Oil demand to return to 2019 levels by end of 2022

RIYADH: Oil demand will return to 2019 levels by the end of 2022, despite some delays in projects due to repercussions from the pandemic, Baker Hughes CEO Lorenzo Simonelli told Al-Arabiya.

National oil companies in the Middle East have been preparing for the increased demand, while international oil companies, especially those in North America, have been maintaining financial discipline in returning funds to shareholders, he said.

However, some independent oil companies have already begun to increase their capital spending, he said.

Currently, Baker Hughes sees an improvement in oil and gas services activity, not only in North America, but also in international basins with low costs, he said.

When it comes to developing its products, Baker Hughes always takes into account carbon emissions and the Texas-based energy services company is trying to shift its sources in its manufacturing operations to renewables and has contracted with suppliers, Simonelli said.

The company pledged to reduce carbon emissions of the first and second scope by 50 per cent by 2030, and to zero by 2050, Simonelli said. The company is now concerned with dealing with third scope emissions, he said.

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