Halliburton and Asbestos 

For decades, Halliburton has been a leader in the oil and gas industry, but the company’s history dates back to when asbestos-containing materials were incorporated into many of its products and operations. Employee exposure to this toxic substance, as well as exposure to products made by the many subsidiaries the company added over the years, has resulted in countless individuals developing mesothelioma, lung cancer, and other fatal illnesses. 

Halliburton Company History

Early Years

The Halliburton company was founded by Erle P. Halliburton. In 1916, he worked for the Perkins Oil Well Cementing Co. in California, where he learned about how cement could be used to protect and seal oil-well bores. Erle was dismissed from that company, supposedly for changing procedures without authorization. Eventually, he found his way to Burkburnett, Texas, where oil was discovered in 1918. Soon after, he established the New Method Oil Well Cementing Co. and offered its services to drillers. By 1920, New Method had been renamed Halliburton Oil Well Cementing Co. and had established its headquarters in Duncan, Oklahoma.[1]

Erle Halliburton patented many improvements to the oil-well cementing process. One of his earliest and most important inventions was the jet mixer, a truck-mounted machine for mixing water and lime to make the cement used in the wells. As the American petroleum industry grew, Erle Halliburton’s patents made his company an indispensable partner.

In 1924, he needed additional capital to expand, so he enlisted several large petroleum businesses as joint owners and incorporated the company. Halliburton made its first overseas sales in 1926, selling cementing units to an English firm for use in Burma (now Myanmar). In the 1930s, HOWCO opened research laboratories and increased its range of services. It deployed a barge-mounted cementing rig in the Gulf of Mexico in 1938, establishing the offshore services that became integral to the petroleum industry.

Expansion

Halliburton continued expanding through acquisitions and geographic expansion. It introduced a presence on the West Coast in 1940 by purchasing Perkins Oil Well Cementing, the company where Erle had once worked, opening its first South American office in Venezuela in the same year, and its first European office, in Italy, in 1951.

In 1949, the company paid for an exclusive license to practice hydraulic fracturing, a newly invented technique for releasing oil and gas deposits from underground rock formations. Fracking, as the process was eventually called, was very profitable for the company. Erle P. Halliburton died in October 1957, by which time his company had 20,000 employees.

Significant expansion came in 1959, when Halliburton acquired Otis Engineering, another company active in oil-field equipment and services. The company moved its headquarters from Oklahoma to Dallas in 1961, and a significant expansion and diversification came when it acquired Texas-based engineering and construction company Brown & Root, Inc., in 1962.

Asbestos Liabilities

In 1995, Dick Cheney, who had served as U.S. Secretary of Defense in George H.W. Bush’s administration, became chairman and chief executive of Halliburton Co.  Under his direction, Halliburton purchased Dresser Industries, a former competitor, in 1998. That company’s M.W. Kellogg engineering subsidiary was combined with Brown & Root to form Halliburton’s Kellogg Brown & Root (KBR) division.

The Dresser Industries merger cost Halliburton $4 billion in asbestos settlements, with Dresser and KBR filing for bankruptcy in 2003. Halliburton spun off KBR in 2007 to avoid conflict-of-interest concerns over Cheney’s VP role and KBR’s no-bid Iraq contracts. The 2010 Deepwater Horizon spill led to another $1.1 billion settlement in 2014.[2]

Though 2010 saw a U.S. shale boom that brought major profits for Halliburton, the 2014 oil crash triggered a downturn that affected the entire industry. This prompted a failed $7.4 billion merger attempt with Baker Hughes in 2014-2016. To reduce these boom-bust cycles, Halliburton diversified beyond pressure pumping to drilling and evaluation services; 40% of the company’s revenue now comes from overseas operations.

Halliburton moved to downtown Houston in 2003, then to its current 120-acre campus near Bush Intercontinental Airport in 2012. The facility employs over 2,000 people and includes offices, labs, and various amenities.

How Did Halliburton Use Asbestos?

As a manufacturer and provider of oil field equipment and industrial construction services, Halliburton’s work environments and job sites were filled with dangerous asbestos-containing materials. The company was one of many that extensively utilized the carcinogenic mineral due to its remarkable fire-resistant properties and durability. While asbestos had been used for centuries, it experienced peak industrial application from the 1930s through the 1980s, before its carcinogenic nature became public knowledge.

