Archive for July, 2010

Talking about New York Times Plans Monetizing online paper.

July 29, 2010

 

Quote

New York Times Plans Monetizing online paper.

New York Times Ready to Charge Online Readers

Sulzberger Jr.

Sulzberger Jr.Photo: Getty Images

New York Times Chairman Arthur Sulzberger Jr. appears close to announcing that the paper will begin charging for access to its website, according to people familiar with internal deliberations. After a year of sometimes fraught debate inside the paper, the choice for some time has been between a Wall Street Journal-type pay wall and the metered system adopted by the Financial Times, in which readers can sample a certain number of free articles before being asked to subscribe. The Times seems to have settled on the metered system.

One personal friend of Sulzberger said a final decision could come within days, and a senior newsroom source agreed, adding that the plan could be announced in a matter of weeks. (Apple’s tablet computer is rumored to launch on January 27, and sources speculate that Sulzberger will strike a content partnership for the new device, which could dovetail with the paid strategy.) It will likely be months before the Times actually begins to charge for content, perhaps sometime this spring. Executive Editor Bill Keller declined to comment. Times spokesperson Diane McNulty said: "We’ll announce a decision when we believe that we have crafted the best possible business approach. No details till then."

The Times has considered three types of pay strategies. One option was a more traditional pay wall along the lines of The Wall Street Journal, in which some parts of the site are free and some subscription-only. For example, editors and business-side executives discussed a premium version of Andrew Ross Sorkin’s DealBook section. Another option was the metered system. The third choice, an NPR-style membership model, was abandoned last fall, two sources explained. The thinking was that it would be too expensive and cumbersome to maintain because subscribers would have to receive privileges (think WNYC tote bags and travel mugs, access to Times events and seminars).

The Times has also decided against partnering with Journalism Online, the start-up run by Steve Brill and former Journal publisher L. Gordon Crovitz. It has rejected entreaties by News Corp. chief digital officer Jon Miller, who is leading Rupert Murdoch’s efforts to get rival publishers onboard to demand more favorable terms from Google and other web aggregators. This fall, Miller met with Times digital chief Martin Nisenholtz, but nothing came of the talks.

The decision to go paid is monumental for the Times, and culminates a yearlong debate that grew contentious, people close to the talks say. In favor of a paid model were Keller and managing editor Jill Abramson. Nisenholtz and former deputy managing editor Jon Landman, who was until recently in charge of nytimes.com, advocated for a free site.

The argument for remaining free was based on the belief that nytimes.com is growing into an English-language global newspaper of record, with a vast audience — 20 million unique readers — that, Nisenholtz and others believed, would prove lucrative as web advertising matured. (The nytimes.com homepage, for example, has sold out on numerous occasions in the past year.) As other papers failed to survive the massive migration to the web, the Times would be the last man standing and emerge with even more readers. Going paid would capture more circulation revenue, but risk losing significant traffic and with it ad dollars. At an investor conference this fall, Nisenholtz alluded to this tension: "At the end of the day, if we don’t get this right, a lot of money falls out of the system."

But with the painful declines in advertising brought on by last year’s financial crisis, the argument pushed by Keller and others — that online advertising might never grow big enough to sustain the paper’s high-cost, ambitious journalism — gained more weight. The view was that the Times needed to make the leap to some form of paid content and it needed to do it now. The trick would be to build a source of real revenue through online subscriptions while still being able to sell significant online advertising. The appeal of the metered model is that it charges high-volume readers while allowing casual browsers to sample articles for free, thus preserving some of the Times‘ online reach.

Landman disputes the notion of competing factions. "The idea of two camps is just wrong. There’s many shades to this,” he told me. Inside the newsroom, the protracted talks have frustrated staffers who want clarity on where the paper is headed. “It’s a real problem,” one staffer explained. “It’s embarrassing and reflects badly on the Times that they can’t make a decision. They’re fighting among themselves.”

What makes the decision so agonizing for Sulzberger is that it involves not just business considerations, but ultimately a self-assessment of just what Times journalism is worth to the world. This fall, Keller told the Observer that at some point, the decision is a “gut call about what we think the audience will accept.” Hanging over the deliberations is the fact that the Times’ last experience with pay walls, TimesSelect, was deeply unsatisfying and exposed a rift between Sulzberger and his roster of A-list columnists, particularly Tom Friedman and Maureen Dowd, who grew frustrated at their dramatic fall-off in online readership. Not long before the Times ultimately pulled the plug on TimesSelect, Friedman wrote Sulzberger a long memo explaining that, while he was initially supportive of TimesSelect, he’d been alarmed that he had lost most of his readers in India and China and the Middle East.

“As we got into it, it was clear to me I was getting cut off from a lot of my readers in India and China where 50 dollars per year would be equal to a quarter of college tuition,” Friedman recently told me by phone. “What was coming to me anecdotally from my travels was the five worst words that as a columnist you ever want to hear: ‘I used to read you before you went behind the wall.’”

Friedman is now “pro some kind of pay model,” he says. “My own feeling is, we have to do anything we can to raise money,” he told me. “At some point we gotta charge for our product.”

I asked Friedman whether any of the technologists he meets during his globe-trotting had presented any groundbreaking ideas for how to save the Times and journalism. While he’s optimistic about the coming crop of tablets and e-readers, the answer is no. “We’re in a megatransition. It hasn’t ever felt like anyone has the answer,” he said. “My macro feeling is that I’m glad I had this job at this time. It was great working at the paper when it was on dead trees and could pay for itself.”

Read more: New York Times Ready to Charge Online Readers — Daily Intel http://nymag.com/daily/intel/2010/01/new_york_times_set_to_mimic_ws.html#comments#ixzz0cxctKV40

Anti-aging scientists and their quest for the youth pill.

July 29, 2010

Illustration by Robert Neubecker. Click image to expand.

books

Want To Live Forever?

Anti-aging scientists and their quest for the youth pill.

By Emily Yoffe
Posted Thursday, July 22, 2010, at 9:50 AM ET


Human development is gorgeous, Jonathan Weiner writes in Long for the World: The Strange Science of Immortality. The union of sperm and egg results in precise, pre-ordained splitting and budding, creating something predictable yet wholly unique. Human aging is a mess. Our cells break down in a chaotic fashion, and mutation piles upon mutation. Our organs and bones seem to decompose while we still depend on them. It’s a cascading decline leading to our inevitable death.

We age because nature loses interest in us, Weiner argues in his new book, an investigation into our ugly endings and what science can do about this disorderly process. He embraces the widely accepted theory postulated by the Nobel Prize winning zoologist, the late Peter Medawar, that evolution’s push is to get us up and reproducing. So, for example, we need calcium to help solidify our young bones. But once we’re sturdy enough to grab a mate and pass on our genes, we’ve done our work. Nature doesn’t care if some of the calcium then hardens our arteries, causing late-in-life heart attacks.

We care, however, and David Stipp in The Youth Pill: Scientists at the Brink of an Anti-Aging Revolution joins Weiner in exploring the frontiers of the science that is tackling the possibilities of beating aging and cheating death. Weiner brings a lyrical, even meditative, approach to his portraits of the people who are at work tweaking the evolutionary process. Stipp has the workmanlike doggedness of a business reporter as he tracks a field that has migrated from the medical margins toward the scientific mainstream over the past 40 years. Both left me certain that the science of longevity is going to empty neither hospitals nor mortuaries within any of our lifetimes.

Against those who might argue that the last thing we need is yet more old people sucking up resources, the researchers counter that aged populations are a global fact and their goal is to keep people healthy for as long as possible, a benefit not only to each old person, but to society. The surge in the elderly as an age group certainly is impressive. At the beginning of the 20th century, a baby born in the developed world had an average life expectancy of less than 50 years. As the century progressed, advances in public health, widespread vaccination, and the introduction of antibiotics sent infant mortality rates plummeting, which gave more people the chance to get old. By the end of the 20th century, a baby born in the developed world could expect to live to around 80. As Weiner writes, this 30-year addition in life expectancy was "as much time as our species had gained before in the whole struggle of existence." (The outer limit of the human lifespan remains at around 120 years; only a handful have gotten close to this milestone.)

