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Baker Hughes’s CEO puts out ‘bitter truths’ behind the energy transition since gas prices rise

Baker Hughes’s CEO puts out ‘bitter truths’ behind the energy transition since gas prices rise

The CEO of energy technology company Baker Hughes lays out what he thinks are important points linked to the energy transition. This is in the midst of growing concern regarding soaring gas prices and the knock-on impacts this could have in the time ahead.

In a discussion Gastech conference in Dubai, United Arab Emirates earlier this week, Lorenzo Simonelli was asked –
  • Whether surging gas prices were probable to be temporary?
  • Do you expect broader consequences for consumers, markets, and the broader financial system?

“I believe a lot of people are watching what is happening in Europe and it is taking to light the crucial conversation about the energy transition. This is along with the significance that we have around gas as well,” Lorenzo says.

It was still early on to see if charges would continue high or if this increase was temporary, he answers.

Benchmark European gas prices have soared over 250% since the start of the year, Reuters stated this week.

The causes for the spike are diverse. The influential, yet usually cautious, International Energy Agency says on Tuesday that rising European gas charges had “been led by a blend of a strong revival in demand. This is along with tougher-than-expected supply, as well as numerous weather-related causes.”

“These consist of a very cold and long heating season in Europe last winter. This is along with lower-than-usual accessibility of wind energy in recent weeks,” he says.

IEA Executive is the Director Fatih Birol. He says that the reasons behind the price increase were complex. However, it would be “incorrect and deceptive to lay the accountability at the door of the clean energy transition.”

The role of natural gas

The recent crisis near the price of gas has strengthened its ongoing importance, even as key economies s follow outline strategies. This is in order to move away from fossil fuels in the years ahead.
  • United Kingdom
  • European Union
  • The United States of America

Certainly, in its declaration published Tuesday, the IEA says gas continues “an essential tool for stabilizing electricity markets in many locations today.”

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