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