Halliburton Company Asbestos Exposure

Established in 1919 by Erle Palmer Halliburton, the company embarked on its journey in the oil industry after Halliburton’s departure from Perkins Oil Well Cementing Company. With his naval background and insights from Perkins, Halliburton was motivated to bring new perspectives to the oil sector.

Acquisitions and Asbestos Connections

Halliburton, while not a producer of asbestos products itself, significantly expanded through the acquisition of companies that did use asbestos. This expansion included the purchase of Brown & Root Inc. and Dresser Industries. These acquisitions later led to numerous legal challenges due to asbestos use in their products.

Bankruptcy and Legal Implications

The accumulation of asbestos-related lawsuits, particularly following the acquisition of Dresser Industries, was a pivotal factor in Halliburton’s decision to declare bankruptcy in 2003. This step was taken as a strategy to manage the escalating legal costs associated with asbestos litigation. According to a 2005 Halliburton press release, the company’s proposal included almost 2.8 billion in cash to support current asbestos claimants and close to 60 million shares of company stock for the benefit of future asbestos claimants.

Range of Products Involving Asbestos

The companies acquired by Halliburton, including DII Industries, LLC and Kellogg Brown & Root, utilized asbestos in a variety of products. These included pumps, compressors, and turbines, which found applications not only in the oil industry but also in maritime and rail sectors.

Occupational Exposure and Health Risks

The widespread use of Halliburton’s asbestos-laden products posed significant health risks, particularly to workers in fields such as oil refining, shipyard work, and engineering. This exposure heightened the risk of developing asbestos-related diseases, including mesothelioma.

Impact of Asbestos Litigation

The asbestos litigation against Halliburton escalated from the 1970s, reaching a peak in the early 2000s. The company faced substantial financial strain from this litigation, impacting its stock prices and leading to substantial settlements.