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In 2025, Halliburton refreshed its climate risk and opportunity assessment and scenario analysis to identify changes in the potential impacts of climate-related risks and opportunities on our business model and value chain.

We look at the short-term (< 1 year), medium-term (1-5 years), and long-term (6-10 years) to determine potential financial impact to our business and prioritize strategy and capital decisions accordingly

It is important to note that climate scenarios represent a range of possible future outcomes informed by different assumptions. These scenarios are not forecasts, but rather analytical tools that explore how the future could unfold under varying global conditions. Recognizing that no single scenario can reflect all possible outcomes. Given the inherent uncertainties, it is not possible to determine which, if any, of these scenarios will materialize.

Transition risks and opportunities

Expanding opportunities in CCUS, hydrogen, geothermal, and other low-carbon and energy sectors, supported by Halliburton's transferable expertise and equipment, reduce our exposure to transition risks.

Policy and legal risk

  • GHG emissions regulation for our customers
  • Fossil fuel and renewables production regulation

 

Applicable scenario: Lower emissions

Time horizon: Medium to long

Technology risk

  • Cost to transition to lower emissions technologies

 

Applicable scenario: Higher & lower emissions

Time horizon: Medium to long

Market risk

  • Oil and gas demand

 

Applicable scenario: Lower emissions

Time horizon: Medium to long

Market opportunity

  • CCUS
  • Geothermal
  • Hydrogen
  • Direct Lithium Extraction

 

Applicable scenario: Higher and lower emissions

Time horizon: Medium to long

Physical Risks

Over the years our locations have experienced weather events such as hurricanes, tornadoes, hailstorms, flooding, and winter snow/ice storms. Weather impacts typically result in temporary delays with no long-term sustained impact. We closely monitor each acute weather event and weather trends to assess our response plans and reduce the possible business impact of these physical risks. Our diverse manufacturing base and supply chain also minimize the risk of local impacts.

Acute

  • Hurricane
  • Flooding

Chronic

  • Extreme heat
  • Water stress

Climate scenarios used in this analysis

Risk type Scenarios Category
Physical risk analysis Shared Socioeconomic Pathways (SSP) 2-4.5 (2.1-3.5°C) Lower emissions scenario
Shared Socioeconomic Pathways (SSP) 5-8.5 (3.3-5.7°C) Higher emissions scenario
Transition risk and opportunity analysis IEA NZ (1.5°C) Lower emissions scenario
IEA STEPS (2.4-2.6°C) Higher emissions scenario