Halliburton’s projects required materials and equipment capable of withstanding intense heat and harsh conditions. Additionally, the subsidiaries that it added over the years — particularly Dresser Industries and Harbison-Walker Refractories — manufactured and distributed products containing asbestos fibers. These materials were incorporated into pipe coatings, refractory bricks, insulation systems, and various industrial components essential to oil field operations and construction projects.

Manufacturing and installation processes associated with these industries created severe health hazards for employees and contractors. There was significant occupational exposure to asbestos endured by workers involved in producing, handling, installing, or maintaining Halliburton products. Routine work activities disturbed asbestos and broke it down into particles that became airborne and then were breathed in or consumed.

Industrial companies were aware as early as the 1920s that asbestos posed significant health risks, yet despite growing evidence of its dangers, they continued making and using it. Making matters worse, many made the conscious decision not to provide safety warnings to protect those using their products. Halliburton, through its subsidiaries, continued incorporating asbestos into their products until regulatory changes and liability concerns forced it to discontinue the practice in the 1980s.

Halliburton Products That Contained Asbestos

Through its various subsidiaries and divisions, Halliburton manufactured and distributed a wide range of products containing asbestos. These products included:

• Cement additives and well-sealing compounds
• Industrial insulation systems
• Pipe coatings and protective wrappings
• Refractory bricks and fire-resistant materials
• Gaskets and sealing components
• Drilling equipment insulation
• Construction materials and building components
• Heat-resistant textiles and fabrics
• Boiler and furnace linings
• Thermal protection systems

These dangerous products were utilized across multiple industrial sectors, including:

• Oil and gas exploration and production
• Petrochemical processing facilities
• Power generation plants
• Marine and shipbuilding operations
• Industrial construction projects
• Refinery operations
• Chemical manufacturing plants
• Steel and metal processing facilities
• Pipeline construction and maintenance

The extensive distribution of these materials across diverse industries meant that workers in numerous occupational fields potentially encountered hazardous asbestos fibers from Halliburton’s products.

Who Was Affected by Halliburton’s Dangerous Products?

Halliburton’s global operations and diverse product portfolio meant that workers across numerous industries and job classifications faced potential contact with toxic asbestos from its materials. 

Construction and Industrial Workers

• Oil field workers and drilling crews
• Construction workers and contractors
• Refinery operators and maintenance staff
• Shipyard workers and marine engineers
• Industrial plant operators
• Insulation installers and removers
• Pipefitters and welders
• Boiler technicians and mechanics
• Chemical plant workers
• Power plant employees
• Heavy equipment operators
• Industrial maintenance personnel

Because the company’s operations and those of its subsidiaries were so widespread, workers in many locations experienced direct contact with dangerous asbestos-containing materials.

Halliburton Company Personnel

While not primarily a manufacturer of finished products, Halliburton offered specialized equipment, tools, and chemicals related to the industries it served. Its employees faced health risks during the preparation for distribution, while workers for the company’s subsidiaries participated in a range of activities that exposed them to asbestos.

Household Members and Secondary Contamination

Beyond those who experienced asbestos contact from working with products made by Halliburton’s subsidiaries, family members of those individuals also faced health risks from secondary contamination that occurred when workers unknowingly carried asbestos particles home on their clothing, hair, or skin.

Those at greatest risk of secondary contamination were spouses who washed work clothes contaminated with asbestos particles, but children who embraced parents returning from work could also be affected. Beyond asbestos accumulating on clothing or hair during work hours, the particles could also settle on furniture, carpeting, and other household surfaces, creating ongoing risks for entire families.

Secondary contamination cases have been documented in families of workers from many industries where Halliburton products or those of its subsidiaries were used, including refineries, power plants, and manufacturing facilities. Many victims of secondary contamination have developed the same serious asbestos-related diseases as those who worked directly with asbestos materials.

The Dangers of Asbestos Exposure

When asbestos-containing materials are manipulated, damaged, or simply wear down through constant use, they release tiny fragments of the fibrous mineral into the surrounding environment, where they can easily be inhaled or ingested.  This is where the real damage starts, as once in the respiratory system or digestive tract, the fibers trigger a chemical reaction that leads to inflammation, mutations, and cell death. These processes can lead to serious and frequently fatal medical conditions that are made more difficult to treat by the many years that go by between the time of exposure and the time they begin to show symptoms. During these long periods before warning signs appear, tumors and scarring are causing invisible damage, growing larger and more dangerous as more time goes by.  

