Bloomberg Talks Lorenzo Simonelli Talks Oil, Energy Projects
Feb 24, 2026
Lorenzo Simonelli, CEO of Baker Hughes and leader in oilfield services, talks global oil and gas demand and industrial energy equipment. He discusses how geopolitics and short-term gluts contrast with longer-term demand recovery. He explores AI-driven natural gas needs, booming gas turbine orders from data centers, and the rise of U.S. LNG exports.
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Oil Glut Seen As Temporary Market Pause
- Lorenzo Simonelli says current oil oversupply is temporary and demand will recover starting H2 2026 into 2027.
- He points to rig activations in the Middle East and long-term factors like population and rising energy needs driving the correction into 2027–28.
Natural Gas Positioned As The Long-Term Winner
- Simonelli identifies natural gas as the longer-term winner with about 20% growth to 2040 and key role powering data centers.
- He explains gas fuels turbines that generate electrons for data centers and LNG exports that supply global demand.
Data Center Buildout Driving Turbine Demand
- Baker Hughes raised its turbine order estimate to $3 billion for 2025–27, reflecting surged data center demand.
- Simonelli cites a recent Frame 5 gas turbine win and notes data center capex rising from $500B in 2025 to $1T by 2030.