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| Type | Public (NYSE: HAL) |
|---|---|
| Founded | 1919, Duncan, Oklahoma, U.S[1] |
| Founder(s) | Erle P. Halliburton |
| Headquarters | Houston, TX, USA Dubai, UAE |
| Area served | Worldwide |
| Key people | David J. Lesar (Chairman), (President) & (CEO) |
| Industry | Oil & Gas Equipment & Services[2] |
| Products | Products and services to the energy industry [3] |
| Revenue | ▲ US$ 18.279 billion (2008)[4] (U.S. 46% International 54%) |
| Operating income | ▲ $ 4.010 billion (2008)[4] |
| Net income | ▼ $ 2.224 billion (2008)[4] |
| Total assets | ▲ $ 14.385 billion (2008)[4] |
| Total equity | ▲ $ 7.725 billion (2008)[4] |
| Employees | 52,000 - September 2009[5] |
| Website | Halliburton.com |
Halliburton (NYSE: HAL) is an oilfield services corporation with operations in more than 70 countries. It has close to 300 subsidiaries, affiliates, branches, brands and divisions worldwide.[citation needed]
The company has its headquarters in the North Belt office in Houston, Texas, and in offices in Dubai, United Arab Emirates (opened March, 2007) where Chairman and CEO David J. Lesar works and resides, "to Focus [the] Company’s Eastern Hemisphere Growth."[6] The company will remain incorporated in the United States.[7][8][9] U.S. regional office locations are Anchorage, Alaska; Bakersfield, California; Denver, Colorado; Lafayette, Louisiana; and Oklahoma City, Oklahoma, Farmington, New Mexico; and Naples, Utah.
Major international offices are in Canada, Mexico, Venezuela, Colombia, Argentina, Panama, Bolivia, Brazil, Ecuador, Algeria, Angola, Egypt, Gabon, Nigeria, Cameroon, Republic of Congo, Libya, Austria, Germany, Italy, Netherlands, Norway, United Kingdom, France, Spain, Australia, Russia, China, India, Thailand, Malaysia, Indonesia, Vietnam, Japan, Singapore, U.A.E., Oman, Yemen, and Saudi Arabia.
Worldwide technology centers are in Duncan, Oklahoma; Carrolton, Texas; Houston, Texas; Stavanger, Norway; Pune, India; and Singapore.
Halliburton's major business segment is the Energy Services Group (ESG). ESG provides technical products and services for petroleum and natural gas exploration and production.
Halliburton's former subsidiary, KBR, is a major construction company of refineries, oil fields, pipelines, and chemical plants. Halliburton announced on April 5, 2007 that it had finally broken ties with KBR, which had been its contracting, engineering and construction unit as a part of the company for 44 years.[10]
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Energy Services, the company's historical cornerstone, includes drilling and formation evaluation, digital and consulting solutions, production volume optimization, and fluid systems. This business continues to be profitable, and the company is one of the world's largest players in this industry; Schlumberger is its closest competitor followed by Weatherford International, Tesco Corporation and Baker Hughes.[citation needed]
With the acquisition of Dresser Industries in 1998, the Kellogg-Brown & Root division (in 2002 renamed to KBR) was formed by merging Halliburton's Brown & Root (acquired 1962) subsidiary and the M.W. Kellogg division of Dresser (which Dresser had merged with in 1988). KBR is a major international construction company, which is a highly volatile undertaking subject to wild fluctuations in revenue and profit. Asbestos-related litigation from the Kellogg acquisition caused the company to book more than US$4.0 billion in losses from 2002 through 2004.
As a result of the asbestos-related costs and staggering losses on the Barracuda Caratinga FPSO construction project based in Rio de Janeiro, Brazil, Halliburton lost approximately $900 million U.S. a year from 2002 through 2004. A final non-appealable settlement in the asbestos case was reached in January 2005 which allowed Halliburton subsidiary KBR to exit Chapter 11 bankruptcy and returned the company to quarterly profitability. So, while Halliburton's revenues have increased because of its contracts in the Middle East, its bottom line continues to suffer.
