Baker Hughes sees no slowdown in energy projects despite higher rates as AI buildouts stoke LNG demand
Baker Hughes has yet to see higher borrowing costs slow investment in major energy projects.
TL;DR
- Baker Hughes has not experienced a slowdown in major energy project investment due to higher borrowing costs.
- Robust demand for natural gas and power, driven by AI infrastructure, is underpinning current investments.
- Rising energy needs from population growth, industry, and data centers continue to support investment.
- Geopolitical conflicts, like the Iran war, have disrupted energy flows and sent oil prices up.
- Natural gas is seen as a 'destination fuel' crucial for meeting growing electricity needs.
- Baker Hughes anticipates installed LNG capacity will need to reach 900 million tons per annum by 2035.
- The company is increasing capacity to meet the demand from expanding data centers.