The good news is that more of us are striding, not tottering, into old age, which could be the result of our healthier childhoods. Weiner cites the theory that fewer childhood infections mean we experience less chronic inflammation, an engine of disease. Even so, if we live long enough, eventually for most of us a myriad of possible miseries await, from neurodegenerative diseases like Alzheimer’s and Parkinson’s to long-simmering but sudden killers like heart attacks and strokes to the runaway frenzy of cancer.

The researchers profiled by Stipp are seeking to master the mechanisms of our decline, so that we can frolic vigorously for eight or nine decades before dying in a brief and efficient fashion. Weiner’s muse is prophet, maverick, and crank Aubrey de Grey of Cambridge University, whose vision is more ambitious. A theoretician in the gerontology field, he challenges bench scientists to come up with the necessary biological fixes so humans can reach something close to immortality.

Either quest is a tall one. Both Weiner and Stipp describe the difficulties of establishing scientific credibility in a field that has a disreputable, even ignominious past. In the early 20th century, one rejuvenator transplanted ape testicles into men. Another, Eugen Steinach, performed vasectomies as a way to restore flagging virility. Sigmund Freud is said to have been "Steinached," as was William Butler Yeats—a snip for that "tattered coat upon a stick." In that era, the fix for female revitalization was irradiating the ovaries.

But by the 1970s a handful of serious scientists had begun studying other species’ lifespans, with methods that ranged from documenting them in the wild to selectively breeding lab animals to identify longevity genes. "Comparative gerontology" looks at the amazingly diverse aging styles in the animal kingdom. Fruit flies live weeks; the quahog can live four centuries. Mice and rats live only a few years, even in the cosseted safety of the laboratory, getting scruffy and sluggish in the process. It’s another rodent that entrances researchers of longevity. The naked mole rat spends decades digging burrows while barely showing any sign of age (scientists call this "negligible senescence") until dropping dead of unknown causes. If only we could get old like naked mole rats, the cosmetic rejuvenation industry would go out of business.

Of course, extrapolating from animals to humans is always a big leap, but almost three-quarters of a century ago, once-forgotten research on the life-lengthening effects of manipulating animals’ environment turned up something provocative. In the 1930s, a nutrition researcher at Cornell, Clive McCay, did a four-year study which demonstrated that putting rats on a near-starvation diet enhances their health and vastly extends their life. This was, Stipp writes, an astounding, heretical finding: "McCay showed that the rate of aging is incredibly plastic, and that it’s supremely simple to brake it in animals whose inner workings aren’t all that different from ours."

For decades McCay’s discovery was neglected. But in recent years, calorie restriction (CR) has become the basis for one of the hottest areas of life extension research. Across many species, evidently including monkeys, being hungry stimulates resistance to cancer, neurodegeneration, and immune disorders. Stipp says the secret to the long lives of Okinawans—their number of centenarians per capita sets the world record—may lie in their sparing consumption of the traditional Japanese diet of mostly vegetables and fish.

The obvious problem with applying this finding in the developed world is that people with access to unlimited food find it hard to get through a single day on CR. So researchers are looking for CR "mimetics"—that is, drugs that would allow us to sate ourselves while triggering the molecular pathways that make being hungry such a good way to stay young. It’s the pharmacological version of having your cake and eating it, too.

The underlying mechanisms that make us age remain a matter of speculation. De Grey champions an increasingly accepted view in the field of aging that the overarching cause of our decline lies in what some scientists call "the garbage catastrophe." As Weiner deftly explains the theory, it has instinctive appeal to any homeowner. The idea is that on the cellular level things start breaking down, and junk and gunk accumulate, overwhelming the mechanisms that are supposed to keep our cells humming. Researchers who study what actually are called "housekeeping" genes—which rid cells of the detritus—complain their important work is considered marginal and unglamorous. De Grey hopes their discoveries could lead to what will be a kind of molecular solvent to get rid of the crud—but it is a colossal "could."

Which brings us to the "youth pill" of Stipp’s title and the ongoing search for a life-extending pharmaceutical that would keep us young by mimicking the effects of CR and keeping our cellular cleaning crew on duty. Stipp gives a lengthy account of the travails of Sirtris Pharmaceuticals, the company that hopes to package some form of the recently discovered class of enzymes called sirtuins. It’s thought they protect cells from damage to the DNA and repair those mutations that happen. (Resveratrol, a substance found in red wine, apparently activates sirtuins in the body.) Then he introduces rapamycin, an immune suppressant drug used in transplant patients, which has shown a life-extending effect in lab animals. As I slogged on, ever more convinced that Sirtris was not going to find the solution to our mortal dilemma, Stipp’s book began to resemble the process of aging itself: clogged with unnecessary information that should have been swept away.

Weiner, who has a gift for making science lucid and for weaving in the perfect literary allusion, is a pleasure to read. But he, too, slows down toward the close. His book ends with a lengthy philosophical meditation on the meaning of immortality, which his previous chapters failed to convince me is a subject worth spending too much of one’s limited time worrying over. Not even Weiner buys Aubrey de Grey’s vision of a human lifespan of hundreds, even thousands of years.

I did come away convinced to keep drinking coffee and indulging judiciously in red wine and dark chocolate. These foodstuffs have small amounts of the chemicals that may activate natural anti-aging pathways. And even if they don’t send me to what De Grey calls "escape velocity," they make what time I do have more pleasurable.

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Emily Yoffe is the author of What the Dog Did: Tales From a Formerly Reluctant Dog Owner. You can send your Human Guinea Pig suggestions or comments to emilyyoffe@hotmail.com.

Article URL: http://www.slate.com/id/2260786/

 

Copyright 2010 Washingtonpost.Newsweek Interactive Co. LLC

Ecclestone suspects grid will shrink

July 29, 2010
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By Matt Beer Wednesday, July 28th 2010, 09:21 GMT

Bernie EcclestoneBernie Ecclestone suspects that ‘one or two’ teams will drop out of Formula 1 before the end of 2010, and reckons that Lotus aside, this season’s new squads would not be missed if they departed.

Speaking to the Daily Telegraph, Ecclestone played down the significance of Renault asking for an advance payment of its television money and said there were no doubts about the Enstone team’s health – but was much more pessimistic about other squads.

"All that was [the Renault situation] was the fact that one of the shareholders didn’t want to take money from another one of his companies because that would have meant convening a board meeting," Ecclestone said. "But I never gave them the money. And they got over the crisis so everything is fine.

"But I would not be surprised if one or two of them did not make the end of the season. I think there are a couple of teams in Formula 1 who really shouldn’t be there. They are a bit out of their depth at the moment."

Ecclestone does not feel the current 24-car grid size – which could expand to 26 next year if the FIA accepts any of the applications for the slot formerly earmarked for US F1 – is essential and reckons a return to a 10-team field would be no problem at all for F1.

While singling out Lotus as a worthwhile addition to the field, he suggested the other 2010 newcomers have brought little to the sport.

"All we ever want is 10 teams," he said. "Lotus is a good name. I wouldn’t want to lose them. But in general this year has been a bit of a nuisance because it has cost money to keep these [struggling] teams in. It has cost a lot of money to pay for them to compete.

"The bottom line is they haven’t really and truly given us value for being there. If suddenly these teams don’t turn up at races then I don’t think the crowds will get any smaller, or the TV sets will turn off, or the newspapers will stop writing, will they?"

 

Copyright. Autosport.com. 2010 All Rights Reserved

Grand Prix of Hungary 2010

July 29, 2010

 

Felipe Massa: “I think it’s a very special place…”

Massa on the grid in Hockenheim last weekend

Felipe Massa returns to the Hungaoring today a little over a year after he left the circuit in a medical helicopter after his qualifying crash.

This week he’s also been making a point of visiting some of the medical staff who helped him last year.

“I think it’s a very special place, because of what happened with me there last year,” he explained at Hockenheim last week. ”So I’m really looking forward to going back there for the race weekend. But also for good personal feelings, to go back to the hospital, to see the people that took good care of me, who did a good job. So I’m really looking forward to going there and saying hello to everybody, and making a nice conversation, a nice feeling with them.”

He admitted it would be an empotional experience: “Because it’s an important part of my life. What happened last year was a very big thing on my life, so it is very, very special. Talking about the life point of view.”

 Meanwhile after his frustration in Germany Massa has to now prove his point on the track by outpacing his team mate. He has gone well in Hungary in the past – he was quick before the crash last year – and it will be fascinating to see if he can bounce back.

