Halliburton 2025: Pivot to CCUS & DLE Reshapes Energy
Halliburton’s 2025 Pivot: How CCUS and DLE Deals Are Reshaping the Energy Giant
Industry Adoption: Halliburton’s Transition from Decarbonizing the Core to Building New Energy Frontiers
Between 2021 and 2024, Halliburton’s energy transition strategy was primarily focused on decarbonizing its core oil and gas services. The dominant narrative was the electrification of hydraulic fracturing through its partnership with VoltaGrid. This culminated in major commercial agreements, like the late 2024 deal with Diamondback Energy to deploy four electric frac fleets powered by 200 MW of mobile generation. This period also saw the establishment of Halliburton Labs as an incubator for future technologies, supporting early-stage companies like Fervo Energy (geothermal) and Ionada (carbon capture). These were foundational moves, proving the viability of lower-carbon operations and using partnerships to de-risk entry into adjacent markets. The strategy was evolutionary, aimed at making existing services more efficient and sustainable.
The year 2025 marks a clear inflection point, where the strategy has shifted from evolution to expansion. Halliburton is now aggressively leveraging its subsurface expertise to secure major commercial contracts in entirely new, low-carbon business lines. This pivot is most evident in Carbon Capture, Utilization, and Storage (CCUS) and Direct Lithium Extraction (DLE). The August 2025 contract with the Northern Endurance Partnership (a bp, Equinor, and TotalEnergies consortium) for the UK’s first major offshore CCS project is a landmark achievement, moving Halliburton from pilot-scale involvement to a key service provider in large-scale industrial decarbonization. Similarly, its push into the battery materials supply chain is no longer theoretical; it is concrete. The June 2025 contract with GeoFrame Energy to design a combined DLE and geothermal project in Texas, followed by the successful completion of DLE appraisal wells in Arkansas, signals a tangible move to commercialize its expertise in a new resource category. This variety of commercial agreements—spanning CCUS in Europe and Australia and DLE in the U.S.—demonstrates that Halliburton is no longer just exploring the energy transition but is actively building a diversified portfolio of bankable, low-carbon projects.
Table: Halliburton’s Strategic Investments in Distributed and Clean Energy
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| NuCube Energy | July 2025 | Investment via Halliburton Labs to accelerate deployment of NuCube’s advanced nuclear fission technology, capable of producing 1,100°C heat. This positions Halliburton to engage with disruptive, high-density clean energy for industrial applications. | NuCube Energy Selected to Enter the Halliburton Labs … |
| VoltaGrid | Q1 2025 | A $345 million investment increased Halliburton’s ownership in the distributed power solutions company. This strengthens its ability to provide lower-carbon power for both its own e-frac operations and other industrial customers. | Halliburton: Upstream Activity Needs To Stabilize Before … |
| Halliburton Labs Ecosystem | Ongoing (2021-2025) | Ongoing investment in its accelerator program to foster innovation in CCUS, geothermal, hydrogen, and energy storage. This provides strategic access to emerging technologies and markets. | The Future of Energy |
| Namibia Operational Bases | November 2024 | Investment in four new operational bases to support growing oil and gas activities in Namibia, building local capacity and positioning Halliburton for large-scale energy projects in a key emerging region. | Halliburton opens new facilities in Namibia to strengthen … |
Table: Halliburton’s Key Partnerships in Low-Carbon and Distributed Energy
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Aquafortus and Sunchem | September 2025 | Selected to join Halliburton Labs, focusing on metal recycling, mining technology, and sustainable industrial processes. This expands the accelerator’s focus into sustainable resource extraction. | Aquafortus and Sunchem Join Halliburton Labs as Newest Participants |
| Northern Endurance Partnership (NEP) | August 2025 | Awarded a contract by the bp, Equinor, and TotalEnergies consortium for completions and downhole monitoring for the UK’s first offshore CCS system, a landmark commercial decarbonization project. | Northern Endurance Partnership Awards Halliburton … |
| Coterra Energy | July 2025 | Partnered to pioneer fully automated hydraulic fracturing using Octiv Auto Frac technology, demonstrating a 17% increase in pumping time and enhancing efficiency in core operations. | Top 5 Frac Trends Reshaping Oil & Gas in 2025 |
