Attack at Algeria Gas Plant Heralds New Risks for Energy Development



The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")


As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.



A map of disputed islands in the East and South China Seas.

Map by National Geographic



Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")


"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")


"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.


On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.


"A Hot Place to Drill"


The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.


Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.


Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.


Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.


"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."


This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.


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Obamas Share the Love, Even for Michelle's Bangs


Jan 20, 2013 10:49pm







ap obamas 130120 wblog Obama Calls First Ladys Bangs Most Significant Event of Inaugural Weekend

(Charles Dharapak/AP Photo)


President Obama used the first public remarks of his second term to address what he called the “most significant” event of this weekend: his wife’s much-talked-about new haircut.


“I love her bangs,” Obama told supporters at an inaugural reception at the National Building Museum. “She looks good. She always looks good.”



First lady Michelle Obama, wearing a black sequined cocktail dress and showcasing her new hairdo, also heaped compliments on her husband.


“Let me tell you, it has just been a true thrill to watch this handsome, charming individual grow into the man and the president that he is,” she said, as she reached out to playfully touch the president’s face, sparking laughter from the crowd.


Praising his compassion and courage, the first lady introduced the president as the “love of her life.”


Obama, who was sworn in for a second term in a small White House ceremony earlier today, kept his remarks short, noting he has another big speech to deliver Monday.


“There are a limited amount of good lines and you don’t want to use them all up tonight,” he joked.


Because the Constitutionally mandated date for the inauguration, Jan. 20, fell on a Sunday this year, the traditional, public ceremony was delayed until Monday.


Saving the best for his official inaugural address, the president instead dedicated the bulk of his remarks to thanking supporters for their hard work and dedication to getting him re-elected.


“You understood this was not just about a candidate; it was not just about Joe Biden or Barack Obama. This was about us, who we are as a nation, what values we cherish, how hard we’re willing to fight to make sure that those values live not just for today but for future generations,” he said.


“All of you here understood and were committed to the basic notion that when we put our shoulders to the wheel of history, it moves… It moves forward. And that’s part of what we celebrate when we come together for inauguration,” he said.



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Biden’s gun task force met with all sides, but kept its eye on the target



“No,” was James J. Baker’s reply.


There was little discussion, no real debate over whether a 1990s ban had worked. The two men simply moved on. Biden, leading a task force to study gun violence, was certain of the course of action President Obama would end up taking, and Baker was just as certain that the NRA would work to stop it.

In the 33 days after the massacre at Sandy Hook Elementary School, gun control rocketed through what one administration official called “a time warp,” transforming from an issue that was politically off-limits to one at the top of Obama’s agenda.

At the center of the transformation was the Biden-led task force. It held 22 meetings, most of them in the same week and many stretching past two hours, Biden furiously scribbling notes in a black leather-bound spiral notebook. The group collected ideas from 229 organizations — or, as Biden put it in a speech last week, “reviewing just about every idea that had been written up only to gather dust on the shelf of some agency.”

The vice president personally placed phone calls, too, including a 45-minute chat one night with the parents of a student who died at Sandy Hook.

“It was like watching an entire term of Senate hearings compressed into a week,” said one administration official who, like others interviewed, spoke on the condition of anonymity to talk candidly. “He was gently interrogating witnesses, following up, finding common ground, finding discrepancies.”

The outcome was never in doubt, however. From the outset, Obama made clear he would champion universal background checks for all gun buyers and bans on assault weapons and high-capacity ammunition magazines.

“I feel like to a certain extent they were checking the box, to say we’ve met with all the stakeholders and now we’re going to do what we’re going to do,” Baker, the NRA lobbyist, said of the task force.

Biden’s task force was less about determining which of the big-ticket items to recommend — it recommended them all — and more about involving each interest group in a process that could build a diverse coalition to lobby Congress.

A strategy took shape to undercut the NRA by appealing to its membership base through more friendly groups, such as evangelical pastors and sportsmen’s associations.

The representative of the hunters group Ducks Unlimited, for instance, presented Biden with a wooden duck decoy. In that meeting, Biden conceded that any push for universal background checks could include exceptions for gun transfers between family members.

“He wasn’t challenging their positions,” said an official. “He was looking for space between their positions and where we are — space where things can happen.”

The task force also provided Biden with his latest prominent role on a high-profile issue. Biden looks to be at the center of every big policy push of the second term, from taxes and debt to the war in Afghanistan. His performance will affect not only his ambitions for a possible third run at the presidency, but also Obama’s legacy. On guns, an issue Biden knows well, he plans to go out on the hustings to rally public support.

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Heavy snow disrupts France transport, flights cancelled






PARIS: Air France cancelled 40 percent of its short- and medium-haul flights from Paris airports on Sunday as heavy snow disrupted air, road and rail transportation for a second day.

The company said all of its long-haul flights would go ahead at Paris's Charles de Gaulle and Orly airports, but airport officials warned that further disruptions were possible as snow continued to fall.

The snow blanketed large parts of northern and southwestern France from Friday to Sunday, with snowfall reaching 15-20 centimetres in some areas.

