Halliburton ( ) is a
US-based oilfield services
corporation with international operations in more than 70
It has close to 300 subsidiaries, affiliates,
branches, brands and divisions worldwide.
based at 5 Houston
Center in Downtown
Houston, Texas, in the
States. U.S. office locations are also in Anchorage,
Alaska; Bakersfield, California; Denver,
Louisiana; and Oklahoma City, Oklahoma. Halliburton recently opened a second
headquarters in Dubai, in the
Emirates, in March 2007, where Chairman and CEO David J. Lesar
will work and reside, "to Focus [the]
Company’s Eastern Hemisphere Growth." Corporate offices will remain
in Houston and the company will remain incorporated in the United
States. The company will consider Houston and Dubai as dual
headquarters. Halliburton plans to move its headquarters to another
site in Houston by 2012.
Halliburton's major business segment is the Energy Services
(ESG). ESG provides technical products and services
exploration and production.
Halliburton's former subsidiary, KBR
, is a major construction company
, oil fields
, 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.
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
and Baker Hughes
With the acquisition of Dresser
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
-related litigation from the Kellogg
acquisition caused the company to book more than US$
4.0 billion in losses from 2002
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
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
or initial public offering
. Analysts at
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
In 1919, Erle Halliburton starts New Method Oil Well Cementing
Halliburton offices in north Houston,
scheduled to house the headquarters around 2012
In 1920, Erle Halliburton brings wild gas well under control, using
cement, for W.G. Skelly, near Wilson, Oklahoma.
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.
In 1922, Company prospers from Mexia, Texas, oil boom, cementing in
500th well in late summer.
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
In 1926, First foreign venture begins with sale of equipment to
Burma and India.
In 1927, The Halliburton first motor-powered cementing unit goes
into the field.
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.
In 1929, Halliburton constructs first laboratory to test cement.
Crews and equipment move into Canadian oil fields.
In 1934, Halliburton performs a 3,000-sack cement job at Binger,
Oklahoma. Halliburton introduces three-pump steam-type cementing
In 1935, Halliburton performs first acidizing job in Kansas.
In 1936, Halliburton forms its electric wireline department, which
is later merged with Welex in 1957.
In 1938, Halliburton cements the first offshore well using a truck
on a barge off the Louisiana coast.
In 1940, Halliburton opened offices in Venezuela and introduces
bulk handling of cementing to the industry.
In 1947, the Halliburton first marine cementing vessel goes into
In 1949, Halliburton pioneers hydraulic fracturing stimulation with
the industry’s first commercial stimulation job.
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
In 1952, Halliburton revenues top $100 million for the first
In 1953, Erle P. Halliburton is induced into the Oklahoma Hall of
In 1954, by year’s end, HOWCO employs more than 7,500 employees
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
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.
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
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.
In 1959, HOWCO acquires Otis Engineering, an oilfield service and
equipment company specializing in manufacturing pressure control
equipment for oil and gas producing wells.
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
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).
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.
In 1964, Halliburton completes a 500,000-sq.-ft. manufacturing
center in Duncan, Oklahoma.
In 1965, Halliburton begins pilot operation of a computer network
system – the first such installation in the oilfield services
In 1966, Workers break ground for a new wing at the Research Center
in Duncan that triples the space for the Chemical Research and
In 1967, Baroid invents invert emulsion fluids.
In 1968, an automated missing system for drilling mud is developed
by Halliburton, primarily for use offshore.
In 1969, Halliburton begins construction of a base camp at Prudhole
Bay on Alaska’s North Slope.
In 1970, Halliburton cements the world’s longest string of 20-inch
casing with more than 11,300 sacks of cement.
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.
In 1972, Halliburton performs deepest hydraulic fracturing
stimulation to date on a 22,400-foot well with pressures in excess
of 10,000 psi.
In 1973, Halliburton performs its deepest hydraulic fracturing job
In 1974, Gearhart Industries (now part of Halliburton Energy
Services) introduces the first digital computer logging
In 1975, Halliburton responds to 1970s’ environmental concerns by
working with the nonprofit Clean Gulf Associates to contain and
clean up oil spills.
In 1976, Halliburton establishes the Halliburton Energy Institute
in Duncan, Oklahoma, to provide an industry forum for disseminating
In 1977, Otis Dillon, first-company photographer, retires.
