Baker Hughes expects global upstream oil and gas spending to decline modestly in 2026 as producers focus on capital discipline and maximizing existing production. Strong demand for LNG infrastructure, power generation, and industrial energy projects continues to drive record equipment orders and long-term growth opportunities.

Baker Hughes has been awarded multiple contracts to provide liquefaction equipment, turbine upgrades, and lifecycle services for Cheniere’s Sabine Pass LNG expansion in Louisiana. The project will add more than 6 million tonnes per annum of LNG capacity while enhancing efficiency and reliability across one of North America’s largest LNG export terminals.

Kodiak Gas Services (KGS) and Baker Hughes (BKR) announced a multi-year agreement Wednesday in which Baker Hughes will supply gas turbines and generators to support U.S. data center growth.

Baker Hughes highlighted a shift toward more diversified energy systems driven by energy security, combining continued investment in LNG and gas infrastructure with growing demand for power generation, carbon capture, and emerging solutions like geothermal. The company sees this as building a more resilient and distributed energy mix rather than replacing hydrocarbons, with strong momentum already showing up in orders across power, LNG, and CCS markets.

The oilfield services upcycle is unlikely to begin before 2027 because global markets must first absorb spare capacity, convert LNG and power infrastructure investments into sustained drilling demand, and force deferred upstream projects back onto the table. When that tightening occurs, the inflection will be driven by utilization and pricing power — not rig count — marking a true economic upcycle rather than a short-term activity bounce.

U.S. drilling activity continues to soften. The U.S. rig count fell by two this week to 544 active rigs in the Baker Hughes report dated January 11, 2026, remaining 40 rigs below last year’s level.

Baker Hughes (NASDAQ: BKR) is reshaping its business once again—this time through a bold acquisition of Chart Industries (NASDAQ: GTLS). The $13.6 billion deal marks one of the company’s largest strategic shifts in years, signaling a move away from its historic dependence on oilfield services toward a broader energy technology platform.

Nationally, the U.S. rig count ticked up to 548, with 418 oil rigs, 121 gas rigs, and 17 offshore platforms — a sign of slow but durable recovery heading into winter.

crude prices fell below $60 per barrel, underscoring continued pressure on drilling economics. According to the latest Baker Hughes Rig Count, both oil prices and rig activity moved lower — signaling operators may be tightening spending as commodity markets soften heading into Q4 2025.

The U.S. drilling market continues to “eek out” progress, stringing together modest week-over-week increases. Gains remain uneven—Texas is slipping while Colorado, Kansas, and Wyoming are seeing growth. Gas rigs continue to provide stability, while oil rigs drive incremental weekly gains.