By Arunima Kumar (Reuters) -Baker Hughes CEO Lorenzo Simonelli said on Friday the global macro environment remains resilient through 2025, despite geopolitical and policy headwinds, supported by the
Baker Hughes CEO Projects 2025 Resilience Fueled by AI Growth
Baker Hughes 2025 Outlook and Market Trends
By Arunima Kumar
AI Growth and Data Center Demand
(Reuters) -Baker Hughes CEO Lorenzo Simonelli said on Friday the global macro environment remains resilient through 2025, despite geopolitical and policy headwinds, supported by the rapid deployment of generative artificial intelligence driving power demand and industrial activity.
Oil Investment Challenges Ahead
Simonelli said the company remains confident of reaching $1.5 billion in data center orders ahead of its original three-year target as it continues to see strong momentum in data center power demand.
Future Market Projections
He, however, said Baker Hughes' outlook for 2025 remains unchanged, with a high-single-digit decline in global upstream spending expected.
Simonelli cautioned that oversupply concerns in the oil market were weighing on sentiment, with some OPEC+ members still unable to meet production quotas. He said oil-related upstream investment is expected to stay subdued until the market absorbs the group's additional supply.
He said that early indicators suggest 2026 will be another year of subdued activity and spending declines before a gradual recovery takes hold, particularly in international and offshore markets.
(Reporting by Arunima Kumar in Bengaluru; Editing by Vijay Kishore)
