilemma, as a more integrated approach than in the past few years. 

Resource Efficiency and Emissions Abatement

The world of energy is changing, with new demands being placed on both producers and users to drive sustainable energy development. At AM2024, many leaders took to the plenary conference stage, to convey how they are rethinking their resources, as well as their skilled workforces, to maximize their output while minimizing waste. 

New energies, including hydrogen, still require a change mindset in order to scale – and actions like Baker Hughes has taken to launch its new testing facility for hydrogen technologies are a step in the right direction. Emissions abatement is also as prioritized as ever. LNG must continue to be a primary way to displace coal - and the emissions associated with it - in many countries. Simonelli shared his disappointment on the U.S. Administration’s LNG export pause and stressed the need to avoid further delays with Dan Murphy from CNBC. 

Integrated Solutions and Digitalization

Generative AI was the trend of the year in 2023. For 2024, the question is: “Is it real and how do we use it effectively?” At AM2024, the carefully curated content helped participants better understand the maturity of AI, with speakers including ServiceNow’s Brian Solis – a valuable watch for any AI enthusiast – offering clear examples of the ways AI is driving impact. 

Digitalization provides the data and analytics required to understand and optimize energy consumption, production, and supply chain management, leading to more efficient and sustainable outcomes. Within Baker Hughes’ intelligent operations solutions – including Leucipa™ and Cordant™, both launched at AM2023 and featured this year – are two such examples in the market today. 

Another approach for integrated solutions is looking at mature assets. Mature assets are oil and gas wells or fields that have been producing for 25+ years or have produced 50%+ of their reserves. This represents 70% of the hydrocarbons produced globally. Research from Baker Hughes has shown that if the recovery factor of mature assets can be boosted by 1%, 2-3 years of additional worldwide consumption could be satisfied. That’s a huge efficiency and sustainability play – reducing the need to drill more wells, but rather leverage the mature assets currently operating and supply the world with the hydrocarbons needed for years to come. Baker Hughes’ focus on mature assets solutions is intended to drive scalability and impact.

Global Alignment and Scaling Impact

Live from the event, Simonelli spoke with Alix Steel at Bloomberg News about the latest geopolitics driving change and discussion in the energy markets. He insisted on the need for continued commitments from governments and organizations alike to support sustainable practices, but also to have international standards to help mitigate risks associated with the energy transition. 

It is here that the industry must focus on scaling solutions in 2030, rather than only prioritizing lofty 2050 goals, as this is much more difficult given how quickly (and often) policy is changing in many nations. 

The winners in SED will be companies that can scale technologies efficiently, offer a systems-based approach with new solutions, and have a global presence but localized initiatives to adapt as new regulations come into place throughout the decade.

After AM2024, everyone left energized to drive change with many other participants. Change in energy is not just about decarbonization, but rather about change in mindsets, focus, and operations.

To find out more about all the discussions hosted during the plenary conference and beyond, please visit the proceedings website here.