“I think in the races that we have the very hard tyres I was performing much worse than I can, you know, because I was never able to make the tyres work. When we had the soft tyres I was reasonably happy.

“For sure I was trying deinitely to change my driving style, because the driving style makes the tyres hotter, or colder, it’s true. I am a driver that needs a lot the front grip on the car, I prefer a better front grip. Even if I have a bit of oversteer and the front is working, you can work to improve the rear.

“But anyway that’s the way I used to drive until now, and this year with the narrower tyres, very hard tyres, it’s very difficult for me. Many people like to talk just about me, but many, many drivers are having similar problems this year, I’m not the only one. But people always talk about me, so that’s it.”

For more on Felipe Massa and the Hockenheim controversy check the www.autosport.com features section later today.

 

Copyright.Adam Cooper’s F1 Blog.2010. All Rights Reserved

Talking about YouTube – Pink Floyd-Wish You Were Here

July 21, 2010

Digital Diplomacy

July 20, 2010

 

Michele Asselin for The New York Times
 

Jared Cohen, left, and Alec Ross with mobile devices at the ready.

July 12, 2010

Digital Diplomacy

By JESSE LICHTENSTEIN

It was a Wednesday night in San Francisco’s SoMa neighborhood, and Jared Cohen, the youngest member of the State Department’s policy planning staff, and Alec Ross, the first senior adviser for innovation to the secretary of state, were taking their tweeting very seriously. Cohen had spent the day in transit from D.C.; Ross hadn’t eaten anything besides a morning muffin. Yet they were in the mood to share, and dinner could wait. It wasn’t every day they got to tweet about visiting the headquarters of Twitter.

“Exactly 140 characters,” Cohen said.

“What a ninja you are,” Ross said.

They looked at each other, thumbs poised above their BlackBerries.

“Whenever we do this, we get called out on it,” Cohen said. They did it anyway, in unison. “Three . . . two . . . one. . . .” Tweet. Upward of 500,000 people instantly learned that the Twitterers had been to Twitter.

On Twitter, Cohen, who is 28, and Ross, who is 38, are among the most followed of anyone working for the U.S. government, coming in third and fourth after Barack Obama and John McCain. This didn’t happen by chance. Their Twitter posts have become an integral part of a new State Department effort to bring diplomacy into the digital age, by using widely available technologies to reach out to citizens, companies and other nonstate actors. Ross and Cohen’s style of engagement — perhaps best described as a cross between social-networking culture and foreign-policy arcana — reflects the hybrid nature of this approach. Two of Cohen’s recent posts were, in order: “Guinea holds first free election since 1958” and “Yes, the season premier [sic] of Entourage is tonight, soooo excited!” This offhand mix of pop and politics has on occasion raised eyebrows and a few hackles (writing about a frappucino during a rare diplomatic mission to Syria; a trip with Ashton Kutcher to Russia in February), yet, together, Ross and Cohen have formed an unlikely and unprecedented team in the State Department. They are the public face of a cause with an important-sounding name: 21st-century statecraft.

To hear Ross and Cohen tell it, even last year, in this age of rampant peer-to-peer connectivity, the State Department was still boxed into the world of communiqués, diplomatic cables and slow government-to-government negotiations, what Ross likes to call “white guys with white shirts and red ties talking to other white guys with white shirts and red ties, with flags in the background, determining the relationships.” And then Hillary Clinton arrived. “The secretary is the one who unleashed us,” Ross says. “She’s the godmother of 21st-century statecraft.”

Traditional forms of diplomacy still dominate, but 21st-century statecraft is not mere corporate rebranding — swapping tweets for broadcasts. It represents a shift in form and in strategy — a way to amplify traditional diplomatic efforts, develop tech-based policy solutions and encourage cyberactivism. Diplomacy may now include such open-ended efforts as the short-message-service (S.M.S.) social-networking program the State Department set up in Pakistan last fall. “A lot of the 21st-century dynamics are less about, Do you comport politically along traditional liberal-conservative ideological lines?” Ross says. “Today it is — at least in the spaces we engage in — Is it open or is it closed?”

Early this year, Ross and Cohen helped prop open the State Department’s doors by bringing 10 leading figures of the tech and social-media worlds to Washington for a private dinner with Clinton and her senior staff. Among the guests were Eric Schmidt, the chief executive of Google; Jack Dorsey, co-founder and chairman of Twitter; James Eberhard of Mobile Accord; Shervin Pishevar of the mobile-phone-game-development company SGN; Jason Liebman of Howcast; Tiffany Shlain, founder of the Webby Awards; and Andrew Rasiej of Personal Democracy Forum, an annual conference on the intersection of politics and technology. Toward the end of the evening, Clinton delighted those assembled by inviting them to use her “as an app.”

A few days later, they did. On Jan. 12, the Haiti earthquake struck, and within two hours, Eberhard, working with the State Department, set up the Text Haiti 90999 program, which raised more than $40 million for the Red Cross in $10 donations. Jan. 12 was significant for supporters of 21st-century statecraft for another reason. It was also the day Google announced that Chinese hackers tried to break into the Gmail accounts of dissidents. In response, Google said that it would no longer comply with China’s censorship laws and for a few months redirected Chinese users to its Hong Kong search engine. The dispute rose to a high-level diplomatic conflict, but it also gave added resonance to the 45-minute “Internet freedom” speech Secretary Clinton delivered a little more than a week later, in which she placed “the freedom to connect” squarely within the U.S. human rights and foreign policy agenda.

Within weeks, Ross and Cohen found themselves dining in San Francisco on the eve of a State-sponsored diplomatic mission to Silicon Valley.

“Dude, tomorrow is going to be awesome,” Ross said.

AT THE GOOGLEPLEX, in Mountain View, the next day, Ross and Cohen took the director chairs next to Schmidt, the C.E.O., for one of Google’s “fireside chats.” Dozens of Google employees were seated in the room, most with laptops open, while Schmidt quizzed the two in a slightly impish tone about their new methods (“Is it like calling up all the ambassadors and saying, Please use Facebook, Twitter and Google?”) and appreciatively referenced the Internet-freedom speech (“The Chinese are not so happy with me right now,” Ross said, “but they’re madder at you”).

At Google, and later at YouTube’s headquarters, Ross and Cohen stressed the political power of viral videos and the potential for mobile phones to become widespread public tools for education, banking and election monitoring (an idea borrowed from Sierra Leone and Montenegro, where volunteers used S.M.S. to report on voting irregularities). It is fair to say that Ross and Cohen are obsessed with mobile phones; they speak at length about telemedicine, tele-education and something called telejustice (the details of which they haven’t quite worked out yet). At an early-morning meeting in Palo Alto with mobile-banking experts, they looked for ways to expand a successful pilot program used to pay policemen via mobile phones in Afghanistan to another conflict zone in Congo. In both cases, as truckloads or planeloads of cash meant to pay policemen dwindled on their way from the capital cities to the provinces, so did the chances for lawful governance. Mobile banking is well established in places like Kenya, and cellphones are ubiquitous worldwide, even in poorly developed regions. Here was a way to use technology to address diplomacy, development and security concerns at once: direct payments to officers’ phones, which would be transferable to the phones of their distant families, could become a powerful tool for stability, even in Congo. Or at least that was the hope.

After the fireside chat, Schmidt sat in on a meeting with Google.org (the company’s nonprofit arm) in which Ross and Cohen described the difficulty U.S. embassies have in keeping track of services and resources in countries where the U.S. hopes to spur development — tracking, for example, nongovernmental organizations in Kenya.

“It would be fascinating to transform one of our embassies,” Cohen said, “and see if we can create a virtual aspect to make it a one-stop shop for everything that’s out there.”

“NGOs keep asking for a way to be able to understand, in a country like Kenya, who’s doing clean water, who’s doing education,” one Google employee said.

Several engineers chirped back and forth about the virtues of user-generated feedback and the challenges of multilayer mapping technology, until Schmidt cut them off. “We have a big operation in Kenya,” Schmidt said. “We have the smartest guy in the country working for us. Why can’t we just do this?”

