WAR PROFITEERING

Halliburton equipment worth $7.1m imported into Russia in past year, customs records show

Exclusive: US oil multinationals face questions over trade with Russia amid pressure to cease operations

Daniel Boffey 

Chief reporter

THE GUARDIAN

Sun 17 Sep 2023 

US oil and gas multinationals are facing fresh questions over their trade with Russia after customs records revealed that more than $7.1m (£5.7m) worth of equipment manufactured by Halliburton has been imported into the country since it announced the end of its Russian operations.

Last September Halliburton, one of the world’s largest providers of products and services for oil and gas exploration, sold its Russian office to local management amid pressure on all US companies to cease their trade after the invasion of Ukraine.

Russian customs records seen by the Guardian show that despite this move to sell up on 8 September, Halliburton subsidiaries exported equipment of a value of $5,729,600 to its former operation in Russia in the six weeks that followed the sale.

The equipment was largely shipped from the US and Singapore although the records show it originated in a range of countries, including the UK, Belgium and France.

The bulk of exports from the subsidiaries ended on 6 October but the last shipment to Russia from a Halliburton company, recorded as Halliburton MFG in the records, was of a sealing element priced at $2,939.40 on 24 October 2022 from Malaysia to a firm called Sakhalin Energy, a consortium that is developing the Sakhalin-2 oil and gas project in eastern Russian. Its investors include Gazprom. Shell disinvested from the consortium after the invasion of Ukraine.

After a short pause, imports of Halliburton equipment to Russia then resumed in December 2022 from two companies unrelated to the US multinational.

The products were imported from Turkey, bringing the total value of exports of Halliburton equipment to Russia since the company closed its operations to at least $7,163,317.

Of all the exports to Russia made since last September, 98% were supplied to Halliburton’s newly independent former operation, known as BurService, whose clients have included Gazprom, Rosneft, TNK-BP and Lukoil.

According to customs records, exports to Russia of Halliburton equipment, which range in type from pumps, to wrenches for the drilling of wells, and cement additives, continued until at least the end of June this year. More recent records are yet to be made available.

There is exasperation in Ukraine at the lethargy of many large industrial players in the west in extracting themselves from the Russian economy.


The findings illustrate the difficulties multinational companies have had in unpicking their trading relationships and in controlling the distribution of their products via third parties.

Some of the world’s largest US oil and gas field service companies are already facing questions over their conduct. The Kremlin is heavily dependent on its oil and gas sector for the revenue that funds its military.

Earlier this month, the head of the US Senate foreign relations committee, Bob Menendez, wrote to Halliburton and their competitors SLB and Baker Hughes, after reports that the companies had continued to trade with Russia to various degrees after the invasion of Ukraine in February last year.

Menendez, in letters to the chief executives of the three companies, said he was “extremely disturbed” by an AP report that sales had continued in 2022. He accused the management of seeking to “make a profit” rather stand in solidarity with Ukraine.

Baker Hughes sold its oilfield services business in Russia nine months after the invasion. SLB, which reportedly had 9,000 employees working in Russia, announced only in July this year that it would stop exporting technology to Russia.

There is no suggestion that any of the companies breached the sanctions regime of the US or its western partners.

It is understood that the sale date of Halliburton’s operations in Russia was not fixed until late in the day, which may account for those shipments from its subsidiaries that left for the country shortly before and soon after 8 September.

A spokesperson for Halliburton said: “Halliburton was the first major oilfield services company to exit Russia, in full compliance with sanctions. It has been more than a year since we have conducted operations there.

“Halliburton wound down its Russia operations and completed the sale of its Russia business in less than six months while prioritising safety and securing the necessary government approvals, including for shipments to Russia. Halliburton no longer conducts operations in Russia.”

Halliburton, which was led by the former US vice-president Dick Cheney, posted a gross profit for the 12 months ending 30 June 2023 of $4.052bn, a 63.19% increase year-on-year despite writing off $300m on the sale of the Russian operation.

Glib Kanevskyi, chief executive of the Kyiv-based thinktank StateWatch, said that western governments needed to do more to persuade their large companies to better control the distribution of products which could be useful to the Russian economy.

He added that companies such as Halliburton should be encouraged to be transparent about how they are ensuring their products are being kept out of the Russian market.

Kanevskyi said: “When we talk about the Halliburton case, we need to understand that it cannot be effective if, for example, the USA or other countries will try to punish some company involved in this scheme to ship Halliburton equipment to Russia. It cannot be effective in my opinion.

“If the international community will collaborate and involve businesses then it can be helpful. It’s not easy. What countries can do today is dialogue with its own businesses. If we talk about Halliburton it is a serious player in the world and the US government can have a conversation with it and see how it can better control its distribution process”.

Project Censorship: Halliburton Cover Up

Project Censorship has published its top 25 under-reported stories of 2006. And my vote goes for these. The common theme here is Halliburton and they had three stories on these bad boys.

Halliburton Charged with Selling Nuclear Technologies to Iran
As recently as January of 2005 and a decade before Halliburton sold key components for a nuclear reactor to an Iranian oil development company in violations of US sanctions.

Homeland Security Contracts KBR to Build Detention Centers in the US
Halliburton's subsidiary KBR has been awarded a $385 million contingency contract by the Department of Homeland Security to build detention camps in the United States for immigrations surges and "news programs."

Cheney's Halliburton Stock Rose Over 3000 Percent Last Year
Vice President Dick Cheney's stock options in Halliburton rose from $241,498 in 2004 to over $8 million in 2005, an increase of more than 3,000 percent


Though this story didn't make their list and should have; Halliburton's Depleted Uranium Cover Up


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Halliburton shareholders vote against executive compensation plan

By Liz Hampton and Arunima Kumar 

© Reuters/Brendan McDermid FILE PHOTO: Halliburton's president and CEO Jeff Miller, tours the floor at the NYSE in New York

(Reuters) -Halliburton Co's shareholders voted against the oilfield services provider's proposed executive compensation plan in an advisory motion, the company said on Thursday.

Halliburton Chief Executive Officer Jeff Miller said the company was "disappointed by the shareholder advisory vote" and that it had led its peers in shareholder returns despite challenges stemming from the coronavirus pandemic and a supply and demand imbalance in oil markets.

Halliburton did not provide vote tallies. The company revised its executive compensation program in 2019 and received 91% approval of the plan from shareholders last year.

Shares of Halliburton are up about 18% year-to-date to $22.38 as oilfield activity has slowly returned amid higher prices.

Miller and other executives pledged to cut salaries last year after the pandemic crippled the oil market and set off a wave of layoffs in the industry.

Although Miller cut his base salary by $200,000 between 2019 and 2020, he received some $9.7 million in stock awards, versus $3.6 million the previous year. Overall, his compensation was 293 times the median compensation for Halliburton employees, the company said in an April filing.

Chief Financial Officer Lance Loeffler's base salary jumped from $650,000 to $709,000 between 2019 and 2020, and his earnings were also bolstered by stock awards.

Halliburton in April said the sharp increase in 2020 compensation was due to changes to the plan and reporting.

Companies are not required to comply with advisory votes.

