Deepwater drilling is the hot topic in the energy space today, and with good reason. Halliburton (HAL 0.34%) is projecting big deepwater gains, particularly in Brazil. Other regions to keep an eye on are the Gulf of Mexico and the North Sea. While Baker Hughes (BHI) may edge out Halliburton with regard to deepwater market share, Halliburton is running at the space with full force and could realize big margin expansion if it's able to gain a bigger presence.

See more in the following video.