In 1919, Erle P. Halliburton established the New Method Oil Well Cementing Company in Oklahoma. At the same time, brothers George and Herman Brown partnered with their brother-in-law, Dan Root, to found Brown & Root in Texas.
When Erle Halliburton died in 1957, "the Company had 201 offices in 22 states and 20 foreign countries. Five years later, Halliburton acquired Brown & Root following Herman Brown's death. At the time, Brown & Root was renowned as a road construction company, general contractor and builder of the world's first offshore platform in 1947."
Dresser Industries was founded in 1880 by Solomon Dresser "during the nation's first oil boom late in the 19th century. A patent for a cylindrical packer in 1880 launched Dresser's oilfield products manufacturing business...In 1988, Dresser Industries acquired M.W. Kellogg, a pipe fabrication business started by Morris W. Kellogg in 1900. Kellogg created technology for petroleum refining and petrochemical processing and built facilities based on those technologies."
Halliburton's expansion since 1919 included the purchase in 1962 of Brown & Root, "an engineering and construction company" and in September 1998 of Dresser Industries, a "major provider of integrated services and project management for the oil industry." According to Business Week, the merger of Halliburton and Dresser Industries formed the "world's largest oilfield services company. About 63% of 2001 revenues were derived from international activities (14% from the U.K.)." [7]
At the time, the Halliburton executive committee included CEO Dick Cheney and Donald C. Vaughn as vice chairman. Five members of the Dresser board of directors, including William E. Bradford, Lawrence S. Eagleburger, Ray L. Hunt, J. Landis Martin and Jay A. Precourt, joined the Halliburton Board of Directors.[8]
In 1988, Dresser acquired M.W. Kellogg, "a leader in petroleum refining and petrochemical processing, technology, engineering and construction." William E. Bradford, then Halliburton's new Chairman of the Board, stated that
"Halliburton's vision is to be the premier global solutions provider for energy services, engineering and construction, and energy equipment. The strategy the company has adopted to achieve this vision is based upon our commitment to integration -- both the internal integration of all business operations, as well as integration of Halliburton's core competencies with those of our customers. We support the vision with 4 key goals to serve our customers -- operational excellence, technological leadership, innovative business relationships and maintenance of a dynamic workforce."[9]
Following the merger with Dresser, Halliburton's worldwide revenues "increased significantly," reaching $13 billion in 2001 ... Dresser's well-known and respected brands -- Sperry-Sun Drilling Services, Baroid Drilling Fluids and Security DBS -- were integrated into Halliburton and the Dresser Equipment Group was divested.
Halliburton's Landmark Graphics supplied information systems and software to help companies find and produce oil and gas. The Engineering and Construction Group was restructured during the first quarter 2001 and the engineering, construction, fabrication and project management capabilities were made part of Halliburton Kellogg Brown & Root (KBR). Halliburton acquired PGS Data Management, a division of Petroleum Geo-Services ASA, in March 2001 and in November 2001, and it also purchased Magic Earth, Inc., a 3-D visualization and interpretation technology company. In 2002, Halliburton sold its 50% interest in Bredero-Shaw and agreed to sell its mono pumping business. Also in 2002, Halliburton sold its 50% interest in European Marine Contractors Ltd.[10]
Halliburton's "compression and pumping product line included two joint ventures": Dresser-Rand, and Ingersoll-Dresser Pump. Ingersoll-Dresser Pump was sold on December 30, 1999, and Dresser-Rand was sold on February 2, 2000. In April 2001, the company sold its remaining Dresser Equipment Group businesses to a group led by First Reserve and Odyssey Investment Partners. Part of the terms of the transaction was that Halliburton would retain a 5.1% equity interest in the Dresser Equipment Group, which has been renamed Dresser, Inc.[11]
In March 2002, Halliburton separated into "two wholly-owned operating subsidiaries": Halliburton's Energy Services Group and KBR (Kellogg Brown and Root) Engineering and Construction ... Halliburton employs 85,000 people in more than 100 countries working in two major operating groups:
"Halliburton's Energy Services Group offers a broad array of products and services to upstream oil and gas customers worldwide, ranging from the manufacturing of drill bits and other downhole and completion tools and pressure pumping services to subsea engineering.
