Tuesday, March 13, 2007

Halliburton C.E.O. to Dubai

Halliburton is energy services company. More and more of its business is in the Middle East and Africa. So when they decided to move their CEO from Houston to the United Arab Emirates, it did not strike me strange. However to others it did.

I see this as a 100% business move. If it makes business sense to move its headquarters to the Middle East, then why shouldn't they?

Loser Clinton's comments that there is evidence about their misuse of government contracts and how they have cheated the American soldier, cheated the American taxpayer, they have taken money and not provided the services said Clinton, has nothing to do with their relocation. If those claims have merit, then why doesn't the federal government do something about it?

Michael Savage claims that it is a security problem, a la Dubai Ports World. If the federal government outsources energy work to any third party, that third party must meet the security requirements for the job. He always talks about the almighty dollar. Well Michael, when you run a company, especially a public company, you are responsible to maximize wealth to the stakeholders. Figuring out the best ways to reduce expenses, reduce taxes, avoid burdensome regulation, etc., relocating to the UAE sounds like a good decision.

Finally, with the anti-local-energy powers in the government, they have basically ran the company off. Our government is creating barriers for business to succeed -- extra expenses and hurdles that can be avoided in other countries. These types of relocations will become more common. Over time, with unfavorable business conditions, American will begin to lose its competitive advantage. It happened to the British empire, it is starting to happen to America.

The only bad thing is having to live in Middle East. Having been once, not on my list of places to live. Nothing alluring about UAE. Where do you ride mountain bikes? Where do you ski? No freshwater lakes. No hikeable mountain ranges. Deep sea fishing in the Persian Gulf does not sound appealing. Might be some decent scuba diving though. The life's the Muslim's lead, IMO, are as boring as it gets -- apartment living, crappy TV and radio, etc.

Hope he likes living in Dubai. I wouldn't.

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