Halliburton

Halliburton Company
Company type	Public
Industry	Oilfield services
Predecessor	New Method Oil Well Cementing Company (HOWCO)
Founded	1919; 107 years ago
Founder	Erle P. Halliburton
Headquarters	Houston, Texas and Dubai, United States and United Arab Emirates
Area served	Worldwide (more than 70 countries)
Key people	Jeff Miller (President since 2014, CEO since 2017)
Products	Energy services, formation evaluation, digital technologies and consulting services, production optimization, fluid systems management
Number of employees	55,000

Halliburton Company is a prominent American multinational corporation and ranks as the second-largest provider of oilfield services worldwide, with a leading position in global fracking activities. The organization employs approximately 55,000 individuals through its subsidiaries, affiliates, and divisions spanning more than 70 countries. Although Halliburton is legally incorporated in the United States, it operates dual headquarters located in Houston, Texas and Dubai, United Arab Emirates.

The Energy Services Group (ESG) represents Halliburton’s main operational segment. Previously a subsidiary of Halliburton, KBR now functions as an independent publicly traded company specializing in the construction of refineries, oil fields, pipelines, and chemical processing plants. Halliburton finalized its separation from KBR in April 2007 to concentrate on its core service offerings.

The company has been involved in several high-profile controversies that have affected both its public image and financial outcomes. These controversies include ties to former CEO and U.S. Vice President Dick Cheney, participation in the Iraq War, and involvement in the Deepwater Horizon incident, which resulted in legal settlements totaling $1.1 billion. Furthermore, KBR admitted to bribing Nigerian officials between 1994 and 2004; Halliburton subsequently agreed to pay $382 million to resolve charges brought by the U.S. Justice Department.

In 2015, Halliburton was found liable for unlawful retaliation against a whistleblower who reported suspected financial irregularities to the SEC. The company has also faced criticism for failing to comply fully with requests from the United States Environmental Protection Agency regarding disclosure of hydraulic fracturing chemical information.

Leadership shifted when Jeff Miller assumed the role of President in August 2014 and later became CEO in June 2017, succeeding Dave Lesar. Under Miller’s guidance, Halliburton continues to address industry challenges while prioritizing growth initiatives and preserving its competitive standing within the global energy services market.

Locations

Halliburton operates dual headquarters situated in Houston and Dubai, though it remains incorporated within the United States.

Divisions

The company’s principal business areas encompass energy services, formation evaluation, digital technologies and consulting services, optimization of production volumes, and fluid systems management. These profitable segments establish Halliburton as one of the foremost international competitors, positioned second only to Schlumberger and ahead of rivals such as Saipem, Weatherford International, and Baker Hughes.

Following the acquisition of Dresser Industries in 1998, Halliburton combined its Brown & Root subsidiary with Dresser’s M.W. Kellogg division to create the KBR division. KBR developed into a significant global construction enterprise; however, its revenues and earnings have experienced fluctuations. Asbestos-related lawsuits stemming from the Kellogg acquisition led to losses exceeding US $4 billion between 2002 and 2004. Additionally, setbacks from the Barracuda Caratinga FPSO project in Brazil contributed roughly $900 million in annual losses during this timeframe.

A conclusive settlement reached in January 2005 allowed KBR to emerge from Chapter 11 bankruptcy protection and return to profitability. Despite increased revenues driven by contracts in the Middle East, Halliburton's overall financial results remained uneven.

In August 2004, company leadership revealed intentions to divest KBR through options including sale, spin-off, or an initial public offering (IPO). Valuation estimates ranged from $2.15 billion up to $3 billion. Ultimately, KBR was spun off as an independent publicly listed company on April 5, 2007.

Early origins (as HOWCO)

Founded in 1919 by Erle P. Halliburton, the company initially operated under the name New Method Oil Well Cementing Company. In 1920, Halliburton successfully controlled a wild gas well near Wilson, Oklahoma, by applying cementing techniques. The U.S. patent for the Halliburton "method and means of excluding water from oil wells" was granted on March 1, 1921. Innovations such as the cement jet mixer and the measuring line were developed to enhance the precision of cementing operations. By 1922, operating as Halliburton Oil Well Cementing Company (HOWCO), the firm thrived amid the Mexia, Texas oil surge, having sealed its 500th well.

HOWCO was officially incorporated in Delaware in 1924, employing 56 workers. Ownership was shared between Erle and Vida Halliburton and seven prominent oil firms: Magnolia, Texas, Gulf, Humble, Sun, Pure, and Atlantic. The company embarked on its first international project in 1926 by selling equipment to Burma and India.

During the 1930s and 1940s, Halliburton broadened its cementing services both domestically and offshore. In 1938, it completed its inaugural offshore well cementing off Louisiana using a barge-mounted truck. By 1940, offices had been established in Venezuela and bulk cement handling was introduced. The launch of the first marine cementing vessel occurred in 1947.

