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{{Short description|American energy services and products company}} | |||
{{otheruses3|Haliburton}} | |||
{{Other uses|Haliburton (disambiguation)}} | |||
{{Infobox_Company | | |||
{{Use American English|date=June 2023}} | |||
company_name = Halliburton Energy Services | | |||
{{Use mdy dates|date=March 2011}} | |||
company_logo = ] | | |||
{{Infobox company | |||
company_type = ] ({{nyse|HAL}})| | |||
| name = Halliburton Company | |||
foundation = ], ], ] by ] | | |||
| logo = Halliburton logo.svg | |||
location = ], U.S., operates worldwide | | |||
| logo_size = 255px | |||
key_people = ] Chairman, President, and CEO | | |||
| type = ] | |||
industry = ] Services & Equipment | | |||
| traded_as = {{unbulleted list|class=nowrap|{{NYSE|HAL}}|] component}} | |||
num_employees = 106,000 (2005) | | |||
| industry = ] | |||
products = Technical services to the petroleum industry; Construction | | |||
| foundation = {{start date and age|1919}}, in ], U.S. | |||
revenue = {{profit}}$20.994 billion ] (])| | |||
| founder = ] | |||
net_income = {{profit}}$2.358 billion ] (2005)| | |||
| hq_location = ] and ] UAE | |||
homepage = | |||
| area_served = Worldwide | |||
| key_people = ] (], ] and ] of the board) | |||
| products = | |||
| revenue = {{increase}} {{US$|23.02 billion|link=yes}} (2023) | |||
| operating_income = {{increase}} {{US$|4.083 billion}} (2023) | |||
| net_income = {{increase}} {{US$|2.662 billion}} (2023) | |||
| assets = {{increase}} {{US$|24.68 billion}} (2023) | |||
| equity = {{increase}} {{US$|9.433 billion}} (2023) | |||
| num_employees = 48,000 (2023) | |||
| homepage = {{url|https://www.halliburton.com/|halliburton.com}} | |||
| footnotes = <ref> {{webarchive |url=https://web.archive.org/web/20130524150745/http://www.manufacturing-today.com/content/view/965/31/ |date=May 24, 2013 }}</ref><ref name=zenobank>{{cite web|url=http://zenobank.com/index.php?symbol=HAL&page=quotesearch|title=Company Profile for Halliburton Co (HAL)|access-date=October 6, 2008|url-status=dead|archive-url=https://web.archive.org/web/20090113052028/http://zenobank.com/index.php?symbol=HAL&page=quotesearch|archive-date=January 13, 2009|df=mdy-all}}</ref><ref>{{cite web |url=http://digital.library.okstate.edu/encyclopedia/entries/S/ST030.html |title=Encyclopedia of Oklahoma History & Culture |publisher=Digital.library.okstate.edu |access-date=December 19, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20101018205639/http://digital.library.okstate.edu/encyclopedia/entries/S/ST030.html |archive-date=October 18, 2010 |df=mdy-all }}</ref><ref>{{cite web|title=Halliburton CEO to retire next month, be replaced by Jeff Miller|url=http://www.channelnewsasia.com/news/business/halliburton-ceo-to-retire-next-month--be-replaced-by-jeff-miller-8859092|publisher=Channel NewsAsia|access-date=28 May 2017|url-status=live|archive-url=https://web.archive.org/web/20170521105425/http://www.channelnewsasia.com/news/business/halliburton-ceo-to-retire-next-month--be-replaced-by-jeff-miller-8859092|archive-date=May 21, 2017|df=mdy-all}}</ref><ref name="10-K">{{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/45012/000004501224000007/hal-20231231.htm|title=Halliburton Company 2023 Annual Report (Form 10-K)|date=February 6, 2024|publisher=]|website=sec.gov|df=mdy-all}}</ref> | |||
}} | }} | ||
'''Halliburton Energy Services''' ({{nyse|HAL}}) is a ] with operations in over 120 countries. It is based in ], ]. Halliburton operates two major business segments: The Energy Services Group provides technical products and services for ] and ] exploration and production, and the ] subsidiary is a major construction company of ], ], ], and ]s. Company ] ]s were ]20.99 billion. The company employs more than 106,000 people worldwide. | |||
'''Halliburton Company''' is an American ] and the world's second-largest oil service company which is responsible for most of the world's ] operations.<ref>{{Cite news |title=Fracking Is Going Electric and Not Everyone Is Impressed |url=https://www.bloomberg.com/news/articles/2021-10-06/fracking-for-oil-gas-with-electric-or-natural-gas-fleets-more-common-in-u-s |access-date=2022-03-28 |newspaper=Bloomberg.com|date=October 6, 2021 }}</ref> It employs approximately 55,000 people through its hundreds of subsidiaries, affiliates, branches, brands, and divisions in more than 70 countries.<ref>{{cite web |url=http://www.prlog.org/10347986-worlds-top-10-largest-oilfield-services-companies.html |title=Top 10 largest oilfield services companies |publisher=PRLog |access-date=April 13, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20120504023926/http://www.prlog.org/10347986-worlds-top-10-largest-oilfield-services-companies.html |archive-date=May 4, 2012 |df=mdy-all }}</ref><ref>{{Cite web|url=http://fortune.com/fortune500/halliburton/|title=Halliburton|website=Fortune|language=en-US|access-date=2018-11-20|archive-date=November 21, 2018|archive-url=https://web.archive.org/web/20181121120039/http://fortune.com/fortune500/halliburton/|url-status=dead}}</ref> The company, though incorporated in the United States, has dual headquarters located in ] and in ].<ref name=":0"> {{webarchive|url=https://web.archive.org/web/20171215053133/https://www.npr.org/templates/story/story.php?storyId=7859069 |date=December 15, 2017 }} – '']'' – ] – March 12, 2007</ref><ref name=":1">Steffy, Loren. {{webarchive|url=https://web.archive.org/web/20090114184743/http://www.chron.com/disp/story.mpl/business/steffy/4627689.html |date=January 14, 2009 }} – ] – March 14, 2007</ref><ref name=":2">Steffy, Loren. - Houston Chronicle - March 14, 2007 {{webarchive |url=https://web.archive.org/web/20071009203325/http://blogs.chron.com/lorensteffy/2007/03/sound_off_halli_1.html |date=October 9, 2007 }}</ref> | |||
==Business overview== | |||
Energy Services, the company's historical cornerstone, includes drilling & formation evaluation, digital & consulting solutions, production volume optimization, and fluid systems. This business continues to be profitable, and the company is a world leader in this industry; ] is the company's closest competitor. | |||
Halliburton's major business segment is the Energy Services Group (ESG). ], a ] and former Halliburton subsidiary, is a major construction company of ], oil fields, ], and ]s. Halliburton announced on April 5, 2007, that it had sold the division and severed its corporate relationship with KBR, which had been its contracting, engineering and construction unit as a part of the company.<ref name=separation>- 2007 Press Releases - Halliburton.com - April 5, 2007 {{Webarchive|url=https://web.archive.org/web/20070829044401/http://www.halliburton.com/default/main/halliburton/eng/news/source_files/news.jsp?newsurl=%2Fdefault%2Fmain%2Fhalliburton%2Feng%2Fnews%2Fsource_files%2Fpress_release%2F2007%2Fcorpnws_040507a.html |date=August 29, 2007 }}</ref> | |||
With the acquisition of ] in ], the Kellogg-Brown & Root division (in ] renamed to KBR) was formed by ] Halliburton's Brown & Root (acquired ]) subsidiary and the M.W. Kellogg division of Dresser (which Dresser had merged with in ]). KBR is a major international construction company, which is a highly volatile undertaking subject to wild fluctuations in revenue and ]. ]-related litigation from the Kellogg acquisition caused the company to book over ]4.0 billion in losses from 2002 through 2004. | |||
The company has been criticized for its involvement in numerous controversies, including its involvement with ] – as ], then CEO of the company, then ] – and the ], and the '']'', for which it agreed to settle outstanding legal claims against it by paying litigants $1.1 billion. | |||
As a result of the asbestos-related costs, 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. | |||
], one of Halliburton's subsidiaries at the time, paid bribes to high-ranking Nigerian officials between 1994 and 2004. Under a deal reached with the ], Halliburton has agreed to pay $382 million to settle the bribery case.<ref>{{cite news | url=https://www.reuters.com/article/us-usa-kbr-bribes/kbr-pleads-guilty-in-nigerian-bribery-case-idUSTRE51A6M720090211 | title=KBR pleads guilty in Nigerian bribery case | |||
At a meeting for investors and analysts in August 2004, a plan was outlined to divest the KBR division through a possible ], ] or ]. Analysts at ] value KBR at up to $2.15 billion, while others believe it could be worth closer to $3 billion by 2005. | |||
| first=Chris | last=Baltimore | access-date=10 May 2018 | date =11 February 2009 | archive-url=https://web.archive.org/web/20180510051306/https://www.reuters.com/article/us-usa-kbr-bribes/kbr-pleads-guilty-in-nigerian-bribery-case-idUSTRE51A6M720090211| archive-date=10 May 2018 | work=] | place=Houston, Tx | url-status=live}}</ref> | |||
In 2015, Halliburton was found guilty in court for illegal retaliation against a ] who filed a report with the ] over concerns that the company was illegally concealing billions of dollars.<ref name=":3" /><ref name=":4">{{Cite web |title=Questionable Accounting of Halliburton, Inc. |url=https://www.documentcloud.org/documents/1694677-menendezs-whistleblower-complaint-to-the-sec.html |access-date=2022-03-29 |website=www.documentcloud.org}}</ref> | |||
===Corporate governance=== | |||
The current members of Halliburton's ] are ], C. Christopher Gaut, William P. Utt, Andrew R. Lane, Albert O. Cornelison, Mark A. McCollum, Craig Nunez, Lawrence J. Pope, and David R. Smith. | |||
The company has also been criticized for refusing to comply with ] requests for transparency around chemicals it uses in hydraulic fracturing.<ref name="Baca">{{Cite web |last=Baca |first=Marie C. |title=Halliburton's Stonewalling Works in Pa., but Sparks Subpoena at EPA |url=https://www.propublica.org/article/halliburtons-stonewalling-works-in-pa-but-sparks-subpoena-at-epa?token=HwZY0YeVERyokHjp4PP9OHEDcpGGkKee |access-date=2022-03-28 |website=ProPublica|date=November 16, 2010 }}</ref> | |||
==History== | |||
===1919 to 1990=== | |||
Mr. and Mrs. ] first tried to find work cementing oil wells in ] then moved their business (]) to the ] field near ]. | |||
] was promoted to President of Halliburton on August 1, 2014, and CEO on June 1, 2017, replacing ].<ref>Berman, Nat (November 2018). ''Moneyinc.com''. Retrieved February 2, 2019.</ref> | |||
* 1920: Reorganized - ] | |||
* 1921: Headquarters - ] | |||
* 1924: Incorporated | |||
* 1948: Became Listed on the ] | |||
* 1957: Acquisition of ] of ] | |||
* 1960: Name Shortened to Halliburton Company | |||
* 1961: Headquarters - ] | |||
* 1962: Acquisition of ] of ] | |||
* 198?: Acquisition of ] | |||
* 1982: Workforce was 115,000 | |||
* 1982: Energy Industry Decline | |||
* 1988: Acquisition of ] from ] | |||
* 1988: ] | |||
* 1991: Workforce was 73,000 | |||
== Business overview == | |||
] was a director of ], 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 ]. | |||
=== |
=== Locations === | ||
The company has dual headquarters located in ] and in ], but it remains incorporated in the United States.<ref name=":0" /><ref name=":1" /><ref name=":2" /> | |||
*In the aftermath of ] in ] in ], Halliburton crews helped bring 320 burning oil wells under control. | |||
*In the early ] Halliburton was found to be in violation of federal trade barriers in ] and ], having sold these countries dual-use oil drilling equipment and, through its former subsidiary, Halliburton Logging Services, sending six ]s to Libya. After having pleaded guilty, the company was fined $1.2 million, with another $2.61 million in penalties.{{fact}} | |||
*In the ] conflict in the 1990s, KBR supported U.S. peacekeeping forces in ], ] and ] with food, laundry, transportation and other lifecycle management services. | |||
*In ] ] became ] and ] | |||
*In ] Halliburton merged with ], which included Kellogg. | |||
=== |
=== Divisions === | ||
