2007 Corporate Sustainability Report - Halliburton

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development of CBM and CMM, while eliminating emissions such as sulfur oxides, nitrogen oxides, mercury, and other air and water pollutants. In 2007, Halliburton introduced a line of hydraulic fracturing fluids especially for CBM and CMM in the U.S., Canada and Australia. These products were designed to enhance the performance of hydraulic fracturing. New fluids were developed in response to customer needs for a fluid that performs better and causes less formation damage in CBM and CMM fields. Before Halliburton introduced these products, there were no fit-forpurpose fluids for these conditions. The new Halliburton products having been successfully tested in 2007 in the San Juan Basin are now available for commercial use in other areas. Drilling Technologies Eighty percent of future gas in the Lower 48 states lies beneath protected lands. Halliburton’s Geo-Pilot® rotary steerable drilling system and the Landmark DecisionSpace suite of technologies are ideally suited for such environmentally sensitive areas. The Geo-Pilot system reduces environmental impact by enabling operators to drill multiple longdistance wells in all directions from a single drillpad. Landmark’s DecisionSpace visualization technologies illuminate the drilling environment so accurately that drilling work can often be performed more safely and efficiently away from the drillsite. Managing Produced Water The global energy industry relies on significant volumes of water to accomplish drilling, cementing, fracturing and other operations that are critical to producing hydrocarbons. In the past, the products for these operations were based on clean, potable water. With the expansion of global population, increasing development of oilfields in remote areas, and, in some cases, drought, Halliburton recognized the need to apply our chemistry expertise to developing new oilfield products that use alternate sources of water such as produced salt water. Moving to such a solution addresses the potable water challenge while minimizing the costs of another oilfield activity. By utilizing produced salt water, Halliburton provides a practical application for produced water and eliminates the operator’s costs for its disposal. Halliburton’s use of produced water for well service activities also minimizes the use of potable water for this industrial application. The alternative water-use project involves developing variations of standard Halliburton products to achieve more salt tolerance. The project includes developing equipment that mechanically and chemically modifies typical produced saltwater to a standard, workable level. These projects are under way and some are in the testing and evaluation phase. In addition, Halliburton is commercializing it's CrystalSeal service to solve the problem of produced water in injection wells. CrystalSeal swellable polymer is pumped into an injection well to shut off the direct connection from the injection well to the producing well. In 2006 and 2007, we performed approximately 130 jobs with CrystalSeal in the Permian Basin. Health, Safety and Environment Audits Halliburton’s board of directors’ Health, Safety and Environment (HSE) committee was established in 1990. It comprises a minimum of three directors, all of whom must be independent. The HSE committee generally meets twice each year to provide oversight and support of HSE policies, programs and initiatives. Internal HSE audits are carried out under the direction of the HSE committee through a corporate HSE audit group within Halliburton’s Environmental Law Department. Separating the audit function from Halliburton operations supports an impartial audit process. The corporate audit results are presented twice each year to the HSE committee. HSE audits are scheduled annually based on a riskranking profile conducted on all company operations, with high-risk locations placed on a three-year audit cycle. In 2007, the company performed 54 internal HSE audits, compared with 44 in 2006. Our HSE standards set forth the requirements for HSE audits. Biennial HSE site self-assessments utilizing the same audit protocols from the corporate audit group are performed at all operating facilities or job sites. Line management is responsible for implementation of this process. Both corporate audits and site self-assessments measure performance against regulatory requirements, company standards and client requirements. The corrective action process includes review and follow-up by executive and operations management to ensure that corrective actions are completed quickly and to eliminate any barriers to closing audits in an expeditious manner. Fines/Penalties/Remediations Halliburton is subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. As stated in our COBC, our policy is to comply with all environmental, legal and regulatory requirements of states and countries where we do business. However, in 2007, we paid fines or penalties associated with regulatory issues of $20,330 for non-compliance issues. 26 Corporate Sustainability Report 2007
