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HALLIBURTON SWOT & PESTLE


ANALYSIS

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Company Name : Halliburton

Company Sector : Oil & Gas

Operating Geography : United States, Global

About the Company : Halliburton is an American multinational energy firm which employs over

fifty thousand people as of 2018; and has dual headquarters in Dubai and Houston. It operates in

the petroleum and natural gas exploration and production domain in over 70 countries. It also

offers digital and consulting energy solutions, volume optimizations, fluid systems amongst other

services through its several subsidies. It has a strong corporate governance code and maintains

high health, environment and safety standards within the firm. Its mission as a company

identifies what it does today, why it does so and for whom. While its vision defines what it

aspires to be like and give it an image of success.

Revenue : $15.9 billion as of FY 2017.


SWOT Analysis :

The SWOT Analysis for Halliburton is given below:

Strengths Weaknesses
1.One of the world's largest providers of 1.Highly dependent on the international crude

products and services in the energy domain prices with volatility impacting its profitability

2.Strong technology arm with heavy 2.Multiple and strict governmental

inclination towards continuous innovation compliances norms to be followed in energy

3.Multiple product service lines (14) with and gas sector resulting in operational

Drilling, Production, Consulting being its key slowdown

focus 3.International sanctions and trade restrictions

4.Worldwide operations in across 70 countries impacts business both in terms of product and

with end-to-end service right from locating technology

hydrocarbons to optimizing production 4.High environmental clean-up costs and other

5.Strong brand value and constantly rated as liabilities due to environmental laws

the top firms in the oil and gas service sector 5.Negative profit margin, underperforming

6.Strong CSR focus with initiatives including when compared to its key competitors

building schools, environment conservation

etc. through the Halliburton Foundation

Opportunities Threats
1.New Fracturing operations opportunities 1.Indirect threat to oil prices from shale

with high demand for Shale gas fracking would result in operational losses

2.Utilizing latest patented technology to 2.Increased competition in the oil and gas

identify new exploration fields in times of industry will wipe out the profitability

depleting resources through its Landmark 3.Different liability laws in different countries

Solution subsidiary exposes Halliburton to operational risks like

3.Increasing support to oil fields based deep in stoppage of operations

the ocean bedrock in the backdrop of rapidly 4.Constant danger to its assets with Macondo

depleting land based oil wells incident (rig sinking) leading to high

4.Improvement in the economy and better oil unforeseeable costs

prices futures will increase firm's profitability

5.Reduction in the oil product transport cost

due to improvement plans in its supply chain

6.Increasing investments in unconventional

resources like shale, tight gas, coalbed

methane and heavy oil will diversify its

portfolio

PESTLE Analysis :

The PESTLE Analysis for Halliburton is given below:

Political Economical
1.Political stability is vital for any operation in 1.Risk of inflation, currency fluctuations,

oil and gas industry as every operation is devaluations, international interest rates and

dependent on government intervention and adverse tax policies which could restrict

regulation especially with high risk of movement of funds

nationalization of oil and gas assets 2.Volatility in economic prices of oil

2.Risk of armed conflict, war and civil unrest 3.Wage laws in the country

3.Trade regulations, work regulations and 4.Adverse tax policies, limit the movement of

price regulations impact operations funds and payment restrictions


Social Technological
1.Culture of the country of operations in terms 1.Rapid technological changes in oil

of openness to innovation, change and exploration and production domain especially

education level in automation

2.Social risk and safety impact of its employees 2.Risk of cyber-attacks to the digital platform

of Halliburton

3.Increasing automation affinity in the

industry

4.Technological sanctions which lead to

different technology being used in different

global locations

Legal Environmental
1.Mandatory compliance to multiple 1.Compliance to multiple environmental acts

regulatory requirements including safety and international treaties and constant need to

measures which is country specific monitor the environment

2.Legal liability fees and expenses which is 2.Challenge to maintain a low carbon footprint

country specific in an event of any incident 3.Country specific damage remedy laws for

3.High mandatory safety measures which natural resource depletion

needs to be followed

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