This new marriage of Silicon Valley and the State Department can, at times, seem almost giddy in its tech evangelism. While it’s hard to argue with the merits of helping nongovernmental organizations communicate with one another, there’s a danger that close collaboration between the government and the tech world will be read as favoritism or quid pro quo. Anne-Marie Slaughter, director of the policy planning staff, acknowledged as much: “So Google sits here, and Microsoft and Twitter and Facebook, but for all those household names, there are others — and what are the guidelines to make sure that you’re being evenhanded, as government has to be? We’re just at the outset. Those are issues that are important but can be dealt with — we’re going to have to deal with them.”

AS MUCH AS Ross and Cohen extol the benefits of mobile banking and Silicon Valley partnerships, they admit that not every problem is best addressed with an app. Clinton, Ross assured me, “doesn’t believe you can sprinkle the Internet on something and everybody grows up to be healthy, wealthy and wise.” As the recent Wikileaks scandal suggests, new technologies may usher in as many diplomatic catastrophes as breakthroughs. (In June, a former U.S. Army intelligence analyst claimed to have given 260,000 diplomatic cables to Wikileaks, a Web site dedicated to publishing confidential material.) When I asked Cohen whether sites like Wikileaks made the kind of diplomacy he advocates harder, he allowed that they posed a challenge: “All of these tools can be utilized by individuals for everything from Wikileaks to other negative purposes” — at least as the State Department sees it — “but that technology isn’t going anywhere. So we can fear we can’t control it and ignore the space, or we can recognize we can’t control it, but we can influence it.”

A series of events last year helped Ross and Cohen’s work gain traction by showing that connection technologies have become inextricably entwined with the challenges of foreign policy. In April 2009, there was the so-called Twitter revolution in Moldova. In July 2009, there was China’s regional-information blockade, including a total shutdown of the Internet, following the Uighur uprisings (“full” Internet usage was restored to Xinjiang 10 months later). And then, of course, Iran, beginning in June 2009, when the organizing power of cellphones and social media — and their ability to capture and disseminate images like the death of a young Iranian woman, Neda Agha-Soltan — arrested the world’s attention. (On the visit to YouTube in February, Cohen described the Neda video as “the most significant viral video of our lifetimes” and told the site’s senior management that YouTube is in some ways “better than any intelligence we could get, because it’s generated by users in Iran.”)

Most of the news that reached the West from Iran came via YouTube and Twitter. In June of last year, three days into the postelection protests, a Twitter post by the opposition candidate Mir Hussein Moussavi alerted Cohen that Twitter was scheduled to go down for maintenance. Cohen sent an e-mail message to Dorsey, the site’s 33-year-old chairman, without running it up the chain of command. Dorsey went to work — “I was definitely raising my voice” trying to find a way for the service to stay up, Dorsey told me. The New York Times broke the story of Cohen’s e-mail message. A flurry of public speculation ensued as to whether keeping Twitter up contradicted the president’s stated policy of nonintervention in the Iranian election. The same debate was under way among the secretary’s senior staff.

“There’s no precedent for what it meant to keep a social-media network up in a postelection environment,” Ross told me later. “There’s no casework. There’s no legal statecraft precedent for such things.” Secretary Clinton’s decision not to condemn Cohen’s actions was an example of her willingness to “ride the wave,” Slaughter told me. “Things were happening very fast; the stakes were very high. We didn’t put out propaganda to try to influence what was going on there. We simply made it possible for people to continue communicating.

“We weren’t set up to think about what we would do in that situation,” Slaughter went on. “Now we would be.”

The State Department recently cut financing for some activist groups based outside Iran that promote democracy and began to focus on providing information technologies that would facilitate communication among dissidents in Iran. Restrictions imposed by U.S. sanctions were lifted to allow for the export of instant-messaging and antifiltering software. But it’s not clear how easy it will be for companies to enable Iranians to download applications while keeping government censors at bay; even if they can, not everyone agrees that Twitter’s revolutionary power has lived up to the hype.

Evgeny Morozov, an academic at Georgetown and perhaps the fiercest critic of this brand of diplomacy, published an op-ed in The Wall Street Journal in February, charging that the State Department has been all too willing to sweep the dangers of Twitter diplomacy under the rug. “Facebook and Twitter empower all groups — not just the pro-Western groups that we like,” he wrote, pointing out that the Iranian government was also active online: “Not only did it thwart Internet communications, the government (or its plentiful loyalists) also flooded Iranian Web sites with videos of dubious authenticity . . . that aimed to provoke and splinter the opposition.” (The Iranian government later used Facebook to track Iranian dissidents around the world.)

When I brought up the op-ed, Cohen dismissed Morozov’s complaint. “The problem with his thinking,” he said, “is it neglects the inevitability that this technology is going to spread — so he advocates a very dangerously cautious approach that says it’s dangerous and we shouldn’t play in that space. What the Evgeny Morozovs of the world don’t understand is that whether anybody likes it or not, the private sector is pumping out innovation like crazy.”

In other words, the U.S. gains nothing from shunning the social media everyone else uses. “The 21st century is a really terrible time to be a control freak,” Cohen said. “Which is a quote Alec and I often use when explaining this.”

Yet control — over the message, who delivers it, who originates it — is still a cherished tenet of foreign policy. Morozov no doubt voiced the concerns of many when he wrote: “Diplomacy is, perhaps, one element of the U.S. government that should not be subject to the demands of ‘open government’; whenever it works, it is usually because it is done behind closed doors. But this may be increasingly hard to achieve in the age of Twittering bureaucrats.” (The fracas over Ross’s and Cohen’s seemingly frivolous Twitter posts during a recent trip to Syria, a country some lawmakers feel the U.S. should not be speaking with at all, would seem to bear him out. )

When I spoke to Clinton in March, she maintained that the benefits of connection technologies far outweighed the risks. “That doesn’t mean that there won’t be problems,” she said, “and there are a lot of people who are very risk-averse.” Clay Shirky, a New York University professor who has engaged in an ongoing debate with Morozov, has given similar advice to members of the State Department. “The loss of control you fear is already in the past,” he told me. “You do not actually control the message, and if you believe you control the message, it merely means you no longer understand what’s going on.”

It’s one thing for our diplomats to accept that they can’t be control freaks; it’s another to expect the rest of world to believe that they aren’t — or that social-media companies have no responsibility for how users interact with their services and with one another. What if governments don’t make a distinction between a user’s message and the message service? In May, Pakistan blocked access to Facebook after a user set up a page promoting “Everybody Draw Muhammad Day.” Even longstanding allies of the United States — South Korea, Italy, Saudi Arabia and Australia — hold widely divergent views on rights of online assembly and what constitutes protected speech.

Then there’s the chance that, say, Twitter will be seen in some quarters as an extension of the U.S. government. On this point, State Department officials I talked to were philosophical. “This may be a huge difference between the governments that control information — or try to — and governments that don’t,” Slaughter says. “They have a harder time understanding the limits of our power. We can’t shut down CNN!” Still, there are real dangers when companies are conflated with states. “The risk,” Carlos Pascual, the U.S. ambassador to Mexico, told me in February, “is if and when in a particular country — whether that’s China or Iran or Cuba or North Korea — there’s a perception that Twitter or Facebook is a tool of the U.S. government. That becomes dangerous for the company, and it becomes dangerous for people who are using that tool. It doesn’t matter what the reality is. In those circumstances, I think it’s still better to allow the tool to exist. But there is some sort of a line there, and we have to respect that line.”

LAST SPRING, Ross and Cohen began leading technology delegations abroad. These trips — or techdels, as they’re now called — to Iraq and elsewhere (Russia, Congo, Haiti) have since become a staple of American diplomacy. Software engineers, entrepreneurs and tech C.E.O.’s are asked to think of unconventional ways to shore up democracy and spur development. Though the delegations function as traveling idea labs, both Ross and Cohen are obsessed with producing “deliverables”: giving tech leaders specific assignments to work toward, like building support networks in the U.S. for fledgling Iraqi I.T. companies or finding ways to use crowd-sourcing to stop human trafficking in Russia.

In October 2009, Ross and Cohen jointly led a techdel to Mexico City. The idea was to generate novel solutions for countering narcotics crime, an enormous internal problem for Mexico but also an expensive and politically explosive border issue for the U.S. (The U.S. will spend more than $3.5 billion on drug interdiction this year, much of it in Mexico.) In 2009, Ciudad Juárez alone had 2,600 homicides; given the frequent collusion between gangs and the police, witnesses to crimes fear coming forward, which contributes to a kind of narcostate just the other side of the U.S. border. “The lack of trust in the police is a big part of the problem,” Ross says. “The whole concept of anonymous crime reporting has been lost.”