Energy services (the company's historical cornerstone), ], digital and ], production volume optimization, and fluid systems are the major business segments. These businesses continue to be profitable, and the company is one of the world's largest players in these service industries; it is second after ], and is followed by ], ], and ].<ref>{{cite web |url=http://www.hoovers.com/free/co/burn.xhtml?ID=10697 |title=Halliburton competitors |publisher=Hoovers.com |access-date=December 19, 2010 |url-status=live |archive-url=https://web.archive.org/web/20130929032948/http://www.hoovers.com/free/co/burn.xhtml?ID=10697 |archive-date=September 29, 2013 |df=mdy-all }}</ref> | |||
*On ] ] the Dresser division (excluding the former Kellogg division) entered an agreement to separate itself once again from Halliburton by management purchasing its equity, the new company to be called ] | |||
With the acquisition of ] in 1998, the ] division (in 2002 renamed to KBR) was formed by ] 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 that works in an industry that tends to have an element of volatility and is subject to significant fluctuations in revenue and ]. ]-related litigation from Kellogg acquisition caused the company to book more than US$4.0 billion in losses from 2002 through 2004. | |||
*In ] '']'' reported that a subsidiary of Halliburton Energy Services called Halliburton Products and Services Ltd. opened an office in Tehran. The company, HPS, operated "behind an unmarked door on the ninth floor of a new north ] tower block." Although HPS was incorporated in the ] in 1975 and is "non-American", it shares both the logo and name of Halliburton Energy Services and, according to ] offers services from Halliburton units world-wide through its Tehran office. Such behaviour, undertaken while Cheney was CEO of Halliburton, may have violated the ]. 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." No legal action has been taken against the company or its officials. | |||
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. While Halliburton's revenues have increased because of its contracts in the ], the overall impact on its bottom line has been mixed.<ref>{{cite web |url=http://www.halliburtonwatch.org/news/kbr_sale.html |title=Halliburton may sell KBR to end public relations nightmare |publisher=Halliburtonwatch.org |date=September 24, 2004 |access-date=December 19, 2010 |url-status=live |archive-url=https://web.archive.org/web/20101123102200/http://halliburtonwatch.org/news/kbr_sale.html |archive-date=November 23, 2010 |df=mdy-all }}</ref> | |||
*In ], ], a public action law firm, filed suit on behalf of shareholders against Halliburton, its current and former directors, and its accounting firm, ] LLP and Arthur Andersen Worldwide, for alleged accounting irregularities, said to be profit inflation by accounting for cost overruns as revenue. The ] (SEC) investigated the same issue. Halliburton counters that the practice was approved by its accounting firm, Arthur Andersen, and conforms to generally accepted accounting practices. In August, 2004, Halliburton paid a $7.5 million fine to settle the issue. | |||
At a meeting for investors and analysts in August 2004, a plan was outlined to divest the KBR division through a possible ], ] or ]. Analysts at ] valued KBR at up to $2.15 billion, while others believed it could be worth closer to $3 billion by 2005. KBR became a separately listed company on April 5, 2007.<ref name=separation/> | |||
*In April ], KBR was awarded a $7 million contract to construct steel holding cells at ]. | |||
== History == | |||
*In November ], KBR was tasked to plan oil well firefighting in Iraq, and in February ] was issued a contract to conduct the work. Critics contend that it was a ], 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.<ref name=bbc>{{cite news | |||
| url = http://news.bbc.co.uk/2/hi/business/3006149.stm | |||
| title = Halliburton's Iraq role expands | |||
| publisher = BBC News | |||
| date = ] | |||
| accessdate = 2006-04-28 | |||
}}</ref> 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."<ref name=york>{{cite journal | |||
| last = York | |||
| first = Byron | |||
| date = ], ] | |||
| title = Halliburton: The Bush/Iraq Scandal that Wasn't | |||
| journal = National Review | |||
| url = http://www.nationalreview.com/york/york070903.asp | |||
| accessdate = 2006-04-28 | |||
}}</ref> 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 was). It has also been argued that when the contract was invoked in a similar manner during the Balkans crisis (when Bill Clinton was president), there was no controversy and very little scrutiny of the contract; proponents of this viewpoint argue that the KBR's LOGCAP contract was made a political issue by opponents of Bush and Cheney.<ref name=york /> | |||
=== Early history (as HOWCO) === | |||
*In May 2003, Halliburton revealed in ] that its KBR subsidiary had paid a ]n official $2.4 million in ] in order to receive favorable ] treatment. | |||
The company was started in 1919<ref name="Yahoo_Hal">{{cite news|url=https://finance.yahoo.com/q/pr?s=HAL|title=Halliburton Profile in Yahoo Finance|work=Yahoo Finance|access-date=October 16, 2009|url-status=live|archive-url=https://web.archive.org/web/20091107234423/http://finance.yahoo.com/q/pr?s=hal|archive-date=November 7, 2009|df=mdy-all}}</ref> by ] as the New Method Oil Well Cementing Company.{{Citation needed|date=March 2020}} | |||
], the city which was the original headquarters of Halliburton Company]] | |||
] and in ] in ]]] | |||
In 1920, he brought a wild gas well under control, using cement, for W.G. Skelly, near ].<ref name=EPMag>{{cite web |url=http://www.epmag.com/archives/oilFieldHistory/407.htm |title=EP Magazine: Cementing is not for sissies; E&P Magazine |publisher=EPMag.com |date=May 25, 2007 |access-date=October 16, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20091007014145/http://www.epmag.com/archives/oilFieldHistory/407.htm |archive-date=October 7, 2009 |df=mdy-all }}</ref> On March 1, 1921, the Halliburton "method and means of excluding water from oil wells" was assigned a patent from the ]. Halliburton invented the revolutionary cement jet mixer, to eliminate hand-mixing of cement, and the measuring line, a tool used to guarantee cementing accuracy.<ref name=EPMag/> By 1922, the Halliburton Oil Well Cementing Company (HOWCO) was prospering from the ] oil boom, having cemented its 500th well in late summer.<ref name=Hal_Legend>{{cite book | last=Rodengen | first=Jeffrey | title=The Legend of Halliburton | location=USA | year=1996 | isbn=978-0-945903-16-1 | publisher=Write Stuff Syndicate }}</ref> | |||
*], Halliburton was still operating in ]. ], in a report entitled "US companies are operating in Iran despite sanctions," reported that a Halliburton spokesperson told the news agency that HPS helps Iran build oil rigs in the country's south. | |||
In 1924, the company was incorporated in ], with 56 people on its payroll. The stock of the corporation was owned by Erle and ] and by seven major oil companies: Magnolia, Texas, Gulf, Humble, Sun, Pure and Atlantic.<ref name=TSHA>{{cite web |url=https://tshaonline.org/handbook/online/articles/doh08 |title=The Handbook of Texas Online; TSHA Online |publisher=TSHA.com |access-date=October 16, 2009 |url-status=live |archive-url=https://web.archive.org/web/20110617141515/http://www.tshaonline.org/handbook/online/articles/doh08 |archive-date=June 17, 2011 |df=mdy-all }}</ref> | |||
*In February ], the ] (GAO) released a {{PDFlink|}} that use ] ]s. It ranks the contractors in terms of the size of the contractors and provides information about how many subsidiaries the companies have offshore. Using data of the end of ], Halliburton ranked 30, had 17 ] companies in tax havens, and 131 foreign ]. | |||
In 1926, its first foreign venture began with sale of equipment to ] and ].<ref name=Egypt_Oil>{{cite web|url=http://www.egyptoil-gas.com/read_article_issues.php?MID=21&arch=true&AID=28|title=Halliburton: The legacy of Erle; Egypt Oil & Gas|publisher=egyptoil-gas.com|date=February 2007|access-date=October 16, 2009|url-status=dead|archive-url=https://web.archive.org/web/20091223085841/http://www.egyptoil-gas.com/read_article_issues.php?MID=21&arch=true&AID=28|archive-date=December 23, 2009|df=mdy-all}}</ref> | |||
*In September ], under a competitive bid contract last it won in July of 2005, to provide debris removal and other emergency work associated with natural disasters, KBR started assessment of the cleanup and reconstruction of ] ] and ] facilities that were damaged in the aftermath of ]. The facilities include: Naval Air Station Pascagoula, Naval Station Gulfport, Stennis Space Center in ], two smaller U.S. Navy facilities in ] and others in the Gulf Coast region. KBR has had similar contracts for more than 15 years. | |||
Throughout the 1930s and 1940s, Halliburton continued cementing across America.<ref name=Hal_Legend/><ref name=AAPG>{{cite web|url=http://search.datapages.com/data/bulletns/1931-37/data/pg/0021/0004/0500/0500.htm |title=Cunningham Field, Kingman and Pratt Counties, Kansas; Bulletin of the American Association of Petroleum Geologists |publisher=American Association of Petroleum Geologists |year=1937 |access-date=October 16, 2009}}</ref> In 1938, Halliburton cemented its first offshore well using a truck on a barge off the Louisiana coast.<ref name=Egypt_Oil/> In 1940, Halliburton opened offices in ] and introduced bulk handling of cementing to the industry.<ref name=TSHA/> In 1947, the Halliburton first marine cementing vessel went into service.<ref name=EPMag/> | |||
*In 2003, Halliburton's subsidiary KBR was responsible for the construction of the Allied military base in ]. | |||
The action has come under increasing fire for the significant damage caused to the historical site. | |||
In 1951, Halliburton first appeared in Europe as Halliburton Italiana SpA, a wholly owned subsidiary in Italy. Over 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.<ref name=Hal_Legend/> Halliburton revenues topped $100 million for the first time in 1952.<ref name=Hal_Legend/> | |||
*On April 15, 2006, Halliburton filed a registration statement with the ] to sell up to 20 percent of its KBR stock on the ] under the ticker symbol "KBR", as part of an eventual plan for KBR to be a separate company from Halliburton. | |||
Erle P. Halliburton died in ] in 1957. HOWCO is at this time worth $190 million with camps all over the world. The same year, HOWCO purchased Welex, which pioneered jet perforation.<ref name=Hal_Legend/> Otis Engineering, an oil field service and equipment company specializing in manufacturing pressure control equipment for oil and gas producing wells, was acquired in 1959.<ref name=Hal_Legend/> | |||
Today KBR employs over 30,000 people in Iraq. Halliburton's work in Iraq is diverse and complicated. In addition to troop support, Halliburton also provides air traffic control support; produces 74 million gallons of water a month for consumption, hygiene and laundry; deploys as many as 700 trucks a day to deliver essentials to American forces; and provides firefighter and crash-rescue services, as well as working to restore Iraqi oil ]. | |||
=== As Halliburton === | |||
==Iraq controversy== | |||
On July 5, 1961, the company changed its name to the Halliburton Company. In 1963, Halliburton was the first company in Oklahoma to receive the Presidential "E" for Export flag in recognition of notable contributions to foreign trade.<ref name=Hal_Legend/> | |||
{{wikinews|Civilians testify to Halliburton fraud, coercion}} | |||
Halliburton is the only company mentioned by ] in an April 2004 tape in which he claims that "this is a war that is benefiting major companies with billions of dollars." | |||
Halliburton opened a {{convert|500000|sqft|m2|abbr=on}} manufacturing center in ], in 1964.<ref name=Hal_Legend/> The company began to experiment with new technologies to help their services – for example, beginning in 1965 a pilot operation of a computer network system – the first such installation in the oilfield services industry.<ref name=Hal_Legend/> In 1966, workers broke ground for a new wing at the Research Center in Duncan that tripled the available space for the Chemical Research and Design Department.<ref name=Hal_Legend/> | |||
