Mark Urness, head of Energy Research at Calyon Securities, told “Street Signs” that people are overlooking a basic point about Halliburton and its much-debated Dubai strategy: The company will maintain its Houston headquarters and is opening an office in Dubai to better serve the Middle East.
“The distinction people have not made is that (Halliburton is) opening a corporate headquarters in Dubai,” he said Monday. “(Halliburton) isn’t moving their corporate headquarters and (Dubai) isn’t going to be their primary headquarters ... I would characterize Dubai as the Houston of the eastern hemisphere. So, it makes a great deal of sense to me for it to be located there.”
Urness said the Middle East now represents about 20% of Halliburton’s market, but is growing much faster than North America, which now generates about 50% of the company’s business.
“Other oil field service companies have been targeting the Middle East, North Africa and all of Eurasia for growth going forward,” Urness said.