Halliburton's expansion into Europe began in 1951 with the establishment of Halliburton Italiana SpA in Italy, followed by subsidiaries in Germany, Argentina, and England. Service centers were also operating in Canada, Venezuela, Peru, Colombia, Saudi Arabia, and Indonesia by this time. The company’s revenues exceeded $100 million in 1952.

Following Erle P. Halliburton’s passing in 1957, HOWCO was valued at $190 million with worldwide operations. That same year saw the acquisition of Welex, a leader in jet perforation technology. In 1959, Otis Engineering was purchased to boost production capabilities for pressure control devices used in oil and gas wells.

Transition to Halliburton

The firm adopted the name Halliburton Company on July 5, 1961. Two years later, it became the first Oklahoma-based enterprise to earn the Presidential "E" for Export flag, acknowledging its role in promoting international trade.

In 1964, Halliburton unveiled a manufacturing facility spanning 500,000 square feet in Duncan, Oklahoma. The company led technological advancements including launching a pilot computer network system in 1965—the industry's inaugural effort of this kind. Expansion of the Research Center followed in 1966 with a tripling of space dedicated to Chemical Research and Design.

By 1968, Halliburton had engineered an automated system for mixing offshore drilling mud. Gearhart Industries introduced the first digital computer logging system in 1974 before being acquired by Halliburton in 1989. Construction commenced on a base camp at Prudhoe Bay, Alaska in 1969.

Addressing environmental challenges starting in 1975, Halliburton collaborated with Clean Gulf Associates to develop oil spill containment solutions. The establishment of the Halliburton Energy Institute in 1976 aimed to distribute technical knowledge across the industry.

The opening of the Duncan Research Center in 1980 marked a significant milestone along with pumping the billionth sack of cement by 1983. Following Gearhart Industries’ acquisition in 1989, Halliburton Logging Services was created. Under CEO Brian Darcy during the 1980s, subsidiaries expanded internationally by providing equipment for China’s first offshore multiwell platform and managing a major blowout at the Tengiz field in the Soviet Union.

1990s

Following the conclusion of Operation Desert Storm in 1991, the Pentagon awarded contracts exceeding $8.5 million to Brown & Root Services, a Halliburton subsidiary, for research into integrating private military forces. Additionally, Halliburton personnel played a crucial role in extinguishing 725 burning oil wells in Kuwait.

In 1995, Dick Cheney took over as chairman and CEO, succeeding Thomas H. Cruikshank. Earlier in the decade, Halliburton incurred federal fines totaling $3.81 million due to violations of trade sanctions involving the sale of dual-use oil drilling equipment to Iraq and Libya.

Throughout the Balkan conflicts, Kellogg Brown-Root (KBR) provided logistical support and lifecycle management services for U.S. peacekeeping missions across Bosnia, Croatia, and Hungary.

The year 1998 marked Halliburton’s merger with Dresser Industries, which included Kellogg. Notably, Prescott Bush held a director position at Dresser, and his son George H.W. Bush was employed there prior to founding Zapata Corporation.

2000s

In 2001, Halliburton Products and Services Ltd. (HPS), a subsidiary of Halliburton Energy Services, established an office in Tehran. Although incorporated in the Cayman Islands and identified as "non-American," HPS operated under Halliburton's brand offering global services from Tehran. This arrangement raised concerns about potential breaches of the Trading with the Enemy Act of 1917 during Dick Cheney’s time as CEO. Halliburton denied any legal violations, asserting no involvement by U.S. persons. Subsequently, CEO David J. Lesar announced the company’s exit from Iran.

In April 2002, KBR secured a $7 million contract to construct steel holding cells at Camp X-Ray. By November that year, KBR was tasked with planning and executing oil well firefighting operations in Iraq under the LOGCAP contract—a contingency-based retainer contract awarded without competitive bidding on individual orders. Critics alleged that Cheney’s vice presidency influenced this no-bid award; however, others pointed out that KBR won the overarching contract through competition.

In May 2003, Halliburton revealed that KBR had paid $2.4 million in bribes to a Nigerian official to obtain favorable tax treatment.

After emerging from bankruptcy protection in 2004, Halliburton inaugurated a new facility in Rock Springs, Wyoming, becoming one of Sweetwater County’s largest private employers with a workforce exceeding 500 employees.

On January 24, 2006, KBR received a $385 million contingency contract from the Department of Homeland Security to construct temporary detention and processing centers supporting Immigration and Customs Enforcement during emergency surges. This project involved cooperation with the U.S. Army Corps of Engineers and attracted criticism due to its resemblance to Guantanamo Bay facilities.

