INDUSTRY IN TRANSFORMATION
Lorenzo Simonelli, chairman and CEO of BHGE, talks about the power of transformation; companies that can transform to adapt to an industry in flux, and companies that transform the market to make it smarter and more agile
The oil and gas industry favours transformative companies; companies that are able to transform and adapt to an ever-changing market, and companies that transform the industry itself, making it smarter, leaner and more agile. Lorenzo Simonelli, the chairman and CEO of Baker Hughes, a GE company (BHGE), is no stranger to transformation. In fact, his 24-year career at GE is a testament to its potential. His five-year stint as the president and CEO of GE Transportation, which spans the rail, mining, marine and energy storage industries, was marked by technological innovation.
Following his tenure at GE Transportation, he took the reins at GE Oil & Gas as its president and CEO in 2013. One year later, the industry was rocked by a crash in oil prices.
“The downturn brought many challenges and encouraged all players to disrupt their traditional ways of working… with many positive results,” Simonelli says. “Disruption can be a powerful driver for innovation, forcing legacy structures to change and industries to transform for the better.”
That may be why BHGE, which was formed through a merger between GE Oil & Gas and Baker Hughes in July 2017, is so disruptive. Formed in the midst of industry downturn, BHGE was an opportunity to do something new—creating enhanced optimisation and efficiency across the industry’s value chain. As such, it is inherently transformative.
Lorenzo Simonelli, chairman and CEO of Baker Hughes, a GE company, talks about the changing oil and gas landscape: localisation, digitalisation and collaboration between operators and service companies “TRANSFORMATION IS A CONSTANT, AND SOMETHING TO BE EMBRACED.”