The techdel’s highlight was a meeting with Carlos Slim, the telecom giant and currently the richest man in the world (as well as a major stockholder and creditor of The New York Times). Pascual later told me that in the meeting, James Eberhard of Mobile Accord pointed out that even in the lowest-income neighborhoods of Ciudad Juárez, Monterrey and Mexico City, people have cellphones and use S.M.S. all the time. Why not have a free short code for text messages so that anyone could report a crime? All personally identifiable data would be stripped from the S.M.S. before it entered a centralized database. From the database, the information would be fed into federal and municipal police systems, then could be monitored by a third-party NGO and mapped on the Internet publicly — in essence bringing anonymity and transparency to crime reporting. Just as important, the actions taken (or not taken) by municipal police forces would also be publicly traceable and monitored.

“I think there was a personal reaction on the part of Slim,” Pascual says. “He’s fascinated by these 30-year-old entrepreneurs that are two generations behind him.”

According to Ross: “He went around the room and asked us all of our ages. He started nodding, and he goes, ‘This is wonderful.’ And he pushes this button and calls in his sons.”

The meeting was scheduled for 40 minutes but lasted two hours. Slim offered, on the spot, to sponsor the free nationwide short code.

The program, which is to be implemented this fall, has some easily recognizable challenges. How do you weed out false reports? How do you gain trust in the anonymity of reporting? Recently, Mexico attempted to register all cellphone users in order to counter telephone extortion rackets, but the personal data, which was to be held confidentially, was soon available for purchase at a Mexico City flea market. “If you get people using these cellphones and reporting crimes and it results in retribution toward somebody because the data really isn’t stripped away, then people will never touch it,” Pascual says. “We’ve got to work with our Mexican counterparts and NGOs, the government and outside of government, so that this is something that they adopt and they want and they sustain.”

THE UNDERPINNING PHILOSOPHY of 21st-century statecraft — that the networked world “exists above the state, below the state and through the state” — was laid out in a paper in Foreign Affairs in 2009 by Slaughter, before she became head of the policy planning staff. Cohen rereads the paper all the time. Ross gives it to all new U.S. ambassadors. It is crucial to how Cohen and Ross see themselves: equal parts barnstormers and brainstormers, creating and sustaining networks of networks. Ross and Cohen share all their contacts and remain in touch constantly, though they’re often on opposite sides of the globe. (“Jared and I divide and conquer,” Ross says.) Their closeness might come as something of a surprise: Cohen was appointed by Condoleezza Rice and still considers her a mentor; Ross was deeply embedded in the Obama campaign. And they pursued very different paths to the State Department.

Cohen, who sprinkled his undergraduate years with trips to Africa (his senior thesis was on the Rwandan genocide), managed to set up a meeting with Rice, then national security adviser, when he was only 22. As a Rhodes scholar, Cohen had ditched England for extended travel through Syria, Lebanon, Iraq and Iran, where he interacted daily with a younger generation closely interconnected through social media and wireless technology. “He had insights into Iran that frankly we didn’t have in the government,” Rice recalled when I spoke to her in March. “He was so articulate about it, I asked him to write up a memo that I could send to the president.”

When Rice became secretary of state, she tapped Cohen, then 24, for the policy planning staff, with an emphasis on youth outreach, counterradicalization and counterterror. In February 2008, large-scale protests against the Revolutionary Armed Forces of Colombia (FARC) sprang up there and in close to 200 cities around the world, organized through Facebook and Skype and instant messaging. “It was the largest protest against a terrorist organization in history,” Cohen says. “In what I’m sure was the very first diplomatic engagement via an online social network, I found the group One Million Voices Against FARC, and I sent a message to the organizer of it. I said: ‘I’m with the State Department; are you the one that did this? I’m going to come down to Colombia and see you.’ People thought this was weird — like, almost eerily reminiscent of an Internet date.”

Rice told me: “He started social networks of people who could talk about how to combat terrorism worldwide. He put that together really pretty much on his own.”

Nearly a decade older than Cohen, Alec Ross spent his early postcollege years as a Teach for America recruit and was slower to join political life. In 2000, he helped found One Economy, a nonprofit dedicated to closing the digital divide that was instrumental in pushing Arabic-language content onto the Web. Ross was particularly successful in getting titans of business and technology, from Bill Gates to the former F.C.C. chairman William E. Kennard, to support his cause. Impressed, the current F.C.C. chairman, Julius Genachowski, picked Ross to run the day-to-day operations for Obama’s technology, media and telecommunications policy. In April 2009, Ross joined State.

As a Bush-era appointee, Cohen had been walking on eggshells. “There were all these haters trying to get this guy shot in the head,” as Ross puts it. “I read what he’d written, and I’m like, This guy’s actually brilliant; he’s going to be my partner.”

One apparent paradox of 21st-century statecraft is that while new technologies have theoretically given a voice to the anonymous and formerly powerless (all you need is a camera phone to start a movement), they have also fashioned erstwhile faceless bureaucrats into public figures. Ross and Cohen have a kind of celebrity in their world — and celebrity in the Twitter age requires a surfeit of disclosure. Several senior members of the State Department with whom I spoke could not understand why anyone would want to read microdispatches from a trip to Twitter or, worse, from a State Department staff member’s child’s basketball game. But Secretary Clinton seemed neither troubled nor bewildered. “I think it’s to some extent pervasive now,” she told me in March. “It would be odd if the entire world were moving in that direction and the State Department were not.” Half of humanity is under 30, she reminded me. “Much of that world doesn’t really know as much as you might think about American values. One of the ways of breaking through is by having people who are doing the work of our government be human beings, be personalized, be relatable.”

Just such an effort was under way one recent morning in Washington, where Ross and Cohen were meeting with Farah Pandith. Pandith is also the holder of a newly created position: special representative to Muslim communities for the United States Department of State. Born in Kashmir, Pandith emigrated to the U.S. at a young age. Now in her early 40s, she is a vibrant presence in a room and, since she was sworn in in September, has been to 25 countries trying to broaden the scope of U.S. interaction with Muslim communities. She had just returned from India, Pakistan, Qatar and the Netherlands, and she and her deputy, Karen Chandler, were ready for Ross and Cohen’s pitch.

“Here’s the problem we’re solving for,” Ross said. “It’s physically impossible for one office to engage 1.4 billion people across the planet in a way that involves a lot of air travel. We’ve got to work with you to build out a connection-technology strategy.”

“Wherever you go,” Cohen said, “there should be a trail of Muslim engagement behind you.”

“It’s the BOF strategy,” Ross said, pronouncing it boff. “Blowing out Farah.”

Pandith and her staff laughed.

For the next half-hour, Ross and Cohen riffed on BOF: how to take the undoubted asset that is Pandith — an articulate, attractive female speaking on behalf of the United States to a large, diverse population that continues to suspect this country’s motives — and scale her presence with technology so that her job promises more than a Sisyphean series of intercontinental flights.

“What you did in Doha with the secretary,” Ross said. “There’s nothing to have kept us from Ustreaming that, and going from an intimate meeting with Farah Pandith, the secretary of state and 12 civil-society actors to something thousands of times larger.”

“What you need is a really good hash tag,” Cohen said.

After a moment everyone agreed that “#muslimengagement” was too long.

“We don’t have to come up with that right now,” Ross said. “You have a body of great material. We ought to have somebody go through it and do grabs. Figure out over the course of whatever it is you’ve said, those things that can be encapsulated in 140 characters or less. Let’s say it’s 10 things. We then translate it into Pashto, Dari, Urdu, Arabic, Swahili, etc., etc. The next thing is we identify the ‘influencer’ Muslims on Twitter, on Facebook, on the other major social-media platforms. And we, in a soft way, using the appropriate diplomacy, reach out to them and say: Hey, we want to get across the following messages. They’re messages that we think are consistent with your values. This is a voice coming from the United States that we think you wanted to hear. So we get the imam. . . .”

“. . . the youth leader. . . .” Pandith said.

“We get these other people to then play the role of tweeting it, and then saying, ‘Follow this woman,’ and/or putting it on whatever dominant social-media platform they use.”

