Oh boy, the world of oil and all the murky stuff happening right now. So, imagine this: Baker Hughes, the big boss in oilfield craziness, they’re telling us things aren’t looking so bright. Picture those warm, fuzzy profits just slipping away—gone with the sluggish oil prices dragging their feet everywhere. And over at Halliburton? They’re singing the same sad song. Doom and gloom, folks.
So, Baker Hughes, based out in Houston, had some cash coming in more than they hoped—yay for them! But they’re peering into their crystal ball and predicting some serious cutbacks in spending—all because global oil producers are holding tight to their wallets. Like, high-single digits down by 2025. Yeah, I didn’t take stats class either, but even I know that’s not the kind of math you want to be dealing with.
In North America (not talking ’bout tacos, sorry Mexico), well, spending is going down like that roller coaster you regret riding. A big drop, low-double digits kinda drop. They were hoping for a more gentle dip, like a mid-single one. Nope, life’s not that simple, or fair.
Across the globe, the wallet-tightening saga continues. They’re seeing more easing around mid- to high-single digits, not just lazy chilling flat rates. Sooo many buzzwords for cuts!
Lorenzo Simonelli, the dude running the show over at Baker Hughes, says that North America’s got delays on top of delays—like when you wait for that Amazon package that never comes. The oil prices are throwing shadows over the second half of the year. Particularly for those in U.S. land, who now probably gotta munch on some popcorn and brace for what comes next.
Oh, and it gets better. There’s this looming specter of oil oversupply, hefty tariffs creeping in, some head-scratcher stuff happening in Mexico, and slackness in Saudi Arabia that’s really putting a dent in international spending crystal balls.
But hey, Brazil and parts of the Middle East and Asia Pacific might just keep things from going fully south. Some places are doing okay-ish, at least.
Tariffs are hitting hard too. Those pesky charges on U.S. imports from the likes of China, Germany, and the usual suspects are throwing a wrench into Baker Hughes’ happy days. Steel, aluminum—yeah, feeling the pinch there. They’re also dealing with messes from stuff sourced in Canada and Mexico. Charmingly complicated, isn’t it?
Baker’s talking the talk though. They’re trying to boost domestic stuff and working out some cost magic with their clients. Still, there’s a looming shadow over their earnings. Somewhere between $100 million to $200 million might just vanish like socks in a laundry.
Oh, the market doesn’t look too sweet on Baker—shares dipped by 5% down to $36.46. Rough day at the oilfields, huh?
But, there’s a glimmer! You know that radiant hope you read about in fairy tales? Well, theirs is LNG. The tech and gear around liquefied natural gas might just save the day. With Trump giving a green light for new LNG export permits, demand is on the up—data centers need power, and Gulf Coast customers are thinking of pushing capacity further—like 2030 total expansion or something ambitious like that. Maybe 800 million tonnes done by the end of the decade. Fingers crossed on that one, Simonelli.
In this chaotic web of oil and tariffs, it’s a wild ride and who knows where we’re headed next? Stay tuned folks, things could get even weirder!
