Brain Drain: Google's Green Guru is Latest to Step Down

The latest big brain to leave Google is Dan Reicher, the company's director of climate change and energy initiatives for the past four years. No matter how hard it tries, Google just isn't as lithe and entrepreneurial as it was in its early days. It's hard to keep the startup atmosphere in a company of 23,000 people (up from 5,000 five years ago). Even the company's"20 percent time"for employees to work on their own projects hasn't been enough to retain top talent like Reicher.

Reicher made an impressive impact at Google--he helped create the company's RE>C goal (making renewable energy cheaper than coal), oversaw the development of grid-connected Ford Escape and Toyota Prius hybrids, and developed the proposal that led Google to invest in an underwater transmission grid off the Atlantic Coast of the U.S.

Now the former Googler is heading to Stanford, where he will oversee the new interdisciplinary Steyer-Taylor Center for Energy Policy and Finance as executive director. Reicher will also serve as a professor at the Law School and lecturer at the Graduate School of Business.

No word on who will take over at Google, but it's safe to say that the replacement will have many of the same grand alternative energyambitionsas Reicher.

Ariel Schwartz can be reached onTwitteror byemail.

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State Dept: Give Us Your Retinal Scans, Your Credit Card Numbers ...

American diplomats were activelyinstructed to seek out detailed biometric information on politicians,bureaucrats and fellow bureaucrats from other countries and globalorganizations.

That's the news according to the latest trove ofdiplomatic cables released to the public by WikiLeaks. Among others,American diplomats attempted to get biometric and other sensitiveidentifying information from leading figures at the United Nations,and countries such as SouthAfrica, the Sudan, Senegal, North Korea, China, Cuba, Egypt, India, Indonesia,Malaysia, and Syria.

The kind of information the StateDepartment was looking for is a marketer's dream. One cable,apparently from Hilary Clinton to embassies inthe Democratic Republic of the Congo, Burundi, Uganda and Tanzania,Clintonaskedfor the followingof“persons related to the African GreatLakes”:

Biographic and biometric data,including health, opinions toward the US, training history,ethnicity (tribal and/or clan), and language skills of key andemerging political, military, intelligence, opposition, ethnic,religious, and business leaders. Data should include email addresses,telephone and fax numbers,fingerprints, facial images, DNA, and iris scans.

That's not the only data thatAmerican embassies were busy trying to dig up. Clinton's wirerequests that diplomatic officers obtain credit card numbers, workschedules and frequent flyer account numbers of persons of interestin addition to business cards, phone numbers, jobtitles and email addresses.

Similar biometric and deep-informationdata gathering was also happening in the Palestinian Authority.Diplomats throughout the Middle Eastwereinstructed tocollect similar information on Fatah and Hamasofficials, including the same biometric data, credit card numbers andfrequent flyer numbers—but with more specific wording than theAfrican cable. The exact wording used by the State Department was“biographical, financial and biometric information on key PA andHamas leaders and representatives, to include the young guard insideGaza, the West Bank and outside.” Diplomats were alsoasked toobtain “details of travel plans such as routes and vehicles used byPalestinian Authority leaders and Hamas members.”

While it is hard to imagine a scenario in which United States diplomats getretinal scans of African and Middle East politicians, some biometricidentifiers are much easier for the State Department to get theirhands on. Fingerprints, DNA and signatures all fall under thebiometric identifier rubric and are all easily obtainable.

Clues to how the State Department obtained biometric data can be found in the Pentagon's recent embrace of biometric identification in Iraqand Afghanistan. The Iraqi government, under the supervision of theAmerican occupation,hascollected fingerprints and retinal scans of nearly every member ofthe Iraqi military, police and prison service--along with everyprisoner and registered gun owner in Iraq for good measure.

Privacygroups feared that the massive cache of identifying materialsconstituted a“hitlist”that was at easy risk of being obtained by terroriststhrough hacking or other unsavory methods.

A biometric database in Iraq was createdout of fingerprints found on enemy weapons and bombs. InAfghanistan, the current government is undertaking a product underAmerican supervision tocreatebiometric identification cards for the entire adult populationusing technology from American firms. The U.S. military currently has biometric information on 800,000 Afghans, whilethe Afghan government's database  contains just250,000 records.

Afghan politicians are hopeful that theidentification card can someday be used for banking as well as voterand vehicle registration. Afghanistancurrentlyhas a literary rate of 28.1%and only 12.6% of Afghan women canread.

But the million dollar question remains:how will the U.S. government use biometric information on foreignleaders?

{Photo by Petty Officer 1st ClassChad J. McNeeley}

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Apple Analyst"Channel Checks" Now Under SEC Spotlight as Inside Trading

Apple analysts on Wall Street areunder increased SEC scrutinyforinsider trading, centered on the"normal"habit of channel checks--working out what Apple may be up to by speaking to its suppliers. Is this unfair? Or are the analysts really cheating?

We're used to reading analyst reports about Apple that cite Apple's (mainly Far Eastern) suppliers, leading to rumors about how many units of such-and-such an iDevice are being sold, or if components of an upcoming piece of Apple hardware can tell us what capabilities it will have--thus revealing information about how it'll fare against its competition. Wall Street analysts use these data to form opinions about how Apple's business will perform in the future, and thereby guide their clients on whether to buy or sell Apple stock. The rest of us use their data to learn about upcoming Apple gear, and you can be sure Apple's rivals pay attention for the same sorts of reasons.

But the Securities and Exchange Commission is now busily involved in scrutiny of this"channel check"habit, on the grounds that it's a form of insider trading. The argument runs that Apple's suppliers should be keeping this information confidential, and are probably breaking their confidentiality agreements with Apple by revealing any facts. By involving themselves in this NDA breaking, the analysts are accessing privileged information in exactly the same way they'd be committing insider trading if they recommended stock activity based on information leaked from inside Apple's executive team.