To do the translation, Ross and Cohen suggested the Muslim engagement office bring in 10 bilingual members of the Virtual Student Foreign Service, an internship program Cohen developed to assist U.S. embassies in dealing with social media. Pandith’s deputy sat mostly quiet through the meeting but then voiced a concern that must reverberate throughout the diplomatic ranks. College kids translating diplomatic messages from the State Department? In languages their supervisors can’t read?

“How do you make sure that what they’re posting is vetted?” she asked.

“In the 21st century, the level of control is going to be decreased,” Ross said, reiterating what Clinton told me earlier. “The young woman from Saudi who translates something to Arabic, what she’s translating is language that’s been vetted, but it’s not being handed over to a State Department translator, who’s handing it over to State Department public affairs, who’s approving it. We’re past that.”

Jesse Lichtenstein has written for The New Yorker, Slate, The Economist and n + 1; this is his first article for the magazine.

Copyright. New York Times. Company. 2010. All Rights Reserved

BP Oil Spill More Tests On Cap

July 18, 2010

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A combination photo shows the BP oil leak in images taken from BP live video on May 26, 2010 (top L), June 1, 2010 (top R), July 13, 2010 and on July 15, 2010 (bottom R) after the leak was contained.

Credit: Reuters/BP/Handout

By Kristen Hays

HOUSTON | Sat Jul 17, 2010 11:50am EDT

HOUSTON (Reuters) – BP Plc’s blown-out Gulf of Mexico well appeared strong enough to keep oil from leaking on Saturday, but officials said tests could be extended beyond 48 hours as pressure in the well was rising more slowly than they had hoped.

BP began pressure tests on the Macondo well after a new cap choked off the flow of oil into the Gulf on Thursday for the first time since the April 20 rig explosion of the rig.

The tests are intended to show whether the blowout damaged the piping and cement inside the well, which could allow oil and gas to leak out the sides and seep up through the seabed.

“We’re feeling more comfortable that we have integrity” of the well, said Kent Wells, BP senior vice president of exploration and production.

But the tests could last beyond the original 48-hour deadline set for Saturday afternoon because pressure was rising very slowly, Wells said. Increased pressure would indicate the oil was being contained in the well.

Once tests are complete, BP plans to siphon up to 80,000 barrels (12.7 million liters) of oil a day and send it a mile up to waiting ships.

Retired Coast Guard Admiral Thad Allen, the U.S. government’s point man on the spill, has final say on when the test will end and BP’s next course of action, Wells said.

About 41 hours into the test on Saturday morning, pressure had reached 6,745 pounds per square inch and was rising about 2 psi per hour, Wells said.

Allen and BP want pressure to hit and sustain 7,500 psi or more, which would indicate all the oil and gas was flowing to the top with no breaches. Pressure beneath 6,000 psi would indicate a possible leak.

BP was told to step up monitoring with undersea robots for any breaches and gather additional seismic data to detect any pockets of oil in the layers of rock and sediment around the well, Allen said on Friday.

U.S. President Barack Obama warned on Friday that more work was needed before the well could be considered fixed.

“We won’t be done until we actually know that we’ve killed the well and that we have a permanent solution in place. We’re moving in that direction, but I don’t want us to get too far ahead of ourselves,” Obama said at the White House.

Obama is under fire to push BP to permanently plug the leak and clean up an environmental and economic mess across all five states along the Gulf of Mexico. The spill, the worst in U.S. history, has cut into multi-billion dollar fishing, tourism and drilling industries.

Under pressure from Obama, BP has established a $20-billion fund to cover damage claims from the spill.

CAMERON COMING TO WHITE HOUSE

The crisis has also complicated U.S. relations with close ally Britain.

British Prime Minister David Cameron is set to visit the White House on Tuesday amid a simmering controversy over BP’s possible involvement with negotiating the release of a Libyan man convicted of the 1988 Lockerbie airline bombing.

The U.S. Senate Foreign Relations Committee plans to ask BP officials to testify after the company said it had lobbied the British government in 2007 over a prisoner transfer agreement with Libya.

Cameron said on Friday he would stress how important a “strong and stable” company is to both nations.

Many Britons believe Washington is treating BP too harshly, to the detriment of British pension funds and other investors who have big stakes in the company.

U.S. lawmakers also are considering a range of new rules that could impose tougher safety regulations on offshore drilling or bar companies like BP from new offshore exploration leases. Debate is set to step up this week as Congress is slated to debate an energy bill.

COSTS

BP still expects to drill a new well by early August to intersect the ruptured one and seal it with mud and cement.

Investors remained cautious on BP’s latest effort, however, as several previous attempts failed to plug the leak caused by the explosion that killed 11 men.

Shares in the company, which fell about 50 percent in the first two months of the crisis but have gained 40 percent since late June, were down nearly 5 percent on Friday as part of a broader sell-off on the New York Stock Exchange.

Estimates vary widely of BP’s total costs — from $40 billion to $100 billion — which will run on for many years as lawsuits wind their way through courts.

Investors welcomed reports that BP was moving closer to sealing the first deal in its planned $10 billion of non-core divestments to help pay cleanup costs.

The company and bankers were finalizing details of the asset sales, including some U.S. interests to Apache Corp, said CNBC and the Financial Times.

(Additional reporting by Alexandria Sage in Louisiana and Leigh Coleman in Mississippi; Writing Timothy Gardner; Editing by Vicki Allen)

Rivalry between Drivers . Red Bull Formula 1 2010

July 15, 2010
July 15, 2010

 

river rivalry – what else is new The 2010 Formula One season certainly is the season of stormy relations between team colleagues, the relation between Red Bull drivers Mark Webber and Sebastian Vettel reached its boiling point last weekend after the team decided to take the newly developed front wing of Webber’s car and simply bolted it on Vettel’s car to replace the one Vettel had damaged during free practice. Webber was furious and even said he regretted signing a new one- year contract with the Red Bull team. Webber did the only thing he could do, he won the British Grand Prix, left the competition including Vettel miles behind him, and during a moment of sweet revenge couldn’t help himself shouting over the radio when he crossed the finish line: "Not bad for a number two driver!"

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Mark Webber, winner of the 2010 British GP.

Earlier this year Jenson Button and Lewis Hamilton also had some problems, and at Ferrari (although they deny it) there is also something going on. Fernando Alonso overtook Felipe Massa in the pit lane entrance in China and almost pushed him into the gravel trap, and last weekend Alonso hit Massa from behind and punctured his rear tyre when he didn’t get out of his way fast enough, and the pair is rarely seen talking to each other. Rivalry between team mates is as old as the sport itself, and in some cases it resulted in a complete on and off track declaration of war.
In 1981 Williams drivers Carlos Reutemann and Alan Jones had their problems after Jones won the title in 1980 and became first driver. During the 1981 Brazilian GP Reutemann ignored team orders and went on to win the race, after that their relationship went even more sour. Reutemann later said he wanted ‘to bury the hatchet’ which led to Jones’ classic comment: "Yeah, in your back."
Ferrari drivers Gilles Villeneuve and Didier Pironi clashed during the San Marino GP in 1982. Pironi seemingly ignored team orders and overtook Villeneuve to take the win, Villeneuve was so upset he left the podium after he had collected his second place trophy, and vowed never to speak to Pironi again. Two weeks later he was killed during the qualification of the Belgium GP, which left Pironi with the eternal burden and stigma of being ‘a traitor who killed Villeneuve’. Pironi died in 1987 during a off-shore powerboat accident.
Nelson Piquet and Nigel Mansell had problems when they drove for Williams, Piquet didn’t expect Mansell would be such a strong opponent, but he was, which resulted in a polemic of mutual offences. Piquet went way over the line when he commented Mansell’s wife was ‘an unattractive woman’. Many still believe this internal struggle cost Williams the title. Alain Prost and Mansell drove for Ferrari in 1990, but again the relationship went sour, Ferrari’s internal politics intensified the tension between the two, and there were numerous cases of favoritism when the team gave Prost the best car and aero parts.

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Ayrton Senna leading 1994 San Marino GP prior to his fatal crash.

