"With our focus, we will lead the energy transition, ultimately arriving at a new energy destination. That’s what the world wants and expects from us."

Mr. Simonelli began by remarking on how different the Annual Meeting was this year as a virtual event—just one of the many business adaptations demanded by COVID-19 over the past year. He talked about how change can be both gradual and upending but, most importantly, that it will always come, and that it’s a tremendous opportunity.

He reminded viewers that the energy industry has been the foundation for global progress, and has powered the world through upheaval and change time and time again—the latest of which is upon us now as the energy transition. He believes there’s much more the industry can do to meet demand with safer, cleaner, and more efficient energy.

This year’s Annual Meeting focused on three key themes to take energy forward: rethink, redefine, and renew. Through these lenses, Mr. Simonelli said we can view change as an opportunity to transform operations across industries, to lead in decarbonization and the quest to net zero. He then discussed in depth the undeniable truths that will drive the energy transition.

Without major acceleration of investment and innovation, the energy industry will not meet the Paris Agreement goals. 

We must rethink our pathways to success. Baker Hughes technologies have made remote drilling common, and similar technologies are being applied in areas such as testing and training. Another opportunity to rethink is materials. Baker Hughes recently launched a nonmetallic facility in Houston that can produce up to 20 km per day of flexible pipe that’s more sustainable, lighter, and more corrosion-resistant than traditional metals. New frontiers like hydrogen, CCUS, and energy storage must become more cost competitive and scalable. Baker Hughes’ recent acquisition of Compact Carbon Capture will help commercialize the technology and accelerate global adoption of CCUS. The company also has 100%-hydrogen-capable turbines ready to be deployed at scale.

There is no scenario where hydrocarbons disappear, so efficiency matters.

Renewables will not scale fast enough to displace the energy demand in coming years, so we must extract, refine, deliver, and consume hydrocarbons in a better way. We must redefine how hydrocarbons meet demand more responsibly. Natural gas can and should serve as a transition and destination fuel. LNG is a favorable option for many countries, and we are improving its total emissions profile. Digital asset management keeps operations cleaner and more efficient. Monitoring systems can help reduce emissions like methane—which presents the single biggest opportunity for reduced GHG emissions. Energy technology plays a critical role here. We must scale faster. If today’s oil and gas operations were just 10% more efficient, we could save half a giga-ton of CO₂ each year.

There is no path to our energy goals without partnerships and collaboration.

None of us have become successful on our own, and we are under too much pressure to solve for a net zero future in silos. Let Baker Hughes be your integrator, your collaborator, and your partner for progress. Our 2019 joint venture with C3.ai allows us to transform operations and apply machine learning and AI to deliver outcomes faster. Customers are using our AI solutions to improve equipment reliability and reduce safety and environmental risks. We must continue this trend. What about hydrogen or natural gas—where could collaboration take us towards net zero? We just announced a new agreement to decarbonize NOVATEK’s LNG projects by applying hydrogen blends to our current turbomachinery.

The energy transition is a major opportunity, not a challenge.

We have the technologies, the innovation, the resources, and the people to accelerate our leadership and advance industrial decarbonization. We know how energy works so we can change how energy works in a sustainable, manageable way. In our quest for net zero, our work must be multi-industry and multi-faceted to make an impact. We are breaking down the silos to work faster together.