Oil odyssey
Big business in the oilpatch
Good morning, pipe handlers. This is your Stock Market Rundown for May 2nd, 2024. Thanks for tuning in today. Let’s get into it:
TODAY’S TOP STORY: ERLE’S AMBITIONS
In early 1900s California, an ingenious young man named Erle Halliburton was full of bright ideas about how the oil-drilling company he worked for could do things better.
Unfortunately, his boss wasn’t too open to the young whippersnapper’s suggestions—he promptly got fired.
Undeterred, Halliburton moved on to the Texas oilpatch. In 1919, he founded his own oil well cementing business with a borrowed wagon, a team of mules, and a pump. Four of his friends put up $250 each as startup capital—a big bet in those days.
Building a business wasn’t easy—at one point, Halliburton had to pawn his wife’s wedding ring. But his industriousness won over his customers, while his innovations won patents.
Fast forward to today, and while Earle’s long-gone, the company that still bears his name—Halliburton—is an oilfield services giant operating in 70 countries, with revenues of $23 billion a year.
And the growth pace shows no signs of slowdown. In its most recent quarterly report, Halliburton projected ongoing growth in its international business, with higher oil prices encouraging producers to boost activity.
By the way, remember the grumpy boss who canned young Halliburton when he was starting out? Well, Erle went back to California in 1938 and bought out the company that had fired him all those years earlier. So satisfying.
SO WHAT ELSE IS GOING ON?
The International Monetary Fund says the ballooning US deficit poses risks for global stability. The US government is suffering from an out-of-control shopping addiction—funded by taxpayer money.
Homebuilder NVR beat estimates as a shortage of homes available for sale supported prices for its inventory. The only thing tighter than housing supply is the space between you and your neighbor’s window.
Hedge fund assets just hit an all-time high of $4.3 trillion. Managing a hedge fund is like playing Monopoly with real money—except in this game, the losers still walk away with millions.
Williams-Sonoma must’ve skipped geography class: the retailer has been fined by US regulators for mislabelling China-sourced products as “Made in USA”. Next you’re going to tell me the Rolex I bought in Times Square isn’t an authentic Swiss timepiece.
Wrapping up for today, everyone. Can't wait to catch up with you all tomorrow morning. Yours in capitalism, The Axe
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