Thursday, October 16, 2003

Halliburton: "Hauling Coal to Newcastle"

If you don't know the meaning of the quote above or its relevance to Halliburton, consider that during the heyday of coal as a fuel in England, Newcastle had the largest deposits of coal in the country. And, if you've read any number of stories today - this one, for example - about Halliburton overcharging the Iraq Provisional Authority for gasoline imported to Iraq, you'll understand the connection.

Spot market gasoline prices in the Gulf region are reported to be around $0.70/gallon. Halliburton's KBR subsidiary is selling it to the Provisional Authority for the equivalent of $1.62 - $1.70 per gallon. The P.A. then gets to sell it to Iraqis for $0.04 - $0.15 per gallon. Guess who foots the rest of the bill?

Check out the stories, then think about that $87 billion supplemental appropriations bill before congress, then imagine how much of that will flow to Halliburton. And just who is it that's at the far end of that flow of money? You know the answer.

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