Inauguration: 7.5 Things You Should Have Seen


A presidential inauguration is a big, long event that lasts all day and into the night–and who has time to really watch it? People have jobs, ones that don’t let you off for a federal holiday.


Everyone (or, at least, some) will be talking about it, which means potential embarrassment for anyone who doesn’t know what happened. Thankfully, ABC employs  news professionals stationed in Washington, D.C., to pay attention to these kinds of things and boil off some of the less noteworthy or interesting stuff, presenting you with short videos of everything that really mattered. Or at least the things a lot of people were talking about.


A full day of paying attention to President Obama’s second Inauguration leads one of those professionals to offer these 7 1/2 things:


1. Beyonce Sang the National Anthem


Boy, howdy! Did she ever? Beyonce has essentially become the Obama’s go-to female performer: She recorded a music video for Michelle Obama’s “Let’s Move” initiative in 2011, and she performed at the president’s last inauguration in 2009. Her velvety, soulful “Star Spangled Banner” is getting good reviews.




2. Kelly Clarkson Also Sang


Kelly Clarkson is not as “in” with the First Couple as Beyonce seems to be, but they let her sing “My Country ‘Tis of Thee,” and she did a pretty good job with it. This was kind of weird, though, because at one point she said she loved Ron Paul, although she later said she would vote for Obama.




3.  Obama Talked About Gay Rights


This may not seem shocking since more than half the country, including President Obama, supports gay marriage. But the president made a point of mentioning gay rights during his speech, equating the struggles of the LGBT community with those of  past civil rights movements, and in doing so made history.


He name-checked Stonewall, the New York City bar that was raided by police in 1969 sparking riots to protest the anti-gay crackdown. And he actually used the word “gay”: “Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law – for if we are truly created equal, then surely the love we commit to one another must be equal as well,” Obama said in his address.


Plenty of inaugural addresses have been chock full of rhetoric about freedom and equality, but in the last four years, the political culture surrounding gay rights has changed significantly, as more states legalized same-sex marriage and as broad swaths of the country got more comfortable with homosexuality in general. Obama’s “evolution” on gay marriage, and now his inaugural address, have helped signify that change.




4. Joe Biden Made Jokes and Shook Hands With People


Could we expect anything less?


Here’s how the Vice President toasting Sen. Chuck Schumer instead of President Obama at the big luncheon:  ”I raise my glass to a man who never, never, never operates out of fear, only operates out of confidence, and a guy–I’m toasting you, Chuck.” Watch it:



And here he is, scurrying around and jovially shaking hands with people along the parade route:




5. Richard Blanco Read a Poem That Was Sort of Whitman-esque, But Not Entirely


Cuban-born Richard Blanco became America’s first openly gay, Latino Inauguration poet. He read a nine-stanza poem entitled “One Today,” which set a kind of unifying American tableau scene.




6. Obama and Michelle Walked Around Outside The Limo


President Obama walked part of the parade route, from the Capitol to the White House, with Michelle. They waved to people. It is not entirely abnormal for a president to do this at an inaugural parade. But they walked quite a ways.




7. John Boehner: ‘Godspeed’


The speaker of the House presented American flags to Obama and Biden, telling them: “To you gentlemen, I say congratulations and Godspeed.”




7 1/2. Sasha and Malia Were There. 


Obama’s daughters, Sasha and Malia, were there. They didn’t really do much, but they did wear coats of different shades of purple that got a lot of  attention on Twitter.


Reports of the daughters looking at smartphones and applying lip gloss highlighted their day. As did this .gif of Sasha yawning.

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Supernova-powered bow shock creates cosmic spectacle



Victoria Jaggard, space and physical sciences news editor



sig12-014a.jpg

(Image: NASA/JPL-Caltech)


NOW that's one groovy star. Seen speeding like a bullet through a cloud of dust and gas, the massive star Zeta Ophiuchi is creating a colourful wave known as a bow shock. This happens because the star's motion is compressing dust grains like water at the bow of a ship.







To the naked eye Zeta Ophiuchi is a placid dot parked in the constellation Ophiuchus. But the infrared vision of NASA's Spitzer Space Telescope shows how the shooting star is electrifying its surroundings. It creates a scene akin to a UV-triggered fluorescent blacklight poster, says Spitzer image specialist Robert Hurt of the Jet Propulsion Laboratory in Pasadena, California.



In this picture infrared wavelengths have been translated into visible ones, with shorter waves in blue, middle waves in green and longer ones in red. That's why the bright stars glitter like sapphires, while small dust grains fluoresce in a faint teal as they absorb Zeta Ophiuchi's light. Red in the bow shock comes from the larger, hotter dust grains that can survive the star's fierce radiation.



