Lorenzo Simonelli Talks Oil, Energy Projects

Summary

---

Bloomberg Talks: Lorenzo Simonelli Talks Oil, Energy Projects

Date: February 24, 2026
Guest: Lorenzo Simonelli, CEO of Baker Hughes
Host: Bloomberg

---

Episode Overview

This episode features a timely conversation with Lorenzo Simonelli, CEO of Baker Hughes, centered on the dynamics influencing global energy markets—especially oil and natural gas. Amid geopolitics, shifting supply-demand fundamentals, and rapid growth in energy-hungry sectors such as data centers, Simonelli offers insights into Baker Hughes’ role, U.S. energy policy, and the long-term outlook for fossil fuels and LNG exports.

---

Key Discussion Points and Insights

1. Oil Market Volatility and Geopolitical Risk

[01:01–03:37]

• Market Context: Oil prices are near a seven-month high due to geopolitical tensions (notably US-Iran relations) and fears over energy chokepoints like the Strait of Hormuz.

• Short-Term vs Long-Term:

  • Simonelli stresses that current price volatility is "very much driven by geopolitics and also what's happening day to day," rather than just fundamental factors.

    “It’s hard to predict what’s going to take place...from a Baker Hughes perspective it’s the fundamentals [that matter]. When we look at the long term, demand is increasing.” — Lorenzo Simonelli [01:57]

• Supply-Glut Perception:

  • The host points out a seeming oversupply, but Simonelli frames this as temporary, predicting a “correction into 27, 28.”

    “As we look at 27, 28, we've got strong demand signals…you see that coming correction…and the fundamentals with population increase, energy demand increasing, AI, oil and gas is on the rise.” — Simonelli [02:48]

2. Demand, Supply Balance and the Future of Energy

[03:37–05:41]

• Gas is the “Winner”:

  • Simonelli underscores that while oil has an ample supply, gas is projected for significant growth.

    “If you look at gas, gas is the winner longer term...we see gas growing significantly...by 20% [by 2040].” — Simonelli [03:54]

  • Natural gas is key to meeting expanding data center energy needs and generating electricity via gas turbines.

• Meeting New Energy Demands:

  • Baker Hughes anticipates a surge in turbine orders and is scaling capacity to meet this demand.

    "We recently took up our estimate from a turbine perspective to 3 billion of orders during 25 to 27. That's a doubling of what we previously saw." — Simonelli [04:53]

  • The data center sector is expected to see capital investment grow from $500B (2025) to over $1T by 2030.

3. U.S. Energy Policy, LNG Exports, and Global Influence

[05:41–07:29]

• U.S. Energy Dominance:

  • The Biden administration is described as supportive of energy export growth, deregulation, and faster permitting.

    “We’ve seen this administration be very supportive...10 years ago, we didn’t have any LNG being exported, and today [the US is] one of the largest producers and exporters of LNG around the world.” — Simonelli [05:56]

• Supplying Europe and Beyond:

  • US LNG exports are critical for Europe’s energy security, reducing reliance on Russian gas.
  • There is a "long runway" for expansion:

    “We see there needing to be an installed base capacity of LNG by 2035 of 950 mtpa. And so there’s a long runway here out into the next decade.” — Simonelli [06:55]

---

Notable Quotes & Memorable Moments

• On Geopolitical Influence:
  “It’s hard to predict what’s going to take place...the aspect of price is very much driven by geopolitics.” — Lorenzo Simonelli [01:57]

• On Market Fundamentals:
  “As we look at 27, 28, we've got strong demand signals and...you see that coming correction...Population increase, energy demand increasing, AI, oil and gas is on the rise.” — Simonelli [02:48]

• On Energy Transition:
  “Gas is the winner longer term...an increase in natural gas by 20% [by 2040].” — Simonelli [03:54]

• On Data Center Growth:
  “We recently took up our estimate from a turbine perspective to 3 billion of orders during 25 to 27. That's a doubling of what we previously saw.” — Simonelli [04:53]