===Financials=== | |||
The company's contracts in Iraq are expected to have generated more than $13 billion in sales by the time they start to expire in ], but most offer low ]s — less than 2% on average in 2003 and just 1.4% this year for the ] work {{fact}} making these contracts less profitable than Halliburton's core energy business. The contracts in Iraq will be more profitable after the US Army reimburses them for costs that were originally investigated as potentially inflated. {{fact}} Meanwhile, KBR reconstruction contracts in Iraq 'tracked' by the US Department of Defense were shown to include as much as 55% of total project costs as overhead.<ref>http://www.nytimes.com/2006/10/25/world/middleeast/25reconstruct.html</ref> | |||
In 1968, an automated mixing system for drilling mud was developed by Halliburton, primarily for use offshore.<ref name=Hal_Legend/> ] (acquired by Halliburton Energy Services in 1989) introduced the first digital computer logging system in 1974.<ref name=Hal_Legend/> | |||
KBR has contracts in Iraq worth up to $18 billion, including a single ] known as "]" (RIO) which has an estimated worth of $7 billion.{{fact}} | |||
In 1969, Halliburton began construction of a base camp at ] on ]'s North Slope.<ref name=Hal_Legend/> | |||
An audit of KBR by ]’s ] (DCAA) found $108 million in "questioned costs" and, as of mid-March 2005, said they still had "major" unresolved issues with Halliburton. | |||
In 1975, it responded to environmental concerns by working with the nonprofit Clean Gulf Associates to contain and clean up oil spills.<ref name=Hal_Legend/> In 1976, Halliburton established the Halliburton Energy Institute in Duncan, Oklahoma, to provide an industry forum for disseminating technical information.<ref name=Hal_Legend/> | |||
===Ties with Dick Cheney=== | |||
In recent years the company has become the center of several controversies involving the ] and the company's ties to U.S. Vice President ]. Cheney retired from the company during the ] campaign with a severance package worth $34 million. As of ], he had received $398,548 in ] from Halliburton while Vice President.<ref name=factcheck-cheney>{{cite web | |||
| year = ], ] | |||
| url = http://www.factcheck.org/article261.html | |||
| title = Kerry Ad Falsely Accuses Cheney on Halliburton | |||
| publisher = FactCheck.org | |||
| accessdate = 2006-04-11 | |||
}}</ref> Cheney also retains unexercised ]s at Halliburton, which have been valued at nearly $8 million.<ref name=factcheck-cheney /> | |||
] in ], which at one time housed the Halliburton headquarters]] | |||
Concerns have been raised regarding the possible ] resulting from Cheney's deferred compensation and stock options from Halliburton. However, before entering office in 2001, Cheney bought an ] that guaranteed a fixed amount of deferred payments from Halliburton each year for five years so that the payments would not depend on the company's fortunes.<ref name=factcheck-cheney /> He is legally bound by an agreement he signed which turns over ] to a trust administrator to sell the options at some future time and to give the after-tax profits to three charities. The agreement specifies that 40% will go to the ] (in Cheney's home state), 40% will go to ] medical faculty to be used for tax-exempt charitable purposes, and 20% will go to ]. The agreement states that it is "irrevocable and may not be terminated, waived or amended," preventing Cheney from taking back the options at a later date.<ref name=factcheck-cheney /> | |||
In 1980, Halliburton Research Center opened in Duncan, Oklahoma.<ref name=Hal_Legend/> The company's billionth sack of cement for customers was pumped in 1983.<ref name=Hal_Legend/> In 1989, Halliburton acquired logging and perforating specialist company ] and combined it with its subsidiary Welex to form Halliburton Logging Services. | |||
Throughout the 1980s, Halliburton's subsidiaries continued their projects around the world (under management of former CEO Brian Darcy) even in countries once considered enemies. Equipment was provided for the first multiwell platform offshore China, and an Otis Engineering team controlled a gigantic Tengiz field blowout in the ].<ref name=Hal_Legend/> | |||
In 2004, presidential candidate Sen. ] released a political ad which claimed that during his tenure as Vice President, Cheney received nearly two million dollars from Halliburton. Kerry's running mate, Sen. , also made a number of attacks on Cheney's record as CEO of Halliburton. During the vice-presidential debate, Cheney claimed that "Factcheck.com" refuted those claims. He meant Factcheck.org, which monitors the political accuracy of statements in speeches and TV ads. Users going to Factcheck.com were re-directed to a site that attacked Cheney's record. | |||
=== |
=== 1990s === | ||
Following the end of ] in February 1991, ], led by then defense secretary ], paid Halliburton subsidiary Brown & Root Services over $8.5 million to study the use of private military forces with American soldiers in combat zones.<ref name="Soldiers of Good Fortune">{{cite news|last=Yeoman|first=Barry|title=Soldiers of Good Fortune| work=] | |||
Halliburton does not arm its civilian truck drivers, who in Iraq are often the target of insurgent attacks. In one case, on ], ], a Halliburton convoy of four trucks was ambushed north of Baghdad. All four trucks were struck by IEDs and were disabled. Their US National Guard escort was thought to have abandoned the disabled vehicles, leaving the unarmed truck drivers defenseless. Three of the four truck drivers were executed by the insurgents while the surviving driver, Preston Wheeler, caught the event on video. 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. | |||
|date=June 1, 2003|url=https://www.motherjones.com/news/feature/2003/05/ma_365_01.html|access-date=May 8, 2007|url-status=live|archive-url=https://web.archive.org/web/20070520151719/https://www.motherjones.com/news/feature/2003/05/ma_365_01.html|archive-date=May 20, 2007|df=mdy-all}}</ref> Halliburton crews also helped bring 725 burning oil wells under control in ].<ref>{{cite news |url=https://www.latimes.com/archives/la-xpm-1991-11-02-mn-702-story.html |title=Kuwait Firefighters Blow Off Steam as Mission Ends | work=] |date=November 2, 1991 |url-status=live |archive-url=http://archive.wikiwix.com/cache/20110701024819/http://articles.latimes.com/1991-11-02/news/mn-702_1_kuwait-fire |archive-date=July 1, 2011 |df=mdy-all }}</ref> | |||
In 1995, Cheney replaced ], as ] and ]. Cruikshank had served since 1989.<ref>{{cite news |url=https://www.nytimes.com/1995/09/07/business/the-right-choice-for-the-job.html?pagewanted=all |title=The Right Choice for the Job? | work=] |date=September 7, 1995 |first=Judith H. |last=Dobrzynski |url-status=live |archive-url=https://web.archive.org/web/20160105030109/http://www.nytimes.com/1995/09/07/business/the-right-choice-for-the-job.html?pagewanted=all |archive-date=January 5, 2016 |df=mdy-all }}</ref> | |||
== Allegations of fraud == | |||
Allegations of ] by Halliburton, specifically with regard to its operations in Iraq, have persisted since before the Iraq War. The associations between Cheney and Halliburton had led many to speculate with regard to improprieties and ] from the war. | |||
In the early 1990s, Halliburton was found to be in violation of federal trade barriers in Iraq and Libya, having sold these countries ] oil drilling equipment and, through its former subsidiary, Halliburton Logging Services, sending six ]s to Libya. After having pleaded guilty, the company was fined $1.2 million, with another $2.61 million in penalties.<ref>{{cite web|url=http://www.allbusiness.com/government/government-bodies-offices/7148553-1.html|title=Halliburton Announces Agreements to Settle Export Investigation.|publisher=AllBusiness.com|access-date=September 5, 2009|url-status=dead|archive-url=https://web.archive.org/web/20091220060022/http://www.allbusiness.com/government/government-bodies-offices/7148553-1.html|archive-date=December 20, 2009|df=mdy-all}}</ref> | |||
On ], ], the ] held a public committee, aired on ], at which former civilian employees based in or administering operations in Iraq, testified to specific instances of waste, fraud, and other abuses and irregularities by Halliburton and its subsidiary ] (KBR). | |||
During the ] conflict in the 1990s, Kellogg Brown-Root (KBR) supported U.S. peacekeeping forces in ], ] and Hungary with food, laundry, transportation, and other life-cycle management services.<ref>{{cite web |url=https://www.nytimes.com/2002/07/13/business/13HALL.html |title=Halliburton's KBR defence contracts | work=] |date=17 June 2002 |access-date=October 5, 2015 |url-status=live |archive-url=https://web.archive.org/web/20151011223555/http://www.nytimes.com/2002/07/13/business/13HALL.html |archive-date=October 11, 2015 |df=mdy-all }}</ref> | |||
Among the ] and ] present at the hearing were ] (presiding), ], ], and ]. | |||
In 1998, Halliburton merged with Dresser Industries, which included Kellogg. ] was a director of Dresser Industries, which is now part of Halliburton; his son, former president ], worked for Dresser Industries in several positions from 1948 to 1951, before he founded ].<ref>{{cite web |url=http://www.famoustexans.com/georgebush.htm |title=George Bush |publisher=Famoustexans.com |access-date=December 19, 2010 |url-status=live |archive-url=https://web.archive.org/web/20101122203533/http://famoustexans.com/georgebush.htm |archive-date=November 22, 2010 |df=mdy-all }}</ref> | |||
Among those testifying were ], former Chief Contracting Officer of the ]; ], former Food Program Manager for a Halliburton subsidiary; and ] of the ] security and operations firm. | |||
=== 2000s === | |||
Greenhouse, who provided the bulk of testimony, spoke for several minutes about her involvement in the evaluation and crafting of government Army contracts, and explaining how her superiors undermined and dismissed her concerns of illegal business practices. "Ultimately my main concern was the repeated insistence ] be awarded to KBR without competitive bidding," Greenhouse said. She testified to have been given misinformation in answer to her complaints, saying she was "overtly misled." | |||
] in ], which at one time housed the headquarters of Halliburton]] | |||
'']'' reported in 2001 that a subsidiary of Halliburton Energy Services called Halliburton Products and Services Ltd. (HPS) opened an office in ]. The company, HPS, operated on the ninth floor of a new north Tehran tower block. Although HPS was incorporated in the ] in 1975 and is "non-American", it shares both the logo and name of Halliburton Energy Services and, according to ], offers services from Halliburton units worldwide through its Tehran office. Such behavior, undertaken while senior Republican (later U.S. vice president) Dick Cheney was CEO of Halliburton, may have violated the ]. A Halliburton spokesman, responding to inquiries from ], said "This is not breaking any laws. This is a foreign subsidiary and no U.S. person is involved in this. No U.S. person is facilitating any transaction. We are not performing directly in that country." No legal action has been taken against the company or its officials.<ref> {{webarchive|url=https://web.archive.org/web/20160304093739/http://www.ratical.org/ratville/CAH/linkscopy/HCtOiI.html |date=March 4, 2016 }}.</ref> Later, David J. Lesar, Halliburton's chief executive, announced that Halliburton would withdraw from Iran.<ref>{{Cite news|url=https://www.nytimes.com/2005/01/29/business/worldbusiness/halliburton-will-withdraw-from-energy-projects-in.html|title = Halliburton Will Withdraw from Energy Projects in Iran|newspaper = The New York Times|date = January 29, 2005|last1 = Romero|first1 = Simon}}</ref> | |||
In April 2002, KBR was awarded a $7 million contract to construct steel holding cells at ].<ref>{{cite web |author=—By Nicholas M. Horrock and Anwar Iqbal |url=https://www.motherjones.com/news/outfront/2004/01/12_400.html |title=Waiting for Gitmo |work=Motherjones.com |access-date=September 5, 2009 |url-status=live |archive-url=https://web.archive.org/web/20081028164725/https://www.motherjones.com/news/outfront/2004/01/12_400.html |archive-date=October 28, 2008 |df=mdy-all }}</ref> | |||