Given its speed and direction, astronomers think the star once orbited an even heftier companion. But the biggest stars live fast and die young, and its partner exploded in a violent supernova blast that sent Zeta Ophiuchi careening away at a whopping 87,000 kilometres per hour.



This isn't the first or even the fastest runaway but it is perhaps one of the most detailed. "Here you have a star hurtling through space and having a huge impact on its environment," says Hurt. "It really gives you a general sense of how everything is interconnected."




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Parents-to-be welcome new pro-family incentives






SINGAPORE: From 1 May 2013, working fathers will be legally entitled to one week of paid paternity leave.

Parents welcome the move, but some pro-family organisations are calling for bolder measures.

Eileen Chan and Alvin Tan tied the knot two years ago. They are expecting their firstborn in April, and with that, the bumped-up Baby Bonus.

"I think the extra S$2,000 will come in handy, especially when it comes to immunisation for the kid," said Ms Chan. "In the first year, kids tend to fall sick more often."

For the Tans, the most welcome new measure is paternity leave. Mr Tan plans to take the week off right after his wife delivers.

He said: "Especially when the baby is new-born, as a father I'd like to spend more time at home with the kid, with my wife to help settle the kid in."

Alvin is optimistic his employer will grant his paternity leave, even though his child will be born just before the measure officially kicks in on 1 May 2013.

Employers are encouraged to offer paternity leave to all eligible employees with children born on or after 1 Jan 2013, and this will be reimbursable by the government.

Ms Chan can also share one week of her maternity leave with her husband.

It's a move the National Family Council welcomes, but its chairman Mr Lim Soon Hock is calling for a whole month of maternity leave to be made gender-neutral.

Mr Lim said: "If we were to have longer paternity leave, essentially what we are creating is an opportunity for our women to go back to work earlier. But fundamental to this thinking must be that we have to move away from the notion that men are more valuable in the workplace than women."

The slew of bonuses is good news, but it is not the reason why the Tans want to have two children.

Mr Tan said: "The baby itself is the bonus, so all these incentives, we're just happy to receive them!"

The new Marriage and Parenthood Package also makes adoption leave a legal entitlement.

Working, married women who adopt children under a year old will be entitled to four weeks of government-paid leave.

Previously, this was offered by employers on a voluntary basis.

- CNA/xq



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Apple's first 2013 earnings to be closely watched



Apple reports its first-quarter earnings this week, and the results could not be more closely watched for signs of the company's health and future.


The story is well-known by now. Shares of Apple's stock have been on the decline, going from $702 in late September to a close at an even $500 last week. That's a 28.4 percent drop in just over four months. Positive results -- and a look ahead when Apple puts out its numbers Wednesday -- could turn that trend.


Apple forecast $52 billion in revenue and earnings of $11.75 per share when it reported its previous quarterly results in October. Wall Street's expecting the company to top that at $54.69 billion and earnings per share of $13.41 based on a poll of 47 analysts done by Thomson First Call.


Those estimates are pared down from the $13.87 per share analysts were expecting ahead of last quarter's forecast, a shortcoming that caused concerns that Apple's growth had stalled. During a conference call with analysts, Apple chalked it up to tighter margins in the creation of its newest products including the
iPad Mini, which starts at $329 and is estimated to cost the company around $198 in parts and labor, according to IHS iSuppli.


Making things a bit more complex is that Apple ended its calendar year with a bang, refreshing nearly its entire line of computers and putting out new versions of the iPhone,
iPod, and iPad. That's expected to make this quarter -- which has historically been strong due to holiday sales -- a whopper. But it's also raised concerns about the company's performance during the rest of the year, given a long history of product launches that are staggered.


By the numbers
Product-wise, Apple's story remains focused on the iPhone, the company's mega profit driver. Analysts have long been concerned that the average sale price of the device, which has been one of the highest in the business, is set to fall dramatically as the smartphone market continues to mature. That issue has been compounded with the makeup of iPhones people are buying, with many customers choosing to buy last year's model or the one from the year before, which Apple sells at a lower price and profit margin.


Wall Street expects Apple to announce iPhone sales somewhere between 43 million and 53 million. That's up from the 37.04 million iPhones it sold the same quarter the year before, and 26.9 million the previous quarter. In fact, it would be the most iPhones sold during any quarter since the product's release.




This is the first quarter to include iPad mini sales.

This is the first quarter to include iPad Mini sales.



(Credit:
Apple)


For Apple's iPad, which the company refreshed in late October, Wall Street's expecting between 23 million and 25 million units. That, too, is up from 14 million in the previous quarter and 15.43 million in the same quarter last year. It would also top Apple's previous sales record of 17 million iPads from its June quarter last year.


One area to watch on Wednesday is Macs. Why's that? Some analysts are anticipating a possible year-over-year decline in sales, despite product refreshes last year that would point to stronger numbers. That's not necessarily the case, Piper Jaffray analyst Gene Munster said in a note to investors last week.


