Baker Hughes chief executive Lorenzo Simonelli struck a tone of vigilance but calm in an interview at Gastech in Milan, underscoring the risks of geopolitics while downplaying the likelihood of another energy price shock in Europe.
The global energy company’s assets and operations remain stable despite escalating tension between Israel and Qatar, Mr Simonelli said.
“It’s a dynamic situation, not just in the last 24 hours but over the past six months,” he said. Baker Hughes remains “vigilant and nimble” as events unfold, he added.
He voiced hope for moderation and a measured de-escalation in retaliation risks.
Turning to Europe, Mr Simonelli contrasted the current energy landscape with the crisis of 2022, when Russia’s invasion of Ukraine sent gas prices surging.
“There’s a lot of available natural gas,” he said, pointing to ample pipeline flows from North Africa.
He does not expect a “massive blowout in prices”, describing the market as far more balanced than three years ago.
His comments came as European leaders sounded alarms over regional security. Poland’s prime minister warned Europe has not been this close to open conflict since the Second World War.
In Milan, US Energy Secretary Chris Wright pitched America as a reliable partner for Europe and the world in LNG supplies, even if reliability comes at a premium.
Mr Simonelli echoed that sentiment, saying Europe values US LNG for its abundance and dependability.
On oil, he was sanguine about price volatility, expecting crude to remain rangebound between $60 and $80 a barrel.
“This is the era we live in,” he said, and he would not panic if prices slip below $60.
The Middle East and Asia remain central to Baker Hughes’ growth strategy and Mr Simonelli acknowledged pressure on Saudi Aramco’s capital spending, with some projects facing delays.
However, operating expenditure continues and additional Opec+ barrels released since April are being easily absorbed by demand growth, he explained.
For Mr Simonelli, the message was clear: geopolitics may be unsettled, but Baker Hughes will remain watchful, adaptable, and steady in navigating energy’s shifting landscape.