(Reporting by Arunima Kumar in Bengaluru and Liz Hampton in Denver; Editing by Shailesh Kuber and Cynthia Osterman)

Halliburton's Depleted Uranium Cover Up

File this story under the headline;

The Joys Of Privatization

Tony Blair is really Maggie Thatcher in drag, doing that Victor Victoria thing. As this story about the contracting out of a major British military establishment to Halliburton shows.

And meanwhile back in the USSA folks are all verklempt that a private British Company, good old P&O , currently contracted to run American ports is being sold to the UAE.

My guess is they would be happier if it was sold to Halliburton. I know Dick Cheney would be. And then Halliburtons cover ups of dangers to humanity could be excused as National Security.

Privatizing State functions means the state is no longer answerable to the public, to its citizens. The Privatized State is responsible to its stakeholders, that is the companies it contracts out to and their shareholders. This reveals the real meaning of 'stakeholder democracy' that Tony Blair and George Bush talk about.

Depleted uranium measured in British atmosphere from battlefields in the Middle East

by Leuren Moret

"Did the use of uranium weapons in Gulf War II result in contamination of Europe? Evidence from the measurements of the Atomic Weapons Establishment, Aldermaston, Berkshire, U.K.," shows such contamination, reported the Sunday Times Online, in a shocking scientific study authored by British scientists Dr. Chris Busby and Saoirse Morgan.

The highest levels of depleted uranium ever measured in the atmosphere in Britain were transported on air currents from the Middle East and Central Asia. Of special significance were those from the Tora Bora bombing in Afghanistan in 2001 and the "shock and awe" bombing during Gulf War II in Iraq in 2003.

Out of concern for the public, the official British government air monitoring facility, known as the Atomic Weapons Establishment, at Aldermaston, was established years ago to measure radioactive emissions from British nuclear power plants and atomic weapons facilities.

The British government facility was taken over three years ago by Halliburton, which refused at first to release air monitoring data to Dr. Busby, as required by law.

The fact that the air monitoring data was circulated by Halliburton AWE to the Defense Procurement Agency implies that it was considered to be relevant and that Dr. Busby was stonewalled because Halliburton AWE clearly recognized that it was a serious enough matter to justify a government interpretation of the results and official decisions had to be made about what the data would show and its political implications for the military.

In a similar circumstance, in 1992, Major Doug Rokke, the director of the U.S. Army Depleted Uranium Cleanup Project after Gulf War I, was ordered by a U.S. Army general officer to write a no-bid contract, "Depleted Uranium, Contaminated Equipment and Facilities Recovery Plan Outline," describing the procedures for cleaning up Kuwait, including depleted uranium, for Kellogg, Brown and Root, a subsidiary of Halliburton.

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Iraq; The War For Oil

Forget weapons of mass destruction the war in Iraq was to make the world safe for Halliburton.

Vice President Dick Cheney was chief executive of Halliburton from 1995 to 2000. Former Halliburton unit KBR Inc. is the U.S. Pentagon's largest contractor in Iraq and has drawn scrutiny from auditors for the quality and pricing of its work for the U.S. army.

Halliburton's relocated CEO outlines major shift in focus

DUBAI, UNITED ARAB EMIRATES — Halliburton will shift some 70 percent of its capital investment over the next five years to the Eastern Hemisphere, which includes oil and gas zones in the Middle East, Russia, Africa, the North Sea and East Asia, the company's chief said Tuesday from his new headquarters in Dubai.

Dave Lesar, arriving for his first week in United Arab Emirates, said Halliburton would quickly expand its Mideast operations as it targets $80 billion in new business over the next five years — 75 percent of which lies in the Eastern Hemisphere.

Dennis Kucinich: Oil was the primary reason for the invasion of Iraq

There were, of course, no weapons of mass destruction, no connection between Iraq and 911, no connection between Iraq and Al Queda's role in 911. Despite that the Bush-Cheney Administration, with the approval of a Democratic-controlled Senate and the Democratic leader of the House, supported and commenced a brutal campaign of shock and awe, of bombing, invasion and then occupation of Iraq.

It's All About Oil
Summary and Notes from Congressman Kucinich’s One Hour Speech Before the United States House of Representatives
On Administration’s Efforts to Privatize Iraq Oil

The Iraqi “Hydrocarbon Law” is an issue of critical importance, but has been seriously mischaracterized and I want to provide the House of Representatives the facts and evidence to support the concerns I have expressed. As you know, the Administration set several benchmarks for the Iraqi government, including passage of the “Hydrocarbon Law” by the Iraqi Parliament. The Administration has emphasized only a small part of this law, the “fair” distribution of oil revenues. Consider the fact that the Iraqi “Hydrocarbon Law” contains a mere three sentences that generally discusses the “fair” distribution of oil. Except for three scant lines, the entire 33 page “Hydrocarbon Law,” is about creating a complex legal structure to facilitate the privatization of Iraqi oil. As such, it in imperative that all of us carefully read the Iraqi Parliament’s bill because the Congress is on the record in promoting oil privatization. This war is about oil.


Fighting overshadows Iraq's oil law

As a result, the US Embassy in Iraq is pressuring the sectarian groups to pass the oil law as soon as possible. Still, Washington does have an agenda as to what the law should look like.

US-funded consultants had a significant role in shaping the draft oil law in Iraq. Firms such as BearingPoint were brought in to advise the Iraqi government and advocated allowing for private competition in the oil sector. It is Washington's belief that Iraq's oil sector will be most efficiently exploited and managed through the competition of private oil firms, including foreign companies. As such, Washington would like to reduce the role played by INOC in the oil sector. However, at this point passing the oil law is more important to Washington than granting rights to foreign oil companies.

US hunts for oil in Persian Gulf

Al-Sharaa underlined that Arabs know very well that the United States is in need of oil and is the world's largest oil consumer, adding that the US therefore intends to dominate the oil rich Persian Gulf region.

The Syrian Vice President went on to say that, the only reason for US navy and military maneuvers or troop deployments to the region is to monitor the smooth flow of oil to the United States.


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Privatization The Real Walter Reed Scandal

The mantra of the neo-cons for the past two decades has been that privatization is better at delivering services than the public sector. This is another example of the real life failure of privatization.

The Army Times reports the committee wants to question Weightman about the impact of the Army's decision to award a five year, 120 million dollar contract to IAP World Services, which is run by Al Neffgen, former COO of Halliburton's KBR, and David Swindle (that's really his name), also formerly of KBR. The decision to bring in private contractors at Walter Reed led to a virtual mass exodus of experienced career staffers.

Waxman notes that IAP "is led by Al Neffgen, a former senior Halliburton official who testified before our Committee in July 2004 in defense of Halliburton's exorbitant charges for fuel delivery and troop support in Iraq."

Before the contract, over 300 federal employees provided facilities management services at Walter Reed, according to the memorandum, but that number dropped to less than 60 the day before IAP took over.

KWAME HOLMAN: And Kiley acknowledged some patient care problems were exacerbated when the Army contracted out much of Walter Reed's facilities management and non-medical care to private companies.

