The Asset Allocator: Baker Hughes Capturing The Carbon-Capture Opportunity (Podcast)

Summary

• Investors generally look out for a new administration’s signals as to which industries or companies are favored.
• The Biden Administration has made clear that it is targeting methane reduction as a regulatory priority.
• The oil majors are making substantial investments in future emissions-control technologies, but my question is whom are they paying right now to ensure their numbers don’t attract unwanted regulatory scrutiny?
• There are a number of companies helping oil majors get rid of their methane, some more or less focused on this issue, and all of them expensive.
• Baker Hughes (BKR) appears to be the most impressive of the bunch – more focused than most, less expensive than most, and heavily invested in digital solutions to carbon capture.

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At a time when oil majors are facing increasing pressure to reduce greenhouse-gas emissions, a key question for investors concerns not which future technologies will prevail but who is helping these companies get rid of their methane right now.

This podcast (6:40) argues that Baker Hughes’s solutions are performing right now in an area of rising regulatory scrutiny and hence growing market importance.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.