Thursday, December 11, 2003

Hmm...

Never let it be said that the U.S. doesn't know who its real friends are.

The United States government is paying the Halliburton Company an average of $2.64 a gallon to import gasoline and other fuel to Iraq from Kuwait, more than twice what others are paying to truck in Kuwaiti fuel, government documents show.

[. . .]

The cost of the imported fuel first came to public attention in October when two senior Democrats in Congress criticized Halliburton, the huge Houston-based oil-field services company, for "inflating gasoline prices at a great cost to American taxpayers." At the time, it was estimated that Halliburton was charging the United States government and Iraq's oil-for-food program an average of about $1.60 a gallon for fuel available for 71 cents wholesale.

But a breakdown of fuel costs, contained in Army Corps documents recently provided to Democratic Congressional investigators and shared with The New York Times, shows that Halliburton is charging $2.64 for a gallon of fuel it imports from Kuwait and $1.24 per gallon for fuel from Turkey.

[. . .]

She said the contract was also expensive because it was hard to find a company with the trucks necessary to move the fuel, and because Halliburton is only able to negotiate a 30-day contract for fuel. "It is not as simple as dropping by a service station for a fill-up," she said.

A spokesman for the Army Corps of Engineers, Bob Faletti, also defended the price of imported fuel.

"Everyone is talking about high costs, but no one is talking about the dangers, or the number of fuel trucks that have been blown up," Mr. Faletti said. "That's the reason it is so expensive."

Yeah, and we all know those snipers and suicide bombers out there have been oh so discriminate in their target selection thus far, huh? They're singling out Halliburton trucks . . . riiiiiight. War profiteering? What war profiteering?

Iraqi's state oil company, SOMO, pays 96 cents a gallon to bring in gas, which includes the cost of gasoline and transportation costs, the aides to Mr. Waxman said. The gasoline transported by SOMO — and by Halliburton's subcontractor — are delivered to the same depots in Iraq and often use the same military escorts.

The Pentagon's Defense Energy Support Center pays $1.08 to $1.19 per gallon for the gas it imports from Kuwait, Congressional aides said. That includes the price of the gas and its transportation costs.

The money for Halliburton's gas contract has come principally from the United Nations oil-for-food program, though some of the costs have been borne by American taxpayers. In the appropriations bill signed by Mr. Bush last month, taxpayers will subsidize all gas importation costs beginning early next year.

Goodie!!