Mayberry, still in Iraq, testified by video from questions prepared by the committee. He said that KBR routinely sold expired food rations to the Army. | |||
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 ], 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.<ref name=bbc>{{cite news|url=http://news.bbc.co.uk/2/hi/business/3006149.stm|title=Halliburton's Iraq role expands|work=BBC News|date=May 7, 2003|access-date=April 28, 2006|url-status=live|archive-url=https://web.archive.org/web/20060525072149/http://news.bbc.co.uk/2/hi/business/3006149.stm|archive-date=May 25, 2006|df=mdy-all}}</ref> 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."<ref name=york>{{cite journal|last=York|first=Byron|date=July 14, 2003|title=Halliburton: The Bush/Iraq Scandal that Wasn't | journal=] | url=http://www.nationalreview.com/york/york070903.asp|access-date=April 28, 2006|url-status=live|archive-url=https://web.archive.org/web/20060628170445/http://www.nationalreview.com/york/york070903.asp|archive-date=June 28, 2006|df=mdy-all}}</ref> 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 was). | |||
The recorded interviewer asked, "Are you saying that Halliburton deliberately falsified the number of meals they prepared and then submitted false claims for reimbursement and that they did this to make up for past amounts auditors had disallowed?" Mayberry firmly answered "yes." He said that serving expired food rations was "an everyday occurrence, sometimes every meal." He also explained that Halliburton systematically overcharged for the number of meals as well, saying, "they were charging for 20,000 meals and they were only serving 10,000 meals." Dorgan later commented, "obviously there's no honor here, by a company that would serve outdated food to our troops in Iraq." | |||
In May 2003, Halliburton revealed in ] that its KBR subsidiary had paid a Nigerian official $2.4 million in ] in order to receive favorable ] treatment.,<ref>{{cite news |url=http://www.theage.com.au/articles/2003/05/10/1052280472817.html |title=Halliburton firm bribed Nigeria – theage.com.au |publisher=Theage.com.au |date=May 10, 2003 |access-date=September 5, 2009 |location=Melbourne |url-status=live |archive-url=https://web.archive.org/web/20091216203619/http://www.theage.com.au/articles/2003/05/10/1052280472817.html |archive-date=December 16, 2009 |df=mdy-all }}</ref><ref>Ivanovich, David. "." '']''. May 8, 2003. Retrieved on January 24, 2010.</ref> ] | |||
Halliburton and its subcontractors contend that billing discrepancies for the dining facilities stemmed from interpretive differences in their contracts, which required them to be prepared to serve a minimum number of meals per day. When they billed for these minimum numbers however, the DCAA countered that they should only be required to pay for meals served. Of the more-than-$200 million in question, $51 million was eventually retained by the U.S. Army Field Support Command. | |||
In October 2004, after emerging from the bankruptcy protection,<ref>{{cite news |url=https://www.telegraph.co.uk/finance/2875410/Halliburton-settles-asbestos-claim.html |title=Halliburton settles asbestos claim |date=January 4, 2004 |access-date=Jun 9, 2013 |location=London |work=The Daily Telegraph |first=Andrew |last=Cave |url-status=live |archive-url=https://web.archive.org/web/20130602094842/http://www.telegraph.co.uk/finance/2875410/Halliburton-settles-asbestos-claim.html |archive-date=June 2, 2013 |df=mdy-all }}</ref> Halliburton opened a new {{convert|250000|sqft|m2|adj=on}} facility on {{convert|35|acre|m2}}, replacing an older facility that opened in 1948, in ]. With over 500 employees, Halliburton is one of the largest private employers in ].<ref>who owns 100% of Service Employers International Inc. which KBR is a head hunter for. - 2004 Press Releases at Halliburton.com - October 28, 2004 {{webarchive |url=https://web.archive.org/web/20120314044324/http://www.halliburton.com/news/archive/2004/esgnws_102804.jsp |date=March 14, 2012 }}</ref> | |||
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 ] to build "temporary detention and processing facilities" or ] camps. According to '']'', this contract will be executed in cooperation with the ], ] District. Critics point to the ] 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 ] (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."<ref>{{cite web |url=https://www.halliburton.com/public/news/pubsdata/press_release/2006/kbrnws_012406.html |title=KBR AWARDED U.S. DEPARTMENT OF HOMELAND SECURITY CONTINGENCY SUPPORT PROJECT FOR EMERGENCY SUPPORT SERVICES |publisher=Halliburton.com |date=January 24, 2006 |access-date=November 13, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20120110111443/http://www.halliburton.com/public/news/pubsdata/press_release/2006/kbrnws_012406.html |archive-date=January 10, 2012 |df=mdy-all }}</ref> | |||
Mayberry also claimed would-be ]s were threatened "to be sent to ]" and other "places under fire" if they talked to ] or governmental oversight officials. In 2003 and 2004, Fallujah had been well known as dangerous for foreign troops and civilians. "I personally was sent to Fallujah for three weeks. The manager told me that I was being sent away until the auditors were gone, because I had talked to the auditors," Mayberry said. | |||
In February 2008, a hard disk and two computers containing classified information were stolen from ] while in Halliburton's custody. Allegedly, the content inside the stolen material was data on the recently discovered ]. 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.<ref>{{cite web |url=http://noticias.uol.com.br/ultnot/2008/02/14/ult23u1166.jhtm |title=Polícia Federal investiga furto de dados sigilosos da Petrobras – 14/02/2008 – UOL Últimas Notícias |publisher=Noticias.uol.com.br |date=February 14, 2008 |access-date=September 5, 2009 |url-status=live |archive-url=https://web.archive.org/web/20080217040617/http://noticias.uol.com.br/ultnot/2008/02/14/ult23u1166.jhtm |archive-date=February 17, 2008 |df=mdy-all }}</ref> | |||
"The threat of being sent to a camp under fire was their way of keeping us quiet. The employees who talked to auditors were sent to camps under more fire than other camps, and ]." This report led Dorgan and others to voice considerable outrage. | |||
In 2008, Halliburton agreed to outsource its mission-critical information technology infrastructure to a ] data center operated by CyrusOne Networks LLC.<ref>Gunter, Ford. "." '']''. Friday November 28, 2008. Retrieved on December 17, 2009.</ref> | |||
Allan Waller testified to specific examples of how KBR officials had conspired in blocking of Lloyd-Owen fuel transports, and using other coercive means against its competitor. ] based Lloyd-Owen has a direct contract with the Iraqi government to provide fuel to various parts of the country. | |||
On May 14, 2010, President ] said in an interview with ] that "you had executives of BP and Transocean and Halliburton falling over each other to point the finger of blame at somebody else" when referring to the congressional hearings held during the ]. "The American people could not have been impressed with that display, and I certainly wasn't." According to Tim Probert, executive vice president of Halliburton, "Halliburton, as a service provider to the well owner, is contractually bound to comply with the well owner's instructions".<ref>{{cite web|url=https://www.pbs.org/nbr/site/onair/transcripts/gulf_oil_disaster_blame_100512/ |title=The Gulf Oil Disaster Blame Game |publisher=PBS.org |access-date=June 24, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110415212141/http://www.pbs.org/nbr/site/onair/transcripts/gulf_oil_disaster_blame_100512/ |archive-date=April 15, 2011 }}</ref> | |||
In his introductory remarks, Dorgan said that Senate ] had blocked any attempts at having a formal bi-partisan hearing, resulting in a separate committee. | |||
It was anticipated that Halliburton's $2.5 billion "Restore Iraqi Oil" (RIO) contract<ref name=waxman>{{cite journal|first=Henry A.|last=Waxman|author-link=Henry Waxman|title=Fact Sheet: Halliburton's Iraq Contracts Now Worth over $10 Billion|date=December 9, 2004|url=http://oversight.house.gov/documents/20050916123931-74182.pdf|access-date=January 22, 2007|archive-url=https://web.archive.org/web/20070426011102/http://oversight.house.gov/documents/20050916123931-74182.pdf |archive-date=April 26, 2007}}</ref> would pay for itself as well as for reconstruction of the entire country. Plans called for more oil to be exported from Iraq's northern oil fields than actually occurred. Halliburton's work on the pipeline crossing the ] river at ] has been called a failure. Critics claim that the oil fields are barely usable and access to international markets is severely limited. As an example, against the advice of its own experts, Halliburton attempted to dig a tunnel through a geological ]. The underground terrain was a jumble of boulders, voids, cobblestones, and gravel and not appropriate 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.<ref>{{cite news|url=https://www.nytimes.com/2006/04/25/world/middleeast/25pipeline.html?_r=1&pagewanted=1&n=Top/News/World/Countries%20and%20Territories/Iraq&oref=slogin|title=Rebuilding of Iraqi pipeline as disaster waiting to happen|author=James Glanz|date=April 25, 2006|access-date=December 1, 2007|work=]|url-status=live|archive-url=https://web.archive.org/web/20130530152002/http://www.nytimes.com/2006/04/25/world/middleeast/25pipeline.html?_r=1&pagewanted=1&n=Top%2FNews%2FWorld%2FCountries%20and%20Territories%2FIraq&oref=slogin|archive-date=May 30, 2013|df=mdy-all}}</ref> | |||
{{seealso|State-corporate crime}} | |||
=== Proposed acquisition of Baker Hughes === | |||
==See also== | |||
On November 17, 2014, Halliburton and ] jointly announced a definitive agreement under which Halliburton will, subject to the conditions set forth in the agreement, acquire Baker Hughes in a stock and cash transaction valued at $34.6 billion. A press release made available on the former's website, as at December 11, 2014 detailed the restructuring in the integration to follow. The firm announced it would acquire ] for around $35 billion in cash and stock, creating an oilfield services company that aims to compete with ].<ref>{{cite press release| work=]| date=17 November 2014| title=Halliburton to buy Baker Hughes for about $35 billion| url=https://www.reuters.com/article/us-bakerhughes-offer-idUSKCN0J116520141117| url-status=live| archive-url=http://archive.wikiwix.com/cache/20170703191542/https://www.reuters.com/article/2014/11/17/us-bakerhughes-offer-idUSKCN0J116520141117| archive-date=July 3, 2017| df=mdy-all}}</ref> Prior to the merger of Baker Hughes and Halliburton, Halliburton must divest over $5 billion of its assets according to the regulations created by US competition enforcement authorities.<ref name=Divestiture2015>{{cite web|title=Halliburton and Baker Hughes Announce Additional Divestiture Proposals|url=https://www.halliburton.com/en-US/news/hal-divestitures.page|website=Halliburton dot com|access-date=27 October 2015|url-status=dead|archive-url=https://web.archive.org/web/20151011125056/http://www.halliburton.com/en-US/news/hal-divestitures.page|archive-date=October 11, 2015|df=mdy-all}}</ref> The merger had a deadline of the end of April 2016 after which, if a decision had not been made, both companies could walk away from the deal if they chose. At the beginning of May 2016, the day after the deadline expired, Halliburton and Baker Hughes announced the termination of the merger agreement.<ref>{{cite web|title=Halliburton and Baker Hughes set to terminate $35 billion deal|url=https://www.cnbc.com/2016/05/01/halliburton-baker-hughes-set-to-terminate-35b-deal-source.html|website=CNBC|date=May 2, 2016|access-date=2 May 2016|url-status=live|archive-url=https://web.archive.org/web/20160502052125/http://www.cnbc.com/2016/05/01/halliburton-baker-hughes-set-to-terminate-35b-deal-source.html|archive-date=May 2, 2016|df=mdy-all}}</ref><ref>{{cite news|title=Halliburton and Baker Hughes said to call off $28 billion merger|url=https://www.bloomberg.com/news/articles/2016-05-01/halliburton-baker-hughes-said-to-call-off-28-billion-merger|newspaper=Bloomberg.com|access-date=2 May 2016|url-status=live|archive-url=https://web.archive.org/web/20160501210019/http://www.bloomberg.com/news/articles/2016-05-01/halliburton-baker-hughes-said-to-call-off-28-billion-merger|archive-date=May 1, 2016|df=mdy-all|date=May 2, 2016}}</ref> | |||