• On U.S. Policy Progress:
  “We’ve seen this administration be very supportive...Is everything solved yet? No, but they’re working towards that and continuing to be an energy supplier to the world.” — Simonelli [05:56]

• On LNG and the Future:
  “There’s a long Runway here out into the next decade.” — Simonelli [06:55]

---

Important Timestamps

• [01:01] — Opening market context; oil price and Middle East geopolitics
• [01:57] — Simonelli on drivers of price and long-term demand
• [02:48] — Discussion of oversupply, demand signals and correction window
• [03:54] — Gas market prospects and role in electrification/data centers
• [04:53] — Capital spending and Baker Hughes’ business in data centers
• [05:56] — U.S. policy, LNG export growth, political support
• [06:55] — Discussion on U.S. supplying Europe and longer-term LNG needs

---

Conclusion

Lorenzo Simonelli offers a measured, forward-looking perspective on oil and gas markets, arguing that current oversupply and price volatility are temporary in the face of long-run demand growth. He positions gas as the key winner in the energy mix, with data centers and infrastructure expansion underpinning robust business for Baker Hughes. U.S. policy, he contends, is largely supportive of maintaining global energy influence—especially through LNG exports—with plenty of headroom for future growth.

---

Transcript

[Public Ad Narrator]

Support for the show comes from Public Lately it feels like there are two types of investing platforms. Some are traditional brokerages that haven't changed much in decades, and others feel less like investing and more like a game. Public is positioned differently. It's an investing platform for people who are serious about building their wealth on public. You can build a portfolio of stocks, options, bonds, crypto without all the bugs or the confetti. Retirement accounts? Yep. High yield cash? Yes again. They even have direct indexing. Public has modern design, powerful tools and customer support that actually helps go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market ad paid for by Public Holdings Brokerage Services by Public Investing member FINRA SIPC Advisory Services by Public Advisors SEC Registered Advisor crypto services by ZeroHash all investing involves risk of loss. See complete [e-mail] Disclosures

[Bloomberg Host]

Bloomberg Audio Studios Podcasts Radio News. Oil is holding near a seven month high as investors await the next round of US Iran talks on Thursday. Concerns about potential fallout from a US Strike on Iran or Iran closing the Strait of Hormuz have helped drive oil higher this year. The despite expectations of a global glut. Baker Hughes CEO Lorenzo Simonelli joins us now from Washington, D.C. where he is attending the Transatlantic Gas Security Forum and Energy Aspects Conference. Lorenzo, thanks very much for your time. What do you make first of all of the of the market right now? I mean prices have been driven higher but we're still looking at a 6 handle on Nymex and it seems like if there is a conflict in the Middle east it could go much higher very quickly.

[Lorenzo Simonelli]

Well, great to be with you. And I think we all know that the aspect of price is very much driven by geopolitics and also what's happening day to day and it's hard to predict what's going to take place. I think what we look at from a baker used perspective is the fundamentals and when we look at the long term, demand is increasing and we're going to need to see the supply come online as we look at the back half of 26 into 27. So it will be rangebound but again it's going to be driven by other factors than just the demand and supply at this moment. And you're seeing an increase based on the geopolitics situation at the moment?

[Bloomberg Host]

Well, from a fundamental perspective it seems like there's an absolute glut of oil on planet Earth. I mean the supply side seems to be winning out Here, Lorenzo, do you see that differently?

[Lorenzo Simonelli]

I see that being a moment in time and as we said previously, as we look at the 27, 28, we've got strong demand signals and actually 26 will be a year where we trough and we see a recovery in the second half of the year going into 27. You've already got early indications from what we're seeing from our customers in the Middle east in particular relative to rig activation and also the expectation that that supply demand comes into balance. And I think again, you've got to look at the fundamentals longer term and whereas there's maybe oversupply at the moment, you see that coming correction into 27, 28 and the fundamentals with population incre energy demand increasing AI oil and gas is on the rise and you're going to need more supply.

