Oil field giant looks for profit in going green
Houston oil field service company Baker Hughes aims to make going green profitable.
Created by the July 2017 merger of Baker Hughes and the oil and natural gas division of General Electric, 2018 marked the first full year as a merged company. Providing equipment and services for everything from oil fields to refineries, the company closed the year with nearly $22.9 billion of revenue that translated into $195 million for shareholders.
That financial performance earned Baker Hughes the No. 10 spot on the Chronicle 100 list of fastest-growing companies,
but the company has even bigger ambitions for 2019. Baker Hughes CEO Lorenzo Simonelli announced in January that the company’s new goal is to achieve netzero carbon dioxide emissions for its worldwide operations by 2050.
“Managing carbon emissions is an important strategic focus for our business,” Simonelli said. “We believe we have an important role to play as an industry leader and partner.”
Baker Hughes intends to make that zero-carbon goal profitable by offering emissions-reducing equipment throughout its portfolio.
The company’s Subsea Connect technology promises to reduce emissions for offshore projects by using modular equipment that is easy to install and operates underwater.
Launched in January, an aerial drone named LUMEN uses infrared cameras and other equipment to detect leaks at oil and natural gas wells and pipelines.
Seeking to grow its share in the liquefied natural gas industry, Baker Hughes has also rolled out the LM9000 Gas Turbine. Designed for use at LNG plants, the LM9000 is touted as being able to produce 20 percent more power with 40 percent less nitrous oxide emissions than other turbines in its class.
Baker Hughes recently debuted its “electric frack” technology, which uses excess natural gas from a drilling site to power hydraulic fracturing equipment — reducing flaring, carbon dioxide emissions, people and equipment in remote locations.
“We’re solving some of our customers’ toughest challenges such as logistics, power and reducing flare gas emissions with products from our portfolio,” Simonelli said.