"The December quarter of 2012 faces a difficult comparison from 2011 as the 2011 quarter had an additional week," Munster wrote. "As a result, we remain comfortable with our down 7 percent year over year estimate, which implies 4.8 million Macs."


Some other estimates expect Apple to beat last year's 5.2 million, including Gabelli & Co., which believes Apple sold 5.3 million computers, which would be an all-time sales record.


That kind of performance would be especially impressive given two things: One is that Apple's iMacs did not start shipping until the very tail end of November and late December for the larger model. The other is possible cannibalization by Apple's growing
tablet lineup, which doubled down with the iPad Mini during the quarter.

"We have learned over the years not to worry about cannibalization of our own product," Apple CEO Tim Cook said about just such a phenomenon during last quarter's earnings call with analysts. "It's much better for us to do that than for somebody else to do it."


Apple will report just after the market closes on Wednesday, followed by a conference call with executives at 2 p.m. PT.

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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.


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Obama Second Inaugural: A Déjà vu Moment













At the height of the "fiscal cliff" showdown, the final political battle of his first term, President Barack Obama lamented the bitter persistence of Washington partisanship as "déjà vu all over again."


Today, as Obama delivers his second inaugural address on the west front of the Capitol, he could say the same thing about the looming political battles of his new term.


Four years ago, Obama took office amidst what he then described as "gathering clouds and raging storms," an economic crisis that resulted from "our collective failure to make hard choices and prepare the nation for a new age."


The nation was in the throes of a financial collapse, decades in the making, whose breadth and depth were only starting to be known. It would become a devastating recession, the worst since the Great Depression.


Now, even as the economy continues a gradual climb back from the brink, many of those "hard choices" still remain, with climbing deficits and debt and a yawning partisan gap over how to deal with them.


On the horizon is a cascade of fresh fiscal crises, these politically self-imposed, over the nation's debt ceiling, spending cuts and a federal budget, all of which economists say threaten another recession and could further downgrade of the nation's credit rating.


Obama will use the first major speech of his second term to try to reset the tone of debate and turn the page on the political battles of the past, hoping for something of a fresh start.








Obama Sworn In for Second Term, Kicks off Inaugural Festivities Watch Video









Getting the Parties Started: Memorable Inaugural Balls Watch Video







He will "talk about the challenges that face us and what unites us as Americans," Obama campaign manager Jim Messina told ABC News.


"Monday is an American moment: the swearing-in of the President of the United States -- everyone's president," Messina said. "You're going to see a president who wants to work across party lines to get things done, that's what the country wants."


He will acknowledge that we won't "settle every debate or resolve every difference" but that we "have an obligation to work together," said a senior administration official, who asked to remain anonymous in order to speak freely about the speech.


Obama will not discuss specific policy prescriptions in his address, though he may broadly allude to issues of war, immigration, climate change and environment, and gun control, officials said. The details will be saved for the State of the Union address on Feb. 12.


But the president will make clear that his re-election -- the first Democrat to win two elections with more than 50 percent of the vote since FDR -- reflects momentum for his agenda, said top White House aides.


"He's going to find every way he can to compromise. But he's going to be pretty clear, and we're also going to bring the American people more into the debate than we did in the first term," senior Obama adviser David Plouffe said on ABC's "This Week."


Polls show Obama begins his second term with soaring popularity -- the highest job approval rating in years -- and strong backing on some of his top legislative priorities.


Fifty-five percent of Americans in the latest ABC News/Washington Post poll approve of Obama's job performance overall, the most since November 2009, with a small exception for the 56 percent spike shortly after the death of Osama bin Laden in 2011.


That rating compares with 19 percent approval for Congress -- matching its lowest at or near the start of a new session in polls by ABC News and the Washington Post since 1975.


Majorities in the survey also broadly favor Obama's position on the debt ceiling, gun control measures, and reforms for the immigration system.






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Turn up the bass to scare birds away from planes









































PLANES and birds aren't good at sharing air space - bird strikes worldwide cause over a billion dollars in damage every year, and put passengers and crew at risk. To scare avians away, a new device will fire low-frequency sound waves at flocks as they near busy flight paths.












Noise makers are often used to scare birds away from airports or contaminated waterways. But loud sounds also annoy any humans within earshot.












Now a system developed by Technology International, based in Laplace, Louisiana, aims to deter birds using infrasound, below the range of human hearing.












The trial version of the Avian Infrasound Non-lethal Denial System has a passive infrasound detector that listens for an approaching flock, and activates a series of rotary subwoofers that generate high-intensity, but low-frequency sound. It worked well in tests.












Thunderstorms also emit lots of infrasound, which may be why birds are naturally averse to it, says Abdo Husseiny, the firm's CEO.