DEL. ELEANOR HOLMES NORTON (D), District of Columbia: Would it have been the better side of wisdom not to privatize everything here, except the clinical and medical workforce, and therefore add to the stability or the instability that inevitably comes with WRAMC?

LT. GEN. KEVIN KILEY: It did increase the instability.

This is a result of Americas first contracted out privatized war,which was the core policy of the neo-cons plan for the invasion of Iraq. To prove that a combined force of private mercenaries and regular armed forces could reduce war costs. Like the Iraq mission and its reconstruction this too is a failure.

In a largely invisible cost of the war in Iraq, nearly 800 civilians working under contract to the Pentagon have been killed and more than 3,300 hurt doing jobs normally handled by the U.S. military, according to figures gathered by The Associated Press.

Exactly how many of these employees doing the Pentagon's work are Americans is uncertain. But the casualty figures make it clear that the Defense Department's count of more than 3,100 U.S. military dead does not tell the whole story. "It's another unseen expense of the war," said Thomas Houle, a retired Air Force reservist whose brother-in-law died while driving a truck in Iraq. "It's almost disrespectful that it doesn't get the kind of publicity or respect that a soldier would."

Employees of defense contractors such as Halliburton, Blackwater and Wackenhut cook meals, do laundry, repair infrastruture, translate documents, analyze intelligence, guard prisoners, protect military convoys, deliver water in the heavily fortified Green Zone and stand sentry at buildings — often highly dangerous duties almost identical to those performed by many U.S. troops.

The U.S. has outsourced so many war and reconstruction duties that there are almost as many contractors (120,000) as U.S. troops (135,000) in the war zone.

The AP doesn't say if the private companies also provide high level workers' compensation and disability coverage for their workers -- even with high pay that's not a given -- but I wouldn't be surprised to find that contractors who've suffered traumatic brain injuries and multiple amputations are getting better care than the wounded soldiers being treated at Walter Reed.

See:

Iraq Inspector General

Another Privatization Failure

Conservative Nanny State

Another Privatization Myth Busted

Halliburton

Privatization of War

Privatization


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Capitalism and Islam

Dubai World Begins MGM Mirage Tender

Ah good old capitalism it will make a believer out of Muslim businessmen yet.

Dubai's proposed purchase of a 9.5 per cent stake, as well as a 50 per cent share in MGM's $7bn CityCenter project, for a total outlay of $5bn, stunned the gaming industry when it was announced last week.

They invest in gambling while prohibiting it to believers. Making money off the vices of the infidel.

While it won't be just another day at the office, Nevada gambling regulators say they're ready to dig into a mass of paperwork to be filed in the $5.1 billion investment that the Persian Gulf state of Dubai is making in MGM Mirage.

The deal marks the first time a state has applied for a Nevada gambling license. And the applicant is part of a Middle Eastern emirate that strictly forbids gambling for its citizens.

Notice there has been no hew and cry about Dubai World buying MGM. Nope not a peep. Of course Congress is off on holidays. But what about Lou Dobbs? Nope not a peep.

MGM needs the investment money with credit drying up because of the sub-prime melt down.

Las Vegas Not Exempt From Money Woes

A silver lining to this means the hotel workers can be assured that management will meet their contract demands. MGM Mirage workers: Unions approve contract


While on the global level it means the Gulf States, UAE, are using Dubai to create Arab capital to compete against other national capital. Since they have little in the way of military power in the region, they are amassing capital to compete with the other imperial powers.

Qatar Offers $2 Billion to Buy Nasdaq’s Share in London Stock Exchange

SABIC Concludes Purchase of GE Plastic Business

They are using their capital to further their own political agenda in the region;Gulf’s Federation of Chambers of Commerce Welcome Free Trade with Iran

And typical of capitalism they have created a metropolis a capitol of capital in the region; Dubai.

Sovereign Wealth Funds: The Growth and Challenges of State-Sponsored Investments

A combination of an unprecedented volume of oil revenues in the last three years and a staggering American trade deficit have been the main causes of foreign exchange reserve buildup in countries around the world—specifically in the Gulf region (oil revenues) and East Asia (current account surplus). As economist Michael Pettis explains, “…it seems reasonably certain that what has powered the [globalization] boom in the last decade is the recycling of the massive U.S. trade deficit. As central banks and sovereign funds accumulate reserves as the flip side of the U.S. trade deficit, excess U.S. consumption is being converted into global excess savings.”

China and the Gulf countries, excluding Kuwait, actively ensure the growth of their respective sovereign wealth funds by holding down their exchange rates in order to retain the dollar amount of their funds, which draw on dollar-denominated oil revenues. Kuwait is the only Gulf country to have un-pegged its currency from the dollar as a measure to combat inflation. Saudi Arabia does not consider it in its interest to follow suit.

In addition to rapidly accelerating oil revenues, capital appreciation and dividends on initial country investments caused incomes to snowball long before the SWF became an investment vehicle. For instance, the father of Dubai’s current ruler, Sheikh Mohammed bin Rashid al-Maktoum, defied skeptics by investing a large part of the emirate’s oil revenue into developing the Jebel Ali Port in the 1970’s. The port is now one of if not the world’s busiest ports, and has firmly established Dubai as the region’s trading and transit hub.

Dubai World Ports Might Offer IPO of $4.2 Billion

On the other hand, the QE2's future is settled. Sold for $100 million, it will become a hotel permanently docked in Dubai, and many past passengers view that as a good thing.

Halliburton Spin-Off Positive

The KBR spin-off and an increased push in the Eastern Hemisphere through a headquarters in Dubai are both positive developments for Halliburton (NYSE: HAL). The spin-off of the high volume, low margin KBR business removes distractions, improves operational focus, and makes Halliburton a pure-play on the oilfield service market.

Ahmed Lotfy relocates to Dubai, strengthens Halliburton’s regional presence

Halliburton Company (NYSE:HAL) announced today that Ahmed Lotfy, Senior Vice President – Eastern Hemisphere, is relocating to Dubai following the opening of a second corporate headquarters office for Halliburton in the centrally located Gulf city.

Gone are the days when the oil sheikdoms simply amassed personal wealth and engaged in conspicuous consumption. Now that capital is being used to take on the imperial powers at home as the case of MGM and OMX show and by attracting their TNC's, like Halliburton, to Dubai.

Changing Patterns of Investment in the Gulf Region: The Case of Dubai

The massive increase in oil revenues in most of the six members of the Gulf Cooperation Council (GCC)—Saudi Arabia, United Arab Emirates, Qatar, Bahrain, Oman and Kuwait—has created unprecedented opportunities for the building of infrastructure, the provision of social services and, at the same time, for investments overseas.

These investments have been channeled through two principal pipelines—acquisition of assets and the purchase of shares in high quality financial and industrial firms. According to the London daily al-Sharq al-Awsat of August 13, the Gulf countries have channeled $140 billion into overseas investments in the last three years. In a relatively short time, some of the Gulf countries have become respectable actors on the international financial scene.

