Halliburton buys Baker Hughes for $34.6 billion
Wednesday, November 19, 2014
The New York Times reports that Halliburton and Baker Hughes have made the decision to merge their companies.
Halliburton will buy Baker Hughes for $34.6 billion. However, if the deal fails, Halliburton will pay Baker Hughes $3.5 billion.
Halliburton and Baker Hughes are both oilfield service providers. Together, they could better compete against another oilfield service provider, Schlumberger.
The merger will save an estimated $2 billion by combining operations, research and development.
Via: The New York Times > Halliburton and Baker Hughes Agree to Friendly $34.6 Billion Merger
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.