BKR

Baker Hughes Company

Energy · Oil & Gas Equipment & Services
1
/5
Very Low
BOTTOM LINE

Baker Hughes operates in the physical world of energy extraction and industrial equipment - AGI cannot drill wells or build turbines, and AI-driven data center power demand actually benefits the company's gas turbine business.

■ BUSINESS OVERVIEW

Baker Hughes is a global energy technology company that provides solutions for the oil and gas industry and broader industrial energy sector. The company offers products and services across the full spectrum of energy operations including oilfield services, equipment for LNG (liquefied natural gas) processing, gas turbines for power generation, drilling services, completions, production chemicals, and digital solutions. Baker Hughes is positioning itself as an 'energy technology' company, expanding beyond traditional oilfield services into industrial and new energy markets.

REVENUE SOURCES
Oilfield Services (drilling, evaluation, completion, production, intervention)LNG equipment and technology (turbomachinery, modular LNG)Gas turbines and compressors for power generation and pipelinesSubsea production systems and equipmentDrilling services and drill bitsCompletions (artificial lift, well stimulation, cementing)Production chemicals and process solutionsIndustrial asset management and condition monitoringDigital solutions (Cordant platform, industrial IoT)Carbon capture and hydrogen technologyMeasurement and sensing instruments (Panametrics, Druck, Reuter-Stokes)
PRIMARY CUSTOMERS

Baker Hughes serves national oil companies (Saudi Aramco, ADNOC, Petrobras), international oil majors (ExxonMobil, Shell, Chevron, BP, TotalEnergies), independent E&P companies, LNG developers and operators, pipeline companies, power generation utilities, and industrial manufacturers. The company operates in over 120 countries and has a diversified global customer base.

▲ AGI EXPOSURE ANALYSIS

Baker Hughes provides oilfield services, equipment, and technology for oil and gas exploration, drilling, production, and processing. This is an intensely physical business: drilling rigs, turbomachinery, subsea equipment, completion tools, and industrial chemicals. AGI cannot drill an oil well, install a subsea Christmas tree, or maintain a gas turbine. Baker Hughes' customers are oil and gas producers, LNG developers, power generators, and industrial companies -- physical-world businesses that extract, process, and transport hydrocarbons and generate energy. They cannot be disrupted by AGI. The world needs energy regardless of whether knowledge workers exist.

● RISK FACTORS
  • ▸ Long-term energy transition away from fossil fuels could reduce oil/gas service demand (but Baker Hughes is diversifying into LNG, hydrogen, carbon capture, geothermal)
  • ▸ AGI could potentially optimize drilling so well that fewer service interventions are needed
  • ▸ AI-driven energy efficiency could marginally reduce total energy demand growth
  • ▸ If AGI causes severe economic disruption, energy demand could temporarily drop
● RESILIENCE FACTORS
  • ▸ Entirely physical business - drilling, manufacturing, field services cannot be digitized
  • ▸ Global energy demand persists and grows regardless of AI/AGI developments
  • ▸ AI data centers dramatically increase electricity demand, some of which comes from natural gas (Baker Hughes turbines)
  • ▸ LNG equipment and services benefit from global energy security concerns
  • ▸ Diversifying into energy transition technologies (hydrogen, carbon capture, geothermal)
  • ▸ Turbomachinery and process solutions serve industrial customers across all sectors
  • ▸ Equipment installed base generates decades of service revenue
  • ▸ Oil and gas producers are not knowledge-worker businesses - they extract physical resources
  • ▸ AI enhances Baker Hughes' services (digital twins, predictive maintenance) rather than threatening them