*] | |||
*] | |||
*] | |||
=== Chemical plant in Saudi Arabia === | |||
==Notes== | |||
On March 1, 2022, Halliburton inaugurated its MultiChem facility in ] PlasChem Park, which will make ] an ]er of specialty products from an ]er of specialty products.<ref>{{Cite web |date=2022-03-02 |title=Halliburton opens chemical plant in Saudi Arabia |url=https://arab.news/2hmac |access-date=2022-03-02 |website=Arab News |language=en}}</ref> | |||
<!--See ] for an explanation of how to generate footnotes using the <ref(erences/)> tags--> | |||
<references/> | |||
== Controversies and criticism == | |||
==External links== | |||
=== Iraq War === | |||
{{commons|Halliburton}} | |||
Halliburton has become the object of several controversies involving the ] and the company's ties to former U.S. Vice President ]. Cheney retired from the company during the ] campaign with a severance package worth $36 million.<ref>{{cite news|url=https://www.theguardian.com/international/story/0,3604,1150320,00.html |title=Halliburton suspends bill for army meals |work=The Guardian|date=February 18, 2004|access-date=September 5, 2009 |location=London |first=David |last=Teather}}</ref> As of 2004, he had received $398,548 in ] from Halliburton while Vice President.<ref name="factcheck-cheney">{{cite web|date=September 30, 2004 |url=http://www.factcheck.org/article261.html |title=Kerry Ad Falsely Accuses Cheney on Halliburton |publisher=FactCheck.org |access-date=April 11, 2006 |url-status=dead |archive-url=https://web.archive.org/web/20060409195039/http://www.factcheck.org/article261.html |archive-date=April 9, 2006}}</ref> Cheney was chairman and CEO of Halliburton Company from 1995 to 2000 and has received stock options from Halliburton.<ref>{{cite news|url=https://www.cbsnews.com/news/cheneys-halliburton-ties-remain/ |title=Cheney's Halliburton Ties Remain |publisher=CBS News |date= September 26, 2003|access-date=September 26, 2003}}</ref> | |||
* official corporate site | |||
In the run-up to the Iraq War, Halliburton ] a $7 billion contract for which only Halliburton was allowed to bid.<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/world/middle_east/7444083.stm |title=BBC uncovers lost Iraq billions |publisher=BBC |date=June 10, 2008 |access-date=January 7, 2011 |first=Jane |last=Corbin |url-status=live |archive-url=https://web.archive.org/web/20090604165714/http://news.bbc.co.uk/1/hi/world/middle_east/7444083.stm |archive-date=June 4, 2009 |df=mdy-all}}</ref> | |||
* April 2006. | |||
* | |||
* | |||
* | |||
* at ] | |||
* media watch | |||
* from ''The Handbook of Texas'' | |||
* from ] ] ] | |||
* from ] ] ] | |||
* from '']'', ] ]. | |||
* | |||
* | |||
* from About.com Conservative Politics | |||
* PBS special on Halliburton, KBR and other contractors in Iraq and Afghanistan | |||
], 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 (]) and the Pentagon's inspector general. These investigations found no wrongdoing within the contract award and execution process.{{Citation needed|date=March 2020}} | |||
] | |||
] | |||
In one of Greenhouse's claims, she said that military auditors caught Halliburton overcharging the Pentagon for fuel deliveries into Iraq. She also complained that Defense Secretary ]'s office took control of every aspect of Halliburton's $7 billion Iraqi oil/infrastructure contract. Greenhouse was later demoted for poor performance in her position.<ref>{{cite news |url=https://www.nytimes.com/2005/08/29/international/middleeast/29halliburton.html |title=Army Contract Official Critical of Halliburton Pact Is Demoted |work=The New York Times |date=August 29, 2005 |access-date=August 29, 2005 |first=Erik |last=Eckholm |url-status=live |archive-url=https://web.archive.org/web/20110731165249/http://www.nytimes.com/2005/08/29/international/middleeast/29halliburton.html |archive-date=July 31, 2011 |df=mdy-all}}</ref> Greenhouse's attorney, Michael Kohn, portrayed her performance reviews as punishment for criticizing the administrations. He stated in '']'' 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."<ref>{{cite news |url=https://query.nytimes.com/gst/fullpage.html?res=9D03E3DE1631F93AA1575BC0A9639C8B63&sec=&spon=&pagewanted=all |work=The New York Times |title=REACH OF WAR: PROCUREMENT; Army Contract Official Critical of Halliburton Pact Is Demoted |author=Erik Eckholm |date=August 29, 2005 |url-status=live |archive-url=https://web.archive.org/web/20160305100009/http://query.nytimes.com/gst/fullpage.html?res=9D03E3DE1631F93AA1575BC0A9639C8B63&sec=&spon=&pagewanted=all |archive-date=March 5, 2016 |df=mdy-all}}</ref> | |||
] | |||
] | |||
=== Deepwater Horizon explosion === | |||
] | |||
An internal report released in 2010 by ] into the ] claimed that poor practices of Halliburton staff had contributed to the disaster. Investigations carried out by the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling found that Halliburton was jointly at fault along with BP and Transocean for the spill. The cement that Halliburton used was an unstable mixture, and eventually caused hydrocarbons to leak into the well, causing the explosion that started the crisis.<ref>{{cite web |url=http://www.oilspillcommission.gov/sites/default/files/documents/FinalReportIntro.pdf |title=Deepwater Horizon Accident Investigation Report |publisher=BP |date=September 8, 2010 |access-date=September 8, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20111014062917/http://www.oilspillcommission.gov/sites/default/files/documents/FinalReportIntro.pdf |archive-date=October 14, 2011 |df=mdy-all }}</ref> | |||
] | |||
] | |||
Halliburton pleaded guilty to destroying evidence after the April 2010 Deepwater Horizon disaster; the company destroyed computer simulations it performed in the months after the accident, simulations that contradicted Halliburton's claim that it was BP who had not followed Halliburton's advice. BP had employed Halliburton to oversee the process by which cement is used to seal casing in oil and gas wells, thereby preventing leaks. Government investigators had ordered companies involved in drilling the well to preserve all relevant evidence.<ref>{{cite news |url=https://www.wsj.com/articles/SB10001424127887324564704578628472663785926 |work=The Wall Street Journal |title=Halliburton to Plead Guilty to Destroying Deepwater Horizon Evidence – WSJ.com |url-status=live |archive-url=https://web.archive.org/web/20180313153759/https://www.wsj.com/articles/SB10001424127887324564704578628472663785926 |archive-date=March 13, 2018 |df=mdy-all}}</ref> | |||
=== Allegations of corruption in Nigeria === | |||
In early December 2010, the ] filed ] charges against Cheney in connection with his role as the chief executive of Halliburton.<ref>Bloomberg (2010) {{webarchive|url=https://web.archive.org/web/20170223042932/https://www.bloomberg.com/news/2010-12-07/nigeria-files-charges-against-dick-cheney-halliburton-over-bribery-case.html/ |date=February 23, 2017 }}. Retrieved December 9, 2010.</ref><ref>New York Daily News (2010) {{webarchive|url=https://web.archive.org/web/20101211061034/http://www.nydailynews.com/news/politics/2010/12/08/2010-12-08_exvice_president_dick_cheney_charged_in_bribery_case_in_nigeria.html?r=news%2Fpolitics |date=December 11, 2010 }}. Retrieved December 9, 2010.</ref> The case relates to an alleged $182 million contract involving a four-company joint venture to build a liquefied natural gas plant on ] in southern Nigeria.<ref name=USAToday>{{cite news |title=For $250M, Nigeria drops bribery charges against Cheney, Halliburton |url=http://content.usatoday.com/communities/ondeadline/post/2010/12/for-250m-nigeria-drops-bribery-charges-against-cheney-halliburton-/1 |first=Michael |last=Winter |date=December 17, 2010 |work=USA Today |url-status=live |archive-url=http://archive.wikiwix.com/cache/20110701024903/http://content.usatoday.com/communities/ondeadline/post/2010/12/for-250m-nigeria-drops-bribery-charges-against-cheney-halliburton-/1 |archive-date=July 1, 2011 |df=mdy-all}}</ref> Earlier in 2009, KBR, a former subsidiary of Halliburton, agreed to pay $402 million after admitting that it bribed Nigerian officials, and Halliburton paid $177 million to settle allegations by the ] without admitting any wrongdoing.<ref name=Bloomberg/><ref>BBC News (2010) {{webarchive|url=https://web.archive.org/web/20101203045553/http://www.bbc.co.uk/news/world-africa-11902489 |date=December 3, 2010}}. Retrieved December 2, 2010.</ref> In mid-December 2010, the case was ] when Nigeria agreed to drop the corruption charges against Cheney and Halliburton in exchange for a $250 million settlement.<ref name=Bloomberg>{{cite magazine|url=http://www.businessweek.com/news/2010-12-17/nigeria-withdraws-charges-against-cheney-halliburton.html|title=Nigeria Withdraws Charges Against Cheney, Halliburton|access-date=December 18, 2010|magazine=Bloomberg Businessweek|url-status=dead|archive-url=https://web.archive.org/web/20101222163158/http://www.businessweek.com/news/2010-12-17/nigeria-withdraws-charges-against-cheney-halliburton.html|archive-date=December 22, 2010|df=mdy-all}}</ref> According to Femi Babafemi, the spokesperson for the Economic and Financial Crimes Commission, the $250 million would include approximately $130 million frozen in a ], and the rest would be paid as fines.<ref name=USAToday/> | |||
The ] details 10 instances of misconduct since 1995 under which Halliburton has agreed to pay settlements of $791 million.<ref>{{cite web |url=http://www.contractormisconduct.org/index.cfm/1,73,221,html?ContractorID=149 |title=Federal Contractor Misconduct Database – Halliburton |publisher=] |access-date=January 7, 2011 |url-status=dead |archive-url=http://webarchive.loc.gov/all/20121015032430/http%3A//www.contractormisconduct.org/index.cfm/1%2C73%2C221%2Chtml?ContractorID%3D149 |archive-date=October 15, 2012 |df=mdy-all }}</ref> A further 22 instances of misconduct relate to the company's former subsidiary KBR.<ref>{{cite web |url=http://www.contractormisconduct.org/index.cfm/1,73,221,html?ContractorID=29 |title=Federal Contractor Misconduct Database – KBR |publisher=] |access-date=January 7, 2011 |url-status=dead |archive-url=http://webarchive.loc.gov/all/20121009041036/http://www.contractormisconduct.org/index.cfm/1,73,221,html?ContractorID=29 |archive-date=October 9, 2012 |df=mdy-all }}</ref> | |||
=== Environmental issues === | |||
In 2002, Toxics Release Inventory (TRI) reports were completed to measure the amount of chemicals emitted from Halliburton's ] facility. The TRI is a publicly available EPA database that contains information on toxic chemical releases and waste management activities reported annually by certain industries as well as federal facilities. The facility had 230 TRI air releases in 2001 and 245 in 2002.<ref> {{webarchive|url=https://web.archive.org/web/20080803141213/http://www.scorecard.org/env-releases/facility.tcl?tri_id=77032HGHSD15815 |date=August 3, 2008 }} – Scorecard</ref> | |||
On June 7, 2006, Halliburton's ] facility created a toxic cloud that forced people to evacuate their homes.<ref> {{webarchive|url=https://web.archive.org/web/20160303235555/http://www.abqjournal.com/news/state/apcloud06-07-06.htm |date=March 3, 2016 }} – ]. – (c/o '']'') June 7, 2006.</ref> | |||
