Continuous disruption is actually ‘brand-new normal’ for oil as well as gas industry, Baker Hughes CEO Lorenzo Simonelli says

Continuous disruption from the oil as well as gas industry should be viewed positively, Lorenzo Simonelli, CEO of Baker Hughes, a GE company, said Tuesday.

Speaking at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), Simonelli said, “We have to look at disruption as being our friend.”

“The brand-new normal is actually continuous disruption, we need to take out all the inefficiency as well as instead our industry needs transparency as well as visibility,” he said.

The oil industry has been forced to cut costs as well as search for ways to boost efficiency since the cost of oil collapsed via nearly $0 a barrel in June 2014. The sharp drop in prices was caused by weak demand, a strong dollar as well as booming U.S. shale production.

In comparison to the aviation industry, Baker Hughes’ Simonelli said the oil gas sector was around two to three times more inefficient. He said companies would likely need to “work together” in future, before warning: “We can’t go back to the old way of doing things like drunken sailors.”

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