A year to energize change: My reflections from the Baker Hughes Annual Meeting 2024

Last week, I had the privilege of hosting 2,000+ customers, investors, partners, media and industry leaders at Baker Hughes flagship event, the Annual Meeting (AM2024). This was our largest attendance in the event’s 25-year history, and our host city of Florence, Italy provided a forum to debate, discuss, and drive progress towards a balanced energy transition and a future of innovation. Thank you to our amazing project team of 100+ employees who made AM2024 happen, and I am overwhelmed by the positive feedback we are receiving by our guests.

The past few days have flooded my LinkedIn with content from our speakers and attendees, including Ilham Kadri, Arnaud Pieton, Meg (O'Connor) Gentle, Andrew Busch, Amrita Sen, Brian Solis, Mike Sommers, and many more. There is a clear appetite to discuss the state of the energy and industrial sectors – and how we make progress towards a net-zero future.

Our theme for AM2024 is “Energizing Change,” and I invite you, my network, to watch my opening keynote where I share how Baker Hughes is energizing change in energy and industrial sectors:

I have been reflecting on my own conversations at AM2024. Specifically, I believe the energy industry needs to move from words to action this year. As I said in my keynote, it feels like leaders have been navigating change from 2020-2023, but 2024 is our year to energize change.

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

1. Sustainable Energy Development: In my keynote, I 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 resonates with me 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 our decade of efficiency for industrial sectors, as it is paramount to achieving our goals in support of the Paris Agreement. As leaders, I encourage all of us to focus on SED, rather than only the trilemma, as it is a more integrated approach than what we have seen in the past few years.

2. 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, we heard from so many leaders on 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 our new testing facility for hydrogen technologies is a step in the right direction. Emissions abatement is also as prioritized as ever, and we cannot ignore the importance of natural gas – and within it, liquified natural gas (LNG) as a transition and destination fuel. LNG must continue to be a primary way to displace coal - and the emissions associated with it - in many countries. I shared my disappointment on the U.S. Administration’s LNG export pause on LinkedIn first. I also stressed the need to avoid further delays on with Dan Murphy from CNBC:

3. Integrated Solutions and Digitalization: Generative AI was the trend of the year in 2023. For 2024, the question we are all asking ourselves is: “Is it real and how do we use it effectively?” At AM2024, many of our customers and partners helped us to understand the maturity of AI, with great 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, our intelligent operations solutions – including two we call 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 & 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 our team has shown that if we can boost the recovery factor of mature assets by 1%, we could satisfy 2-3 years of additional worldwide consumption. That’s a huge efficiency and sustainability play – we don’t need to drill more wells, but rather leverage the mature assets we have and supply the world with the hydrocarbons needed for years to come. Our focus on mature assets solutions is intended to drive scalability and impact, and we are just getting started.

4. Global Alignment on our goals – by 2030, not 2050! I spoke at length with Alix Steel at Bloomberg News about the latest geopolitics driving change and discussion in the energy markets. We need continued commitments from governments and organizations alike to support sustainable practices, but also to have international standards to help mitigate risks associated with he energy transition. It is here that we 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. You can watch more of my Bloomberg interview here:

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, I am energized to drive change with so many other leaders. Change in energy is not just about decarbonization, but rather about change in our mindsets, our focuses, and our operations to ensure we do not arrive at 2030 without proof we made significant strides towards a net-zero future. Our time is now.

Thank you again to all who attended our Annual Meeting. I will be continuing the conversation throughout the year on these important topics. I look forward to hearing your insights too.