At a meeting for investors and analysts in August 2004, a plan was outlined to divest the KBR division through a possible sale, spin-off or initial public offering. Analysts at Deutsche Bank value KBR at up to $2.15 billion, while others believe it could be worth closer to $3 billion by 2005. KBR became a separately listed company on 5 April 2007.
In 1919, Erle Halliburton starts New Method Oil Well Cementing Company.[11]
In 1920, Erle Halliburton brings wild gas well under control, using cement, for W.G. Skelly, near Wilson, Oklahoma.[12]
On March 1, 1921, the Halliburton “method and means of excluding water from oil wells” is assigned a patent from the U.S. Patent Office. Halliburton invents the revolutionary cement jet mixer, to eliminate hand-mixing of cement, and the measuring line, a tool used to guarantee cementing accuracy.[12]
In 1922, Company prospers from Mexia, Texas, oil boom, cementing in 500th well in late summer.[13]
In 1924, Halliburton Oil Well Cementing Company is incorporated in Delaware, with 56 people on payroll. Stock of the corporation was owned by Erle and Vida Halliburton and by seven major oil companies: Magnolia, Texas, Gulf, Humble, Sun, Pure and Atlantic.[14]
In 1926, First foreign venture begins with sale of equipment to Burma and India.[15]
In 1927, The Halliburton first motor-powered cementing unit goes into the field.[13]
In 1928, H.C. Otis founder of Otis Engineering (now part of Halliburton) gains industry recognition by replacing an inoperative single master valve on a flowing well.[13]
In 1929, Halliburton constructs first laboratory to test cement. Crews and equipment move into Canadian oil fields.[14]
In 1934, Halliburton performs a 3,000-sack cement job at Binger, Oklahoma. Halliburton introduces three-pump steam-type cementing unit.[13]
In 1935, Halliburton performs first acidizing job in Kansas.[16]
In 1936, Halliburton forms its electric wireline department, which is later merged with Welex in 1957.[17]
In 1938, Halliburton cements the first offshore well using a truck on a barge off the Louisiana coast.[15]
In 1940, Halliburton opened offices in Venezuela and introduces bulk handling of cementing to the industry.[14]
In 1947, the Halliburton first marine cementing vessel goes into service.[12]
In 1949, Halliburton pioneers hydraulic fracturing stimulation with the industry’s first commercial stimulation job.[18]
In 1951, Halliburton made its first appearance in Europe as Halliburton Italiana SpA., a wholly owned subsidiary in Italy. In the next seven years, Halliburton launched Halliburton Company Germany GmbH, set up operations in Argentina and established a subsidiary in England. By 1951, HOWCO had service centers operating in Canada, Venezuela, Peru, Colombia, Saudi Arabia and Indonesia. [13]
In 1952, Halliburton revenues top $100 million for the first time. [13]
In 1953, Erle P. Halliburton is induced into the Oklahoma Hall of Fame. [13]
In 1954, by year’s end, HOWCO employs more than 7,500 employees worldwide. [13]
In 1955, a new 52,000-square-foot machine stop is completed in Duncan. It is, at the time, the largest non-defense plant in Oklahoma. [13]
In 1956, a large marine base to serve the Gulf of Mexico offshore industry is placed into operation at Venice, Louisiana. The Dyna-Drill downhole motor (now part of Halliburton Energy Services through the acquisition of Smith International Inc.’s drilling systems business) is introduced to the drilling industry. [13]
In 1957, the company introduces the HT-400 pump, the most powerful of its time, for fracturing and cementing. Erle P. Halliburton dies in Los Angeles at the age of 65. HOWCO worth $190 million with camps all over the world. HOWCO purchases Welex, which pioneered jet perforation. [13]
In 1958, Halliburton cements a record 25,340-foot well in West Texas. Otis Engineering introduces a mobile hydraulic workover unit that significantly increases the speed and safety of remedial work on high-pressure wells. [13]
In 1959, HOWCO acquires Otis Engineering, an oilfield service and equipment company specializing in manufacturing pressure control equipment for oil and gas producing wells. [13]
On July 5, 1961, the company changes its name to the Halliburton Company. In 1961, Halliburton averages 500 service jobs every day. Halliburton Services unveils FracPlan, a method of precalculating the most desirable means and materials to use in fracturing a well. [13]
In 1962, Otis Engineering begins offering pumpdown or through flowline (TFL) service for highly deviated wellbores or subsea locations. On December, 1962, Halliburton acquires Brown & Root (engineering and construction company). [13]
In 1963, Halliburton is the first company in Oklahoma to receive the Presidential “E” for Export flag in recognition of notable contributions to foreign trade. [13]
