HALLIBURTON

Halliburton



Halliburton

Company Overview

Halliburton was founded in 1919 and now, it is considered as one of the world's leading products and services providers to the industry of oil and gas. The company employs approximately 60,000 people in up to 80 countries across the globe.

The proud and fascinating history of this company tells that a consistent and keen focus on expansion and innovation initiated by the company's founder, Erle P. Halliburton, is the secret of company's success. He started off the company by borrowing a group of mules, a wagon, and a pump. Halliburton built a wooden box for mixing purposes and started a cementing business for oil wells in Duncan, Oklahoma.

The first research laboratory of Halliburton was established in 1930, where the first cement mixer was tested. After successful testing of the cement mixer, the company began offering additional services to the customer. One of these additional services included service of acidizing, meant to break down the resistance formed in limestone, while increasing production of oil and gas simultaneously. Moreover, the company also carried out its first ever cementing job, outside its country of origin, at a rig in Creole Field, Gulf of Mexico by using a floating cementing division. It was the commencement of what have now become world's most widespread services of Halliburton to offshore locations.

In 1926, the company took the initiative for becoming a global organization. Since that time, the company has taken innovative steps to expand in different regions of the world and as a result of these novel steps; Halliburton was the first company belonging to the United States to drill on the Chinese mainland.

Halliburton streamlined its operations in not only Western Hemisphere but also in Eastern Hemisphere during the period of 2006 to 2007. During this process of streamlining, the company divided its service assistance into two units: Drilling and Evaluation and Completion and Production. To this date, Halliburton provides the world's most extensive range of products, services and solutions for production, development and exploration of oil and gas (www.halliburton.com). 

Discussion

Product and Services

Halliburton caters the upstream of oil and gas industry all the way through the reservoir's life cycle, that is, from finding hydrocarbons and organizing the geological data, to the assessment of drilling and formation, construction and completion of wells, and maximizing the production of oil throughout the field's life.

The company's service offerings are divided into two divisions: Completion and Production and Drilling and Evaluation. Till, December 31, 2010, the revenue generated through these two divisions accounts for approximately $18.0 billion

Financial Performance of Drilling and Evaluation Division

Drilling and Evaluation

Year Ended December 31

millions of dollars

2010

2009

Revenue

$7,976

$7,256

Operating Income

1,213

1,183

Capital Expenditure

1,058

959

Depreciation, depletion, and amortization

578

490



Financial Performance of Drilling and Evaluation Division

Completion and Production

Year Ended December 31

millions of dollars

2010

2009

Revenue

$9,997

$7,419

Operating Income

2,032

1,016

Capital Expenditure

1,010

900

Depreciation, depletion, and amortization

537

437

Quick Facts

The company is divided into two large divisions

The Group of Energy Services offers products and services to customer in the upstream of oil and gas industry

The other division prepares drawing of plants and builds them along with other facilities, plants and pipelines for its industry of ...