In February 2008, classified information regarding Petrobras’ Tupi oil field was stolen while under Halliburton’s custody, raising serious security concerns.

Also in 2008, Halliburton outsourced its vital IT infrastructure to a data center managed by CyrusOne Networks LLC located in Dallas/Fort Worth.

During the 2010 Deepwater Horizon spill hearings, President Barack Obama criticized executives from BP, Transocean, and Halliburton for shifting responsibility. Halliburton’s Executive Vice President Tim Probert stressed that the company acted strictly according to contractual instructions from the well owner.

Halliburton’s $2.5 billion "Restore Iraqi Oil" (RIO) contract aimed to support Iraq’s reconstruction by boosting oil exports. However, projects such as the pipeline crossing near Al Fatah encountered significant difficulties due to unfavorable geological conditions and limited access to markets, leading to criticism regarding project management and effectiveness.

Attempted acquisition of Baker Hughes

On November 17, 2014, Halliburton and Baker Hughes revealed a definitive agreement under which Halliburton would acquire Baker Hughes through a combination of stock and cash, valuing the transaction at $34.6 billion. This merger was designed to establish a dominant oilfield services entity capable of rivaling Schlumberger. Before proceeding, Halliburton was mandated to divest assets exceeding $5 billion to satisfy U.S. antitrust regulations. The agreement included a deadline set for April 2016, after which either party could opt out. On May 1, 2016, following the expiration of this deadline, both companies declared the termination of their merger agreement.

Chemical manufacturing plant in Saudi Arabia

On March 1, 2022, Halliburton officially opened its MultiChem facility located in Jubail PlasChem Park, symbolizing Saudi Arabia’s shift from being a consumer to a producer and exporter of specialty chemical products.

Involvement in the Iraq War

Halliburton attracted criticism due to its involvement in the Iraq War and connections to former U.S. Vice President Dick Cheney, who served as chairman and CEO from 1995 until 2000. Cheney stepped down during the 2000 election period with a severance package totaling $36 million and continued to receive deferred compensation while serving as Vice President. The awarding of a $7 billion no-bid contract to Halliburton for operations in Iraq raised concerns about potential preferential treatment.

Bunnatine Greenhouse, a civil servant with two decades of contracting expertise, persistently voiced objections regarding Halliburton’s favored status in Iraq, Kuwait, and the Balkans. Although investigations by the U.S. Justice Department, FBI, and Pentagon inspector general concluded no misconduct occurred in contract awards, Greenhouse asserted that military auditors had identified instances where Halliburton overbilled for fuel supply deliveries. She further alleged that Defense Secretary Donald Rumsfeld’s office exerted control over critical aspects of Halliburton’s contract for Iraqi oil infrastructure. After raising these issues, Greenhouse faced demotion—a step her legal counsel characterized as retaliatory action linked to her enforcement of procurement policies rather than job performance deficiencies.

Deepwater Horizon disaster

An internal BP investigation conducted in 2010 concerning the Deepwater Horizon explosion attributed part of the incident to inadequate procedures by Halliburton personnel. The National Commission on the BP Deepwater Horizon Oil Spill held Halliburton jointly responsible alongside BP and Transocean. The use of an unstable cement slurry by Halliburton resulted in hydrocarbon leaks that ultimately led to the explosion.

Halliburton admitted guilt for destroying evidence after the catastrophe by deleting computer models that contradicted its assertion that BP disregarded its recommendations. Contracted by BP to manage cement sealing operations designed to prevent leaks in wells, Halliburton was instructed by investigators to retain all pertinent evidence related to the case.

Corruption accusations in Nigeria

In December 2010, Nigerian authorities charged former Halliburton CEO Dick Cheney with corruption tied to a $182 million contract for constructing a liquefied natural gas facility on Bonny Island. Previously, KBR—a former subsidiary of Halliburton—paid $402 million following admissions of bribing Nigerian officials, while Halliburton resolved SEC allegations with a $177 million settlement without admitting fault.

The dispute concluded in mid-December 2010 when Nigeria agreed to drop charges against Cheney and Halliburton in return for a $250 million payment that included approximately $130 million held in a Swiss bank account plus fines.

According to the Federal Contractor Misconduct Database, Halliburton has been involved in ten misconduct cases since 1995 resulting in settlements totaling $791 million; an additional twenty-two cases pertain to KBR.

Environmental concerns

According to the EPA's Toxics Release Inventory (TRI) data, Halliburton's facility in Harris County, Texas reported chemical emissions amounting to 230 TRI air releases in 2001 and increased to 245 releases in 2002.

On June 7, 2006, a hazardous gas cloud originating from Halliburton's Farmington, New Mexico site necessitated evacuations in the area. The company was also connected to significant oil spill incidents, notably the 2009 Timor Sea spill and the 2010 Gulf of Mexico disaster, both attributed to faulty cementing procedures. Halliburton staff were responsible for cementing operations on the Transocean-operated Deepwater Horizon rig shortly before its catastrophic explosion.