[Bloomberg Host]

How is that balance right now, Lorenzo, specifically with the demand, is it yet outstripping the availability of these new projects to come online and power them? Be it renewables or it be some parts of your business that might be used in order to power it.

[Lorenzo Simonelli]

So at the moment I think there's a bifurcation. Again, you've got a good supply of oil. If you look at gas, gas is the winner longer term. And and as you look at the fundamentals as well, we see gas growing significantly over the course of now and 2040, an increase in natural gas by 20%. And that's what's going to be fueling a lot of the data centers. And also as we look at the energy demand being supplied by natural gas and the electrons being made by the gas turbines that we supply and others supply and also the LNG that we're liquefying around the world and going to the various locations. So there's a good supply of base oil and gas is the winner.

[Bloomberg Host]

Talk to us about the data center demand. We all see the incredible capex being doled out right now from the big hyperscalers and you're a big player in this segment. How much of your business is this driving

[Lorenzo Simonelli]

Again? We recently took up our estimate from a turbine perspective to 3 billion of orders during 25 to 27. That's a doubling of what we previously saw. We just announced a nice win last week also with regards to providing gas turbines our frame five to a datacenter operator and again today announcing on the generator side. So if you look at spend 2025, about 500 billion was spent on datacenters. We see that increasing by 2030 to a trillion dollars and it is very much a meeting the demand at the moment, and we are making sure we've got the right capacity in place and we're serving our customers appropriately.

[Bloomberg Host]

Well, you're in D.C. right now where there's been a big political focus on energy dominance for the United States. Lorenzo, to what degree has that talk been followed up with action? Is policy actually accelerating project approvals yet?

[Lorenzo Simonelli]

You know, we've seen this administration be very supportive. And as we look at the events today, also we're celebrating the first cargo of LS LNG from the United States. And I think it's important to note that 10 years ago, we didn't have any LNG being exported, and today we're one of the largest producers and exporters of LNG around the world. And as you look at this administration, definitely supportive of continuing to see deregulation, continue to see faster permitting. Is everything solved yet? No, but they're working towards that and continuing to be an energy supplier to the world for affordable, secure, sustainable energy.

[Bloomberg Host]

Yeah, it's, I mean, amazing how much we've managed to ship to Europe, help them get off their dependence of Russian energy. How much further do you think we have to go there, Lorenzo? And how much is that being talked about in Washington?

[Lorenzo Simonelli]

The US is definitely a place that's abundant in natural gas. And as has been said by many, there's many decades ahead of plentiful supply. And so we've got several opportunities, incremental projects that are currently going through final investment decision. And as you look at the marketplace again, we see there needing to be an installed base capacity of LNG by 2035 of 950 MPa. And so there's a long Runway here out into the next decade.

[Bloomberg Host]

Lorenzo, thank you so much for joining us this morning. Enjoy the rest of your time in Washington, D.C. lorenzo Simonelli, CEO of Baker Hughes.

[My Policy Advocate Narrator]

Here's a paradox. We buy insurance for peace of mind. Yet the very policies we trust can deliver the biggest financial shocks. Across America, millions of claims are denied every year, not because people did anything wrong, but because policies quietly excluded the things that happened. The psychology of trust tells us we assume the contract is fair. But in insurance, the information gap is massive. The insurer knows every detail of what's covered. The policyholder rarely does. That's where my policy advocate comes in. For just 27 cents a day, their platform reads your policies and shows you in plain language where you're vulnerable. They're not selling insurance. They don't do that. It's about transparency, giving ordinary people the same understanding. Insurance companies have had for decades. Because when you know what's really in your policy, you can plan, protect and avoid surprises. Before you trust your policy to protect you, let my policy advocate tell you what it really says. Visit mypolicyadvocate.com today. Peace of mind starts with knowing the truth. Mypolicyadvocate. Com.