Halliburton may also be implicated<ref> '']'', May 1, 2010</ref> in the oil spills in the ] off Australia in August 2009 and in the Gulf of Mexico in April 2010 for improper cementing. Halliburton staff were employed on the Transocean operated '']'' oil rig in the Mexican Gulf. Halliburton staff completed cementation of the final production well 20 hours prior to the Deepwater Horizon drilling rig explosion, but had not yet set the final.<ref>{{cite web|url=http://www.glgroup.com/News/Halliburton-issues-statement-on-Deepwater-Horizon-incident-48126.html|publisher=GLG – Gerson Lehrman Group|title=Halliburton issues statement on Deepwater Horizon incident | |||
|url-status=live |archive-url=https://web.archive.org/web/20100622235954/http://www.glgroup.com/News/Halliburton-issues-statement-on-Deepwater-Horizon-incident-48126.html|archive-date=June 22, 2010|df=mdy-all}}</ref> | |||
In July 2013, Halliburton Co agreed to plead guilty to charges that it destroyed evidence relating to the 2010 Deepwater Horizon oil spill. This incurred a $200,000 fine; the firm also agreed to three years of probation and to continue cooperating with the criminal probe into the spill.<ref>{{cite news |title=Halliburton pleads guilty to destroying Gulf spill evidence |author=Jonathan Stempel and Braden Reddall |work=Reuters |url=https://www.reuters.com/article/us-gulf-spill-halliburton-idUSBRE96O1HF20130726?feedType=RSS&feedName=topNews&dlvrit=992637 |date=25 July 2013 |url-status=live |archive-url=https://web.archive.org/web/20130726110554/http://www.reuters.com/article/2013/07/26/us-gulf-spill-halliburton-idUSBRE96O1HF20130726?feedType=RSS |archive-date=July 26, 2013 |df=mdy-all}}</ref> In September 2014, the company agreed to pay $1.1 billion in damages to settle the majority of claims against it relating to the explosion, removing the uncertainty which had hung over the company for the previous four years.{{Citation needed|date=November 2024}} | |||
=== Jamie Leigh Jones incident === | |||
] testified at a Congressional hearing that she had been gang-raped by as many as seven co-workers in Iraq in 2005 when she was an employee of KBR, and then falsely imprisoned in a shipping container for 24 hours without food or drink.<ref> {{webarchive|url=https://web.archive.org/web/20171023175020/http://www.nytimes.com/2008/02/13/world/middleeast/13contractors.html?_r=1&bl&ex=1203051600&en=bf8812ecc5524a95&ei=5087%0A&oref=slogin |date=October 23, 2017 }}.</ref><ref name=think>{{cite web|url=http://thinkprogress.org/politics/2009/09/16/60879/jones-sue-kbr/|title=Court rules that KBR employee's gang rape wasn't a personal injury 'arising in the workplace.'|last=Amanda Terkel|website=]|date=September 16, 2009|url-status=live|archive-url=https://web.archive.org/web/20160729091407/http://thinkprogress.org/politics/2009/09/16/60879/jones-sue-kbr/|archive-date=July 29, 2016|df=mdy-all}}</ref> KBR was a subsidiary of Halliburton at the time. Jones and her lawyers said that 38 women have contacted her reporting similar experiences while working as contractors in Iraq, Kuwait, and other countries. On September 15, 2009, the Fifth Circuit Court of Appeals ruled in favor of Halliburton, in a 2 to 1 ruling, and found that her alleged injuries were not, in fact, in any way related to her employment and thus, not covered by the contract. This decision effectively meant that the mandatory arbitration clause in her contract did not apply.<ref name=think/> | |||
These incidents have tainted the public perception of Halliburton, with a consumer study rating it as the fifth least reputable company in America.<ref>{{cite news |url=https://www.forbes.com/2011/04/04/most-least-reputable-companies-leadership-sales-leadership_2.html |title=America's Most and Least Reputable Companies – Forbes |work=] |access-date=October 8, 2011 |first=Jacquelyn |last=Smith |date=April 5, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110925072138/http://www.forbes.com/2011/04/04/most-least-reputable-companies-leadership-sales-leadership_2.html |archive-date=September 25, 2011 |df=mdy-all }}</ref> | |||
=== Sale of KBR === | |||
On April 15, 2006, Halliburton filed a registration statement with the ] to sell up to 20 percent of its KBR stock on the ] under the ticker symbol "KBR", as part of an eventual plan for KBR to be a separate company from Halliburton.<ref>{{cite web|url=http://library.corporate-ir.net/library/67/676/67605/items/199968/KBR_S1.pdf|title=Amendment No. 5 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 – KBR, Inc.|website=corporate-ir.net|access-date=May 8, 2018|url-status=dead|archive-url=https://web.archive.org/web/20131002020054/http://library.corporate-ir.net/library/67/676/67605/items/199968/KBR_S1.pdf|archive-date=October 2, 2013|df=mdy-all}}</ref> | |||
In November 2006, Halliburton began selling 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, ] and ], over the next 10 years.<ref>{{cite news |url=https://www.reuters.com/article/ousiv/idUSN2833255320070629 |title=KBR, Fluor, Dyncorp win US Army contract, shrs up |work=Reuters |date=June 28, 2007 |access-date=September 5, 2009 |url-status=live |archive-url=https://web.archive.org/web/20090110190237/http://www.reuters.com/article/ousiv/idUSN2833255320070629 |archive-date=January 10, 2009 |df=mdy-all }}</ref> | |||
=== Baghdad incident === | |||
In accordance with the ] and to maintain ] status, Halliburton does not arm its truck drivers. Trucks are often the target of ] attacks. On September 20, 2005, a convoy of four Halliburton trucks was ambushed north of Baghdad. All four trucks were struck by ]s and were disabled. Their US ] escort was thought to have abandoned the disabled vehicles, leaving the drivers defenseless. Three of the four truck drivers were killed by the insurgents while the surviving driver caught the event on video. Although the trucks had military camouflage paint, the drivers were civilian. The US military returned to the scene 45 minutes later.<ref>{{cite web|author=Brian Ross and Rhonda Schwartz Report |url=http://blogs.abcnews.com/theblotter/2006/09/exclusive_us_tr.html |title=The Blotter: Exclusive: U.S. Troops Abandoned Me, Says Convoy Driver |publisher=Blogs.abcnews.com |date=September 27, 2006 |access-date=September 5, 2009}}</ref> However, in a statement by senior military officials in Iraq, an investigation revealed that troops did not abandon the civilians and they were all exiting the "kill zone" during the ambush.<ref>{{cite web | url=http://209.157.64.201/focus/f-news/1711404/posts | title=Leaders: reports 'false, inaccurate' | date=September 30, 2006 | access-date=July 26, 2013 | publisher=Free Republic (originally by ]) | url-status=live | archive-url=http://archive.wikiwix.com/cache/20130728220849/http://209.157.64.201/focus/f-news/1711404/posts | archive-date=July 28, 2013 | df=mdy-all }}</ref><ref>{{cite web|url=http://www.mnf-iraq.com/index.php?option=com_content&task=view&id=6056&Itemid=18 |title=Multi-National Force – Iraq – Leaders: reports 'false, inaccurate' |publisher=Mnf-iraq.com |date=September 30, 2006 |access-date=September 5, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090810193412/http://www.mnf-iraq.com/index.php?option=com_content&task=view&id=6056&Itemid=18 |archive-date=August 10, 2009 }}</ref> | |||
=== Restatements === | |||
On March 31, 2003, Management at Halliburton restated earnings downward by $14 million for the fourth quarter of 2002. In the restatement, an additional $3 million expense (net of tax) to continuing operations and an $11 million expense, net of tax, to discontinued operations were recorded.<ref>{{cite web|url=http://www.cfo.com/article.cfm/3008862/2/c_3043233 |title=Newmont, Halliburton to Restate Results |url-status=dead |archive-url=https://web.archive.org/web/20051204204937/http://www.cfo.com/article.cfm/3008862/2/c_3043233 |archive-date=December 4, 2005 }}</ref> On March 2, 2005, Halliburton restated its 2004 fourth-quarter earnings to add $2 million US in after-tax losses to reflect the collection of a $10 million receivable that had been reserved and a correction in lease accounting.{{Citation needed|date=November 2024}} | |||
=== Health impacts === | |||
Halliburton has been criticized for its impacts on public health and the environment, most notably with the passing of the ], also known as the Halliburton loophole. This law notably exempted chemicals used during hydraulic fracturing from the ], ], ], and ] ("Superfund"). As a result of this, fracking fluids did not have to be reported to the EPA, rendering the ] unable to legally regulate or monitor them.<ref>{{Cite web |title=What is the Halliburton loophole? |url=https://bigthink.com/the-present/halliburton-loophole/ |access-date=2022-03-28 |website=Big Think |date=June 25, 2019 |language=en-US}}</ref><ref>{{Cite news |date=2013-07-15 |title=Analysis: Fracking water's dirty little secret - recycling |language=en |work=Reuters |url=https://www.reuters.com/article/us-fracking-water-analysis-idUSBRE96E0ML20130715 |access-date=2022-03-28}}</ref><ref>{{Cite web |last=Cama |first=Timothy |date=2016-07-27 |title=Clinton wants to end 'Halliburton loophole' on fracking, adviser says |url=https://thehill.com/policy/energy-environment/289475-clinton-wants-to-end-halliburton-loophole-on-fracking-adviser-says |access-date=2022-03-28 |website=TheHill |language=en}}</ref> | |||
In 2020, it was reported that out of nine companies the EPA has asked full disclosure from with regards to the chemicals used in gas drilling, Halliburton was the only one that refused to comply.<ref>{{Cite web |last1=Baca |first1=Marie C. |last2=ProPublica |date=2010-11-18 |title=Halliburton Winning Battle in Pennsylvania to Keep Its Fracking Secrets |url=https://insideclimatenews.org/news/18112010/halliburton-winning-battle-pennsylvania-keep-its-fracking-secrets/ |access-date=2022-03-28 |website=Inside Climate News |language=en-US}}</ref><ref name="Baca"/> | |||
=== Illegal retaliation against whistleblower === | |||
In 2015, after a decade-long legal battle, Halliburton was declared guilty for illegally retaliating against ] Tony Menendez.<ref name=":3">{{Cite web |last=Eisinger |first=Jesse |title=The Whistleblower's Tale: How An Accountant Took on Halliburton |url=https://www.propublica.org/article/the-whistleblowers-tale-how-an-accountant-took-on-halliburton?token=QWMHNu1frTkwNtZ9tn8Uvt0O9Qq1EbGO |access-date=2022-03-29 |website=ProPublica|date=April 21, 2015 }}</ref> Menendez had filed a case with the SEC over concerns that Halliburton was taking illegal actions to conceal billions of dollars;<ref name=":4" /> following this, Halliburton retaliated against Menendez in a number of ways, including stripping Menendez of his responsibilities and forbidding him from coming to most meetings.<ref name=":3" /> | |||
==Corporate affairs== | |||
=== Headquarters === | |||
] | |||
Halliburton's headquarters (North Belt Campus) are located in northern ], Texas, near ].<ref name="HQNorthBeltCampus">" {{webarchive|url=https://web.archive.org/web/20130620103557/http://www.halliburton.com/locations/ |date=June 20, 2013 }}." Halliburton. Retrieved on December 14, 2009.</ref><ref name="Haltoconsol">" {{webarchive|url=https://web.archive.org/web/20150720014824/http://www.halliburton.com/public/news/pubsdata/press_release/2009/corpnws_040309.html |date=July 20, 2015 }}." Halliburton. April 3, 2009. Retrieved on January 22, 2010.</ref> | |||
Halliburton was headquartered in ], from 1961 to 2003.<ref name="Haltoconsol"/> The company moved its headquarters from the Southland Life Building in Dallas to {{convert|50648|sqft|sqm}} of space in ] in ] in 1985.<ref>Brown, Steve. "." '']''. October 23, 1985. Retrieved on December 16, 2009.</ref> 20<!--Yes, 20--> employees worked in Halliburton's headquarters in Dallas.<ref>{{Cite news|url=http://www.myplainview.com/news/article/Halliburton-confirms-headquarters-move-from-8848440.php|title=Halliburton confirms headquarters move from Dallas to Houston|work=Plainview Daily Herald|access-date=2017-10-31|url-status=live|archive-url=https://web.archive.org/web/20171107005645/http://www.myplainview.com/news/article/Halliburton-confirms-headquarters-move-from-8848440.php|archive-date=November 7, 2017|df=mdy-all}}</ref> | |||
