Halliburton 2015 Annual Report Download - page 42

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25
BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS
We operate in approximately 80 countries throughout the world to provide a comprehensive range of services and
products to the upstream oil and natural gas industry. A significant amount of our consolidated revenue is derived from the sale
of services and products to major, national, and independent oil and natural gas companies worldwide. The industry we serve is
highly competitive with many substantial competitors in each segment of our business. In 2015, 2014, and 2013, based on the
location of services provided and products sold, 44%, 51%, and 49% of our consolidated revenue was from the United States.
No other country accounted for more than 10% of our revenue during these periods.
Operations in some countries may be adversely affected by unsettled political conditions, acts of terrorism, civil
unrest, force majeure, war or other armed conflict, sanctions, expropriation or other governmental actions, inflation, changes in
foreign currency exchange rates, 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 be materially adverse to our consolidated results of operations.
Activity within our business segments is significantly impacted by spending on upstream exploration, development,
and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil
and natural gas consumption.
Some of the more significant determinants of current and future spending levels of our customers are oil and natural
gas prices, global oil supply, the world economy, the availability of credit, government regulation, and global stability, which
together drive worldwide drilling activity. Due to improved drilling and completion efficiencies as more of our customers move
to multi-well pad drilling, our financial performance in North America is impacted by well count in the North America market.
Additionally, our financial performance is significantly affected by oil and natural gas prices and worldwide rig activity, which
are summarized in the following tables.
The following table shows the average oil and natural gas prices for West Texas Intermediate (WTI), United Kingdom
Brent crude oil, and Henry Hub natural gas:
2015 2014 2013
Oil price - WTI (1) $ 48.69 $ 93.37 $ 97.99
Oil price - Brent (1) 52.36 99.04 108.71
Natural gas price - Henry Hub (2) 2.63 4.39 3.73
(1) Oil price measured in dollars per barrel
(2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu