Q. I own shares of Halliburton Co. I'm somewhat uncertain about the outlook. — VM, via the Internet

A. This diversified major provider of oil field services, ranking second only to Schlumberger, has been relocating employees from the devastated Gulf of Mexico to international markets.

The moratorium on deep-water drilling in the Gulf and general uncertainty there means oil and gas producers must decide whether to move rigs to locations such as Africa and Latin America or focus on shallow waters and other less-restricted drilling.

No matter what ultimately transpires, increased testing and more demanding safety and emergency requirements are ahead for the oil and gas business.

Nonetheless, oil service and drilling stocks got a boost when Barclays Capital analysts predicted international exploration and production spending will grow nine percent in 2010; 12 percent in 2011; and move upward at a "healthy" rate through the middle of the decade.

Halliburton Co., which was in charge of cementing BP's well in the Gulf, has seen its stock decline 18 percent this year. Though all details have not been openly discussed yet, some large investors who believe Halliburton will come through investigations in good shape have stocked up at the current price.

The consensus analyst rating on shares of Halliburton is between "buy" and "hold", according to Thomson Reuters, consisting of 13 "strong buys", 18 "buys" and four "holds".

Halliburton provides services such as pressure pumping, drilling and project management for oil and natural gas. It has a strong balance sheet and cash flow, permitting it to expand in the future without financial stress.

Though it operates in about 70 countries, more than one-third of revenue is still derived from North America. It does have a strong position in the Middle East and has expanded its worldwide research efforts into Singapore. While India and China offer significant growth opportunities, making greater inroads into politically-charged countries such as Russia has added some risk.

Earnings are expected to rise 11 percent this year, compared to a nine percent decline in the oil field services industry. Next year's projected 45 percent increase compares to 23 percent forecast for its peers. The five-year annualised growth estimate is 10 percent versus 14 percent industry-wide.

Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, 555 N. Central Ave., Suite 302, Phoenix, Ariz. 85004-1248, or by e-mail at andrewinv@aol.com

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