Halliburton planned to move its headquarters to Houston in 2002.<ref>" {{Webarchive|url=https://web.archive.org/web/20091217010706/http://www.accessmylibrary.com/coms2/summary_0286-6285624_ITM |date=December 17, 2009 }}." '']''. July 17, 2002. Retrieved on July 14, 2009.</ref> Halliburton, which signed its lease to occupy a portion of ] in ] in 2002,<ref name="HoustonCenterFive">"{{dead link|date=November 2013}}" '']''. Tuesday October 8, 2002. Retrieved on November 11, 2009.</ref> moved its headquarters there by July 2003.<ref name="Bivins3towers">Bivins, Ralph. "" (). '']''. Sunday July 27, 2003. Business 1. Retrieved on November 11, 2009.</ref> Halliburton occupied {{convert|26000|sqft|sqm}} of space on the 24th floor in 5 Houston Center.<ref name="Haltoconsol"/> | |||
] | |||
In 2009 Halliburton announced that it planned to move its headquarters to the North Belt Campus in Houston. In addition it planned to consolidate operations at its Westchase and North Belt Campus.<ref name="ClantonHalliburtLeaveDowntown">Clanton, Brett. " {{webarchive|url=https://web.archive.org/web/20090408002609/http://www.chron.com/disp/story.mpl/front/6357980.html |date=April 8, 2009 }}." '']''. April 3, 2009. Retrieved on April 3, 2009.</ref> The move occurred in 2009.<ref name="HQNorthBeltCampus"/> The {{convert|90|acre|ha}} North Belt complex was to house 2,500 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.<ref name="Haltoconsol"/> The plans for the North Belt Campus had been delayed by one year: the first phase of expansion and renovation was completed in 2012, and in 2014 new buildings, garage, cafeteria, and fitness centre were completed.<ref>Aldridge, Jenny . " {{webarchive|url=https://web.archive.org/web/20140614045945/https://www.bizjournals.com/houston/blog/breaking-ground/2014/06/details-emerge-on-halliburton-s-campus-updates.html |date=June 14, 2014 }}." '']''. Friday June 6, 2014. Retrieved on April 28, 2024.</ref> The construction of the North Belt administration building is scheduled{{When|date=March 2020}} to begin in late 2010.<ref>Dawson, Jennifer. " {{webarchive|url=https://web.archive.org/web/20121025172621/http://www.bizjournals.com/houston/stories/2009/12/28/story4.html |date=October 25, 2012 }}." '']''. Friday December 25, 2009. Retrieved on April 5, 2010.</ref> | |||
According to Marilyn Bayless, the president of the North Houston Greenspoint Chamber of Commerce, in 2003 Halliburton had planned to move operations out of the North Belt office because other area school districts offered the freeport tax exemptions while the ] (AISD), where the North Belt office is located, did not. In order to attract businesses, in May 2003<!--Last month of June 2003 is May 2003-->, AISD began offering the same tax exemption as other jurisdictions. Subsequently, Halliburton retained the North Belt office.<ref>Colley, Jenna. " {{webarchive|url=https://web.archive.org/web/20080705174351/http://houston.bizjournals.com/houston/stories/2003/06/23/story4.html |date=July 5, 2008 }}." '']''. Friday June 20, 2003. Retrieved on April 5, 2010.</ref> | |||
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== See also == | |||
{{Portal|Texas|Oklahoma|Companies|Energy}} | |||
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{{Clear}} | |||
== References == | |||
{{reflist}} | |||
== Further reading == | |||
* {{cite book|last=Briody|first=Dan|title=The Halliburton Agenda: The Politics of Oil and Money|publisher=John Wiley & Sons, Inc.|year=2004|isbn=0-471-63860-9|url-access=registration|url=https://archive.org/details/halliburtonagend00brio}} | |||
== External links == | |||
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* are archived at the ], ]. | |||
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Latest revision as of 19:28, 24 November 2024
American energy services and products company For other uses, see Haliburton (disambiguation).
Company type | Public |
---|---|
Traded as | |
Industry | Fossil fuel |
Founded | 1919; 105 years ago (1919), in Duncan, Oklahoma, U.S. |
Founder | Erle P. Halliburton |
Headquarters | Houston, Texas and Dubai UAE |
Area served | Worldwide |
Key people | Jeff Miller (president, CEO and chairman of the board) |
Revenue | US$23.02 billion (2023) |
Operating income | US$4.083 billion (2023) |
Net income | US$2.662 billion (2023) |
Total assets | US$24.68 billion (2023) |
Total equity | US$9.433 billion (2023) |
Number of employees | 48,000 (2023) |
Website | halliburton.com |
Footnotes / references |
Halliburton Company is an American multinational corporation and the world's second-largest oil service company which is responsible for most of the world's fracking operations. It employs approximately 55,000 people through its hundreds of subsidiaries, affiliates, branches, brands, and divisions in more than 70 countries. The company, though incorporated in the United States, has dual headquarters located in Houston and in Dubai.
Halliburton's major business segment is the Energy Services Group (ESG). KBR, a public company and former Halliburton subsidiary, is a major construction company of refineries, oil fields, pipelines, and chemical plants. Halliburton announced on April 5, 2007, that it had sold the division and severed its corporate relationship with KBR, which had been its contracting, engineering and construction unit as a part of the company.
The company has been criticized for its involvement in numerous controversies, including its involvement with Dick Cheney – as U.S. Secretary of Defense, then CEO of the company, then Vice President of the United States – and the Iraq War, and the Deepwater Horizon, for which it agreed to settle outstanding legal claims against it by paying litigants $1.1 billion.
KBR, one of Halliburton's subsidiaries at the time, paid bribes to high-ranking Nigerian officials between 1994 and 2004. Under a deal reached with the U.S. Justice Department, Halliburton has agreed to pay $382 million to settle the bribery case.
In 2015, Halliburton was found guilty in court for illegal retaliation against a whistleblower who filed a report with the SEC over concerns that the company was illegally concealing billions of dollars.
The company has also been criticized for refusing to comply with United States Environmental Protection Agency requests for transparency around chemicals it uses in hydraulic fracturing.
Jeff Miller was promoted to President of Halliburton on August 1, 2014, and CEO on June 1, 2017, replacing Dave Lesar.
Business overview
Locations
The company has dual headquarters located in Houston and in Dubai, but it remains incorporated in the United States.
Divisions
Energy services (the company's historical cornerstone), formation evaluation, digital and consulting services, production volume optimization, and fluid systems are the major business segments. These businesses continue to be profitable, and the company is one of the world's largest players in these service industries; it is second after Schlumberger, and is followed by Saipem, Weatherford International, and Baker Hughes.
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 that works in an industry that tends to have an element of volatility and is subject to significant fluctuations in revenue and profit. Asbestos-related litigation from 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. While Halliburton's revenues have increased because of its contracts in the Middle East, the overall impact on its bottom line has been mixed.
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 valued KBR at up to $2.15 billion, while others believed it could be worth closer to $3 billion by 2005. KBR became a separately listed company on April 5, 2007.
History
Early history (as HOWCO)
The company was started in 1919 by Erle P. Halliburton as the New Method Oil Well Cementing Company.
In 1920, he brought a 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" was assigned a patent from the U.S. Patent Office. Halliburton invented the revolutionary cement jet mixer, to eliminate hand-mixing of cement, and the measuring line, a tool used to guarantee cementing accuracy. By 1922, the Halliburton Oil Well Cementing Company (HOWCO) was prospering from the Mexia, Texas oil boom, having cemented its 500th well in late summer.
In 1924, the company was incorporated in Delaware, with 56 people on its payroll. The 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.
In 1926, its first foreign venture began with sale of equipment to Burma and India.
Throughout the 1930s and 1940s, Halliburton continued cementing across America. In 1938, Halliburton cemented its first offshore well using a truck on a barge off the Louisiana coast. In 1940, Halliburton opened offices in Venezuela and introduced bulk handling of cementing to the industry. In 1947, the Halliburton first marine cementing vessel went into service.
In 1951, Halliburton first appeared in Europe as Halliburton Italiana SpA, a wholly owned subsidiary in Italy. Over 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. Halliburton revenues topped $100 million for the first time in 1952.
Erle P. Halliburton died in Los Angeles in 1957. HOWCO is at this time worth $190 million with camps all over the world. The same year, HOWCO purchased Welex, which pioneered jet perforation. Otis Engineering, an oil field service and equipment company specializing in manufacturing pressure control equipment for oil and gas producing wells, was acquired in 1959.
As Halliburton
On July 5, 1961, the company changed its name to the Halliburton Company. In 1963, Halliburton was the first company in Oklahoma to receive the Presidential "E" for Export flag in recognition of notable contributions to foreign trade.
Halliburton opened a 500,000 sq ft (46,000 m) manufacturing center in Duncan, Oklahoma, in 1964. The company began to experiment with new technologies to help their services – for example, beginning in 1965 a pilot operation of a computer network system – the first such installation in the oilfield services industry. In 1966, workers broke ground for a new wing at the Research Center in Duncan that tripled the available space for the Chemical Research and Design Department.
In 1968, an automated mixing system for drilling mud was developed by Halliburton, primarily for use offshore. Gearhart Industries (acquired by Halliburton Energy Services in 1989) introduced the first digital computer logging system in 1974.
In 1969, Halliburton began construction of a base camp at Prudhoe Bay on Alaska's North Slope.
In 1975, it responded to environmental concerns by working with the nonprofit Clean Gulf Associates to contain and clean up oil spills. In 1976, Halliburton established the Halliburton Energy Institute in Duncan, Oklahoma, to provide an industry forum for disseminating technical information.
In 1980, Halliburton Research Center opened in Duncan, Oklahoma. The company's billionth sack of cement for customers was pumped in 1983. In 1989, Halliburton acquired logging and perforating specialist company Gearhart Industries and combined it with its subsidiary Welex to form Halliburton Logging Services.
Throughout the 1980s, Halliburton's subsidiaries continued their projects around the world (under management of former CEO Brian Darcy) even in countries once considered enemies. Equipment was provided for the first multiwell platform offshore China, and an Otis Engineering team controlled a gigantic Tengiz field blowout in the Soviet Union.
1990s
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. Halliburton crews also helped bring 725 burning oil wells under control in Kuwait.
In 1995, Cheney replaced Thomas H. Cruikshank, as chairman and CEO. Cruikshank had served since 1989.
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.
During 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 life-cycle management services.
In 1998, Halliburton merged with Dresser Industries, which included Kellogg. Prescott Bush was a director of Dresser Industries, which is now part of Halliburton; his son, former president George H. W. Bush, worked for Dresser Industries in several positions from 1948 to 1951, before he founded Zapata Corporation.
