Lorenzo Simonelli on being at the forefront of change
Last week during his keynote address, audience members heard BH Chairman & CEO, Lorenzo Simonelli, reflect on the progress the energy industry has made – how it has “evolved” – during its relatively short history.
“It’s amazing to think where we came from and how far we’ve come,” he said, pointing to the shale revolution and the rise of renewables, and later making reference to the “digital revolution that has transformed everything we touch.”
He believes that evolution carries over into everything the industry does.
“We’re at a critical juncture and it is necessary to be the driver of the right kind of change.”
Toward that end, he says the energy industry must reevaluate and come up with cutting edge, innovative solutions.
As the industry moves forward, Simonelli says gas will surpass oil, paving the way as a transitional fuel. Renewables are on the rise and the cost is decreasing significantly. The goal is net zero emissions by 2050.
“We believe that investing in low carbon tech is paramount to achieving these goals,” he said. He also feels gas is uniquely positioned in the energy mix. “Global gas energy has the opportunity to play a leading role in the energy transition,” using technology and digitization.
“It is our responsibility to embrace change, even disruptive change.”
To realize growth and make sure gas remains relevant, Simonelli stresses industry must continue partnering to make energy work harder and waste less through the power of digital. Artificial intelligence (AI) and machine learning will allow industry to use data across all disciplines – the full value chain – resulting in safer operations and maximized efficiencies.
“We are uniquely positioned to drive these innovations at the edge because we are already there [in operations] and in the field.”
Simonelli acknowledges that industry understands how difficult it is to enact rapid change in a global environment, but collaboration and shared solutions, already being put into action, will move change forward. While there is always more to do, he says industry is seeing the commitments.
“[BH] is committed to our role and contribution. We have learned to be open to new options and models. No transformation is complete without a focus on the people who drive it. [We must] learn from them and keep them engaged.”
Simonelli believes there is no time to spare. Change is not coming; change is here.
“[This is a] unique window in history and the gas industry must act quickly to maximize the opportunity [as well as] partner and support the next generation of energy.”
“It’s better to be at the forefront – the energy industry knows this.”
About Baker Hughes
Baker Hughes is the world’s first and only full stream provider of integrated oilfield products, services, and digital solutions. Drawing on a storied heritage of invention, BH harnesses the passion and experience of its people to enhance productivity across the oil and gas value chain. BH helps its customers acquire, transport and refine hydrocarbons more efficiently, productively and safely, with a smaller environmental footprint and at lower cost per barrel. BH deploys people, machines and the cloud to break down silos and reduce waste and risk, applying breakthroughs to advance efficiencies for our customers. The company has operations in over 120 countries.