At the same time, a hospitable investment environment, the privatization of state-owned entities and the prospects of mutually profitable deals have attracted a massive influx of Western financial services and industry to the Gulf region. The opening of the real estate market for foreign investors, particularly in Dubai, has created a massive construction boom which is fueling economic growth at a rapid rate.

The purpose of this article is to shed light on the investment activities of Dubai, and how an enlightened and entrepreneurial leadership has turned what was a small desert outpost just a few decades ago into a bustling metropolis with a vigorous economy that is subject to both envy and emulation.

In contrast to the earlier oil booms of the 1970’s and 1980’s, however, these countries are not squandering their oil revenues on spending sprees, but rather are focusing on diversifying their assets and buttressing their fiscal solvency through massive investment schemes.

Dubai, one of the seven emirates that make up the UAE, in particular, exemplifies the investment trends of the Middle East, mostly on account of the fact that it is an investment powerhouse out of necessity. The emirate seeks to open itself to and extend its reach within international markets in order to hedge any risk it faces due to the steady decline of its oil and gas reserves, which are expected to reach depletion within twenty years. Dubai currently has a strong penchant for the real-estate sector, but is learning to thoroughly diversify its assets in its search for some high-yielding financial instruments.

The current generation of economic and industry ministers in the Gulf region is largely composed of men who began their careers in the private sector. This correlates with efforts in almost all MENA countries to increase the privatization of state-owned entities in an attempt to create an “open market” atmosphere. As the Middle East daily al-Sharq al-Awsat reported on August 8, 2007, an international investment firm in Kuwait noted that privatization trends in Gulf countries—which are competing amongst themselves to become the next global “financial capitol”—are reflected in the flow of private capital into publicly traded stocks and other financial instruments. In 2006 this amount totaled $7.07 billion, which was a 61.6% increase over the previous year.

The Carlyle Group LP says that the Middle East is now the “hot spot” for private equity deals, and HSBC reports that as much as one third of all project finance involves Middle Eastern projects. Dubai is a particular hub of this activity. The chief executive of oil services company Halliburton has recently opted to relocate at least part of the company’s corporate and executive headquarters from Houston to Dubai. Other prospective buyers of property in the emirate include Oracle, Cisco and Microsoft.

Expanding Horizons

While Western banking, financial and information technology industries are rapidly being drawn to the Gulf countries, Gulf investment is not necessarily giving preferential treatment to the Western hemisphere that has largely responsible for its explosion of financial power.

While it is true that various emirate companies invested $3.5 billion in the US last year, many of those same companies are also shifting their interest to Asian markets on account of the falling dollar and for the sake of diversification:

- Dubai International Capital and DIFC Investments are working to extend their reach into Pakistan, India and South Korea.

- Istithmar’s real estate arm, which is part of the Dubai World group of companies, plans to increase the 5% of its assets it has invested in Asia to 30% within five years.

- The Dubai government firm Emaar is responsible for the housing boom taking place across Asia, most recently securing a deal to construct a 1,200-hectare project, set on the pristine Mandalika Beach, estimated at $600 million in worth.

- Remaining oil exports in the Dubai are being used to help launch the Dubai Mercantile Exchange, a joint venture with Nymex that is to create a futures market for Mideast crude oil exported to Asia.

- Dubai Ports World, in its attempt to double its capacity in 10 years, is developing terminals in China, India, Vietnam and Pakistan.

These investment patterns place the Gulf region, and especially Dubai, in a unique position. As relationships increase in number and depth within certain markets, namely Iran and China, diplomatic ties with Washington and Europe will probably occasionally feel a squeeze.

SEE:

At Least It's Not Dubai Ports

Calgary Fraud Funds Dubai Boom

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Baker Hughes joins oil rivals in pausing Russian operations
By ANNE D'INNOCENZIO

The logo for Halliburton appears above a trading post on the floor of the New York Stock Exchange, Monday, April 23, 2018. U.S. oil field services companies Halliburton Co. and Schlumberger are suspending their operations in Russia as the Houston, Texas-based businesses react to U.S. sanctions over Russia’s invasion of Ukraine. 

(AP Photo/Richard Drew, File)

NEW YORK (AP) — U.S. oil field services company Baker Hughes said Saturday that it was suspending new investments for its Russia operations, a day after similar moves were announced by rivals Halliburton Co. and Schlumberger.

The steps from the Houston, Texas-based businesses come as they respond to U.S. sanctions over Russia’s invasion of Ukraine.

In its statement, Baker Hughes, which also has headquarters in London, said the company is complying with applicable laws and sanctions as it fulfills current contractual obligations. It said the announcement follows an internal decision made with its board and shared with its top leadership team.

“The crisis in Ukraine is of grave concern, and we strongly support a diplomatic solution,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes.

Halliburton announced Friday that it suspended future business in Russia. Halliburton said it halted all shipments of specific sanctioned parts and products to Russia several weeks ago and that it will prioritize safety and reliability as it winds down its remaining operations in the country.

Schlumberger said that it had suspended investment and technology deployment to its Russia operations.

“Safety and security are at the core of who we are as a company, and we urge a cessation of the conflict and a restoration of safety and security in the region,” Schlumberger CEO Olivier Le Peuch said in a statement.

As the war continues, and the deadly violence and humanitarian crisis worsens, companies that remain are under increasing pressure to leave.

More than 400 U.S. and other multinational firms have pulled out of Russia, either permanently or temporarily, according to Jeffrey Sonnenfeld, senior associate dean for Executive Programs at Yale University’s School of Management, who has publicized a list of corporate actions in Russia.

Oil companies ExxonMobil, Shell, and BP, along with some major tech companies like Dell and Facebook, were among the first to announce their withdrawal or suspension of operations. Many others, including McDonald’s, Starbucks and Estee Lauder, followed. Roughly 30 companies remain.

Ukrainian President Volodymyr Zelenskyy on Wednesday asked Congress to press U.S. businesses still operating in Russia to leave, saying the Russian market is “flooded with our blood.”

The Small Exploration Company That Shocked The Oil Industry

A small Canadian oil explorer may have shocked the industry this year when it published initial results that pointed to the potential of a giant oil discovery in Namibia’s Kavango Basin.


Editor OilPrice.com
July 8, 2021·

Now, as our anticipation builds over the next drill results, this small Canadian driller looks to be attracting attention from around the globe.

In April, Reconnaissance Energy Africa (TSXV:RECO, OTC:RECAF) announced early findings from the first of their initial 3-well drill program in Namibia’s 6.3-million-acre Kavango Basin. It came as a surprise to many of us: Results indicated signs of a working petroleum system after only the first test drill.


On June 3rd, investors got another surprise when RECO announced further indication of a working petroleum system in the shallow section of its second well.

Now, we’re waiting for an announcement about the completion of the second drill to 12,500 feet, which we think should be any day now.

Previous projections have compared the possible numbers with some of the largest oil discoveries in the world in recent years, like the Midland Basin in West Texas.

And Daniel Jarvie, an industry-recognized geochemist and source rock expert, thinks that the play is “pretty much a no-brainer. It will be productive and I’m expecting high-quality oil.”

He’s estimated the basin generated potential billions of barrels of oil—conservatively.

