51. Q&A: An Interview With Halliburton CEO Jeff Miller
- Author
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John P. Donnelly
- Subjects
Fuel Technology ,biology ,Strategy and Management ,media_common.quotation_subject ,Industrial relations ,Miller ,Energy Engineering and Power Technology ,Art ,biology.organism_classification ,media_common ,Management - Abstract
Q&A Your North America business is doing well. Will that continue to be your focus in the short term? We are really excited about our business in North America. We have always had significant investment in North America and as we look at the immediate future, it will be the busiest market. It is extremely impactful on many different stages. Do you see a slowdown in the unconventional business in North America, or do you think it is still on the way up? I think that North America is going to be very resilient in a $50–55/bbl world. There is a lot of demand for North America resources and I think the speed to market is really relevant and important, particularly as demand increases. Unconventionals can fill that demand most quickly because of the timing more than anything else, which is a real advantage relative to mature fields and particularly deep water. There is a lot of demand for what we do and I expect that we will be very busy in 2018. The sense I get from the customers is that the outlook is good at current commodity prices. We continue to reduce costs and make more barrels. And that’s how Halliburton spends most of its time—determining how to deliver the lowest cost per BOE. Any fear that equipment shortages or labor shortages could slow activity? I don’t think they will. The market is undersupplied today. We estimate that the market is about a million-and-a-half horsepower undersupplied for pumping equipment and I think the other services are also quite tight. Layer onto that the challenges with people and the shortages actually generate a flight to quality. One of the reasons I am confident about our business is that we have been disciplined about maintenance of our equipment and hiring people well ahead of time. That comes at a cost but the fact is there is no substitute for service quality. No substitute. Outside of North America, where are the highest priorities for Halliburton? We have outperformed the market through the downturn internationally in seven of the past eight quarters. The Middle East is extremely important to us. One of the things I am most pleased with is the ability of Halliburton to focus intently on North America, but at the same time steadily grow our international footprint. The fact is, we are present in every important market around the world today. That is something we could not have said 10 years ago and maybe even 5 years ago.
- Published
- 2018
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