Thursday, September 9, 2010

BP (NYSE:BP) Report Puts Pressure on Halliburton (NYSE:HAL), Transocean (NYSE:RIG)

While there are other players in the game, including Cameron International (NYSE:CAM), who provided the blowout preventer which failed to function properly, the report released by BP (NYSE:BP) mostly targeted Halliburton (NYSE:HAL) and Transocean (NYSE:RIG) as being significant parts in the series of failures leading to the explosion on the Deepwater Horizon.

Cameron International isn't a real focus because the evidence there should be easy to determine and conclude as to what went wrong, making it a waste of time to pursue on the part of BP. Whatever happened, Cameron should be held mostly responsible and liable for it.

The major failures according to the BP report were the cement job by Halliburton, and the failure of Transocean to implement safety measures in response to the pressure buildup from the failed cement barrier.

Once the cement barrier failed, gases went up inside the well which ultimately led to the explosion on the oil rig.

Incoming BP CEO Bob Dudley said, "We have said from the beginning that the explosion on the Deepwater Horizon was a shared responsibility among many entities."

Other investigations will be performed to substantiate or refute the findings of the BP report.

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