Husseiny adds that the system could be used to keep pigeons away from public squares, or divert flocks away from wind turbines. He says that the equipment should be commercially available within two years.




















































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Football: Clubs may be demoted over racism: Blatter






SAINT-PETERSBURG, Russia: FIFA president Sepp Blatter said in St Petersburg on Sunday that clubs where racist incidents occurred could face punishments of anything from points deduction or even demotion.

The 76-year-old Swiss added that without heavy punishment racism would remain within the sport.

"The entire world fights against racism and discrimination," Blatter told a press conference.

"Football is part of the world's society. We unite more than 300 million people around the world and should set an example. Without serious sanctions nothing will ever change."

Blatter's remarks come in the light of Ghanaian midfielder Kevin-Prince Boateng leading his AC Milan team-mates off the pitch in a club friendly earlier this month after being racially abused.

While Blatter had criticised Boateng's actions saying it was the wrong solution, he added that there was zero tolerance for racist abuse.

Blatter also announced on Sunday that he did not agree with the idea of re-establishing the post-Soviet football league by grouping together the best teams of the former USSR.

The ambitious plan was mooted last month by Alexei Miller, the chief of Gazprom, owner and main sponsor of Russian champions Zenit St Petersburg, and has picked up support from many top clubs of the former Soviet Republics.

"The creation of the CIS league goes against FIFA principles," the world football supremo told a news conference.

"The head of Russia's football Union (RFU) Nikolai Tolstykh should continue holding the country's championships and forget about the project of revival of the Soviet-type CIS (Commonwealth of Independent States) league."

Blatter added that FIFA has a clear structure of tournaments, where club competitions were held within the national federations or continental associations like UEFA's Champions League or the Libertadores Cup.

"The new league can break the existing FIFA structure and bring disarray into it," Blatter said. "FIFA will never give its approval to such a project. Russian football officials should forget about this idea."

Tolstykh expressed his support by saying: "The RFU has a clear position - football life in the country should be subordinate to FIFA, UEFA and RFU regulations."

- AFP/fa



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WikiLeaks says Aaron Swartz may have been a 'source'


WikiLeaks said late yesterday that recently deceased Internet activist Aaron Swartz assisted the organization, was in contact with Julian Assange, and may have been one of the organization's sources.


Reached in Iceland on Saturday evening, California time, WikiLeaks representative Kristinn Hrafnsson confirmed to CNET that the tweets were authentic but declined to elaborate.


In the tweets, the organization said it was revealing the information "due to the investigation into the Secret Service involvement" with Swartz.


Here are screenshots of the tweets:






The phrasing of the last tweet ("strong reasons to believe, but cannot prove") may be related to the precautions WikiLeaks says it takes to ensure its sources' anonymity. WikiLeaks' policy says:



...we operate a number of servers across multiple international jurisdictions and we we do not keep logs. Hence these logs can not be seized. Anonymization occurs early in the WikiLeaks network, long before information passes to our web servers. Without specialized global internet traffic analysis, multiple parts of our organisation must conspire with each other to strip submitters of their anonymity.


The Secret Service has a legal mandate to investigate computer crime, a task it shares with the FBI and other federal agencies, which the agency describes including "unauthorized access to protected computers" -- which Swartz is alleged to have been guilty of. It also investigates forgery, identity fraud, visa fraud, money laundering, food stamp fraud, wire fraud, and a host of other federal offenses.



It would not be unusual, in other words, for the Secret Service to be involved in a criminal probe of Swartz's alleged bulk downloading from the JSTOR database. Some other examples: The Secret Service, which is now part of the Department of Homeland Security, has investigated an artist who installed photo-taking software in Apple stores, a credit card theft ring, spyware installed on college campuses, and a possible theft of GOP candidate Mitt Romney's income tax returns.


The ambiguous WikiLeaks tweets have prompted speculation about what the group was trying to suggest. The Verge's Tim Carmody wrote that "the aim of these tweets could be to imply that the US Attorney's Office and Secret Service targeted Swartz in order to get at WikiLeaks, and that Swartz died still defending his contacts' anonymity. Taking that implied claim at face value would be irresponsible without more evidence." And blog emptywheel wrote that if true, the tweets "strongly indicate" that "the US government used the grand jury investigation into Aaron's JSTOR downloads as a premise to investigate WikiLeaks."


Until WikiLeaks elaborates on what it intended to say by highlighting the Secret Service's involvement, and provides supporting evidence, it will be difficult to draw any conclusions.


After confirming the authenticity of the tweets, WikiLeaks representative Hrafnsson asked that we contact him later with any further questions. We'll do that and let you know what we find out.


It seems the only thing that's now certain is that criticisms of, and speculation about, the government's handling of the Swartz-Jstor case isn't likely to die down overnight.


CNET's Declan McCullagh contributed to this report.


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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..