Baker Hughes Chief Executive Lorenzo Simonelli stated on March 10, 2025, that U.S. oil and gas producers are unlikely to increase spending this year. He indicated that output increases will primarily result from improved efficiencies rather than new drilling activities.
Simonelli's comments provide a clear outlook on the near-term market dynamics for upstream spending. This perspective is crucial for understanding the operational environment for oilfield services companies.
Despite potential impacts from new tariffs, Simonelli noted that President Donald Trump has ushered in a new era of energy renaissance in the U.S. This suggests a focus on domestic production, even if overall spending remains flat.
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