| GeoFrame Energy | June 2025 | Secured a contract to design demonstration wells for a combined geothermal and DLE project in Texas’s Smackover Formation, marking a direct entry into the battery materials supply chain. | Halliburton awarded lithium well project by GeoFrame … |
| Chevron | June 2025 | Collaborating on “intelligent hydraulic fracturing” to integrate automated execution with subsurface data, aiming to optimize energy delivery and lower the carbon intensity of well completions. | Chevron and Halliburton Enable Intelligent Hydraulic … |
| InCapture Joint Venture | March 2025 | Signed an MOU to collaborate on a commercial-scale CCS project in Australia, leveraging Halliburton’s technical expertise for a world-class offshore storage site. | InCapture joint venture, Halliburton to collaborate on … |
| Diamondback Energy & VoltaGrid | December 2024 | Agreement to deploy four electric simul-frac fleets in the Permian Basin, a large-scale commercial application of distributed power to decarbonize well completions. | Diamondback Energy, Halliburton, and VoltaGrid Sign |
| Fervo Energy | February 2023 | A Halliburton Labs alumnus, Fervo announced a combined geothermal and Direct Air Capture (DAC) facility, demonstrating a key outcome of the accelerator in fostering integrated clean energy solutions. | Fervo Energy to Develop Combined Geothermal and Direct … |
| Aethon Energy & VoltaGrid | October 2021 | Multi-year contract to deploy an all-electric fracturing solution in the Haynesville Shale, an early commercial adoption of Halliburton’s e-frac technology powered by a dedicated microgrid. | Halliburton and VoltaGrid Enter Multi-Year Contract with … |
Geography: Halliburton’s Low-Carbon Expansion Goes Global
Between 2021 and 2024, Halliburton’s low-carbon and distributed energy activities were geographically concentrated in North America. The push for electric fracturing was centered in prolific U.S. shale plays like the Permian Basin (Diamondback Energy) and the Haynesville Shale (Aethon Energy), driven by operator demand for emissions reduction and efficiency. While the company made significant investments to support traditional oil and gas exploration in Africa (Namibia, Senegal), its clean energy initiatives remained largely domestic.
The period from 2025 to today reveals a significant geographic diversification of Halliburton’s *low-carbon* project portfolio. Europe has emerged as a critical region, with the company securing a key role in the Northern Endurance Partnership’s CCS project in the UK offshore waters. This move plants a firm flag in the continent’s large-scale industrial decarbonization market. Simultaneously, Halliburton has expanded its CCS ambitions to the Asia-Pacific region, signing an MOU with the InCapture joint venture for a commercial-scale project offshore Australia. While North America remains a vital hub, the focus there has broadened beyond just e-frac. The new frontier is the battery supply chain, with DLE and geothermal projects taking root in Texas (GeoFrame Energy) and Arkansas. This geographic expansion shows Halliburton is following policy and resource opportunities globally, transforming from a primarily U.S.-focused clean energy player to an international service provider for the energy transition.
Technology Maturity: Halliburton’s Shift from Incubation to Commercial Deployment
In the 2021–2024 timeframe, Halliburton’s technology strategy was twofold: scaling commercially ready technology in new configurations and incubating nascent concepts. Electric fracturing, powered by partners like VoltaGrid, moved rapidly from initial deployments (2021) to large-scale commercial contracts (Diamondback, 2024), proving its market readiness. In parallel, Halliburton Labs acted as a nursery for early-stage technologies. It supported companies like Fervo Energy in enhancing geothermal drilling and Ionada in piloting modular carbon capture, validating concepts without bearing the full development risk. Technologies like the Odassea™ subsea distributed sensing system were launched, representing commercial offerings awaiting broad application in new energy verticals like CCS.
In 2025, the focus has pivoted sharply towards the commercialization and deployment of these new energy technologies. CCUS well completion and monitoring services have graduated from the pilot stage to full commercial scale, validated by the major contract award from the Northern Endurance Partnership. Likewise, services for DLE have advanced from appraisal-level work (Arkansas wells) to integrated, commercial project design (GeoFrame Energy). This demonstrates a clear market pull for Halliburton’s subsurface expertise in these new sectors. Even as it continues to incubate disruptive technologies like advanced nuclear with NuCube Energy, the defining trend of 2025 is the successful transition of its low-carbon service offerings from the lab and pilot site to large-scale, revenue-generating projects.
