Holy War Against Halliburton

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Byron York has the details on the so called overcharging by Halliburton:

Why would Halliburton deliver high-priced fuel from Kuwait when it could be obtained at a much lower price from Turkey?

The company says it did so because the Army demanded that it deliver fuel from Kuwait. “The U.S. Army Corps of Engineers said to find a fuel source in Kuwait,” Halliburton said in a press release yesterday. “[Halliburton] sought and received bids from four suppliers in Kuwait. One met the Corps’ specification, and that is the one the Corps approved.”

But why did the Corps specify that fuel be delivered from Kuwait? The answer appears to lie with the nature of fuel shortages that swept Iraq in the late spring. After the war, the country’s oil refineries were operating far below capacity. Both gasoline and liquefied petroleum gas, which millions of Iraqis use for cooking, were in very short supply.

American officials feared that the shortages might spark civil unrest. Of particular concern was Basra, the city in southern Iraq that had seen increasingly violent expressions of popular anger against coalition forces. According to a source in the Corps of Engineers, in May, Lt. General Ricardo Sanchez, leader of American forces in Iraq, demanded that fuel be supplied to Basra — fast.

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Erick Erickson
By Erick Erickson

Erick Erickson

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