Halliburton 2013 Annual Report Download - page 26

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10
Failure on our part to comply with, and the costs of compliance with, applicable health, safety, and environmental
requirements could have a material adverse effect on our liquidity, consolidated results of operations, and consolidated
financial condition.
Our business is subject to a variety of health, safety, and environmental laws, rules, and regulations in the United States
and other countries, including those covering hazardous materials and requiring emission performance standards for facilities.
For example, our well service operations routinely involve the handling of significant amounts of waste materials, some of which
are classified as hazardous substances. We also store, transport, and use radioactive and explosive materials in certain of our
operations. Applicable regulatory requirements include, for example, those concerning:
- the containment and disposal of hazardous substances, oilfield waste, and other waste materials;
- the importation and use of radioactive materials;
- the use of underground storage tanks; and
- the use of underground injection wells.
These and other requirements generally are becoming increasingly strict. Sanctions for failure to comply with the
requirements, many of which may be applied retroactively, may include:
- administrative, civil, and criminal penalties;
- revocation of permits to conduct business; and
- corrective action orders, including orders to investigate and/or clean up contamination.
Failure on our part to comply with applicable environmental requirements could have a material adverse effect on our
liquidity, consolidated results of operations, and consolidated financial condition. We are also exposed to costs arising from
regulatory compliance, including compliance with changes in or expansion of applicable regulatory requirements, which could
have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial condition.
Existing or future laws, regulations, treaties or international agreements related to greenhouse gases and climate
change could have a negative impact on our business and may result in additional compliance obligations with respect to the
release, capture, and use of carbon dioxide that could have a material adverse effect on our liquidity, consolidated results of
operations, and consolidated financial condition.
Changes in environmental requirements related to greenhouse gases and climate change may negatively impact demand
for our services. For example, oil and natural gas exploration and production may decline as a result of environmental
requirements, including land use policies responsive to environmental concerns. State, national, and international governments
and agencies have been evaluating climate-related legislation and other regulatory initiatives that would restrict emissions of
greenhouse gases in areas in which we conduct business. Because our business depends on the level of activity in the oil and
natural gas industry, existing or future laws, regulations, treaties, or international agreements related to greenhouse gases and
climate change, including incentives to conserve energy or use alternative energy sources, could have a negative impact on our
business if such laws, regulations, treaties, or international agreements reduce demand for oil and natural gas. Likewise, such
restrictions may result in additional compliance obligations with respect to the release, capture, sequestration, and use of carbon
dioxide that could have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial
condition.
Trends in oil and natural gas prices affect the level of exploration, development, and production activity of our
customers and the demand for our services and products, which could have a material adverse effect on our business,
consolidated results of operations, and consolidated financial condition.
Demand for our services and products is particularly sensitive to the level of exploration, development, and production
activity of, and the corresponding capital spending by, oil and natural gas companies, including national oil companies. The level
of exploration, development, and production activity is directly affected by trends in oil and natural gas prices, which historically
have been volatile and are likely to continue to be volatile.