(Reuters) – Oilfield service firms Schlumberger (SLB.N) and Baker Hughes (BKR.N) are counting on newer energy transition businesses like carbon capture and hydrogen fuel for growth, and expect these clean energy units to rival some of their more traditional units by the next decade, executives said on Wednesday.
Schlumberger estimates that global investments for industries moving away from fossil fuels could balloon from $300 billion a year in recent years to $1.6 trillion annually between 2030 and 2040, Chief Executive Officer Olivier Le Peuch said, citing industry projections.
If Schlumberger could capture a little over 1% of that market sector over the next decade, the resulting business would be equal to the size of its current oil and gas business, he said.
Lorenzo Simonelli, Chief Executive Officer for Baker Hughes, said its carbon capture and hydrogen businesses could generate billions of dollars in annual orders by the end of the next decade, potentially reaching the size of its turbomachinery and process solutions unit.
While the companies are optimistic about growth potential from the clean energy transition, they did not specify the size of their investments in these businesses.
Baker Hughes plans to sharpen its focus on its oilfield service and equipment and industrial energy tech businesses, Simonelli told investors at the Barclays CEO Energy-Power Conference on Wednesday, a move it says will help align its priorities with the energy transition, he said.