It also caused delays on France's TGV high-speed rail network and forced the cancellation of bus services throughout Paris.

The snow and ice led to treacherous road conditions and several fatal car crashes over the weekend. Six people were killed on the slippery French roads, including three French soldiers about to join comrades fighting in Mali.

- AFP/fa



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Consensus emerges on Gadkari's second term as BJP president

NEW DELHI: A consensus seems to have emerged on giving a second term to Nitin Gadkari as the BJP president in coming elections for the post, a notification of which would be issued shortly.

Senior party leader L K Advani has come around with the view that Gadkari, who is set to file his nomination, be given a second term as no consensus could be arrived at on any other candidates, party sources said on Sunday.

Till last week, there was an exercise between Advani's camp and Rashtriya Swayamsewak Sangh (RSS) to arrive at a consensus candidate.

According to the sources, Advani, who had reservation about Gadkari getting a second term because of charges about dubious funding of Purti Group with which he was associated, had earlier suggested the name of Ravi Shankar Prasad for the post of party president.

Leader of the opposition in Lok Sabha Sushma Swaraj's name had also figured in the discussion, but she herself has not shown much keenness on occupying the post.

While Gujarat chief minister Narendra Modi's name was also doing the rounds, party leaders ruled out the possibility saying he does not figure in Advani's list of probables.

Modi himself is not interested in becoming party president though he could play a key role in the election management for BJP at the central level for the next Lok Sabha elections, they said.

RSS has been pitching for a second term for Gadkari with Sangh chief Mohan Bhagwat himself backing him. It feels Gadkari who took over soon after the BJP's second consecutive Lok Sabha poll defeat should lead the party in the next elections.

The task he had undertaken three years back is still yet to be completed, it felt.

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Attack at Algeria Gas Plant Heralds New Risks for Energy Development



The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")


As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.



A map of disputed islands in the East and South China Seas.

Map by National Geographic



Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")


"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")


"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.


On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.


"A Hot Place to Drill"


The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.


Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.


Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.


Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.


"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."


This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.


Read More..

Algeria Hostage Crisis Over, One American Dead













After the Algerian military's final assault on terrorists holding hostages at a gas complex, the four-day hostage crisis is over, but apparently with additional loss of life among the foreign hostages.


One American, Fred Buttaccio of Texas, has been confirmed dead by the U.S. State Department. Two more U.S. hostages remain unaccounted for, with growing concern among U.S. officials that they did not survive.


But another American, Mark Cobb of Corpus Christi, Texas is now confirmed as safe. Sources close to his family say Cobb, who is a senior manager of the facility, is safe and reportedly sent a text message " I'm alive."










Inside Algerian Hostage Crisis, One American Dead Watch Video









American Hostages Escape From Algeria Terrorists Watch Video





In a statement, President Obama said, "Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria. The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms. ... This attack is another reminder of the threat posed by al Qaeda and other violent extremist groups in North Africa."


According to Algerian state media, 32 militants are dead and a total of 23 hostages perished during the four-day siege of the In Amenas facility in the Sahara. The Algerian Interior Ministry also says 107 foreign nationals who worked at the facility for BP and other firms were rescued or escaped from the al Qaeda-linked terrorists who took over the BP joint venture facility on Wednesday.


The Japanese government says it fears "very grave" news, with multiple casualties among the 10 Japanese citizens working at the In Amenas gas plant.


Five British nationals and one U.K. resident are either deceased or unaccounted for in the country, according to British Foreign Minister William Hague. Hague also said that the Algerians have reported that they are still trying to clear boobytraps from the site.




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Earl Smith is the man behind a military patch that President Obama prizes


That February morning in 2008 found Barack Obama decidedly out of sorts.


He was locked in one battle with Hillary Rodham Clinton for the Democratic nomination that showed no signs of ending — and another with a vicious cold that felt the same way.


As he rode the service elevator in the backway of a convention hotel here, the snowy-haired African American operating it turned suddenly. He held out a black-and-gold bit of fabric embroidered with a screaming eagle.

“Senator Obama, I have something I want to give you,” the man said. “I’ve carried this military patch with me every day for 40 years, and I want you to carry it, and it will keep you safe in your journey.” Obama tried to refuse, but the older man persisted.

Big endeavors can find their meaning in small moments.

Later that day, Obama and his aides discussed the encounter. The future president pulled the patch from his pocket, along with about a dozen other items people had pressed upon him.

“This is why I do this,” he said. “Because people have their hopes and dreams about what we can do together.”

Two American stories intersected that morning in that elevator. The more famous, of course, is the one that begins its next chapter on Monday, as the nation’s first black president takes the oath of office for a second term.

But the other story also tells a lot about where this country has been and how far it has come.

No one in Obama’s small party that day noticed the man’s name tag or, if anyone did, the fact that it said Earl Smith was quickly forgotten.

No one knew how much of Smith’s life had been woven into a patch that, over four decades, found its way from the shoulder of an Army private to the pocket of a future commander-in-chief.

