Middle East war will intensify push for energy security and diversification. 

Lorenzo Simonelli, Chairman and CEO of Baker Hughes, spoke at (and on the sidelines of) CERAWeek by S&P Global 2026 in Houston about the ongoing Middle East conflict (referred to as the “Iran war” or “wider Iran conflict” in recent coverage).

CERAWeek (often shortened to “CERA” in shorthand) is the major annual energy conference, and Simonelli’s comments came during interviews and sessions around March 24-27, 2026, amid global energy market disruptions from the U.S.-Israeli actions against Iran (including impacts on the Strait of Hormuz, QatarEnergy LNG facilities, and broader supply chains).

Key points Simonelli made about the war’s impact on energy:

The Middle East crisis is “another shock to the system” that will accelerate governments’ and consumers’ push for energy security through diversification and expansion. “The outcome is a focus on energy security, yet again – doubling down on energy security, energy expansion, energy diversification.”

Disruptions to energy flows (e.g., damage to Qatar LNG plants that could take up to 5 years to repair and remove 17% of output) will benefit other geographic regions and natural gas (LNG) as alternatives. He specifically highlighted growing interest in LNG projects from Argentina and Africa (outside the U.S. and Middle East).

“You’ll see a number of different geographic locations benefit, and also natural gas continue to benefit… You’ll see more of a diversification because there will be a shock to the system. We’ve got to look at energy security and energy expansion in that context.”

The conflict has had an inconsistent impact on Baker Hughes’ Middle East operations (active in Qatar, Saudi Arabia, UAE, Kuwait), so the company has not updated its 2026 guidance yet while the situation remains fluid.

He remains bullish on global natural gas and LNG demand, calling earlier fears of a 2026-2028 LNG oversupply “exaggerated.” Record offtake agreements in 2025 and the Qatari shortfall will instead accelerate other projects to fill the gap. Baker Hughes continues its strategic pivot toward gas-to-power and LNG.

In other CERAWeek-related remarks, Simonelli has also urged the industry to “tune out the noise of volatility” from geopolitical events and focus on long-term fundamentals and the “energy demand decade.”

These comments reflect the broader CERAWeek 2026 theme of “Convergence and Competition: Energy, Technology and Geopolitics,” where the Iran war has been a dominant topic alongside supply security and LNG markets.

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