And he’s not the only industry-known scientist involved in this play.

Recognized geologist Bill Cathey was another early bird.

Cathey—whose clients have included supermajors such as ExxonMobil, ConocoPhillips, and Chevron—performed the entire magnetic survey interpretation of the Kavango Basin for ReconAfrica and was very clear in saying: “Nowhere in the world is there a sedimentary basin this deep that does not produce commercial hydrocarbons.”

What some are considering now is whether there is potential for this to be the last big onshore oil discovery that the world may ever see, as ReconAfrica looks to continue efforts to de-risk Kavango.

How Big Could This Potentially Be?

With the drilling of their first test well in an initial 3-well program, ReconAfrica has had to rely primarily on some encouraging survey data to guide them in their exploration work.

Reco

The results so far, however, are reported to have well exceeded their expectations.

In samples from the first well, ReconAfrica encountered clear evidence that ReconAfrica is sitting on a working petroleum system in the Kavango Basin.

In fact, they showed even more than that:

Sample log results from the first (6-2) stratigraphic test well (6-2) provided over 200 meters of light oil and natural gas indicators over three discrete intervals in a stacked sequence of reservoir and source rock. Oil was then extracted from these samples and the results supported an active petroleum system with multiple source intervals.

The second stratigraphic test well (6-1) has so far encountered 343 meters of oil and gas indicators just at the shallow level, further confirming an active petroleum system in Kavango. The well is now set to reach its full depth (12,500 feet) in the first part of this month, following a short break for maintenance, which has now been concluded, with drilling having resumed last week.

“These wells suggest there is commercial potential in the basin,” Recon Africa director Dr. James Granath, PhD Structural Geology, said in a recent statement. “It took 30 wells in offshore Norway to get to this point, we've been lucky enough to do it in the first two."

We’re also waiting for well analysis from some of the biggest names in the industry, including Schlumberger.

Is This Namibia’s Time to Shine?

Namibia’s never produced a barrel of oil in its history, so ReconAfrica’s (TSXV:RECO, OTC:RECAF) work here could put it on the global oil map for the first time, and in a very big way.

It could also transform the lives of many Namibians, starting with ReconAfrica’s efforts to use its resources to drill community water wells for Kavango residents, nearly half of whom live in generational poverty and are forced to transport water by foot for miles every day.

Kavango

One of ReconAfrica’s first moves as it began trying to prove up Kavango’s commercial potential was to drill water wells for the people of Kavango, and that’s only one part of its reported $10-million ESG commitment to the country and the region, $1 million of which has gone to Namibia’s COVID-19 vaccine program.

The company says the aim of this play isn’t unconventional, either, so the environmental impact questions are far less pressing. ReconAfrica has stated that it does not have any fracking permits and hasn’t applied for any, putting that brief controversy to rest.

Furthermore, the company reports that drilling is taking place more than 50 kilometers south of the ecologically sensitive Okavango River and some 260 kilometers west of the Okavango Delta.

2D seismic, for which ReconAfrica announced government approval this week, is reportedly being conducted by some of the best in the business, with the lightest impact in the world. In addition, ReconAfrica founder Craig Steinke has stated that the company is using 100% organic and biodegradable drilling fluids that are later used as vegetable garden fertilizers.

For Namibia, especially in an era with a strong focus on ESG, and with many eyes trained on efforts to avoid any more “resource curse” scenarios, there may be a lot at stake, and the local and national governments look to be fully on board.

"We are pleased with ReconAfrica's approach to working closely and in constant consultation with our office, the traditional leadership, local authority, and the community. This is only the beginning stages and we have already started to experience the positive economic and social impact of the project in our regions." Kavango East Governor, Bonifasius Wakudumo said.

What Happens Next?

Next, we anticipate lots of potentially exciting news for this small explorer sitting on what could be a supermajor-size exploration play at the final frontier of onshore oil that includes not only the 6.3 million acres of Namibia’s portion of the Kavango basin but also 2.2 million acres in Botswana.

Kavango

In a matter of days, we expect to hear the results of the completed second drill to 12,500 feet.

And now, 2D seismic is reported to be kicking off, with approval just granted by the Government of Namibia.

That will help ReconAfrica determine where to drill to commercialize this basin in the next campaign.

By the end of July, the company reports they plan to have started the seismic acquisition program, which they expect will help them target the most promising areas to drill for their next round.

If those results are positive and the project progresses, ReconAfrica (TSXV:RECO, OTC:RECAF) has a right to a 25-year production sharing contract, and they may seek to enter into potential JV negotiations, and that’s what we think could send this exploration play over the edge.

Other companies looking to capitalize on rising oil prices:

Exxon (NYSE:XOM) is a large multinational corporation headquartered in Irving, Texas. Exxon Corporation engages in the exploration and production of crude oil and natural gas around the world. With its headquarters being located in Dallas, Texas and with operations all over the globe, Exxon has been able to create an empire that has lasted for over 100 years.

Exxon was founded on October 17th, 1999 by John D Rockefeller Jr., who at the time was running Standard Oil Company of New Jersey (which would be later renamed as Exxon Company USA). The company began as a merger between two companies: Standard Oil Company of New Jersey and Humble Oil & Refining Co., which were both subsidiaries of Standard Oil Trust.

While Exxon is one of the world’s top oil producers, it isn’t ignoring the reality of the market. It has made major moves in its commitment to reduce its emissions. It claims to have about one-fifth of the world’s total carbon capture capacity. The company captures about 7 million tons per year of carbon.

Eni (NYSE:E) is a global energy company that was established in 1959. They have grown into one of the top 10 natural gas producers and are ranked #2 for production and reserves. Eni has operations around the world, with their headquarters located in Rome, Italy.

The oil major described 2020 as a “year of war”, regarding the energy crisis experienced in the face of COVID-1. But it may be too soon to see the issues faced last year as a thing of the past. Eni is committing to lower the price of oil at which the company breaks even going into 2021, as a means of tackling the uncertainty of the oil economy in the coming months. Francesco Gattei, CFO at Eni, stated that “Volatility is growing every year.”, highlighting the need to be prepared for the energy demand of the future. In fact, Eni has now set out a plan to lower its greenhouse gas emissions by 80% by 2050, leveraging natural gas as a major tool in its arsenal.

In addition to its natural gas push, Eni is also jumping on the green hydrogen bandwagon. In fact, in December, the Italian oil major announced a partnership with Entel to produce hydrogen using electrolyzers powered by renewable energy. “Our goal is to accelerate the reduction of our carbon footprint by implementing the best applicable low carbon solution, either green or blue, to reduce our direct emissions as well as switching to bio products to supply our clients,” Eni’s chief executive officer (CEO), Claudio Descalzi, said in a company statement.

Halliburton (NYSE:HAL) is a company that provides products and services to the energy industry. The company has been in business for more than 100 years, and it employs more than 50,000 people across the globe. Halliburton’s employees are located in over 80 countries around the world. Halliburton operates in four segments: upstream (oil exploration), downstream (manufacturing of oil products), engineering-and- construction, and chemicals. The company offers exploration services, such as drilling wells; production services such as well completion; processing services like natural gas liquefaction and refining.

