Wednesday, March 30, 2011

Halliburton (HAL) Boosting Activity at Saudi Project

Halliburton Co. (NYSE:HAL) announced it is going to boost its activity at its Saudi Manifa project, generating speculation as to the reasons for the move.

Some suggest it points to limited supplies of the oil reserves in the country, and others that it is seeking to increase the amount of spare capacity in order to push back against rising oil prices around the world.

Other companies that could benefit from the increased production in Saudi Arabia, if that is in fact what is going on, will be Nabors Industries (NYSE:NBR), Weatherford International Ltd. (NYSE:WFT), Schlumberger Ltd. (NYSE:SLB) and Baker Hughes (NYSE:BHI).

For Halliburton, they are now operating one rig at Manifa, but it has had a goal from the beginning to operate up to 10 rigs in the project.

Others that could benefit from a increase in drilling in Saudi Arabia would be those who are specialists in drilling in shallow waters.

Halliburton closed Tuesday at $49.00, gaining $1.10, or 2.30 percent.

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