Halliburton poised to profit most from invasion of Iraq

Zak McGregor zak at mighty.co.za
Sun Mar 23 17:17:01 MST 2003

Any chance of this seeding a major scandal? Or is the average US citizen
so well programmed by now that it simply won't register? Any leverage to
be gotten from this?

War Could Be Big Business for Halliburton
Sun March 23, 2003 12:04 PM ET
By Carolyn Koo

NEW YORK (Reuters) - When it comes to making money from a war in Iraq,
few can match the firepower of the company once headed by Vice President
Dick Cheney.

Houston-based Halliburton Co. HAL.N can build roads and bridges and
camps for American forces. It can transport personnel and provide other
logistics. It can fight any fires Iraqi leader Saddam Hussein might set.
And after the war, assuming a U.S. victory, it can help restore Iraq's
infrastructure and oil production.

While questions remain over how much the work will boost the company's
stock price, Halliburton's KBR engineering and construction division "is
basically the 'corps of engineers' to the U.S. military," said Jim
Wicklund, an analyst at Banc of America Securities. "It is expected that
the occupying army's infrastructure could in large part be supplied by

At the same time, the company's oilfield services business, which is
second only to Schlumberger Ltd. SLB.N , is likely to supply most of the
heavy equipment to fight fires that Iraqi forces could set to oil wells
and oil fields, as they did in Kuwait during the 1991 Persian Gulf War.

And should the U.S. emerge victorious, Halliburton -- which develops oil
fields and drills for oil all over the world -- has the connections and
businesses to play a major role in rebuilding Iraq and ramping the
nation's oil production capacity back up to pre-1991 Persian Gulf War

"They have the businesses. They have the government relationship already
well-established, and, as we all know, Cheney was the CEO, so it makes
logical sense," said Denis Walsh, an equity analyst who covers the
energy sector for State Street Research and Management.

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