Halliburton is one of the largest oilfield services companies in the world. The company has secured its place as a giant in the oil and gas industry. But it didn’t happen overnight. The oilfield services sector is highly competitive and ripe with innovation. In order to stay ahead, companies must be on the absolute cutting edge of technology. And that’s exactly what Halliburton has done. And recently, Halliburton increased the heat for its competition. Partnering with Microsoft, Halliburton has become one of the most exciting “tech” plays in the industry.

This partnership is significant. Microsoft, a leader in the tech world, is looking to bring machine learning, augmented reality, and the Industrial Internet of Things to the oil and gas industry, and Halliburton is welcoming the new take on the resource realm with open arms.

Pioneer Natural Resources (NYSE:PXD) is an independent oil and gas exploration and production company with a diversified portfolio of high quality assets in the United States. The company's operations are concentrated primarily in two areas: West Texas, where it has developed one of the most significant unconventional resource plays in North America, the Eagle Ford shale; and Southern California, where it has assembled a large position onshore Los Angeles basin. Pioneer Natural Resources was founded in 1954 by Ross Shaw who had long been involved with land leasing for drilling purposes. With his son James as president, they drilled their first well near Big Lake, Texas.

As a leader in the Permian, Pioneer is also making major waves in its commitment to cut back flaring in the region. In fact, Pioneer consistently flares a smaller percentage of its production than the basin average. The average flaring rate for oil producers in the Permian is 3.7%, according to GaffneyCline, yet Pioneer’s average is just 0.8%.

Despite its commitment to the Permian, however, CEO Scott Sheffield isn’t particularly bullish on the region in the short term. “I never anticipate growing above 5% under any conditions,” Sheffield also said. “Even if oil went to $100 a barrel and the world was short of supply.” The shale major CEO explained this was because the service costs associated with adding more drilling rigs would undermine profit margins.

Enterprise Products Partners (NYSE:EPD) is a leading provider of innovative solutions for the global energy industry. We partner with some of the world's most renowned companies and provide them with integrity, expertise, and innovation in all aspects of their business including: exploration, production, refining, transmission & distribution. Enterprise has been around since 1928 when it first started as an oil pipeline company in Tulsa Oklahoma.

Enterprise is the top transporter of natural gas liquids (NGLs) and also owns the most NGL fractionation capacity in the United States, as well as dock space for exports. Enterprise Products is the largest midstream MLP in the country. Enterprise has clearly read the signs of the times and has begun to work with partners to scale back its project backlog. In the past, EP was able to weather the normal industry headwinds thanks to robust cash coverage and manageable leverage. Unfortunately, Covid-19 has been anything but your average downturn, and EP has been forced to seriously cut back on Capex.

After spending $17 billion in capital projects in 2015-19, including new oil pipelines, NGL and LPG pipeline-and-export facilities, and NGL fractionation plants, the giant MLP spent just $2.5-$3 billion last year, down from a prior budget of $3.5-$4 billion as well as a combined $4 billion in 2021-22. However, these dramatic cuts are expected to pay off big time.

Canadian Natural Resources (NYSE:CNQ, TSX:CNQ) is a natural resources company that conducts oil and gas exploration, development, production, and marketing operations in Canada. They are one of the largest independent crude oil producers in Canada with producing assets primarily located in the Western Canadian Sedimentary Basin. The firm also operates two refineries: Strathcona Refinery near Edmonton, Alberta; and Scotford Refinery near Edmonton, Alberta.

Canadian Natural Resources was one of the few oil producers that kept its dividend intact after swinging to a loss for the first half of 2020. Though Canadian Natural Resources kept its dividend, it withdrew its production guidance for 2020, however. It also said it would curtail some production at high-cost conventional projects in North America and oil sands operations and carry out planned turnaround activities at oil sands projects in the second half of 2020.

Despite the negative stigma surrounding the the oil sands, the sector is starting to clean up its act a bit. And Canadian Natural Resources is leading the charge. And if analysts are right about Canada’s comeback, Canadian Natural Resources could be in for a big year.

Suncor Energy (TSX:SU) is a Canadian multinational energy company, headquartered in Calgary, Alberta. It operates Canada’s largest oil sands project - Suncor's Oil Sands Operations. The company is Canada's most profitable and one of the world's largest integrated energy companies with its operations spanning North America and 20 other countries around the world. With over $120 billion in assets, it has more than 10 million acres of land holdings for exploration and production across six continents.

Suncor has adopted a number of high-tech solutions for finding, pumping, storing, and delivering its resources. Not only is it big in the oil sector, however, it is a leader in renewable energy. Recently, the company invested $300 million in a wind farm located in Alberta.

MEG Energy Corp (TSX:MEG) is a Canadian energy company that provides natural gas and renewable power products and services to customers in Canada, the United States, Europe, and Asia. The company operates in three segments: Pipeline Services; Power Generation Services; Renewable Power Production. MEG has been able to grow their pipeline business by engaging with key stakeholders on regulatory fronts across North America as well as through expansion of their existing pipeline network.
The company’s large proven resources and their cutting-edge technology make MEG a promising company for investors looking to get in to the promising oil sands in Alberta

Gibson Energy (TSX:GEI) is an energy company that specializes in the production, transmission and distribution of natural gas. Gibson Energy has been providing reliable service to their customers for over 100 years. The company currently employs more than 1,400 people across North America.

Gibson has a long history in Canada’s oil and gas game, going back to 1953. The company has a diverse portfolio which includes transportation, storage, processing, marketing and distribution of oil, condensates, oilfield waste, refined products and natural gas. With Gibson’s huge array of assets and its multi-platform sales strategies, it’s hedged a lot of the risk for investors in an inherently high-risk, high-reward industry.

Pembina Pipeline Corp. (TSX:PPL) is a company that has been around for more than 50 years and was the first pipeline company in Canada to offer gas transmission services. They are now one of the largest natural gas transmission companies in North America with an annual throughput capacity of almost 66 billion cubic feet per day. This blog post will discuss Pembina's recent acquisition by Enbridge Inc., their financial performance, and how they view long-term growth opportunities.

Pembina Pipeline Corporation is a Canadian energy infrastructure business that provides products such as natural gas, oil, renewable power, and chemicals to customers primarily located on the eastern coast of North America from its operations in Alberta, British Columbia, Ontario and Quebec.

By. Jason Cantle

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements. Statements contained in this document that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of Recon. All estimates and statements with respect to Recon’s operations, its plans and projections, size of potential oil reserves, comparisons to other oil producing fields, oil prices, recoverable oil, production targets, production and other operating costs and likelihood of oil recoverability are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, including drilling and other exploration activities, timing of reports, development, exploitation and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, imprecision of reserve and resource estimates, environmental risks, competition from other producers, government regulation, dates of commencement of production and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this document, and there is no representation that the actual results realized in the future will be the same in whole or in part as those presented herein. Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that Recon and its technical analysts have made. We undertake no obligation, except as otherwise required by law, to update these forward-looking statements except as required by law.

