Borrowing Costs Fail to Deter Energy Investment Amid Strong Demand

Baker Hughes reports that rising borrowing costs have not deterred investment in major energy projects. According to CEO Lorenzo Simonelli, strong demand for natural gas and power from AI and data center growth is driving this trend.

The company highlights that energy demand is expected to continue growing due to population increases and industrial needs, with natural gas playing a central role. Despite geopolitical tensions affecting Middle Eastern energy flows and high oil prices, Baker Hughes remains optimistic about LNG supply expansion and sees no slowdown in data center growth.

The company holds over $37 billion in backlog, emphasizing the importance of natural gas as a key fuel for the coming energy demand decade.