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.
In 1979, Halliburton crews set Rocky Mountain record by cementing a
- Following the end of Operation Desert Storm
in February 1991, the
Pentagon, led by then
Defense Secretary Dick Cheney, paid
Halliburton subsidiary Brown & Root Services over $8.5 million
to study the use of private military forces with American soldiers
in combat zones.
- Thomas H. Cruikshank, who served as chairman and CEO from 1989 until
1995, was replaced by Dick Cheney.
- In the
aftermath of Operation Desert
Storm, Halliburton crews helped bring 320 burning oil wells
under control in Kuwait.
- In the
early 1990s Halliburton was found to be in violation of federal
trade barriers in Iraq and Libya, having sold
these countries dual-use oil
drilling equipment and, through its former subsidiary, Halliburton
Logging Services, sending six pulse neutron generators to
Libya. After having pleaded guilty, the company was fined
$1.2 million, with another $2.61 million in penalties.
- In the
Balkans conflict in the 1990s, Kellogg
Brown-Root (KBR) supported U.S. peacekeeping forces in Bosnia and
Herzegovina, Croatia and Hungary with food,
laundry, transportation and other lifecycle management
- In 1998 Halliburton merged with Dresser Industries, which included
Kellogg. Prescott Bush was a director
of Dresser Industries, which is
now part of Halliburton. Former United States president George H. W. Bush
worked for Dresser Industries in several positions from 1948–1951,
before he founded Zapata
- In 2001 The Wall Street
Journal reported that a subsidiary of Halliburton Energy
Services called Halliburton Products and Services Ltd. (HPS) opened
an office in Tehran. The company, HPS, operated on the ninth floor
of a new north Tehran tower
block. Although HPS was incorporated in the
Islands in 1975 and is "non-American", it shares both the
logo and name of Halliburton Energy Services and, according to
Dow Jones Newswires offers
services from Halliburton units world-wide through its Tehran
office. Such behavior, undertaken while Cheney was CEO of
Halliburton, may have violated the Trading with the Enemy Act. A
Halliburton spokesman, responding to inquiries from Dow Jones, said
"This is not breaking any laws. This is a foreign subsidiary and no
US person is involved in this. No US person is facilitating any
transaction. We are not performing directly in that country." Later
Dave Lesar would book his own flights to the Teheran office through
the UK arm of KBR. No legal action has been taken against the
company or its officials.
- In April 2002, KBR was awarded a $7 million contract to
construct steel holding cells at Camp
- From 1995–2002, Halliburton Brown & Root Services Corp was
awarded at least $2.5 billion but has spent considerably less to
construct and run military bases, some in secret locations, as part
of the Army's Logistics Civil Augmentation Program. This contract
was a cost plus 13% contract and BRS employees were trained on how
to pass GAO audits to ensure maximum profits were attained. It was
also grounds for termination in the Balkans if any BRS employee
spoke of Dick Cheney being CEO. BRS was awarded and re-awarded
contracts termed "non-competitive" due to BRS being the only
company capable to pull off the missions. DYNACORP actually won the
competitively let 2nd contract but never received any work orders
in the Balkans.
- In November 2002, KBR was tasked to plan oil well firefighting
in Iraq, and in February 2003 was issued a contract to conduct the
work. Critics contend that it was a no-bid contract, awarded due to Dick
Cheney's position as Vice President. Concern was also expressed
that the contract could allow KBR to pump and distribute Iraqi oil.
Others contend, however, that this was not strictly a no-bid
contract, and was invoked under a contract that KBR won "in a
competitive bid process." The contract, referred to as LOGCAP, is a
contingency-based contract that is invoked at the convenience of
the Army. Because the contract is essentially a retainer, specific
orders are not competitively bid (as the overall contract
- Halliburton planned to move its headquarters to Houston in
May 2003, Halliburton revealed in SEC
filings that its KBR subsidiary had paid a Nigerian official $2.4 million in bribes in order to receive favorable tax treatment.
