Halliburton was established in 1919 and incorporated under the laws of the State of Delaware in 1924 and is one of the world’s largest diversified energy services companies with 55,000 employees in approximately 70 countries.
The Company serves major oil and natural gas companies throughout the world and operates under two divisions, which are the Completion and Production segment and the Drilling and Evaluation segment. Completion and Production delivers cementation, stimulation, intervention, pressure control, speciality chemicals, artificial lift and completion products and services, while the Drilling and Evaluation segment provides field and reservoir modelling, drilling, evaluation and precise wellbore placement solutions.
Halliburton operates worldwide and the business operations are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS and the Middle East/Asia.
2017 was generally successful for the Halliburton´s oil and gas industry. According to the Annual Report, the Company´s revenue grew 30% from $15.9 billion in 2016 to $20.6 billion in 2017 with the Completion and Production segment improving 47% and the Drilling and Evaluation segment improving 8%.
Operating income reached $1.4 billion in 2017, compared to significant operating losses of $6.778 million in 2016 and $165 million in 2015. These results were primarily driven by improved activity, utilization and pricing in the United States. Operating results were also impacted by $647 million and $3.4 billion of impairments and other charges recorded during 2017 and 2016, respectively. Additionally, in 2016 Halliburton incurred $4.1 billion merger related costs, primarily due to a $3.5 billion termination fee and charges of $464 million. The merger-related costs during 2016 enabled Halliburton to reduce its debt by $1.4 billion or by 72% compared to 2016 and strengthen its financial flexibility.
Segmentally, Completion & Production revenue grew by $4.2 billion, or 47% from $8.9 billion in 2016 to $13.1 billion in 2017, and the generated operating income reached $1.6 billion and grew by almost 1500% compared to $107 million in 2016. The average US land rig count increased by 76% compared to 2016. The revenue of the Drilling & Evaluation segment grew by 8% or $538 million, from $7.0 billion in 2016 to $7.5 billion during the year, driven by increased drilling activity in North America as a result of improved pricing, utilization and rig count.
Geographically, revenue from North America was $6.8 billion in 2016 and grew by 71% to $11.6 billion in 2017. The average North American rig count grew by 69%, compared to 2016. In 2017, 2016 and 2015 53%, 41% and 44% of consolidated revenue, respectively, was from the United States. No other country accounted for more than 10% of consolidated revenue during these periods. These results were driven by increases in both pricing and activity, primarily related to pressure pumping services, drilling activity and completion tool sales.
Internationally, the average international rig count for 2017 decreased by 1% compared to 2016, the international markets began to show signs of improvement in the second half of the year. This improvement was driven primarily by the Middle East, the North Sea and Latin America. Latin America revenue was $2.1 billion in 2017, a 14% increase compared to $1.8 billion in 2016, primarily related to higher drilling activity in Brazil and Colombia. Europe/Africa/CIS Europe revenue was $2.8 billion in 2017, a 7% decline compared to $3.0 billion in 2016. These decreases were driven by activity reductions and pricing pressure across the region, particularly in Angola and the North Sea. Middle East/Asia revenue was $4.2 billion in 2017, a 2% decrease compared to $4.3 in 2016, driven by reduced activity and pricing pressure, particularly for drilling and logging services in Thailand.
Halliburton is active in research and development and spent $360 million in 2017, $329 million in 2016 and $487 million in 2015 on R&D activities. The R&D program improves products, processes and engineering standards and practices. Through the acquisition of Ingrain and OPT Halliburton added two new technologies to its Drilling and Evaluation division. Ingrain specializes in the analysis of complex rock types, while OPT’s expertise covers all major aspects of field management and production analytics through a comprehensive study of oil and gas fields from the reservoir and wellbore to the surface. Product innovations during the year included Baroid’s award-winning Bara ECD, which provides solutions for narrow margin drilling application and is ideal for deepwater wells and wells with depleted zones. Bara ECD reduces non-productive time, lowers costs and improves safety. Among the efficient new tools introduced in 2017 were the Geometrix™ 4D Shaped Cutters. With four distinct geometric profiles, they reduce drilling costs through improved cutting efficiency and increased control. So, Halliburton can now offer the largest portfolio of shaped cutters in the oil and gas industry. With the acquisition of Summit ESP, a leading provider of electric submersible pump (ESP) technology, Halliburton has strengthened its artificial lift1 portfolio.
 Artificial lift provides services to maximize reservoir and wellbore recovery by applying lifting technology.