Hal­libur­ton may jack prices by up to 20pc, says new CEO

New Straits Times - - Business -

HOUS­TON: No. 2 oil­field ser­vice provider Hal­libur­ton Co ex­pects to raise prices at least 10 per cent, and in some cases 20 per cent or more this year, higher in­creases than many cus­tomers ex­pect but ones that com­pany ex­ec­u­tives said are cru­cial to fuel the oil in­dus­try’s growth.

The ris­ing busi­ness ac­tiv­ity comes as Jeff Miller pre­pares to be­come the com­pany’s chief ex­ec­u­tive of­fi­cer next month, tak­ing over from Dave Le­sar.

“We will con­tinue to im­ple­ment our strat­egy,” said Miller in an in­ter­view, here. “North Amer­ica is ab­so­lutely our growth story to­day.”

Miller, Le­sar and other ex­ec­u­tives have been in talks with cus­tomers for months about rais­ing rates for Hal­libur­ton’s myr­iad ser­vices, high­light­ing not only the com­pany’s scale but its ex­pe­ri­ence.

Hal­libur­ton was the first com­pany to hy­drauli­cally frac­ture, or frack, a well, pi­o­neer­ing the process in 1949.

Many cus­tomers had locked in ser­vice rates dur­ing the two-year price down­turn when Hal­libur­ton laid off more than 35,000 em­ploy­ees. To­day, with the Amer­i­can shale oil in­dus­try whirring again, Hal­libur­ton is at max ca­pac­ity for many ser­vices and itch­ing to charge more.

Hal­libur­ton has hired more than 2,000 work­ers since the oil in­dus­try started to re­cover, more than half of them for­mer em­ploy­ees. Reuters

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