The energy industry is already starting to recover from one the worst years in recent history after the coronavirus pandemic roiled global markets, Baker Hughes Chief Executive Lorenzo Simonelli said on Monday during CERAWeek by IHS Markit.
“As you look at supply and demand equation, we’re seeing that there will be a recovery in 2021 with an even more balanced market going into 2022,” said Simonelli, the head of energy services firm Baker Hughes Co.
The energy industry was rocked by a collapse in oil demand in 2020 due to coronavirus-related lockdowns, forcing producers and refiners to curtail investments and output.
However, as vaccines are rolled out and the global economy shows glimmers of recovery, investments in the energy sector are likely to return by 2022, Simonelli said.
“Hydrocarbons are still going to be essential for providing energy to the world, especially in the near term,” he said.
“2020 will be remembered as the year in which the energy transition increased at pace … But there are still over 1 billion without access to ongoing energy, and energy will be vital in the future, so we have to address energy transition but also affordable energy being available for people.”