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BP to Halliburton in ‘Barroom Brawl’ as Drillers Slash Costs

  • Oil industry cost cuts for 2015 to 2020 total $1 trillion
  • Service providers that reduced rates say discounts to end
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Making Sense of the Oil Markets

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Mad Dog, BP Plc’s drilling project deep in the Gulf of Mexico, could be Exhibit A in the oil industry’s war on cost.

When the British oil giant announced the project’s second phase in 2011, it put the price at $20 billion. Last month, after simplifying plans and benefiting from a sharp drop in everything from steel to drilling services, Chief Executive Officer Bob Dudley said he could do the job for $9 billion.