As part of our compliance program and to avoid future liabilities, we assess and remediate contaminated properties as necessary; as of this report, approximately 100 sites are being remediated. We have established a $72 million reserve for site remediations. These reserve funds have increased significantly in 2007 as a result of various site-specific issues that were in arbitration and that were ruled on during 2007. HSE and Service Quality Management Systems ISO and OHSAS Compliance We continue to utilize International Standards Organization (ISO)-compliant HSE management systems across our operations. We are not planning to certify to ISO 14000 or Occupation Health and Safety Assessment Series (OHSAS) 18000 globally. However, based on local business needs, we have maintained our number of ISOcertified locations at 35, and OHSAS certifications have increased from 10 to 20 in 2007. Six of Halliburton’s seven U.S.-based manufacturing facilities are participants in the U.S. Department of Labor Occupational Health and Safety Administration’s (OSHAs) Voluntary Protection Program. These facilities, located in Duncan, Oklahoma; Broussard, Louisiana; Carrollton, Conroe, Houston and Alvarado, Texas, are recognized by OSHA as “Star Program” sites for their exemplary, comprehensive safety and health management systems, and for achieving injury and illness rates below the national average for our industry group. Index (DRSI), a system for measuring our overall job performances. It is based on a composite of five key indicators: • Zero HSE incidents • Zero cost of poor quality • Zero nonproductive time • Job purpose achieved • Customer satisfied. The DRSI helps us monitor and improve our quality and change behaviors by discovering opportunities for improvement. The DRSI remains a key measure of Halliburton’s performance and the level of excellence in our service delivery. Overall service quality objectives in 2007 were: to measure and improve service quality performance; to achieve service quality and HSE results using the established Halliburton Management System; and to communicate our performance to our customers, employees and stakeholders. The 2007 DRSI target was 94 percent. Halliburton achieved a 2007 DRSI of 96.2 percent, compared with 92.9 percent in 2006. Our customers have increasingly come to accept the DRSI as the relevant and critical measure of our job performance at the wellsite. Service quality remains a strong core value and helps define Halliburton as a customerfocused organization (see chart on page 9). Environmental Spills in cubic meters 240 165 220 192 105 57 35 2004 Reported Environmental Incidents 594 2004 HSE Notices of Violations/Citations excluding vehicle-related violations and citations 43 2004 653 2005 61 2005 2005 Hydrocarbon Liquids Non-Hydrocarbon Liquids HSE Fines/Penalties in thousands of U.S. dollars 2006 834 2006 64 2006 209 600 276 2007 745 2007 55 2007 Service Quality Though a perfect job may seem like an unattainable goal, Halliburton is working to make it a reality. In 2003, we developed the Done Right® Services 24 2004 7 2005 2006* *2006 data includes $198,000 in fines for hazardous material packing violations from the U.S. Federal Aviation Administration. 20 2007 Corporate Sustainability Report 2007 27
Page 1 and 2: HALLIBURTON Corporate Sustainabilit
Page 3 and 4: It isn’t just one thing. “Susta
Page 5 and 6: Corporate Sustainability Report 200
Page 8 and 9: Halliburton’s vision is: To be th
Page 10 and 11: June 2007 - For the second year in
Page 12: Economic Profile Worldwide activity
Page 15 and 16: Eastern Hemisphere. The company’s
Page 17 and 18: November 2007 - Halliburton’s Dri
Page 19: Now in its fifth decade, Halliburto
Page 22 and 23: Commitment to Sustainability Sustai
Page 24 and 25: United Kingdom: Country Profile In
Page 26 and 27: Utility Usage Globally Electricity
Page 30: Social Profile Senior Technical Ser
Page 33 and 34: professional development and broade
Page 35 and 36: These reductions in incident rates
Page 37 and 38: Technology), a consistometer (from
Page 39 and 40: encourages participation in Hallibu
Page 41: the performance of established supp
Page 44: HALLIBURTON © 2008 Halliburton. Al

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