2000s
The Wall Street Journal reported in 2001 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 Cayman 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 worldwide through its Tehran office. Such behavior, undertaken while senior Republican (later U.S. vice president) Dick 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 U.S. person is involved in this. No U.S. person is facilitating any transaction. We are not performing directly in that country." No legal action has been taken against the company or its officials. Later, David J. Lesar, Halliburton's chief executive, announced that Halliburton would withdraw from Iran.
In April 2002, KBR was awarded a $7 million contract to construct steel holding cells at Camp X-Ray.
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 was).
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., United Arab Emirates In October 2004, after emerging from the bankruptcy protection, Halliburton opened a new 250,000-square-foot (23,000 m) facility on 35 acres (140,000 m), replacing an older facility that opened in 1948, in Rock Springs, Wyoming. With over 500 employees, Halliburton is one of the largest private employers in Sweetwater County.
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."
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.
In 2008, Halliburton agreed to outsource its mission-critical information technology infrastructure to a Dallas/Fort Worth Metroplex data center operated by CyrusOne Networks LLC.
On May 14, 2010, President Barack Obama said in an interview with CNN that "you had executives of BP and Transocean and Halliburton falling over each other to point the finger of blame at somebody else" when referring to the congressional hearings held during the Deepwater Horizon oil spill. "The American people could not have been impressed with that display, and I certainly wasn't." According to Tim Probert, executive vice president of Halliburton, "Halliburton, as a service provider to the well owner, is contractually bound to comply with the well owner's instructions".
It was anticipated that Halliburton's $2.5 billion "Restore Iraqi Oil" (RIO) contract would pay for itself as well as for reconstruction of the entire country. Plans called for more oil to be exported from Iraq's northern oil fields than actually occurred. Halliburton's work on the pipeline crossing the Tigris river at Al Fatah has been called a failure. Critics claim that the oil fields are barely usable and access to international markets is severely limited. As an example, against the advice of its own experts, Halliburton attempted to dig a tunnel through a geological fault zone. The underground terrain was a jumble of boulders, voids, cobblestones, and gravel and not appropriate 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.
Proposed acquisition of Baker Hughes
On November 17, 2014, Halliburton and Baker Hughes jointly announced a definitive agreement under which Halliburton will, subject to the conditions set forth in the agreement, acquire Baker Hughes in a stock and cash transaction valued at $34.6 billion. A press release made available on the former's website, as at December 11, 2014 detailed the restructuring in the integration to follow. The firm announced it would acquire Baker Hughes for around $35 billion in cash and stock, creating an oilfield services company that aims to compete with Schlumberger. Prior to the merger of Baker Hughes and Halliburton, Halliburton must divest over $5 billion of its assets according to the regulations created by US competition enforcement authorities. The merger had a deadline of the end of April 2016 after which, if a decision had not been made, both companies could walk away from the deal if they chose. At the beginning of May 2016, the day after the deadline expired, Halliburton and Baker Hughes announced the termination of the merger agreement.
Chemical plant in Saudi Arabia
On March 1, 2022, Halliburton inaugurated its MultiChem facility in Jubail PlasChem Park, which will make Saudi Arabia an exporter of specialty products from an importer of specialty products.
Controversies and criticism
Iraq War
Halliburton has become the object of several controversies involving the 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. As of 2004, he had received $398,548 in deferred compensation from Halliburton while Vice President. Cheney was chairman and CEO of Halliburton Company from 1995 to 2000 and has received stock options from Halliburton.
In the run-up to the Iraq War, Halliburton was awarded a $7 billion contract for which only Halliburton was allowed to bid.
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. These investigations found no wrongdoing within the contract award and execution process.
In one of Greenhouse's claims, she 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. Greenhouse was later demoted for poor performance in her position. Greenhouse's attorney, Michael Kohn, portrayed her performance reviews as punishment for criticizing the administrations. He 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."
Deepwater Horizon explosion
An internal report released in 2010 by BP into the Deepwater Horizon explosion claimed that poor practices of Halliburton staff had contributed to the disaster. Investigations carried out by the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling found that Halliburton was jointly at fault along with BP and Transocean for the spill. The cement that Halliburton used was an unstable mixture, and eventually caused hydrocarbons to leak into the well, causing the explosion that started the crisis.
Halliburton pleaded guilty to destroying evidence after the April 2010 Deepwater Horizon disaster; the company destroyed computer simulations it performed in the months after the accident, simulations that contradicted Halliburton's claim that it was BP who had not followed Halliburton's advice. BP had employed Halliburton to oversee the process by which cement is used to seal casing in oil and gas wells, thereby preventing leaks. Government investigators had ordered companies involved in drilling the well to preserve all relevant evidence.
Allegations of corruption in Nigeria
In early December 2010, the Nigerian government filed corruption charges against Cheney in connection with his role as the chief executive of Halliburton. The case relates to an alleged $182 million contract involving a four-company joint venture to build a liquefied natural gas plant on Bonny Island in southern Nigeria. Earlier in 2009, KBR, a former subsidiary of Halliburton, agreed to pay $402 million after admitting that it bribed Nigerian officials, and Halliburton paid $177 million to settle allegations by the U.S. Securities and Exchange Commission without admitting any wrongdoing. In mid-December 2010, the case was settled when Nigeria agreed to drop the corruption charges against Cheney and Halliburton in exchange for a $250 million settlement. According to Femi Babafemi, the spokesperson for the Economic and Financial Crimes Commission, the $250 million would include approximately $130 million frozen in a Swiss bank, and the rest would be paid as fines.
The Federal Contractor Misconduct Database details 10 instances of misconduct since 1995 under which Halliburton has agreed to pay settlements of $791 million. A further 22 instances of misconduct relate to the company's former subsidiary KBR.
Environmental issues
In 2002, Toxics Release Inventory (TRI) reports were completed to measure the amount of chemicals emitted from Halliburton's Harris County, Texas facility. The TRI is a publicly available EPA database that contains information on toxic chemical releases and waste management activities reported annually by certain industries as well as federal facilities. The facility had 230 TRI air releases in 2001 and 245 in 2002.
On June 7, 2006, Halliburton's Farmington, New Mexico facility created a toxic cloud that forced people to evacuate their homes.
Halliburton may also be implicated in the oil spills in the Timor Sea off Australia in August 2009 and in the Gulf of Mexico in April 2010 for improper cementing. Halliburton staff were employed on the Transocean operated Deepwater Horizon oil rig in the Mexican Gulf. Halliburton staff completed cementation of the final production well 20 hours prior to the Deepwater Horizon drilling rig explosion, but had not yet set the final.
In July 2013, Halliburton Co agreed to plead guilty to charges that it destroyed evidence relating to the 2010 Deepwater Horizon oil spill. This incurred a $200,000 fine; the firm also agreed to three years of probation and to continue cooperating with the criminal probe into the spill. In September 2014, the company agreed to pay $1.1 billion in damages to settle the majority of claims against it relating to the explosion, removing the uncertainty which had hung over the company for the previous four years.
Jamie Leigh Jones incident
Jamie Leigh Jones testified at a Congressional hearing that she had been gang-raped by as many as seven co-workers in Iraq in 2005 when she was an employee of KBR, and then falsely imprisoned in a shipping container for 24 hours without food or drink. KBR was a subsidiary of Halliburton at the time. Jones and her lawyers said that 38 women have contacted her reporting similar experiences while working as contractors in Iraq, Kuwait, and other countries. On September 15, 2009, the Fifth Circuit Court of Appeals ruled in favor of Halliburton, in a 2 to 1 ruling, and found that her alleged injuries were not, in fact, in any way related to her employment and thus, not covered by the contract. This decision effectively meant that the mandatory arbitration clause in her contract did not apply.
These incidents have tainted the public perception of Halliburton, with a consumer study rating it as the fifth least reputable company in America.
Sale of KBR
On April 15, 2006, Halliburton filed a registration statement with the Securities and 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 November 2006, Halliburton began selling 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 10 years.
Baghdad incident
In accordance with the law of armed conflict and to maintain non-combatant status, Halliburton does not arm its truck drivers. Trucks are often the target of insurgent attacks. On September 20, 2005, a convoy of four Halliburton 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 killed by the insurgents while the surviving driver caught the event on video. Although the trucks had military camouflage paint, the drivers were civilian. The US military returned to the scene 45 minutes later. However, in a statement by senior military officials in Iraq, an investigation revealed that troops did not abandon the civilians and they were all exiting the "kill zone" during the ambush.
Restatements
On March 31, 2003, Management at Halliburton restated earnings downward by $14 million for the fourth quarter of 2002. In the restatement, an additional $3 million expense (net of tax) to continuing operations and an $11 million expense, net of tax, to discontinued operations were recorded. On March 2, 2005, Halliburton restated its 2004 fourth-quarter earnings to add $2 million US in after-tax losses to reflect the collection of a $10 million receivable that had been reserved and a correction in lease accounting.
Health impacts
Halliburton has been criticized for its impacts on public health and the environment, most notably with the passing of the Energy Policy Act of 2005, also known as the Halliburton loophole. This law notably exempted chemicals used during hydraulic fracturing from the Clean Air Act, Clean Water Act, Safe Drinking Water Act, and CERCLA ("Superfund"). As a result of this, fracking fluids did not have to be reported to the EPA, rendering the EPA unable to legally regulate or monitor them.
In 2020, it was reported that out of nine companies the EPA has asked full disclosure from with regards to the chemicals used in gas drilling, Halliburton was the only one that refused to comply.
Illegal retaliation against whistleblower
In 2015, after a decade-long legal battle, Halliburton was declared guilty for illegally retaliating against whistleblower Tony Menendez. Menendez had filed a case with the SEC over concerns that Halliburton was taking illegal actions to conceal billions of dollars; following this, Halliburton retaliated against Menendez in a number of ways, including stripping Menendez of his responsibilities and forbidding him from coming to most meetings.
Corporate affairs
Headquarters
Halliburton's headquarters (North Belt Campus) are located in northern Houston, Texas, near George H.W. Bush Intercontinental Airport.
Halliburton was headquartered in Dallas, Texas, from 1961 to 2003. The company moved its headquarters from the Southland Life Building in Dallas to 50,648 square feet (4,705.4 m) of space in Lincoln Plaza in Downtown Dallas in 1985. 20 employees worked in Halliburton's headquarters in Dallas.
Halliburton planned to move its headquarters to Houston in 2002. Halliburton, which signed its lease to occupy a portion of 5 Houston Center in Downtown Houston in 2002, moved its headquarters there by July 2003. Halliburton occupied 26,000 square feet (2,400 m) of space on the 24th floor in 5 Houston Center.
In 2009 Halliburton announced that it planned to move its headquarters to the North Belt Campus in Houston. In addition it planned to consolidate operations at its Westchase and North Belt Campus. The move occurred in 2009. The 90 acres (36 ha) North Belt complex was to house 2,500 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. The plans for the North Belt Campus had been delayed by one year: the first phase of expansion and renovation was completed in 2012, and in 2014 new buildings, garage, cafeteria, and fitness centre were completed. The construction of the North Belt administration building is scheduled to begin in late 2010.
According to Marilyn Bayless, the president of the North Houston Greenspoint Chamber of Commerce, in 2003 Halliburton had planned to move operations out of the North Belt office because other area school districts offered the freeport tax exemptions while the Aldine Independent School District (AISD), where the North Belt office is located, did not. In order to attract businesses, in May 2003, AISD began offering the same tax exemption as other jurisdictions. Subsequently, Halliburton retained the North Belt office.
See also
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Further reading
- Briody, Dan (2004). The Halliburton Agenda: The Politics of Oil and Money. John Wiley & Sons, Inc. ISBN 0-471-63860-9.
External links
- Official website
- Halliburton Oil Well Cementing Company records are archived at the American Heritage Center, University of Wyoming.
- Business data for Halliburton:
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