October 2004, Halliburton opened a new facility on , replacing an
older facility that opened in 1948, in Rock
Springs, Wyoming. With over approximately 500 employees,
Halliburton is one of the largest private employers in Sweetwater
- On January 24, 2006 Halliburton’s subsidiary KBR (formerly
Kellogg, Brown and Root) announced that it had been awarded a $385
million contingency contract by the Department of Homeland Security
to build "temporary detention and processing facilities" or
internment camps. According to Business Wire, this contract will be executed
in cooperation with the U.S. Army Corps of Engineers, Fort Worth
District. Critics point to the Guantanamo
Bay detention camp as a possible model. According to a press
release posted on the Halliburton website, "The contract, which is
effective immediately, provides for establishing temporary
detention and processing capabilities to augment existing
Immigration and Customs Enforcement (ICE) Detention and Removal
Operations (DRO) Program facilities in the event of an emergency
influx of immigrants into the U.S., or to support the rapid
development of new programs. The contingency support contract
provides for planning and, if required, initiation of specific
engineering, construction and logistics support tasks to establish,
operate and maintain one or more expansion facilities."
April 15, 2006, Halliburton filed a registration statement with the
Exchange Commission to sell up to 20 percent of its KBR stock
on the NYSE under the
ticker symbol "KBR", as part of an eventual plan for KBR to be a
separate company from Halliburton.
- In February, 2008, a hard disk and two computers containing
classified information were stolen from Petrobras while in
Halliburton's custody. Allegedly, the content inside the stolen
material, was data on the recently discovered Tupi oil field. Initial police inquiries
suggest that it could be a common container theft operation. The
container was a ramshackle in complete disorder indicating that
thieves were after "valuables and not only laptops", said an expert
consulted by the daily newspaper Folha de S. Paulo.
By 2012 Halliburton plans to leave its Downtown Houston offices and
consolidate operations at its Westchase
and northern Houston offices;
the north Houston office will become the new headquarters for
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."
Internet pundit John Burnett
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
with Brown & Root
Halliburton’s $2.5 billion "Restore Iraqi Oil" (RIO) contract 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
when the military finally sent people to inspect the
Involvement in the Iraq war
In recent years the company has become the object of several
controversies involving the 2003 Iraq
and the company's ties to Former U.S. Vice President
Cheney retired from the
company during the 2000
U.S. presidential election
campaign with a severance package
worth $36 million. As of 2004, he had received $398,548 in deferred compensation
while Vice President. Cheney was chairman and CEO of Halliburton
Company from 1995 to 2000 and has received stock options from
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
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
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, allegedly
for poor performance. Greenhouse had received excellent performance
ratings in the past. 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.
Response by Halliburton
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.
Environmental and safety record
In 2002 a
Toxics Release Inventory (TRI) reports were done to see if
chemicals being emitted were harmful to people from Halliburton's
County, Texas facility.
The facility had 230 TRI air
releases in 2001 and 245 in 2002.
7, 2006 Halliburton's Farmington, New Mexico facility created a toxic cloud that forced people
to evacuate from their homes.
In accordance with the law of
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
Halliburton convoy of four trucks was ambushed north of Baghdad.
All four trucks were struck by improvised explosive devices
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. 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.
- " Office Location." Halliburton. Retrieved on
January 13, 2009.
- "Halliburton Opens Corporate Headquarters in
the United Arab Emirates" - 2007 Press Releases - at
Halliburton.com - March 11, 2007
- "Halliburton to Move Headquarters to
Dubai" - All Things Considered -
NPR - March 12, 2007
- Steffy, Loren. "Halliburton heralds Houston's
hereafter" - Houston Chronicle - March 14, 2007
- Steffy, Loren. "Sound Off: Halliburton's Dubai kiss"
- Houston Chronicle - March 14, 2007
- Clanton, Brett. " Halliburton to consolidate in 2 locations."
Houston Chronicle. April 3, 2009.
Retrieved on April 3, 2009.
- "Halliburton Completes Separation of
KBR" - 2007 Press Releases - Halliburton.com - April 5,
- Halliburton Connected to Office in Iran, Dow Jones,
- " Halliburton to Move Headquarters from Dallas to
Houston." Fort Worth Star-Telegram. July
17, 2002. Retrieved on July 14, 2009.
- who owns 100% of Service Employers International Inc. which KBR
is a head hunter for. "Halliburton Opens New Facility in Southwest
Wyoming" - 2004 Press Releases at Halliburton.com -
October 28, 2004
- Environmental Release Report - Scorecard
- "Halliburton spill results in acid cloud." -
Press. - (c/o Albuquerque Journal.) - June 7,