It was the only shred of cloth he had saved from the uniform of a nightmarish year in Vietnam. Smith fired artillery with a brigade that suffered 10,041 casualties during the course of the war. The brigade’s soldiers received 13 Congressional Medals of Honor.

The patch was waiting among his possessions when Smith was pardoned by the state of Georgia in 1977 after spending three years in prison for a crime he claimed was self-defense.

Smith kept it close as his lucky charm while he rebuilt his life and his reputation, starting with a job vacuuming hallways and changing sheets in an Atlanta Marriott. He carried it with him as he traveled halfway around the world again, to positions in hotels far from home, Riyadh in Saudi Arabia and Abu Dhabi in the United Arab Emirates.

Along the way, as he tended to travelers and made sure VIP gatherings went smoothly, he met three U.S. presidents.

His instincts told him Obama would make it four.

Like just about anyone else who was alive on Nov. 22, 1963, Smith can describe exactly where he was when he heard the horrific news: He was coming off a high school football practice field in his home town of San Benito, Tex.

Though not yet old enough to have voted for the man slain in Dallas, “I was devastated — a lot of us young people were — because John Kennedy was the young president,” recalled Smith, now 68.

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Tennis: Federer ends Tomic campaign






MELBOURNE: Roger Federer fought off an aggressive challenge from rising Australian star Bernard Tomic to reach the fourth round at the Australian Open on Saturday.

The 17-time Grand Slam king was stretched at times in a compelling match before coming out on top 6-4, 7-6 (7/5), 6-1 in one hour 58 minutes on Rod Laver Arena.

Federer, who is chasing his fifth Australian crown, will now face big-serving Canadian 13th seed Milos Raonic in the round of 16 on Monday.

The 31-year-old Swiss great became the first man to win 250 Grand Slam matches in his victory over the 43rd-ranked Tomic and he reached the fourth round in Melbourne for the 12th straight year.

It was a much-improved performance from 20-year-old Tomic, who lost to Federer 6-2, 6-2, 6-4 in the fourth round at last year's Australian Open.

The last time Federer lost in the third round at a Grand Slam was nine years ago, at the 2004 French Open to Brazilian Gustavo Kuerten.

"Overall we both played a great match, Bernard has had a great run and he really got the best out of me tonight, so I hope he can keep it up, I really wish him the best," Federer said.

"You've got to expect the unexpected and Bernard's got the tools to do that. The court was playing a tough faster when we played last year so it allows him to play a bit more aggressive and he's a big guy with a powerful serve."

Federer got off to a flyer breaking Tomic's opening service game to put the pressure squarely on the Australian youngster before a raucous full house at the centre court.

But Tomic dug in and held his serve, even fighting off three set points in the ninth game, before the Swiss legend claimed the opening set on his fourth set point, drilling his serve to the Australian's backhand.

Tomic came more into the contest during a compelling high-quality second set as he began pushing Federer around the court in thrilling rallies.

The Australian fought off three break points in the ninth game and another one in his next service game as the set went to a tiebreaker.

Tomic led 4-1 after an early mini-break before Federer fought back, winning a thrilling 29-stroke rally and then finding the line with a forehand.

Federer clinched a crucial two-sets-to-love lead winning it on his first set point.

The world number two produced a fantastic chase down to win another furious rally and break Tomic's service in the second game of the third set.

Federer began to pull away with another service break to take command of the high-class match but Tomic showed in defeat that he could press for higher honours in the future.

- AFP/fa



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Chintan Shivir: Congress leaders pitch for Rahul Gandhi as PM candidate

JAIPUR: Amid talk that Rahul Gandhi will be given a larger responsibility, clamour for declaring him as the Congress prime ministerial candidate grew louder at the party's Chintan Shivir on Saturday.

Union ministers Jyotiraditya Scindia, Rajiv Shukla, Jitin Prasada, senior leader Manishankar Aiyar batted for larger responsibility for Rahul as the party recognised the need to respond to the demands of "new changing India peopled by a more younger" generation.

Young leader Milind Deora said, "It is a consensus and feeling in the Shivir that youths should be empowered.

On the first day also, a number of leaders including Raj Babbar and Avtar Singh Badhana had demanded that Rahul should be declared Congress PM candidate before the party goes to next Lok Sabha polls.

"Rahul will lead the party during 2014 general elections and would be the prime ministerial candidate," party leader Sanjay Nirupam said before the discussions began on Day-2.

Uttar Pradesh leader Jitin Prasada said, "Things are being discussed as to how we can ensure participation of youths. Rahul is certainly our leader and he will lead 2014 general elections of Congress and the country as well."

Union minister Veeprappa Moily said, "Rahul is already a leader.We have stable leaders we are proud of them. Congress has always enjoyed great leadership. If there is any disconnect we are discussing these concerns and will ensure that there is proper connect."

About the demand for larger role to Rahul, Union minister Rajiv Shukla said, "It is to be decided by Sonia and Rahul, we can only demand and we are demanding.

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