Medical conditions caused by asbestos contact include:

• Pleural, Peritoneal, and Pericardial Mesothelioma: An uncommon, virulent malignancy targeting the protective membrane surrounding the respiratory organs, digestive cavity, or cardiac region. This disease generally manifests two to five decades following initial contact and carries a universally poor prognosis.
• Asbestosis: A persistent, advancing, irreversible pulmonary condition marked by tissue scarring within the lungs. Over time, respiratory function deteriorates progressively, potentially culminating in complete breathing failure.
• Pulmonary Carcinoma (Lung Cancer) Linked to Asbestos: Contact with asbestos elevates the risk of developing respiratory cancers, especially among smokers.
• Pleural Deposits and Thickening: These benign conditions involve fibrous tissue formation along the lung’s outer layer, affecting the ability to breathe.
• Additional Malignancies: Studies have established a link between contact with asbestos and elevated risks for reproductive organs, the throat, and various other cancers.

Due to the seriousness of these asbestos-induced medical conditions, people with a known history of asbestos exposure are strongly encouraged to familiarize themselves with early warning signs and to make sure they’ve communicated that history to their medical providers so they can properly monitor their health and conduct regular relevant screenings. 

Personal Injury and Class Action Lawsuits Involving Halliburton

Halliburton was the subject of extensive litigation related to asbestos exposure from its operations and products associated with its subsidiaries. The company inherited significant asbestos liabilities when it acquired Dresser Industries in 1998, including responsibilities for claims related to Dresser and its former subsidiary Harbison-Walker Refractories Inc.

Notable verdicts and settlements include:

• A 2001 Holmes County, Mississippi jury verdict of $150 million against three companies in an asbestos case, with Halliburton subsidiary Dresser Industries facing $21.25 million in damages.[3]
• A 2002 Harris County jury awarded $5.5 million against Halliburton subsidiary Kellogg, Brown & Root for the asbestos-related death of worker Herrel Wayne Kilough.[4]
• A Pacific Northwest settlement involving $30 million for about 120 families of asbestos victims.[5]

The extensive litigation significantly impacted Halliburton’s financial performance, leading to the establishment of a dedicated asbestos trust fund. 

Halliburton’s Dedicated Asbestos Trust Fund

In response to mounting asbestos liabilities estimated at over $3 billion since 2002, Halliburton Co. negotiated a $5.1 billion settlement that resolved all of the outstanding claims against it and its subsidiaries, as well as any future claims. The company separated its core oil industry drilling and specialized services operations from the litigation and used the segment as a revenue source during the legal proceedings. 

The end result of the negotiation was considered the largest asbestos trust fund for current and future claims at the time. The $5.1 billion trust fund comprised 59.5 million company shares and $2.8 billion in cash to cover all present and future asbestos claims. It allowed Halliburton to retain ownership of its subsidiaries, including Dresser and Kellogg Brown & Root.[6]

The fund, known as the DII Industries, LLC Asbestos PI Trust, was established in 2005 and immediately began processing victims’ claims. Once they’ve been approved, claims submitted to the trust receive compensation based on a predetermined payment percentage, which may be adjusted based on various considerations, including the claimant’s age, how they were exposed, and the severity of their illness.

Consult with an Asbestos Legal Specialist

Have you been diagnosed with an asbestos-related disease? After you’ve agreed to a treatment plan with your doctor, consulting with an experienced mesothelioma lawyer should be one of your next steps. These knowledgeable attorneys possess deep knowledge and resources specifically curated to help victims of asbestos exposure. They’ll answer all your questions and examine your employment history to pinpoint all the asbestos-containing products and environments that placed you at risk.

Most importantly, an experienced asbestos lawyer will explain each of your legal alternatives and the procedures involved with each one. Armed with this information, you can confer with your family to decide which approach is best for your situation. Whatever you choose, these compassionate professionals and their team are ready to guide you through the process, ensuring that all necessary documentation is properly prepared and submitted on time, and representing you in negotiations, court proceedings, and beyond.

Every type of personal injury lawsuit is governed by statutes of limitations that vary by state, so if you choose to pursue litigation, you need to move quickly. Your attorney will make sure that you meet all required deadlines, working to maximize the compensation you receive for your medical expenses, lost income, pain and suffering, and other damages.