HOUSTON, March 10 (Reuters) - U.S. producers are

unlikely to increase spending this year, and production

increases will primarily come from greater efficiencies, rather

than new drilling, Baker Hughes ( BKR ) Chief Executive Lorenzo

Simonelli said on Monday on the sidelines of the CERAWeek

conference by S&P Global in Houston.

The outlook comes as U.S. President Donald Trump's

administration has repeatedly exhorted the industry to "Drill,

baby, drill," to maximize oil and gas production and reduce

consumer energy costs.

(Reporting by Arathy Somasekhar in Houston)