Business Review: Halliburton Canada

Founded in 1919, Houston-based Halliburton is now one of the world’s largest providers of products and services to the energy industry. Its 50,000 employees, representing 140 nationalities, do business in approximately 70 countries, serving the oil and gas industry throughout the life cycle of the reservoir.

The company spans North America, Latin America, the Middle East/Asia, and Europe/Africa/Commonwealth of Independent States (CIS), with regional teams in each. It offers a total of 14 product service lines that include everything from locating hydrocarbons and managing geological data to well construction, completion, and production optimization.

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Canada Operations

Halliburton’s Canada operations span the country and cover both conventional and unconventional oil and natural gas services. Their business includes hydraulic fracturing, cementing, production chemicals, artificial lift, drilling and evaluation services, and various offshore services and operations.

The company has been present in the country since 1926 and today, it’s one of the largest oilfield services companies operating in Western Canada. Its Atlantic operations are slightly younger, with the company establishing a presence in the 1970s, but the company is now well-positioned with multiple services in the area.

Halliburton’s Canada operations also present the company with an opportunity to competitively grow its market share. Canada is a key territory in the oil and gas industry, and Halliburton’s presence in the country enables it to make valuable long-term gains.

Product Service Lines

Halliburton offers services through two divisions: Drilling and Evaluation, and Completion and Production. These divisions include several product service lines for oil and gas customers around the world.

The Drilling and Evaluation division includes field and reservoir modeling, drilling, evaluation, and wellbore placement solutions. These services help customers model, measure, and optimize well construction, and include baroid, sperry drilling, drill bits and services, wireline and perforating, software and asset solutions, and testing and subsea.

The Completion and Production division provides cementing, stimulation, intervention, and completion services. tIt includes production enhancement, completion tools, and cementing.

Together, these segments help customers maximize value throughout the lifecycle of the reservoir.

Supply Chain & Logistics

As a global company, Halliburton’s supply chain and logistics are complex. An average of 25 different entities works together to make each international move happen.

Supply Chain Management is the largest support group within the company, and is responsible for 1.8 million logistics moves every year. This global team is tasked with procuring, handling, managing, manufacturing, and transporting both materials and finished goods to customers in locations around the world.

The Supply Chain team is composed of four groups: Manufacturing, Procurement, Materials, and Logistics. Each of these teams serve an important purpose in ensuring that goods are delivered on time, to the right locations, and at a reasonable cost.

Supply Chain Governance

Halliburton minimizes its risks and costs by using four regional cross-docks and procurement Business Support Centers, or BSCs, located across the globe. These BSCs improve order placement efficiency, decrease waste in inventory, and reduce the risks of moving dangerous goods.

The company also requires all of its suppliers to comply with applicable laws and regulations, and adhere to its requirements of conducting business with fairness and integrity. This involves regular evaluations on risks related to safety, quality, environment social responsibility, economy, and governance.

The company also conducts regular supplier performance reviews to make sure that suppliers are meeting performance standards and striving for continuous improvement. Halliburton views suppliers as long-term strategic partners, and given the important role they play in the company’s success, these evaluations help ensure that it is able to deliver the best results to its customers.

Cross Docks

Its network of strategically located cross docks helps the company receive and process orders around the world.

These cross docks are essentially temporary warehouses in which goods arrive and depart, but are not stored for long periods of time. Instead, they’re used to build economical shipping loads in locations like Houston, Rotterdam, Dubai, and Singapore, which all represent important stops in the company’s major shipping lanes.

Although other companies have been using cross dock systems like this for decades, Halliburton was one of the first to use it for an international logistics chain. This has helped them move goods more quickly and given them a better way to track exactly where a shipment is throughout the shipping process.

Sustainability & Supplier Diversity

The Supply Chain team manages a global network of suppliers, warehouses, and cross docks, and has 22 manufacturing facilities around the world. The global nature of Halliburton’s supply chain makes it a major part of the company’s sustainability footprint.

Halliburton aims to minimize its Supply Chain’s environmental impact through operational efficiencies. The company maintains high standards for both its own operations and its suppliers, ranging from manufacturing to logistics.

Halliburton also strives to make sure that the communities in which it operates share the economic benefits of its operations, partially by using local, diverse suppliers. More than 80% of the company’s regional field operations spend goes to suppliers with locations within the region.

