Lorenzo Simonelli: Dave, I’ll take this one. Look, as you can imagine with the intake of orders that we’ve had, we’ve been working on making sure that we’ve got lean processes and kaizans in the different manufacturing shops that we have. And we feel very good about the ability to take on the additional orders and also turn it around from a cycle time perspective and also from a conversion. You won’t see that dramatic a change. Again, if you look at the large LNG projects, they normally take between 18 to 24 months from the intake out to the actual installation. And so that will remain the case. But definitely we’re focused on making sure that we’re meeting the customer commitments.
David Anderson: Great. Thank you. And Lorenzo, you made a statement earlier that you said that there’s a growing consensus that the energy transition taking longer is more complex than many expected. We saw Shell just announced yesterday that they’re pulling back from some of their CCS side. BP is kind of pivoting away as well. You, as you highlighted, you’re in a way to benefit either way, EIT. But I’m just wondering if you have any kind of change and kind of longer term views. Do you think that LNG and upstream business now has longer runway than you initially thought? And also if you could kind of unpack some of those complexities that you’ve talked about in technology of kind of what’s driving that. Interesting statement you wrote in the release as well.
Lorenzo Simonelli: Dave, look, we definitely see that the transition is complicated. We’ve always said that. And I think there was an eagerness that it should happen overnight. There’s an energy supply that needs to be given to the growing population and also the developing world that needs to be there. And we’re going to see in parallel the continuation of the use of oil and gas. And we’re going to see it continuing to be cleaner as well with the adoption of CCS, the adoption of emissions management. And what we’re mentioning here is that the reality is, I think, becoming known that it’s going to take some time and it’s going to be more gradual, but it doesn’t change the destination. And I think ultimately we’re going towards a low carbon economy and everybody’s focused on that.
And we’re going to see growing activity across both of our business segments associated with that. So again, we’re in a, I think, unique position where irrespective of the speed of the transition, we have the opportunity to benefit.
David Anderson: Understood. Thank you.
Operator: Thank you. [Operator Instructions] One moment for our next question. Our next question comes from Kurt Hallead with Benchmark. Your line is open.
Kurt Hallead: Hey, good morning.
Lorenzo Simonelli: Hi, Kurt.
Kurt Hallead: Hey, Lorenzo, I just wanted to maybe follow on to some of the early questions around the new energy business and kind of outline the growth opportunities on a number of different occasions. And you made a reference a little bit earlier to, the fact that you have, existing technologies that are going to be used to kind of tap into that market. So you got a 10X kind of growth profile and order intake over the course of the next, seven years or so. are you confident and comfortable in what you can deliver internally? Do you have to invest a substantial amount to maybe, execute on that six to seven billion? I just want to get a sense from you as to how you think about that.
Lorenzo Simonelli: Yes, Kurt. And actually, we have been investing. And I think as you’ve seen the associated R&D expenditures increase this year and, we are preparing for that six to seven billion and feel very comfortable. And it’s not just within the compression space. It’s also within the turbo expander base. And you look at net power, for example, and we’re obviously linked closely with them. And we see that as a big growth opportunity in the future with regards to clean power generation, hydrogen, and again, application of our compression. You look at our gas turbines that we already have that can be, that are hydrogen ready. So I actually think we’ve got a large complement of the equipment either already ready to go or already in research and development with the aspect of the associated engineering that’s taking place.
