Halliburton 2013 Annual Report Download - page 17

1
PART I
Item 1. Business.
General description of business
Halliburton Company’s predecessor was established in 1919 and incorporated under the laws of the State of Delaware
in 1924. We are a leading provider of services and products to the energy industry related to the exploration, development, and
production of oil and natural gas. We serve major, national, and independent oil and natural gas companies throughout the
world and operate under two divisions, which form the basis for the two operating segments we report, the Completion and
Production segment and the Drilling and Evaluation segment:
- our Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty
chemicals, artificial lift, and completion services. The segment consists of Production Enhancement, Cementing,
Completion Tools, Halliburton Boots & Coots, Multi-Chem, and Halliburton Artificial Lift.
- our Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and precise wellbore
placement solutions that enable customers to model, measure, drill, and optimize their well construction activities.
The segment consists of Baroid, Sperry Drilling, Wireline and Perforating, Drill Bits and Services, Landmark
Software and Services, Testing and Subsea, and Consulting and Project Management.
See Note 2 to the consolidated financial statements for further financial information related to each of our business
segments and a description of the services and products provided by each segment. We have significant manufacturing
operations in various locations, including the United States, Canada, Malaysia, Singapore, and the United Kingdom.
Business strategy
Our business strategy is to secure a distinct and sustainable competitive position as an oilfield service company by
delivering services and products that enable our customers to extract proven reserves and maximize recovery. Our objectives
are to:
- create a balanced portfolio of services and products supported by global infrastructure and anchored by
technological innovation to further differentiate our company;
- reach a distinguished level of operational excellence that reduces costs and creates real value;
- preserve a dynamic workforce by being a preferred employer to attract, develop, and retain the best global talent;
and
- uphold our strong ethical and business standards, and maintain the highest standards of health, safety, and
environmental performance.
Markets and competition
We are one of the world’s largest diversified energy services companies. Our services and products are sold in highly
competitive markets throughout the world. Competitive factors impacting sales of our services and products include:
- price;
- service delivery (including the ability to deliver services and products on an “as needed, where needed” basis);
- health, safety, and environmental standards and practices;
- service quality;
- global talent retention;
- understanding the geological characteristics of the hydrocarbon reservoir;
- product quality;
- warranty; and
- technical proficiency.
We conduct business worldwide in approximately 80 countries. The business operations of our divisions are organized
around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. In 2013,
2012, and 2011, based on the location of services provided and products sold, 49%, 53%, and 55% of our consolidated revenue
was from the United States. No other country accounted for more than 10% of our consolidated revenue during these periods.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and
Results of Operations” and Note 2 to the consolidated financial statements for additional financial information about our
geographic operations in the last three years. Because the markets for our services and products are vast and cross numerous
geographic lines, it is not practicable to provide a meaningful estimate of the total number of our competitors. The industries we
serve are highly competitive, and we have many substantial competitors. Most of our services and products are marketed
through our servicing and sales organizations.
Operations in some countries may be adversely affected by unsettled political conditions, acts of terrorism, civil
unrest, expropriation or other governmental actions, foreign currency exchange restrictions, and highly inflationary currencies,
as well as other geopolitical factors. We believe the geographic diversification of our business activities reduces the risk that
loss of operations in any one country, other than the United States, would significantly impact the conduct of our operations
taken as a whole.