This not only gives their operations a strategic and competitive advantage, but also grows the capacity and competency of national and local industry suppliers. Halliburton also strives to support small, minority- and women-owned businesses, and offers second-tier diverse supplier spend reports to its customers.

Supply Chain Efficiency

As a major player in the oil and gas industry, Halliburton’s supply chain efficiency can have a serious impact. John Gorman, Halliburton’s VP for Canada, explains, “Halliburton is a very large organization and from a strong logistics base. So when we focused on being the lowest cost per barrel provider, we focused on the recovery factor of what we were getting out of the ground.”

The company has looked for ways of improving performance while moving towards its goal of becoming the lowest cost per barrel provider. Gorman explains, “We focused on trying to ensure that we have all of our technology resources available to make sure that our customers have the best technology to improve their production while keeping their costs at a reasonable level.”

Deepwater Operations

Halliburton prioritizes safe, reliable and efficient solutions for all of its projects. This includes deepwater operations, which present unique challenges for supply chain logistics.

Deepwater operations are typically far from established infrastructure. To deal with this challenge, Halliburton’s supply chain management system for these projects is designed with the goal of delivering consumables and capital equipment anywhere in the world in a timely manner.

The company is well-versed in responding to requests to establish warehouses and maintain inventory. Their efficient inventory management system simplifies the process of carrying out these tasks without excessive overhead costs.

Halliburton has also minimized the impact of inevitable adverse weather events on deepwater projects by positioning supply areas in a way that avoids total shutdowns of operations. For example, to serve the Gulf of Mexico, it has storage locations in Galveston, Texas, as wel as Cameron, Berwick, Port Fourchon, and Venice, Louisiana.

Supply Chain Management Program

Each year, the company’s Supply Chain group offers a select group of graduates the opportunity to participate in its Supply Chain Management Program, or SCMP. This program gives participants the opportunity to rotate through five six-month assignments in various Supply Chain groups over the course of two and a half years.

SCMP is designed to give candidates experience with high-value, high-impact projects and put them on the course for leadership roles within the company.

Supplier Technology

Halliburton Supplier Net, or HSN, is the company’s supplier collaboration portal, and helps it work with suppliers on purchase orders, open/planned orders, design collaboration, bar-coding applications, requests for technical assistance, uploading of electronic certificates, and private communication.

HSN is designed to streamline the procurement of materials (not services), particularly with those who provide to Halliburton Manufacturing locations.

Halliburton also offers its suppliers two other platforms, iPortal and EDI, for e-commerce transactions. This gives suppliers options for working with the company and managing payment in a way that fits their projects and needs.

Company values

Halliburton prioritizes ethics and integrity, and has several Guiding Principles in place to guide its decisions, plans, and actions in a way that has a positive impact on society.

Deliver Superior Value

The company aims to deliver superior value for its shareholders and outperform its competitors, then deliver transparent reports that validate its progress. Halliburton works to provide shareholders with thorough, timely information, and communicate in a way that helps achieve desired results.

Minimize Environmental Footprint

Because the company’s success relies on the resources of the planet, Halliburton values conducting operations in a way that minimizes its environmental footprint. The company works to be an industry leader in innovation and conscious use of global resources in order to minimize its impact on the planet and develop better, cleaner ways to work

Each of Halliburton’s sites are designed and built to Leadership in Energy and Environmental Design (LEED) guidelines. This helps the company minimize its field operations footprint and use energy as efficiently as possible.

Halliburton also provides global energy solutions that go beyond conventional energy sources, like geothermal. It has providing services in these areas for decades and is now leading the field in geothermal energy and carbon capture and storage.

As a result of this focus on the environment, Halliburton saw a 17% reduction in emissions intensity and 42% reduction in water consumption in 2016. They company also decreased the amount of waste it generated by 54% from 2015 to 2016.

Value Employees

Halliburton makes its employees’ economic and social well-being a priority. The company not only wants to be a preferred employer, but also make a positive impact in the communities where it operates.

It strives to improve safety performance across the oil and gas industry and as improved its Health & Safety incident rates for five consecutive years. Halliburton also offers its employees a global wellness program and encourages a culture of inclusion.

Halliburton’s corporate philanthropy totaled $2.7 billion in 2016, including $5.4 million to good causes through the Halliburton foundation.

As a result of these initiatives, the company has been recognized as a top 50 employer by both Woman Engineer and Minority Engineer magazines.

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