Sometimes I wish I believed in conspiracy theories. This one is a gem. It turns out that one of the reasons for the BP gulf oil spill, the largest offshore oil spill in US history, was faulty cement used to seal the well. And who made that cement?
Halliburton. The company Dick Cheney was the Chairman and CEO of until George W. Bush tapped him as a VP candidate in 2000. Then Cheney walked away with a $36 million severance package.
Some say Cheney earned that job with Halliburton. After all, following the first Iraq War, when he was still the Secretary of Defense, he gave the Halliburton subsidiary KBR $8.5 million to study the use of private military forces to support US soldiers in a combat zone. That’s a lot of taxpayer dollars to study something.
Two years after leaving his post at the Pentagon, Cheney was named the Chairman and CEO of Halliburton, KBR’s parent company. And within three years of getting back in the administration, this time as Vice President, he was awarding KBR lucrative contracts to support US soldiers in combat (during which KBR used off-shore shell companies to avoid paying hundreds of millions in taxes back to the government) – not to mention awarding huge contracts to Halliburton to supply US forces with fuel and rebuild oil wells destroyed in the war. I guess he earned that $36 million severance package.
Both Halliburton and KBR have been investigated for overcharging the government as part of these Iraq War contracts, with the whistleblowers either dismissed or demoted for questioning the contracts and demanding audits. The beauty of all this is that most of the people who voted for the Bush/Cheney style of leadership (and the trillion-dollar deficit they burdened American taxpayers with) are now avid “tea party” supporters crying about how wasteful their government is. Yet they never made a peep while Bush/Cheney were in power, spending tax dollars recklessly – often, it seems, with old friends. Run up the bill and leave the next guy with the check. Classic.
And many of those same people would likely argue that the appearance of purchasing political favor doesn’t prove that it actually happened. This is true. Again, anyone in a position to connect the dots was fired or demoted to a position where they could no longer make such challenges. But that only works when you control both sides of the deal – when the company has “friends” inside the White House and Pentagon. When these companies don’t have friends in high places, things don’t always work out so well.
In 2009, KBR was charged with paying millions of dollars in bribes to win a $7 billion plus contract with the Nigerian government. KBR was found guilty, but Halliburton stepped in to pay the $420 million penalty. Some of the bribes were made while Cheney was still running Halliburton, and his CEO of KBR has since been sentenced to serve seven years in prison. An isolated incident, or just the one where they couldn’t duck the charges?
Halliburton Trying To Cap Own Damages
Speaking of trying to duck the charges, in the 2010 oil catastrophe in the Gulf of Mexico, Halliburton was responsible for providing the cement used to cap the well. The mix they used failed during testing. They did two more tests, both of which showed the cement would fail. And then they did a fourth test which miraculously found that it would work.
Now that the failed tests have come to light, Halliburton is claiming they altered the mix of the cement they ultimately used, so they can’t be blamed for using faulty cement. This presents a different problem, because the assertion means that they used a cement that they failed to test. Still negligent, but to a lesser degree – possibly saving themselves a few million in penalties (millions which could be used to compensate for the cost of the clean-up, as opposed to having to tap the American taxpayer) down the road.
It should be noted that this wasn’t the first time Halliburton took a swing at Mother Earth. In 2002, one of their facilities in Texas was found to have been emitting toxic chemicals. Four years later, a plant in New Mexico emitted a toxic cloud that forced local residents to flee their homes.
And then, of course, there are the “burn pits” KBR has been using to dispose of unsavoury things at US military bases where it has contracts in both Iraq and Afghanistan. Rather than disposing of waste properly, as they would be required to at US bases on American soil (or in any nation that had a functioning government), they have been burning it in open fire pits and subjecting soldiers and neighboring civilians to the smoke and fumes. What exactly have they been burning? Asbestos, batteries, hazardous waste, medical waste, paints and solvents, PVC and other petro-chemical products, and tires – not to mention both human corpses and animal carcasses. Nearly two dozen federal lawsuits have been filed. Which is nice – your tax dollars are paying lawyers to fight negligence by contractors your tax dollars hired.
In all fairness, it should be noted that this stuff works on both sides of the aisle. LBJ received large donations from Brown & Root (the BR in KBR) for his senate campaign after awarding them a lucrative dam project, which led to lucrative military contracts once he was in the Oval Office. After 44 years of being awarded non-competitive contracts by Washington cronies, Halliburton finally sold its KBR subsidiary. Both companies continue to receive lucrative no-bid contracts from the Pentagon, Department of Homeland Security, and other federal organizations.
Cup of tea, anyone? Or do you prefer oil?















