BP to Halliburton in 'barroom brawl' as drillers slash costs

New York

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 US$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 that he could do the job for US$9 billion.