Baker Hughes CEO says energy project pipeline stays robust despite higher borrowing costs

Baker Hughes’ chief executive told investors that the company has not observed any deceleration in major energy‑sector projects, even as borrowing costs climb. According to CNBC, the CEO emphasized that higher rates have not yet translated into postponed or cancelled developments, and that artificial‑intelligence (AI) infrastructure roll‑outs are actually boosting demand for liquefied natural gas (LNG) worldwide.

The firm’s outlook comes at a time when the Federal Reserve’s policy tightening has pushed corporate loan rates above 6 percent, a level that historically slows capital‑intensive ventures such as offshore drilling, pipeline construction, and large‑scale renewables. Yet Baker Hughes says its order book remains full, with contracts for new rigs, well‑service packages and equipment still being signed on schedule. The company’s confidence reflects a broader industry trend where operators are locking in financing before rates rise further, and where long‑term contracts hedge against short‑term cost fluctuations.

AI’s appetite for power is a key driver behind the sustained LNG demand. Data centers, high‑performance computing clusters, and emerging generative‑AI services consume massive amounts of electricity, much of which is sourced from natural‑gas‑fired plants because of their quick ramp‑up capability. As these facilities expand across North America and Europe, they create a reliable market for LNG, which can be shipped to regions where grid capacity is constrained. Analysts note that this AI‑energy link could add several million tonnes of LNG demand annually over the next decade, offsetting slower growth in traditional industrial users.

For investors, the message is twofold: financing challenges have not yet translated into project delays, and a new demand catalyst—AI‑driven power consumption—offers a growth tailwind for the gas market. If rates continue to rise, the sector may eventually feel pressure, but for now Baker Hughes appears positioned to capitalize on both legacy oil‑and‑gas work and the emerging LNG opportunities tied to the digital economy.

The company’s stance underscores a broader resilience in the U.S. energy landscape, where firms are adapting financing strategies and leveraging new demand sources to keep large‑scale projects moving forward despite a tighter monetary environment.