How a secret drill bit test in Texas launched a global energy giant

Nature · Published 3 October 2026 Swipe more like this →

In short: In 1908, Howard R. Hughes Sr. and Walter Benona Sharp conducted clandestine tests on a Texas rig, hiding their invention in a locked wooden box. Their dual cone rotary drill bit revolutionized deep-well drilling, eventually merging with Reuben C. Baker’s casing innovations to form the modern energy technology powerhouse, Baker Hughes.

The origins of Baker Hughes lie in the early 20th-century oil boom. Howard R. Hughes Sr. and Walter Benona Sharp founded their tool company in 1909 after successfully testing a dual cone rotary drill bit, which allowed for drilling in harder, deeper formations than existing fishtail bits. Meanwhile, Reuben C. Baker, a former farm boy with minimal formal education, revolutionized cable tool drilling in 1907 with a patented casing shoe that ensured uninterrupted oil flow. Both companies grew through decades of technical innovation and aggressive acquisition.

The formal merger of Baker International and Hughes Tool Company occurred in 1987, a strategic response to the 1980s oil glut. The $728 million transaction created a global entity that has since expanded into over 120 countries. Throughout its history, the firm has integrated numerous specialized businesses, such as Bently Nevada, Teleco Oilfield Services, and Eastman Christensen, the latter of which pioneered controlled directional drilling in the 1920s to reach offshore deposits from shore-based rigs.

Today, the company operates across two primary segments: Oilfield Services and Equipment, and Industrial and Energy Technology. While historically rooted in petroleum extraction, the firm has pivoted toward the energy transition. It now manufactures equipment for hydrogen production, geothermal energy, and carbon capture, utilization, and storage. In 2019, the company pledged to reduce its carbon dioxide equivalent emissions by 50% by 2030 and reach full neutrality by 2050, using a 2012 baseline.

The company’s growth has not been without controversy. In 2007, it pleaded guilty to violating the Foreign Corrupt Practices Act, agreeing to pay $44.1 million in fines for illicit payments made between 2001 and 2003. Despite such challenges, the firm remains a central player in global energy, managing complex infrastructure ranging from deepwater fracking vessels in the Gulf of Mexico to waste-to-energy carbon capture projects in Norway.

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