Baker Hughes Forecasts Modest Decline in Global Oil Producer Spending

Baker Hughes has forecast a modest decline in global oil and gas producer spending this year. The company says growth in regions such as Latin America, offshore Africa, and North America land will be offset by lower spending in Europe and the Middle East.

The Middle East conflict has contributed to producers taking a cautious stance, rather than increasing drilling activity. As CEO Lorenzo Simonelli said, 'customers remain focused on maximising production from existing assets while preserving flexibility to respond to evolving market conditions.'

Baker Hughes' own spending is expected to take a one per cent-two per cent revenue hit due to the disruptions caused by the conflict in its Industrial and Energy Technology segment. However, this impact will be offset by strong growth in regions outside the Middle East.