Table: SWOT Analysis of Halliburton’s Low-Carbon Strategy
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Core subsurface, well construction, and project management expertise. Strong relationships with O&G clients like Aethon Energy, providing a platform for e-frac adoption. | Demonstrated ability to translate core competencies into commercial low-carbon contracts (Northern Endurance Partnership CCS, GeoFrame Energy DLE). Halliburton Labs provides a strategic pipeline to disruptive tech like NuCube’s nuclear fission. | The hypothesis that its oil and gas expertise is transferable to new energy verticals like CCUS and DLE has been validated through major commercial contract wins. |
| Weaknesses | Heavy reliance on partners (VoltaGrid) for critical components of its distributed energy offering (power generation). Diversification strategy was nascent and unproven to investors. | Success in new markets is still dependent on the success of its partners and clients (bp, Equinor, GeoFrame). Business model is exposed to the volatility and nascent state of emerging markets like DLE and CCS. | The reliance on partners has shifted from enabling decarbonization of the core business (VoltaGrid) to enabling entry into entirely new markets, increasing exposure to external market and project risks. |
| Opportunities | Capitalize on operator demand for lower-emissions fracturing (e-frac). Use Halliburton Labs to explore and de-risk future energy technologies like geothermal (Fervo Energy) and CCUS (Ionada pilot). | Establish a first-mover advantage as a key service provider in large-scale decarbonization (UK and Australian CCS projects). Capture a share of the domestic battery supply chain (DLE projects in TX, AR). | The company has moved from exploring opportunities through pilots and incubators to actively capturing them through significant, large-scale commercial agreements in strategic new markets. |
| Threats | Risk of being outmaneuvered by smaller, more agile pure-play clean tech firms. Regulatory and policy uncertainty surrounding the commercial frameworks for CCUS and hydrogen. | Project execution risk on novel, complex projects like the NEP offshore CCS system. Exposure to commodity price risk in new markets (e.g., lithium). Increased competition from other oilfield service giants making similar pivots. | Threats have become more tangible, shifting from broad strategic risks to specific operational (project execution) and market risks (commodity pricing, competition) within its new business lines. |
Forward-Looking Insights: What Halliburton’s 2025 Moves Signal for the Year Ahead
Halliburton’s activities in 2025 signal an acceleration of its transformation into a diversified energy services company. The momentum is clearly shifting from decarbonizing its legacy business to aggressively building new revenue streams in low-carbon sectors. For the year ahead, market actors should closely monitor the execution of its flagship new energy projects. The start of the GeoFrame Energy DLE and geothermal project in late 2025 will be a critical test of Halliburton’s ability to integrate and deliver on complex, multi-resource projects. This will be a key signal for the viability of leveraging geothermal brines for mineral extraction at scale.
Progress on the Northern Endurance Partnership CCS project will be another crucial indicator. Meeting early milestones for well completions and monitoring will validate Halliburton’s execution capability in the large-scale decarbonization sector and solidify its position for future CCS projects globally. Finally, the next cohort of startups from Halliburton Labs, especially those in disruptive fields like NuCube Energy’s advanced nuclear technology, will provide the clearest signal of the company’s long-term strategic direction and its appetite for engaging with technologies that could reshape the future energy landscape. The market is no longer asking *if* Halliburton will pivot, but *how fast and how profitably* it can scale these new ventures.
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Frequently Asked Questions
What is the biggest change in Halliburton’s strategy in 2025?
Before 2025, Halliburton focused on decarbonizing its core oil and gas services, mainly through electric fracturing. In 2025, the strategy shifted to aggressive expansion into new, low-carbon business lines, securing major commercial contracts in Carbon Capture, Utilization, and Storage (CCUS) and Direct Lithium Extraction (DLE).
What are some key examples of Halliburton’s new low-carbon projects?
Key 2025 projects include a contract with the Northern Endurance Partnership (a bp, Equinor, and TotalEnergies consortium) for the UK’s first offshore CCS project, a contract with GeoFrame Energy to design a combined DLE and geothermal project in Texas, and an MOU with the InCapture joint venture for a commercial-scale CCS project in Australia.
Is Halliburton abandoning its traditional oil and gas business?
No, Halliburton is diversifying, not abandoning, its traditional business. The article notes that the company continues to improve its core services, such as pioneering automated hydraulic fracturing with Coterra Energy, and is still investing to support oil and gas activities in emerging regions like Namibia.
How has Halliburton’s geographic focus for clean energy projects changed?
Previously (2021-2024), Halliburton’s low-carbon efforts were concentrated in North America. In 2025, the company has globalized its low-carbon portfolio, securing a major CCS project in Europe (UK) and another in the Asia-Pacific region (Australia), while also expanding its U.S. focus to include DLE projects in Texas and Arkansas.
What role does Halliburton Labs play in this new strategy?
Halliburton Labs acts as a strategic incubator, providing a pipeline to emerging and disruptive technologies. It allows Halliburton to explore and de-risk entry into future markets. Examples include supporting geothermal pioneer Fervo Energy and investing in NuCube Energy’s advanced nuclear fission technology, which signals the company’s long-term strategic direction beyond its current ventures.
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