Owning our journey means that we own the entire journey – and that certainly includes owning our responsibilities to the planet. We won’t be satisfied until we reach Zero – a net neutral or even positive impact on our environment.

We remain committed to finding new ways to minimize waste and enhance recycling, we’ve designed our facilities with sustainability built-in, and we apply energy efficiency practices throughout our operations. These strategies have eliminated thousands of metric tons of greenhouse gas emissions and reduced our operating costs.

And, we’re proud of the way we ideate, develop, and deploy technologies that are more environmentally friendly than ever before. From greener chemistries to tools that drill wells faster, we’ve found ways to help our industry access oil and gas using less energy and resources. The first-of-its-kind TerrAdapt™ adaptive drill bit significantly reduces drill time in extremely challenging environments. Our STONEWALL™ V0-rated well barrier portfolio delivers tools to confirm mechanical wellbore isolation and ensure a tight gas seal, reducing emissions. And, our SLINGSHOT™ composite plug efficiency valve reduces water requirements, decreasing water transport and disposal.



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  • Reducing Greenhouse Gas

    As a company, we’re proud of our efforts to enhance energy efficiency and reduce greenhouse gas (GHG) emissions. We recognize that daily activities using electricity, natural gas, diesel and other fuels contribute to GHG in the atmosphere. In 2016, we achieved a 19% reduction in greenhouse gas emissions through continued focus on energy efficiency and conservation measures throughout our operations. Emissions reduction savings by category are provided below. (See the Performance Metric Table for details on our greenhouse gas reporting)


    And, we met our overall resource reduction goal of 10%, calculated on a weighted average based on our use of electricity (40%), natural gas (40%), and water (20%). We measure our progress at 240 of our largest facilities using GreenLink, our environmental performance database. These facilities represent more than 85% of the energy and water used across our global suite of manufacturing and operations facilities. We achieved cost savings of $8.6 million at these facilities in 2016, and more than $25 million in the last three years.  We estimate savings of more than $100 million since our energy conservation measures were integrated and became quite simply, the way we do business.

    Our commitment to manage the risks associated with increased concentrations of greenhouse gas (GHG) and climate change spans nearly 10 years. We identify inherent climate change risks that may have the potential to generate material changes in our business operations, revenue and costs.  These risks include regulatory changes and physical climate risks and we monitor many others. While uncertainty remains, we are committed to taking action, which we have demonstrated by completing numerous energy conservation projects that reduced our carbon dioxide emissions each year.

    Baker Hughes is committed to managing the risks associated with climate change. This commitment supports our global Health, Safety, Environment & Security Policy to ensure environmental protection across all company operations. Key elements of our commitment are as follows:

    • Complying with all relevant legislation, associated guidance, and international, national, and industry standards
    • Conserving energy through the use of energy-efficient equipment, implementation of best practices, and increasing the use of alternative and clean energy
    • Minimizing greenhouse gas emissions, including a commitment to support the generation of geothermal energy through technology innovations and our service offerings

    • Setting measurable goals and plans to improve performance and reduce our overall carbon footprint
    • Mitigating the effects of drought through the conservation of water
    • Collaborating with stakeholders including customers, regulators, contractors, suppliers, and other partners to reduce impacts from climate change
    • Promoting these Climate Change elements with our suppliers/vendors and partners
    • Reporting performance information to the public on greenhouse gases and other climate change risks
    • Reviewing and auditing systems and performance data, including the use of third-party audits when necessary

    In line with these commitments, we collaborate with industry through associations that engage with policy makers on legislation intended to reduce greenhouse gas emissions. This includes participation in technical roundtables, submittal of technical publications, peer review of publications and disclosures to customers, investors and the general public. While we formally joined the International Petroleum Industry Environmental Conservation Association (IPIECA) in 2016, we’ve been engaged with IPIECA and the International Oil and Gas Producer’s Association (IOGP) for the past 8 years in joint industry working groups addressing climate change issues.

    Baker Hughes continues to achieve top performance in our sector for the quality of our climate change disclosures. For eight consecutive years we have publically reported to the CDP Climate Change disclosure and have been listed at the Management Level for the past four years, outperforming both the S&P 500 and Energy Sector average.


