Baker Hughes Predicts Modest Decline in Oil and Gas Spending Amid Middle East Tensions

Oil and gas producers are expected to spend less in 2026, according to Baker Hughes.

The company forecasts a modest decline in global spending by oil and gas producers this year, with growth in certain regions offsetting lower spending elsewhere. The Middle East conflict has led producers to take a more cautious stance, rather than increasing drilling activity.

Baker Hughes CEO Lorenzo Simonelli said that customers are focused on maximizing production from existing assets while preserving flexibility to respond to evolving market conditions.