Exploration for hydrocarbons is a highly speculative venture necessarily involving substantial risk. Recon's future success will depend on its ability to develop its current properties and on its ability to discover resources that are capable of commercial production. However, there is no assurance that Recon's future exploration and development efforts will result in the discovery or development of commercial accumulations of oil and natural gas. In addition, even if hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if Recon encounters unforeseen geological conditions. Adverse climatic conditions at such properties may also hinder Recon's ability to carry on exploration or production activities continuously throughout any given year.

DISCLAIMERS

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Daddy's Boy

So come January 2009 what will Ex-President Bush be thinking about? His failed war in Iraq? His failed war on Terrorism? All the homes not built in New Orleans? Crumbling American infrastructure? Nope. True to form he will be thinking of how he can make a buck off being an Ex-Pres. Just like Daddy does. And of course he has to keep up with the Clinton's.

After he leaves office, President Bush is quoted as telling Draper that he wants to build what he calls a "Fantastic Freedom Institute" in Dallas. He describes it as being a place where young leaders can come, write and lecture.

But first, Bush tells Draper, he wants to make some money to "replenish the ol' coffers,” noting he can make "ridiculous” money on the lecture circuit.

“I don't know what my dad gets. But it's more than 50, 75 [thousand] … Clinton's making a lot of money," the president is quoted as saying.

Given his failed presidency the only place that would welcome him on the lecture circuit is Albania.

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Fracking Giants Warn Shale Crash Will Be Faster This Time

David Wethe Bloomberg March 24, 2020

(Bloomberg) -- Two of the world’s biggest oilfield service companies are warning of a bigger shale crash than the one that hit the U.S. and Canada just five years ago.

While the decline in North American drilling rigs could approach the lows seen in 2016, the drop could be much faster this time around, Schlumberger Ltd. told analysts and investors Tuesday on a webcast hosted by Scotia Howard Weil. And as the most financially troubled oilfield service providers seek to stay afloat, there’s not much help this time around, Halliburton Co. said on the same webcast.

Investors cheered plans by both companies to significantly slash spending. Halliburton soared as much as 33% for a history-beating advance, while Schlumberger climbed 11%.

“Wall Street is shut to the industry,” Lance Loeffler, chief financial officer at Houston-based Halliburton, said during the webcast. “There is no more lifeline. Financial markets aren’t lending their support.”

Halliburton, which generates most of its business in the U.S. and Canada and leads the world in fracking, is planning for the possibility that nearly two thirds of rigs in the region could be shut down by the final three months of the year. Schlumberger, the world’s biggest overall oilfield services provider, said it’s slashing its own spending by as much as 30% in 2020.

North America, which has been roiled by contractions in the past, may see a sharper, more abrupt cut in drilling before the end of the second quarter, Chief Executive Officer Olivier Le Peuch said on the call.

“We’re acting sharply and decisively in this context,” he said. “It will reach in a matter of weeks the trough, where it took a year or six months to reach a trough last time.”

While changes to rig activity generally lag the movement of oil prices by several months, shale explorers have wasted no time cutting where they can. Oil drilling in the Permian Basin of West Texas and New Mexico, home to the world’s biggest shale patch, plunged to its lowest level since the nadir of the last crude-market slump in early 2016.

At its worst, the U.S. rig count could see a 70% drop over a six-month period, eclipsing the greater than 60% cut in 1986, according to Raymond James.

“We believe OFS companies and investors need to prepare themselves for activity to fall at an unprecedented rate,” Praveen Narra, an analyst at Raymond James, wrote Monday in a note to investors. “We believe that E&Ps attention to free cash flow, as well as several with credit issues, will force spending reductions that are far more drastic than in previous downcycles.”

©2020 Bloomberg L.P.

Related: Oil Majors Are Preparing For $10 Oil

Bad News For Bush

Business as usual in Iraq. Surge or not.

Iraq has failed to meet all but three of 18 congressionally mandated benchmarks for political and military progress, according to a draft of a Government Accountability Office report.

"While the Baghdad security plan was intended to reduce sectarian violence, U.S. agencies differ on whether such violence has been reduced," it states. While there have been fewer attacks against U.S. forces, it notes, the number of attacks against Iraqi civilians remains unchanged. It also finds that "the capabilities of Iraqi security forces have not improved." "Overall," the report concludes, "key legislation has not been passed, violence remains high, and it is unclear whether the Iraqi government will spend $10 billion in reconstruction funds," as promised.

Iraq needs $100-150 bln for reconstruction: Finance minister

AMMAN (Reuters) - Iraq needs at least $100 billion to rebuild its shattered infrastructure after four years of violence and lawlessness following the U.S.-led invasion of 2003, Finance Minister Bayan Jabor said on Monday.

"The country is devastated and we are in need of at least $100 billion to $150 billion to restore infrastructure -- from sewerage to water to electricity to bridges and basic needs of the country," he told Reuters in Amman.

He said about $4 billion had been spent on infrastructure projects so far this year, more than in all of 2006, when internal violence and the limited capacity of the Iraqi private sector meant only about 40 percent of $6 billion allocated in the budget was used.

"What happened last year was ... a failure in the government's ability to execute," Jabor said.

Health and humanitarian crisis in Iraq

The billions of dollars planned for reconstruction are going unspent as the situation on the ground has spelled suspension for reconstruction efforts. While the coalition forces had not predicted the downward spiral that ensued - predicting a peaceful transition from one regime to another - investments have been mainly made in reconstruction efforts and in comparison, next to nothing, has been set aside for humanitarian assistance.

Special Inspector General for Iraq Reconstruction

July 30, 2007 Quarterly and Semiannual Report to Congress (Highlights, All Sections and Appendices)

Asset Transfer
SIGIR produced another audit on the asset-transfer process,
looking at how completed projects are transferred to
Iraqi control. During the course of the audit, SIGIR found
that the Government of Iraq (GOI) has failed to accept a
single U.S.-constructed project since July 2006. Although
local Iraqi officials have accepted projects, the national
government has not. Moreover, SIGIR learned that the U.S.
government is unilaterally transferring projects to Iraq. The
failure of the asset-transfer program raises concerns about
the continuing operation and maintenance of U.S.-constructed
projects.

First Focused Financial Review
This quarter, SIGIR completed the first in a series of
focused financial reviews of large contracts funded by
the Iraq Relief and Reconstruction Fund (IRRF). These
reviews will meet the “forensic audit” requirement
that the Congress imposed upon SIGIR last December
through the Iraq Reconstruction Accountability Act of
2006.

This initial review examined the work performed
by Bechtel under its Phase II IRRF contract. SIGIR’s
findings from the Bechtel audit are emblematic of
the many challenges faced by contractors in the Iraq
reconstruction program, including insufficient oversight,
descoping, project cancellations, cost overruns,
and significant delays in completing projects. SIGIR has
announced the next round of focused financial reviews,
which will audit the largest contracts in the Iraq reconstruction
program over the next year.

