Baker Hughes Predicts Modest Decline in Oil and Gas Spending Amid Conflict
Baker Hughes, an oilfield services provider, has reported that global spending by oil and gas producers is expected to decline modestly in 2026. The company cited the ongoing Middle East conflict as a key factor, with tensions between the U.S. and Iran forcing producers to take a more cautious stance.
In contrast, growth in Latin America, offshore Africa, and North America land is expected to offset lower spending in Europe and the Middle East. Baker Hughes' CEO Lorenzo Simonelli stated that customers are focused on maximizing production from existing assets while preserving flexibility to respond to evolving market conditions.
The company's industrial and energy technology segment saw orders double year-over-year to a record $7.1 billion, but is expected to face a 1%-2% revenue hit due to the conflict. Baker Hughes forecast third-quarter revenue for this segment between $3.17 billion and $3.47 billion, below analysts' expectations of $3.79 billion.