February 4th, 2006 at 9:04 am
Those who watch the news more closely than most probably noticed plans (link dead) by Halliburton to spin off their Kellogg, Brown & Root branch.
This doesn’t have any direct effect on me. I’ve been working in the Energy Services Group for 9+ years now, and I’m not involved with the construction and government contracting arm of HAL.
Halliburton was first an oil well cementing company in 1920. It then found more uses for its pumping equipment when it pioneered hydraulic fracturing over 40 years ago. Through acquisitions it became a full cradle-to-grave service company for wells. During these acquisitions it obtained Brown & Root, then an offshore platform company, in 1962. The Kellogg portion came from Halliburton’s acquisition of Dresser Industries in 1998. Kellogg and Brown & Root were then merged during the post-Dresser restructuring. More Info on KBR: Wikipedia.
Conceptually (since I am not a HAL corporate accountant) I think the split is a good thing. A market-driven company like the Energy Services Group has different incentives than a government contracting firm. I hope we can reduce some overhead that comes from dealing with potentially conflicting incentives. That’s money that goes in our profit-sharing. 
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