In July 2013, Halliburton admitted guilt for destroying evidence related to the Deepwater Horizon spill, resulting in a $200,000 penalty, three years of probation, and mandated cooperation with ongoing probes. By September 2014, the firm resolved most litigation by agreeing to a $1.1 billion settlement, thereby addressing substantial legal uncertainties impacting its financial outlook.

Jamie Leigh Jones case

At a Congressional hearing, Jamie Leigh Jones alleged that in 2005 while employed by KBR, then a Halliburton subsidiary, she was gang-raped by as many as seven colleagues in Iraq and subsequently confined inside a shipping container for 24 hours without access to food or water. Jones and her attorneys reported receiving similar claims from 38 women contractors working across Iraq, Kuwait, and other regions. On September 15, 2009, the Fifth Circuit Court of Appeals ruled 2-1 in favor of Halliburton, determining that her injuries were not employment-related and thus excluded from contractual coverage, overriding the mandatory arbitration clause.

These events have negatively impacted Halliburton’s reputation; a consumer survey ranked it as the fifth least reputable corporation within the United States.

Divestiture of KBR

On April 15, 2006, Halliburton submitted documentation to the Securities and Exchange Commission proposing the sale of up to 20% of its KBR shares on the NYSE under the ticker symbol "KBR," marking the beginning of KBR’s separation process from Halliburton.

The divestment of Halliburton’s ownership in KBR commenced in November 2006 and was finalized by February 2007. Shortly thereafter, in June 2007, KBR secured a $150 billion contract spanning ten years with the U.S. Army alongside Fluor Corporation and Dyncorp.

Baghdad event

In adherence to the laws governing armed conflict and to preserve the status of non-combatants, Halliburton refrains from arming its truck drivers, despite frequent insurgent assaults on its convoys. On September 20, 2005, a convoy consisting of four Halliburton trucks traveling north of Baghdad encountered an ambush involving improvised explosive devices, which incapacitated all vehicles. Initial reports indicated that the US National Guard escort abandoned the disabled convoy, leading to three driver deaths; one surviving driver documented the incident. Although the trucks bore military camouflage, the drivers were civilians. Military personnel returned approximately 45 minutes later. Investigations by senior military officials later determined that the troops did not desert the civilians but were instead withdrawing from the "kill zone" during the attack.

Earnings restatements

Halliburton has issued multiple earnings restatements impacting its reported financial results. On March 31, 2003, management revised fourth-quarter 2002 earnings downward by $14 million, with $3 million attributed to continuing operations and $11 million related to discontinued operations. Additionally, on March 2, 2005, the company adjusted its fourth-quarter 2004 earnings to reflect a $2 million after-tax loss due to corrections in receivables and lease accounting practices.

Public health concerns

The company has been subject to criticism regarding its environmental and public health effects, particularly connected to the Energy Policy Act of 2005—commonly known as the Halliburton loophole—which exempted hydraulic fracturing chemicals from key environmental regulations such as the Clean Air Act, Clean Water Act, and Safe Drinking Water Act. This exemption significantly curtailed EPA regulatory authority over fracking fluids. Notably, in 2020, Halliburton was the sole entity among nine companies requested by the EPA to fully disclose chemicals used in gas drilling that declined to comply.

Unlawful retaliation against whistleblower

In 2015, Halliburton was adjudged guilty of unlawful retaliation against whistleblower Tony Menendez after a protracted legal dispute lasting ten years. Menendez had lodged a complaint with the SEC accusing Halliburton of concealing billions of dollars in financial irregularities; following his complaint, the company removed him from his duties and excluded him from meetings.

Headquarters

Halliburton’s corporate headquarters are situated at its North Belt Campus in northern Houston, Texas, near George H.W. Bush Intercontinental Airport. The company relocated its headquarters from Dallas—its base from 1961 until 2003—to Houston in 2003. Initially, it occupied office space within 5 Houston Center before moving to the North Belt Campus in 2009.

Covering roughly 90 acres, the North Belt Campus houses approximately 2,500 employees and features research and development laboratories, a cafeteria, childcare facilities, parking structures, and fitness centers. Expansion and renovation projects completed between 2012 and 2014 enhanced campus amenities and infrastructure.

In 2003, tax incentives provided by the Aldine Independent School District played a crucial role in retaining Halliburton’s North Belt operations amid competing jurisdictional offers. This location strategically supports Halliburton’s international activities while centralizing essential business functions within a unified corporate setting.

External links

Archival materials of Halliburton Oil Well Cementing Company preserved at the American Heritage Center, University of Wyoming.