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Current HAL Stock Info

Companies Hope to Strengthen Relationship

On May 20, 2015, Halliburton (ticker: HAL) and BP plc (ticker: BP) announced a mutual agreement to resolve remaining issues relating to charges and indemnities from the Deepwater Horizon disaster. The incident occurred 61 months ago to the day. In a company press release, Dave Lesar, Chairman and Chief Executive Officer of HAL, referred to BP as a “valued customer” and looks forward to strengthening its relationship with one of the world’s largest oil and gas companies.

Transocean (ticker: RIG), the third company involved in the incident, also agreed to resolve the issues and will pay $212 million to various businesses, individuals and governments for their role in the incident.

BP has amassed $43.8 billion in pre-tax cleanup charges, among other costs, to date, while Halliburton has paid about $1.1 billion.

The 2010 Gulf of Mexico blowout captured the attention and scrutiny of the entire industry, which has a vested interest in avoiding another incident in the future. Ben van Beurden, Chief Executive Officer of Royal Dutch Shell (ticker: RDS.B), defended his company’s plans to drill in the Arctic and stressed the importance of not only safety, but reputation.

There were 33 rigs operating offshore in the latest Baker Hughes rig count report – 32 in the Gulf of Mexico and one off the coast of California. Shell’s impending arctic rig will be the only one in the region once the company receives all permits and it is allowed to deploy a drilling rig and support vessels to Alaska.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.