Prost and Ayrton Senna drove for McLaren in 1988 and 1989, and this was by far the most famous battle between team mates. In the beginning McLaren pretended there was a healthy rivalry between the two drivers, but it soon became apparent the relationship was anything but healthy. This resulted in the famous crash in 1989 during the Japanese GP, when Prost didn’t give Senna enough room at the last chicane, and the pair collided. Prost retired from the race, but Senna managed to get going again with the help of the marshals and won the race, and as he thought at that moment, the championship as well.
But hours after the race the FIA Stewards concluded Senna had cut off the chicane and disqualified him from the race, which meant Prost won the championship. Senna was furious and accused FIA President Jean-Marie Balestre of corruption and favoritism. Senna returned the favor to Prost in 1990, when he, again during the Japanese GP, ran Prost in his Ferrari off the track right after the start, both drivers ended up in the gravel trap, but this time it was Senna who won the championship.
And that takes us right back to 2010, there are some similarities between the Prost/Senna feud and the Webber/Vettel and the Hamilton/Button feuds, back in those days many insiders believed it just not such a great idea to have two champions, or champions to be, in one team. It often results in a clash between two big egos, which in the end can cost a team the title. Hopefully that will not happen with Red Bull and McLaren, but both teams will have to make sure the situation as it is now will not escalate
Copyright. Motorsport Magazine.com 2010. All Rights Reserved

Porter Airlines

July 14, 2010

Sky Patrol | Porter Airlines

Travel

|

By SANDRA BALLENTINE

| July 13, 2010, 4:52 pm

DESCRIPTIONCourtesy of Porter AirlinesFlights through Porter Airlines allow easy access to downtown Toronto.

Typically, short-haul commercial flights are something to be endured, not enjoyed. In the case of Porter Airlines, however, getting there is half the fun. The Toronto-based boutique fleet’s comfy leather seats and seamless service come at the cost of coach but feel like flying private. O.K., maybe I’m getting a little carried away. But on two recent flights from Newark to Toronto, I zipped through check-in, security and customs, and because Porter operates out of Billy Bishop Toronto City Airport, you’re a really short ferry ride away from the heart of downtown. Add to this business-class-level lounges (the one at Billy Bishop is particularly well appointed), state-of-the-art equipment (fast, clean and quiet Bombardier 400 turboprops) and a fairly flexible booking structure. Not to mention the adorable uniforms: the female flight attendants wear tailored navy suits and dresses with jaunty pillbox hats from the Canadian label Pink Tartan while serving up the complimentary snacks, soft drinks, beer and wine. It may not be the same as flying on your own G5, but all in all the experience is pretty uplifting.

In BP’s Record, a History of Boldness and Costly Blunders

July 13, 2010

 

Thunder Horse, 2005 The 15-story oil platform in the Gulf of Mexico pitched in rough seas in the wake of Hurricane Dennis, tilting dangerously

 

July 12, 2010

In BP’s Record, a History of Boldness and Costly Blunders

By SARAH LYALL

This article was reported by Sarah Lyall, Clifford Krauss and Jad Mouawad and written by Ms. Lyall.

Hurricane Dennis had already come and gone on July 11, 2005, when a passing ship spotted a shocking sight in the Gulf of Mexico: Thunder Horse, BP’s hulking $1 billion oil platform, was listing precariously to one side, looking for all the world as if it were about to sink.

Towering 15 stories above the water’s surface, Thunder Horse was meant to be the company’s crowning glory, the embodiment of its bold gamble to outpace its competitors in finding and exploiting the vast reserves of oil beneath the waters of the gulf.

Instead, the rig, which was supposed to produce about 20 percent of the gulf’s oil output, became a symbol of BP’s hubris. A valve installed backward had caused the vessel to flood during the hurricane, jeopardizing the project before any oil had even been pumped. Other problems, discovered later, included a welding job so shoddy that it left underwater pipelines brittle and full of cracks.

“It could have been catastrophic,” said Gordon A. Aaker Jr., a senior engineering consultant on the project. “You would have lost a lot of oil a mile down before you would have even known. It could have been a helluva spill — much like the Deepwater Horizon.”

The problems at Thunder Horse were not an anomaly, but a warning that BP was taking too many risks and cutting corners in pursuit of growth and profits, according to analysts, competitors and former employees. Despite a catalog of crises and near misses in recent years, BP has been chronically unable or unwilling to learn from its mistakes, an examination of its record shows.

“They were very arrogant and proud and in denial,” said Steve Arendt, a safety specialist who assisted the panel appointed by BP to investigate the company’s refineries after a deadly 2005 explosion at its Texas City, Tex., facility. “It is possible they were fooled by their success.”

Indeed, there was a great deal of success to admire. In little more than a decade, BP grew from a middleweight into the industry’s second-largest company, behind only Exxon Mobil, with soaring profits, fat dividends and a share price to match.

From its base in London, the company struck bold deals in politically volatile areas like Angola and Azerbaijan and pushed technology to the limit in the remotest reaches of Alaska and the deepest waters of the Gulf of Mexico — “the tough stuff that others cannot or choose not to do,” as its chief executive, Tony Hayward, once put it.

The company also led an industry wave of cost-cutting and consolidation. It took over American competitors like Amoco and Atlantic Richfield and eliminated tens of thousands of jobs in several rounds, streamlining management but forcing the company to rely more heavily on outside contractors.

For a long time, BP’s strategy seemed to pay off. But on April 20, the nightmare situation occurred: the Deepwater Horizon drilling rig exploded, killing 11 workers and sending millions of gallons of oil gushing from BP’s Macondo well like so much black poison.

Although the accident is still under investigation, preliminary findings by Congressional investigators indicate that BP made a series of decisions that compounded the chances of disaster.

BP declined to make Mr. Hayward or other executives available for this article. But in an interview last month, Robert Dudley, the BP board member now in charge of the gulf spill response, denied that the accident reflected a corporate disregard for safety.

“I think we will find that this was an incredibly complicated set of events with individual decisions and equipment failures that led to a very complicated industrial accident,” he said.

BP is hardly the only oil company that has taken on difficult projects with a shaky safety net. But the company’s attitude toward risk stands in contrast to that of its competitors, most notably Exxon Mobil, whose searing experience with the Exxon Valdez spill in 1989 spurred a wholesale change in its approach to safety.

“You can have the best intentions in the world, you can have the best equipment in the world, but it’s a combination of intentions, equipment and judgment that keeps accidents out of the workplace,” said Joseph H. Bryant, who ran BP’s operations in Angola from 2000 to 2004 and who is now chief executive of Cobalt International Energy. “If you are going to ask people to innovate, you’d better make sure that they know that any risks they take are manageable.”

A Focus on the Basics

When Tony Hayward became BP’s chief executive in May 2007, he promised to get the company back to basics.

One of his first moves was to remove the modern art adorning the company’s swanky London headquarters, including an endless video of gently waving corn projected onto one wall. In its place went prosaic photographs of BP service stations, platforms and pipelines.

A plain-spoken geologist and longtime company man, Mr. Hayward dispensed with the limousine used by his socially prominent predecessor, John Browne, and closed the concierge desk in the lobby that had helped employees with dry cleaning and theater tickets.

“BP makes its money by someone, somewhere, every day putting on boots, coveralls, a hard hat and glasses, and going out and turning valves,” Mr. Hayward said in a speech at Stanford Business School last year. “And we’d sort of lost track of that.”

Mr. Hayward also pledged to fix the safety problems that contributed to the downfall of his predecessor. Though the company would continue doing the “tough stuff,” he declared, it would make safety its “No. 1 priority.”

In the realm of personal safety, Mr. Hayward expanded on Mr. Browne’s initiatives. Visitors today see signs at company offices exhorting workers not to walk and carry hot coffee at the same time, to stick to marked walkways in parking lots and to grasp banisters while climbing the stairs. Employees with company cars must take defensive driving courses.

Mr. Hayward also set up a new companywide management system to evaluate risks, standardize safety practices and improve decision-making.

In a memorandum to employees on Friday, he noted that before Deepwater Horizon, the company’s safety record had been improving. “This accident has been a terrible exception to that trend and we must learn the lessons from it,” he wrote. “But at the same time, it does not invalidate all the hard work you have put in to improve our safety standards around the world. Safety is our first priority. It will remain so.”

But American regulators and some members of Congress say that despite such talk, the company continues its risky behavior.

“The way safety is measured is generally around worker injuries and days away from work, and that measure of safety is irrelevant when you are looking at the likelihood that a facility like an oil refinery could explode,” said David Michaels, assistant secretary of labor for occupational safety and health. “This is comparable to saying that an airline is safe because the pilots and mechanics haven’t been injured.”

