Major oilfield service provider Halliburton Co. (HAL) has been selected as a member of the global Dow Jones Sustainability Indexes (“DJSI”), the global indicator tracking the financial performance of leading sustainability-driven companies worldwide. Launched in 1999, DJSI is widely considered as the benchmark in this area. The index is drawn up by Dow Jones in collaboration with investment management firm Strategic Asset Management (“SAM”).
 
Halliburton has been selected as a 2010 North America and World Leader by the DJSI in the Global Oil Services sector, which the company claims is recognition of its world class services, products, and programs. However, the inclusion of the world’s second-largest oil services firm after Schlumberger Ltd. (SLB) to the sustainability indexes is being widely debated in the wake of its role in the Gulf of Mexico (“GoM”) oil disaster.
 
As a reminder, on April 20, offshore driller Transocean Inc’s (RIG) ultra-deepwater Horizon drilling platform, contracted to British major BP plc (BP), sank following an explosion while operating in the U.S. GoM off the coast of Louisiana. The incident killed 11 workers and spewed more than 200 million gallons of crude in what is touted as the worst oil spill in U.S. history. Halliburton, which was responsible for cementing the Macondo well that ruptured, had been embroiled in the incident.
 
In June this year, DJSI dropped BP from the index citing the foreseeable long-term social and environmental impact caused by its massive oil spill, in addition to the economic effects and the long-term damage to the reputation of the company. Considering that Halliburton has also been involved in the incident and the jury is still out on the quantum of blame that may lay with the company, question marks have been raised over its inclusion in the sustainability index.
 
Houston, Texas-based Halliburton offers a variety of equipment, maintenance, and engineering and construction services to the energy, industrial, and government sectors.
 
Halliburton currently retains a Zacks #3 Rank (short-term ‘Hold’ rating).
 
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HALLIBURTON CO (HAL): Free Stock Analysis Report
 
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