KBR "serves the energy industry by designing and building liquefied natural gas plants, refining and processing plants, production facilities and pipelines, both onshore and offshore. KBR's non-energy business meets the engineering and construction needs of governments and civil infrastructure customers. KBR also provides operations and maintenance for a wide variety of facilities."[12]
During 2002, the Securities and Exchange Commission undertook an investigation of Halliburton's accounting practices, relating to events in 1998, which has not been completed.
Halliburton's "current contract in Kuwait began in September 2002 when Joyce Taylor of the U.S. Army Materiel Command's Program Management Office, arrived to supervise approximately 1,800 Brown and Root employees to set up tent cities that would provide accommodation for tens of thousands of soldiers and officials."[13]
The Center for Cooperative Research says "Manipulating U.S. foreign policy isn't the only strategy in Halliburton?s repertoire of means to securing profits. Another method that has apparently proven extremely successful is doing business with the government and bidding on contracts financed by U.S. dominated bilateral and multilateral aid agencies. Although Dick Cheney had once lashed out at Joseph I. Lieberman saying that his success at Halliburton 'had absolutely nothing to do with' the government, the real facts have shown otherwise." Cooperative Research calls this practice corporate welfare. The organization gives a detailed listing of Halliburton's business dealings in this regard.
"Even without the Cheney conflicts of interest, serious doubts remain about whether a company with a record like Halliburton's should even be eligible to receive government contracts in the first place. This, after all, is a company that has been accused of cost overruns, tax avoidance, and cooking the books and has a history of doing business in countries like Iraq, Iran and Libya." [14]
"Tax Havens: Under Cheney's tenure, the number of Halliburton subsidiaries in offshore tax havens increased from 9 to 44. Meanwhile, Halliburton went from paying $302 million in company taxes in 1998 to getting an $85 million tax refund in 1999."
"Confidential U.N. documents show that Halliburton's affiliates have had broad, and sometimes controversial, dealings with the Iraqi regime. The firms traded with Baghdad for more than a year under Cheney, signing nearly $30 million in contracts before he sold Halliburton's 49 percent stake in Ingersoll Dresser Pump Co. in December 1999 and its 51 percent interest in Dresser Rand to Ingersoll-Rand in February 2000, according to U.N. records." [15]
Only weeks before Halliburton made headlines by announcing it was pulling out of Iran ... the Texas-based oil services firm quietly signed a major new business deal to help develop Tehran?s natural gas fields," Newsweek's Michael Isikoff and Mark Hosenball wrote in February 2005. "But overlooked in most of the press coverage of the announcement was that [Halliburton CEO David] Lesar?s statement contained enough wiggle room to permit Halliburton to continue participating in the new South Pars project. ... Lesar?s announcement was little more than 'PR damage control,' said one congressional investigator who has closely followed Halliburton?s dealings. 'They?re still acting like the sanctions law are a big joke,' the investigator added."[16]
[edit]Damage Control for "Iraq for Sale"
In October 2006, filmmaker Robert Greenwald and his production studio, "Brave New Films" (BNF), released a new documentary that was highly critical of Halliburton's work in Iraq. The movie was titled, "Iraq for Sale: The War Profiteers."
In late September, O'Dwyer's reported that "Halliburton's KBR engineering and services unit has launched a strike against the documentary. ... Halliburton posted a statement on its website, claiming the movie is 'nothing more than a theory in search of a conspiracy.'" [17]
O'Dwyer's wrote: [18]
BNF tried to interview Halliburton CEO Dave Lesar for the film. It sent four emails and made four phone calls to Cathy Mann, Halliburton's director of communications, attempting to arrange a meeting. She did not respond to any of those contacts, according to BNF. Melissa Norcross, KBR PR supervisor, did return an email to say that Lesar was not available for an interview.
This website emailed Mann, asking why she did not respond to BNF. She referred the site to Halliburton's statement. Norcross could be reached about whether any Halliburton or KBR execs have viewed the movie.
http://www.sourcewatch.org/index.php?title=HalliburtonEncore documentary link