A Story Begun in Persia

BP was born in 1908 when a rich Englishman named William Knox D’Arcy struck oil in Iran and formed the Anglo-Persian Oil Company. Treating the locals as little more than imperial subjects, the company, partly owned by the British government, expanded across the region, its fortunes intertwined with those of the British Empire.

But as oil-rich countries around the world began nationalizing their oil fields, British Petroleum, as it later became known, was forced to retreat and find new strategies along with the rest of the industry.

In 1995, the British government sold the last of its stake in the company and the charismatic Mr. Browne took over.

A highly visible supporter of the Royal Opera House, the National Gallery and Prime Minister Tony Blair, Mr. Browne transformed the company into a global behemoth, boldly acquiring properties around the world and rechristening it BP.

Unlike some of his more cautious competitors, Mr. Browne ignored small projects and went after the riskiest, most expensive and potentially most lucrative ventures — “elephants,” in industry jargon. Under him, BP’s share price more than doubled and its cash dividend tripled, making it a darling of investors.

But even as he became the toast of Britain’s business world and was made a knight and member of the House of Lords, Mr. Browne was ruthlessly slashing costs. He outsourced many operations and fired tens of thousands of employees, including many engineers.

Tom Kirchmaier, a lecturer in strategy at the Manchester Business School, said that Mr. Browne tried to run BP like a financial company, rotating managers into new jobs with tough profit targets and then moving them before they had to deal with the consequences. The troubled Texas City refinery, for example, had five managers in six years.

Mr. Browne, now advising Britain’s coalition government on its cost-cutting campaign, declined to comment for this article. In his new autobiography, “Beyond Business,” he said, “I transformed a company, challenged a sector, and prompted political and business leaders to change.”

Mr. Browne resigned under pressure in 2007, his reputation tarnished by a lie he told in court papers about his relationship with a male companion.

However, Mr. Browne’s fall from grace really began on March 23, 2005, when 15 people died and more than 170 were injured in America’s worst industrial accident in a generation: a huge fire and explosion at Texas City.

A Troubled Workplace

Acquired by BP in the Amoco purchase, the Texas City plant was America’s second-largest refinery, turning 460,000 barrels of crude oil a day into gasoline. But the facility, built in 1934, was poorly maintained and long starved of capital investment.

“We have never seen a site where the notion ‘I could die today’ was so real,” the Telos Group, a consulting firm hired to examine conditions at the plant, said in a report two months before the accident.

The explosion occurred when a 170-foot tower was being filled with liquid hydrocarbons. Because of poor communication among several workers who had been on 12-hour shifts for more than a month straight, no one noticed that the tower was filled too high.

A 20-foot geyser of unstable chemicals shot into the sky, and the vapor ignited when a contractor, trying to get away, repeatedly tried to start the engine on his stalling pickup truck.

The subsequent investigations were scathing. The explosion was “caused by organizational and safety deficiencies at all levels of BP,” the United States Chemical Safety Board concluded in one report.

The government ultimately found more than 300 safety violations, and BP agreed to pay a then record $21 million in fines.

A year later, there was a new calamity: 267,000 gallons of oil leaked from BP’s network of pipelines in Prudhoe Bay, Alaska.

It was the worst spill ever on the North Slope, and once again, the cause was preventable. Investigators found widespread corrosion in several miles of under-maintained and poorly inspected pipes. BP eventually paid more than $20 million in fines and restitution.

While these two accidents drew most public attention, serious problems were also brewing offshore, at BP’s Thunder Horse platform.

Mr. Aaker, the engineering consultant who worked on it, said BP’s bosses rushed construction of the intricately designed vessel, moving it to the gulf before it was ready to “demonstrate to their shareholders that the project was on time and on schedule.”

Once the rig was at sea, several hundred people at a time frantically worked to complete it, sleeping in cramped, chaotic conditions on board a temporary encampment of ships.

“It was like having the plumbers, the electricians and the bricklayers come to a construction site at the same time as they are laying the concrete,” said Mr. Aaker, who is now assisting the House Energy and Commerce Committee in its investigation of Deepwater Horizon. “This was not methodical.”

Nor was it safe.

The near sinking of Thunder Horse in 2005 was caused by a shockingly simple mistake: a check valve had been installed backward, and that caused water to flood into, rather than out of, the rig when it heated up during the hurricane.

After costly repairs to fix that damage, BP discovered a more significant problem: rudimentary mistakes in the welding of pipes in the underwater manifold, which connects dozens of wells and helps carry the oil back to the platform, had caused dangerous cracks and breaks.

Had the well been active, the damaged pipes would have caused a major oil spill. As it was, the company had to remotely rip out, retrieve and fix dozens of complex and heavy pieces of equipment lying on the sea floor, some weighing more than 400 tons.

Altogether, the blunders cost BP and its minority partner, Exxon Mobil, hundreds of millions of dollars in repairs and set back production, today at 300,000 barrels of oil and oil equivalents a day, by three years.

Although the Deepwater Horizon accident involved an exploration rig, not a production platform, a similar carelessness and disregard for safety was evident in BP’s decisions there, according to preliminary findings by the House Energy and Commerce Committee. “In effect, it appears that BP repeatedly chose risky procedures in order to reduce costs and save time and made minimal efforts to contain the added risk,” wrote Henry A. Waxman, the committee chairman, and Bart Stupak, chairman of its subcommittee on oversight and investigations.

BP took a different sort of risk in Russia, forming a 50-50 joint venture in 2003 with that nation’s unpredictable oligarchs to gain access to the vast resources beneath the Siberian taiga.

The deal, which accounted for about one-quarter of BP’s global oil reserves, nearly collapsed in 2008, when the Russian government sought tighter control over its energy sector. After a nasty public fight, BP was forced to hand over operational control of the venture to its Russian partners, although it continues to reap vast profits from it.

BP stepped into another tricky political situation last year, when Iraq offered foreign companies $2 a barrel to help it increase production from its oil fields, which had suffered from years of war and neglect. BP’s competitors blanched at the low price, but Mr. Hayward teamed up with a Chinese state-owned company and accepted the deal.

The chairman of a rival company was so enraged that he called Mr. Hayward and demanded: “Tony, have you gone mad?” BP’s move forced other companies to agree to similar terms. As one analyst noted, it was “disastrous to profitability” for the industry.

Old Habits Die Hard

Time and again, BP has insisted that it has learned how to balance risk and safety, efficiency and profit. Yet the evidence suggests that fundamental change has been elusive.

Revisiting Texas City in 2009, inspectors from the Occupational Safety and Health Administration found more than 700 safety violations and proposed a record fine of $87.4 million — topping the earlier record set by BP in the 2005 accident. Most of the penalties, the agency said, were because BP had failed to live up to the previous settlement fully.

In March of this year, OSHA found 62 violations at BP’s Ohio refinery, proposing $3 million more in penalties.

“Senior management told us they are very serious about safety, but we observed that they haven’t translated their words into safe working procedures and practices, and they have difficulty applying the lessons learned from refinery to refinery or even from within refineries,” said Mr. Michaels, the OSHA administrator.

BP is contesting OSHA’s allegations, saying it has made substantial improvements at both facilities.

Accidents have also continued to plague BP’s pipelines in Alaska. Most recently, on May 25, a power failure led to a leak that overwhelmed a storage tank and spilled about 200,000 gallons of oil — the third-largest spill on the Trans-Alaska Pipeline System.

Mr. Dudley, the BP executive overseeing the gulf response, said it was unfair to blame cultural failings at BP for the string of accidents.

“Everyone realized we had to operate safely and reliably, particularly in the U.S., to restore a reputation that was damaged by the accident at Texas City,” he said. “So I don’t accept, and have not witnessed, this cutting of corners and the sacrifice of safety to drive results.”

Mr. Waxman, whose committee is investigating the Deepwater Horizon accident, has a very different view. When Mr. Hayward testified a month ago, the representative upbraided him: “There is a complete contradiction between BP’s words and deeds. You were brought in to make safety the top priority of BP. But under your leadership, BP has taken the most extreme risks.”

“BP cut corner after corner to save a million dollars here and a few hours there,” Mr. Waxman said. “And now the whole Gulf Coast is paying the price.”

Julia Werdigier contributed reporting.

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