Halliburton to Merge With Baker Hughes

Halliburton and Baker Hughes to Merge
Halliburton and Baker Hughes to Merge

Shareholders from Halliburton and Baker Hughes recently gave overwhelming approval for a mega-merger that would combine the two companies in a deal estimated at $35 billion.

Related: Sabine Oil & Gas Merger with Forest Oil Corporation

Once the merger is approved by antitrust regulators, the new entity will surpass Texas-based Schlumberger as the world’s largest oil drilling company. Officials announce that the deal that was initiated in November should close during the second half of 2015.

We are extremely pleased Halliburton and Baker Hughes stockholders have shown overwhelming support by approving the pending transaction,” said Dave Lesar, chairman and chief executive officer of Halliburton. “We are more confident than ever that this combination will create a stronger, more diverse organization with an unsurpassed depth and breadth of services benefitting our stockholders, customers, employees and other key stakeholders of both companies.

Combined, Halliburton and Baker Hughes employ almost 2000 workers in North Dakota, but have already begun strategic layoffs including a recent closure of a facility in Minot. State officials have predicted that 3,000 to 4,000 oilfield jobs will be cut due to low oil prices.

Related: Halliburton Closing Minot Facility

Read more at halliburton.com

Schlumberger Says It's Too Early To Predict The Bakken Boom

Bakken Oil Production Forecast - NDPA
Bakken Oil Production Forecast - NDPA

Schlumberger released quarterly results and provided a little commentary on the oil boom in North Dakota and the rest of the U.S.

Paal Kibsgaard, CEO, was asked his view in regard to U.S. production growth. He responded with several comments. Many of which point to it being too early to determine the volume that will come from many shale plays.

  • Overall production increases have been very impressive
  • It's too early to extrapolate production trends
  • It's too early even in the Bakken
  • Production data over a longer period of time is needed
  • Initial rates outside of the core or fairways of plays need to be studied in more detail

His response can be summed up with "it's too early to know". Activity levels are high and that is really what matters to Schlumberger. The provide oilfield services and volumes of production only have an indirect impact on their business.