In 1964, Halliburton completes a 500,000-sq.-ft. manufacturing center in Duncan, Oklahoma. [13]
In 1965, Halliburton begins pilot operation of a computer network system – the first such installation in the oilfield services industry. [13]
In 1966, Workers break ground for a new wing at the Research Center in Duncan that triples the space for the Chemical Research and Design Department. [13]
In 1967, Baroid invents invert emulsion fluids. [13]
In 1968, an automated missing system for drilling mud is developed by Halliburton, primarily for use offshore. [13]
In 1969, Halliburton begins construction of a base camp at Prudhole Bay on Alaska’s North Slope. [13]
In 1970, Halliburton cements the world’s longest string of 20-inch casing with more than 11,300 sacks of cement. [13]
In 1971, Otis Engineering begins offering well testing services and marketing a package concept of well completions which includes packers, tubular products and flow controls. [13]
In 1972, Halliburton performs deepest hydraulic fracturing stimulation to date on a 22,400-foot well with pressures in excess of 10,000 psi. [13]
In 1973, Halliburton performs its deepest hydraulic fracturing job to date. [13]
In 1974, Gearhart Industries (now part of Halliburton Energy Services) introduces the first digital computer logging system. [13]
In 1975, Halliburton responds to 1970s’ environmental concerns by working with the nonprofit Clean Gulf Associates to contain and clean up oil spills. [13]
In 1976, Halliburton establishes the Halliburton Energy Institute in Duncan, Oklahoma, to provide an industry forum for disseminating technical information. [13]
In 1977, Otis Dillon, first-company photographer, retires. [13]
In 1978, More than 100,000 sacks of cement are used by Halliburton to grout the legs of Shell Oil’s massive Cognac platform in the Gulf of Mexico. [13]
In 1979, Halliburton crews set Rocky Mountain record by cementing a 21,670-foot string. [13]
In 1980, Halliburton Research Center opens in Duncan, Oklahoma.[13]
In 1983, the company pumps its billionth sack of cement for customers.[13]
In 1984, Otis Engineering provides all completion equipment for the first multiwell platform offshore China.[13]
In 1986, a well control team from Otis Engineering controls a gigantic Tengiz field blowout in the Soviet Union.[13]
In 1988 Halliburton purchases Gearhart Industries and combines it with Welex to form Halliburton Logging Services [13]
In 1989, Halliburton’s Skandi Fjord, the world’s largest, most advanced stimulation vessel, sets records for fracturing nine different zones in a 2,000-foot-long section of an offshore horizontal well. [13]
Halliburton is the only company mentioned by Osama bin Laden in an April 2004 tape in which he claims that "this is a war [in Afghanistan] that is benefiting major companies with billions of dollars."[36]
Internet pundit John Burnett has described Halliburton's deals as recalling a Vietnam-Era controversy. He claims Vice President Cheney's ties to the company are reminiscent of President Lyndon B. Johnson's relationships with Brown & Root.[37]
Halliburton’s $2.5 billion "Restore Iraqi Oil" (RIO) contract[38] was supposed to pay for itself as well as reconstruction of the entire country. Had the contract been fulfilled correctly, Iraq would be able to export much more oil from its northern oil fields. Instead, the oil fields are barely usable and access to international markets is severely limited. Halliburton’s work on the pipeline crossing the Tigris river at Al Fatah was a critical failure. Against the advice of its own experts, Halliburton tried to dig a tunnel through a geological fault zone. The underground terrain was a jumble of boulders, voids, cobblestones and gravel impossible for the kind of drilling Halliburton planned. "No driller in his right mind would have gone ahead," said Army geologist Robert Sanders when the military finally sent people to inspect the work.[39]
In recent years the company has become the object of several controversies involving the 2003 Iraq War and the company's ties to Former U.S. Vice President Dick Cheney. Cheney retired from the company during the 2000 U.S. presidential election campaign with a severance package worth $36 million.[40] As of 2004, he had received $398,548 in deferred compensation from Halliburton while Vice President.[41] Cheney was chairman and CEO of Halliburton Company from 1995 to 2000 and has received stock options from Halliburton.[42]
Bunnatine Greenhouse, a civil servant with 20 years of contracting experience, had complained to Army officials on numerous occasions that Halliburton had been unlawfully receiving special treatment for work in Iraq, Kuwait and the Balkans. Criminal investigations were opened by the U.S. Justice Department, the Federal Bureau of Investigation (FBI) and the Pentagon's inspector general.