Anti corruption
The Embassy made progress on several fronts to address the endemic corruption in Iraq, which SIGIR views as a “second insurgency.” This quarter saw the inception of the Iraqi-created Joint Anti-Corruption Council (JACC), comprising the three main anticorruption organizations in Iraq, as well as other governmental representatives. A SIGIR audit this quarter identified continuing challenges to the implementation of a coherent anticorruption effort, including the absence of a program manager with the authority to coordinate the overall anticorruption effort and the lack of a comprehensive plan that ties anti corruption programs to the U.S. Embassy’s Iraq strategy.

Officer overseeing Iraq reconstruction projects urges patience

Brig. Gen. Michael J. Walsh, commander of the Corps of Engineers' Gulf Region Division in Baghdad since Oct. 14, 2006, is responsible for overseeing the bulk of U.S.-funded reconstruction projects in Iraq. Earlier this summer, Government Executive senior correspondent Katherine McIntire Peters interviewed Walsh when he was in Washington during a brief leave from Iraq. The following is an edited transcript:

Q: You've been in Iraq more than eight months now. How have things gone with reconstruction during that time?

A: The security issue had an impact on about 12 percent of our projects when I got there, and now it's up to about 19 percent. Certainly part of the requirements in building, whether in the United States or Iraq, is to make sure you get the skilled labor, the equipment and the materials you need. In Iraq, you also need to make sure the security piece is taken care of, and then make sure the politics are OK with the local tribes and the provincial leadership. If any one of those four or five things is not in alignment, then you have to slow down or stop a project.

About 60 percent of our contracts are now with Iraqi firms. If an Iraqi principal or an Iraqi senior worker receives a cell phone call threatening him or his wife, he may not come to work. That's what we call an impact to the construction schedule. There also have been some attacks on particular project sites. Some small percentage have been damaged beyond repair. So far, we've completed 3,200 projects. I would say probably less than 1 percent of those have been destroyed. It's a very small percentage.

Troops Confront Waste In Iraq Reconstruction

Maj. Craig Whiteside's anger grew as he walked through the sprawling school where U.S. military commanders had invested money and hope. Portions of the workshop's ceiling were cracked or curved. The cafeteria floor had a gaping hole and concrete chunks. The auditorium was unfinished, with cracked floors and poorly painted walls peppered with holes.

Whiteside blamed the school director for not monitoring the renovation. The director retorted that the military should have had better oversight. The contract shows the Iraqi contractor was paid $679,000.

Americans who report Iraq corruption pay a price

Corruption has long plagued Iraq's reconstruction. Congress approved more than $30 billion to rebuild Iraq, and at least $8.8 billion of it has disappeared, according to a government reconstruction audit.

Yet there are no noble outcomes for those who have blown the whistle, according to a review of such cases by The Associated Press.

William Weaver, a professor of political science at the University of Texas-El Paso and a senior adviser to the National Security Whistleblowers Coalition, said, "If you do it, you will be destroyed."

Investigating an Outsourced War

The United States government detained Donald Vance just outside Baghdad for 97 days. They hooded him, interrogated him ruthlessly, and blasted his cell with heavy metal music. He was accused of selling weapons to terrorists. His real crime appears to be telling the FBI about corrupt contracting practices in Iraq. Vance is among a select group of state enemies: whistleblowers.

We know this because of an Associated Press story that uncovered Vance’s ordeal. Vance, suspicious that the contractor he worked for was supplying weapons to insurgents, started supplying information to the FBI back in the States. But he was soon detained by Army Special Forces and brought to Camp Cropper for his 97-day stay.

The story also reported the fate of other whistleblowers who have tried to halt the massive boondoggles still ongoing in Iraq: they have been “vilified, fired, and demoted.”

Bunnatine Greenhouse, a high-ranking civilian in the U.S. Army Corps of Engineers who testified about the corrupt practices of a Halliburton subsidiary now “sits in a tiny cubicle in a different department with very little to do and no decision-making authority, at the end of an otherwise exemplary 20-year career.” Julie McBride testified about the same Halliburton company’s cost exaggerations and skimming. What happened? “Halliburton placed me under guard and kept me in seclusion. My property was searched, and I was specifically told that I was not allowed to speak to any member of the U.S. military. I remained under guard until I was flown out of the country.”

Pentagon auditors investigating alleged Iraq contract fraud
Mike Rosen-Molina at 7:13 PM ET

[JURIST] The US Department of Defense will send an investigative team headed by Pentagon Inspector General Claude M. Kicklighter to Iraq to probe allegations of fraud and corruption related to military contracts, a DOD spokesman said Tuesday. The team will concentrate on incongruities concerning weapons and supplies bought by the US and intended for the use of Iraqi forces. As of last week, 73 criminal investigations were underway into contracts valued at more than $5 billion, Army spokesman Col. Dan Baggio said Monday; 20 military and civilian figures, including an officer who worked closely with Gen. David Petraeus , have already been indicted. The New York Times reported Tuesday that multiple federal agencies, including the Department of Justice and the Federal Bureau of Investigation, are conducting their own investigations into the matter.

The Rip-off in Iraq: You Will Not Believe How Low the War Profiteers Have Gone

Operation Iraqi Freedom, it turns out, was never a war against Saddam Hussein's Iraq. It was an invasion of the federal budget, and no occupying force in history has ever been this efficient. George W. Bush's war in the Mesopotamian desert was an experiment of sorts, a crude first take at his vision of a fully privatized American government. In Iraq the lines between essential government services and for-profit enterprises have been blurred to the point of absurdity -- to the point where wounded soldiers have to pay retail prices for fresh underwear, where modern-day chattel are imported from the Third World at slave wages to peel the potatoes we once assigned to grunts in KP, where private companies are guaranteed huge profits no matter how badly they fuck things up.

Humanitarian disillusions

On August 28th, Al-Jazeera English broadcast a report that the Salvadorian contingent of the MNF-I will be renewed in Iraq, highlighting their “reconstruction and humanitarian assignment”. It’s not the first misuse of the humanitarian concept. Everyone is aware of the existence of Provincial Reconstruction Teams (PRTs) in Iraq and Afghanistan. Perhaps fewer people know that some Private Security Companies (PSCs), that are often compared to mercenary companies, justify their presence through “humanitarian” reasons.

For example, the British Aegis, well known in Iraq for the video broadcast by its personnel showing them firing at civilian vehicles with Elvis Presley as accompanying background music. As one of the largest PSC worldwide they have created the “Aegis Foundation”, which has been active across Iraq since 2004 and “has completed a wide range of projects assisting communities in urgent need, from providing clean drinking water for schools and inoculations against water-borne diseases to supplying hospitals and medical clinics with generators and essential equipment.” The International Peace Operation Association (IPOA), which, at the exact opposite of what its name suggest is a trade association of some of the most prominent PSC and has rules of engagement in its Code of Conduct, doesn’t hesitate to talk about the “benefits of military in humanitarian role” in its newsletter.

SEE:

Military Industrial Complex

The Cost of War

U.S. Supplies Iraqi Insurgents With Weapons

Surge Blackout

What He Didn't Say

Iraq; The War For Oil

Look In Your Own Backyard

Iraq Inspector General

Another Privatization Failure

Conservative Nanny State

Another Privatization Myth Busted

Halliburton

Privatization of War

Privatization


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