Iraq's problems were well known to the United States before the war. The Energy Infrastructure Planning Group, set up by senior Bush administration officials in September 2002 to plan for the oil industry in the event of war, learned that Iraq was reinjecting crude oil to maintain pressure in the Kirkuk field. "Iraqis acknowledged it was a poor practice," said one administration expert involved with the group, and as the main war wound down, the Iraqis "were unequivocal that that practice had to stop and right away."
But it did not. The amount of oil being reinjected is now 150,000 to 250,000 barrels a day, down from as much as 400,000 barrels a day last summer, said Mr. McKee, but he added that he had never encountered such a practice in his long career in the oil industry. The reinjection of oil was a clear sign of trouble in the underground reservoirs, but the energy planning task force decided not to address them, partly for political reasons, according to participants. "We didn't want to give fuel to the fire of debate that was saying the U.S. was just doing this to steal the oil," an administration official said.
Task force participants said there was another potential political factor. The group had secretly decided, without soliciting bids, that the contract for fixing Iraq's oil infrastructure would go to Kellogg, Brown & Root, a unit of Halliburton, which had an existing Pentagon contract related to war planning. Halliburton was previously run by Vice President Dick Cheney. "Everyone realized the selection of K.B.R. was going to look bad," said one task force member.
http://www.globalpolicy.org/security/oil/2003/1130risks.htm