In one of the many examples of abuse, Greenhouse said that military auditors caught Halliburton overcharging the Pentagon for fuel deliveries into Iraq. She also complained that Defense Secretary Donald Rumsfeld's office took control of every aspect of Halliburton's $7 billion Iraqi oil/infrastructure contract. After her testimony, Greenhouse was demoted for poor performance.[43] Greenhouse's attorney, Michael Kohn, stated in the New York Times that "she is being demoted because of her strict adherence to procurement requirements and the Army's preference to sidestep them when it suits their needs." Lt. Gen. Carl A. Strock asserted the contrary.[44]
In November 2006, Halliburton began unloading its stake in KBR, its major subsidiary, and by February 2007 had completely sold off the subsidiary. In June 2007, several days after Stewart Bowen, the Special Inspector General, released a new report, the Army announced that KBR would share another $150 billion contract with two other contractors, Fluor and Dyncorp, over the next ten years.[45]
In 2002 a Toxics Release Inventory (TRI) reports were done to see if chemicals being emitted were harmful to people from Halliburton's Harris County, Texas facility. The facility had 230 TRI air releases in 2001 and 245 in 2002.[46]
On June 7, 2006 Halliburton's Farmington, New Mexico facility created a toxic cloud that forced people to evacuate from their homes.[47]
In accordance with the law of armed conflict and to maintain non-combatant status, Halliburton does not arm its truck drivers, who in Iraq are often the target of insurgent attacks. In one case, on September 20, 2005, a Halliburton convoy of four trucks was ambushed north of Baghdad. All four trucks were struck by improvised explosive devices and were disabled. Their US National Guard escort was thought to have abandoned the disabled vehicles, leaving the drivers defenseless. Three of the four truck drivers were executed by the insurgents while the surviving driver, Preston Wheeler, caught the event on video. Although the trucks had military camouflage paint, there were only civilians driving them. It was 45 minutes before the US military arrived again at the scene.[48] However, in a statement by senior military officials in Iraq, an investigation revealed that troops did not abandon the civilians and were exiting the "kill zone" during the ambush.[49]
As of Halliburton's latest form 10-K filings with the SEC, Exhibit 21.1 lists the following as subsidiaries of Halliburton Co.[50]:
Halliburton has its headquarters in the North Belt office in northern Houston, Texas, near George Bush Intercontinental Airport.[51][52]
Halliburton had its headquarters in Dallas, Texas from 1961 to 2003.[52] The company moved its headquarters from the Southland Life Building in Dallas to 50,648 square feet (4,705.4 m2) of space in Lincoln Plaza in Downtown Dallas in 1985.[53] 20 employees worked in Halliburton's headquarters in Dallas.[54]
Halliburton planned to move its headquarters to Houston in 2002.[55] Halliburton, which signed its lease to occupy a portion of 5 Houston Center in Downtown Houston in 2002,[56] moved its headquarters there by July 2003.[57] Halliburton occupied 26,000 square feet (2,400 m2) of space on the 24th floor in 5 Houston Center.[52]
In 2009 Halliburton announced that it planned to move its headquarters to the North Belt offices in Houston. In addition it planned to consolidate operations at its Westchase and North Belt offices.[58] The move occurred in 2009.[51] The 90 acres (36 ha) North Belt complex will house 2,200 employees. Halliburton planned to add a research and development facility with laboratories, a new cafeteria, a childcare center, two additional parking garages, and fitness and wellness centers for employees.[52]
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