  • Greening Our Chemistries


    Our product stewardship commitments include a drive towards greener chemistries, especially to reduce potential environmental impacts in the marine environment.  We use extensive research and development to substitute less hazardous components and test new formulations to assess efficacy and reduce toxicity. Specific regulatory requirements for chemicals are expanding in various regions around the globe with the most stringent areas comprising the North Sea, Angola and Nova Scotia, Canada.

    North Sea:

    • We’ve added 122 products to our portfolio that are approved for offshore use and discharge in the North Sea during the last three years.
    • Over 95 percent of these are classified as Gold with No Substitution Warning, the highest classification for the North Sea.
    • North Sea requirements are governed by CEFAS for the UK, and OSPAR for the EU, enabling various governments to cooperate with a common mission to protect the marine environment of the North-East Atlantic.

    Angola:

    • More than 85 products from our Chemicals and Industrial Services (CIS) product line have been successfully evaluated and are now available for offshore use in Angola.
    • Every chemical product must meet certain environmental criteria in order to comply with Angola Executive Decree 97/14 on Operational Discharge Management.

    Nova Scotia:

    • Twenty-five products from CIS have been successfully cleared for offshore use.
    • The criteria are established by the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) for use in the East Coast Canada Geomarket.

    Highlights of environmentally preferred chemistries developed in 2016 include:


    Scale Inhibitors: Reduced environmental toxicity

    • SCW85649, FATHOM™ XT SUBSEA728, FAT XT SUBSEA729
    • Approved for North Sea; FATHOM™ XT Subsea 729 replaced a more hazardous product in offshore Angola

    Corrosion Inhibitor: Enhanced biodegradation

    • Corrosion Inhibitor – CRONOX™ CRW85719
    • Ranked technically #1 among six competitive products
    • Formulated for use in offshore Angola

    Pipeline Test Additives: Enhanced biodegradation

    • Fluorescent dyes – AQUASWEEP Pipeline Preservation Products.
    • Formulated for pipeline hydrotest and pickling operations.
  • Designing In Sustainability


    Sustainable building design has long been a cornerstone of our company efforts to reduce our overall environmental footprint.  Our new Oklahoma City integrated campus, featuring our Artificial Lift Motor Center of Excellence (MCOE), is the newest example of our commitment.  A collaborative design and planning process included operations, HSE, architects, contractors, and the use of Lean 3P (Production, Preparation, Process). This Lean tool has been used in other projects across the company and has been key to achieving improved efficiencies and environmental benefits.


    Using this process allows Baker Hughes to design facilities that:

    • have a minimal environmental footprint for long-term operations
    • are energy efficient
    • use natural light as much as possible
    • have optimized traffic and logistical flow
    • can minimize and efficiently handle waste streams

    Highlights of the Oklahoma City design include:


    • LED lighting reduced power density to under 1 watt per square foot for our lighting needs
    • Daylight harvesting was used to automatically dim lights close to exterior windows when natural daylight is sufficient
    • Occupancy sensors in private offices and conference rooms automatically turn off lights and decrease air conditioning when the rooms are not in use

    • Demand control ventilation is tied to CO2 sensors in the training areas, automatically adjusting during peak and non-peak usage
    • Central air-cooled chillers for the campus buildings provide significant efficiencies over traditional units
    • Economizers were incorporated in the HVAC design, reducing energy use
  • Maximizing Energy Efficiency


    As a business, we are focused on maximizing efficiencies throughout our operations. Our focus on energy efficiency is integral to our overall business approach, as it reduces costs, greenhouse gas emissions and our environmental footprint. More than 230 energy efficiency projects have been completed across the globe since 2010. Our project portfolio includes LED lighting installations, HVAC system upgrades,
    Building Automation Systems and other operational efficiencies.

    Our Building Automation Systems (BAS) offer instant visibility to our energy use and trends and includes options for scheduling equipment and various alarms to identify problems and facilitate timely resolution. The BAS homepage for our Western Hemisphere Education Center is depicted to the right.

    Annual savings for the implementation of 70 Building Automation Systems currently averages about USD 1.5 million. One of our Texas facilities achieved an 18% decrease in annual energy use since installation. (See graphs below).


    We are continuing our commitment to reduce energy use and associated greenhouse gas (GHG) emissions by 10% year over year, and have achieved our goal for seven consecutive years. (See the Performance Metric Table for details on greenhouse gas reporting.)


    Building Automation System homepage for our Western Hemisphere Education Center (WHEC)