Story
Baker Hughes Forecasts Modest Decline in Global Oil & Gas Spending for 2026
Summary
The oilfield services giant anticipates a slight dip in global capital expenditure as growth in the Americas and Africa is offset by reduced spending in Europe and a conflict-impacted Middle East.
Oilfield services provider Baker Hughes expects a modest decline in global spending by oil and gas producers this year, citing a complex mix of regional growth and geopolitical headwinds.
Shifting Investment Patterns
In a conference call with analysts on Monday, the company projected that growth in capital expenditure across Latin America, offshore Africa, and North American land operations would be counteracted by lower spending in Europe and the Middle East. The forecast highlights a significant regional divergence in energy investment strategies for 2026.
The cautious outlook comes as producers navigate ongoing market uncertainty. "Customers remain focused on maximizing production from existing assets while preserving flexibility to respond to evolving market conditions," said CEO Lorenzo Simonelli on the call.
Middle East Conflict Weighs on Outlook
AdThe ongoing conflict in the Middle East was identified as a key factor driving producer caution and impacting Baker Hughes' own operations. The company warned that its Industrial and Energy Technology (IET) segment is expected to see a 1%-2% revenue hit due to disruptions from the conflict.
For the third quarter, Baker Hughes forecast IET revenue between $3.17 billion and $3.47 billion. This projection falls below the analyst consensus of $3.79 billion, according to data compiled by LSEG. Chief Financial Officer Ahmed Moghal noted the company anticipates "some increase in logistics and inflationary pressures at our regional facilities" but expects the impact to be offset by strength in other regions.
Company Performance
Despite the tempered forecast for industry spending, Baker Hughes reported strong individual performance. The company's shares rose more than 6% on Monday after it beat quarterly profit estimates. Its IET segment also secured a record $7.1 billion in orders, a figure that doubled year-over-year.
Read next
More on Commodities
Oil Prices Fall, Brent Turns Negative for the Week as Mideast Supply Fears Abate
Crude oil prices retreated on Thursday, pushing the global Brent benchmark into negative territory for the week, as signs of an imminent restart for a key Saudi pipeline and potential U.S.-Iran diplomacy eased concerns over supply disruptions.
Saudi-Houthi Clashes Escalate, Threatening Key Middle East Oil Chokepoints
Renewed cross-border strikes between Saudi Arabia and Iran-backed Houthi rebels are fueling concerns over global oil supply stability, as the conflict threatens critical maritime routes and keeps crude prices above $100 a barrel.
Canada Aims to Finalize India Trade Deal by Year-End, Citing Energy and Minerals
Canada's international trade minister expressed optimism that a comprehensive economic partnership with India could be concluded by the end of the year, with key discussions focused on energy, nuclear power, and critical minerals.
Oil Prices Fall as Saudi Supply Hopes Outweigh Geopolitical Risks
Oil futures settled lower on Thursday, with Brent crude below $105, as reports of increased Saudi supply to Asia and pipeline repairs overshadowed ongoing geopolitical risks in the Middle East.