Given that speculation about Apple is known to drive its share price, and evenmisinformed blog publicationscan wipe billions of dollars off the market value of the high-profile company, maybe the SEC has a good case.

The sore point is that Apple is so very secretive about its plans, compared to its peers, that this sort of data is the only way a detailed view about Apple's possible future can be crafted. Without it, analysts would be reduced to mere guesswork (albeit informed by expertise), which would place analysis of Apple at a disadvantage compared to some of its competition. Whether or not such analysis should be performed foranycompany is a matter for lawmakers and economists to squabble over, however, because one thing that's evident is that the detailed mechanisms that drive the economy do have a shady underside.

The Commission is also apparently investigating"expert network"companies which, in exchange for cash, connect investors to employees of companies of interest (such as Apple) in order to gain access to information which may inform their investment plans.

Is this too much of an expansion of the SEC's powers? We know Apple's a hot topic in terms of investment, but we wish that the authorities treatment of intellectual property laws was as sensitive to the intricacies of the dynamic world of high tech as the SEC is--then we'd see less patent trolling, like the anti-Apple cases that arepopping upall the time.

To read more news on this, and similar stuff, keep up with my updates by following me,Kit Eaton, on Twitter.

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Change Generation: Josh Williams, Co-founder and CEO, Gowalla

Josh Williams liked to travel, and explore, and he wanted others to embrace that same spirit--and what it means--in a social and sharable way. So in 2007 he startedGowalla, a location-based social network, which has grown fast, and now has over 600,000 active users and a team of 25 employees based in the new tech hub that is Austin, Texas. Josh talked withFast Companyabout technology as a tool for change, how Gowalla got started, and told us just what the life of a 30-year-old tech CEO with a wife and two kids is like ...

What's your big idea?

Inspire people to keep up with their friends, share the places they go and discover the extraordinary in the world around them. Put simply, let's get people to go out and explore.

What was the inspiration behind your idea?

Passports. Over time, when you travel, your passport fills up with stamps. Each stamp tells a little story about a journey that you made. The same goes for that souvenir you bought at the ski area or the ticket stubs you save from the baseball game. The value is not in the item. Its in the story that goes with it. Our generation, perhaps for the best, is not as prone as previous generations to collect stuff for collecting sake. That said, we still want to share those stories--regardless of whether or not there's a tchotchke to go with it. So how can we give people a way to record and share the places and stories that are important to them? So Gowalla is like a passport for your phone. We make it easy and fun to collect those stories then share them with friends. Then--and this is where the magic happens--we use the stories that you and your friends are sharing to inspire you to go someplace new.

What problem or issue did you first try to answer?

Initially we didn't have any database of places. Honestly, I didn't even know where to go to license that sort of stuff. So simply gathering this information was going to be a chore. We decide to build a feature in our mobile app that let the Gowalla community add their favorite places as they traveled, in turn edited and improved by the most active people using our service--somewhat Wikipedia style. It worked. 18 months later people have added over two million places to Gowalla in 170 different countries.

What was the first milestone you reached when you knew that it was going to work?

It was probably the first time we saw over 100 people, none of whom we personally knew, check in at the same event with Gowalla--in this case an Austin hippie festival known as Eeyore's Birthday.

What was your initial goal in addressing that problem?

Honestly, I think we simply want to make going out and discovering the world fun. So much time is spent sitting at desks or on couches in front of screens. Our goal is to get people to go.

How did your goals change over time? And what's your goal today?

Our primary goal hasn't changed. With every new feature we release we ask ourselves how is this going to inspire somebody to exploration because Gowalla helped them see the world through new eyes? A personal goal for me is to see Gowalla encourage more people to travel abroad. According to the State Department, only 22 % of Americans have passports--even with legislation created in the last decade requiring a passport to travel to Canada and Mexico. How do we change this?

Where did you grow up?

I grew up in around Dallas/Fort Worth, Texas--but spent a significant portion of my childhood in northern New Mexico. Taos is a very important place to me personally. There is a beauty in the simplicity of the desert mountains, and I often find myself drawn back to them when I need inspiration.

What occupation did your parents have?

Both of my parents were remarkably creative and entrepreneurial. While my mom had a degree in Medical Illustration and Photography, she gave up the hospital hallways and started a landscape design company and retail garden center with my father.

I grew up watering plants and pulling weeds in the greenhouses. My weekends were largely spent watching the masses peruse through my parents' garden center to purchase seasonal flowers and shrubs. Eventually the growth of big retailers like Home Depot forced my parents to close the retail garden center to focus solely on landscape design work. There was a healthy balance of creativity and manual labor involved with all of it.

What college did you go to? Major/minor?

My mom passed away suddenly of cancer when I was 18. I basically ended up running the landscape company in her absence. It was definitely an education. Just not a normal one by any means.

What's your favorite specific class or teacher? What was memorable about them?

When I was in 5th grade we moved to New Mexico for a bit. We lived in Taos County, which is surprisingly home to some of the best steep skiing in the country. At the time the closest middle school was about an hour away from where we lived, so my parents decided to homeschool me. It was great. I could cram through my schoolwork in the mornings then hit the slopes in the afternoon.

My parents were both very in tune with my interests. But my mom was especially keen on tailoring my education to my strengths. In a pivotal moment during my teens she helped me purchase a used and busted Mac IIFX for $3,000 so I could get into graphic design. A friend of the family taught me how to use Photoshop and Pagemaker--and another buddy, an early Internet entrepreneur named Joel Comm, encouraged me to learn HTML in the mid-90s. This was really a pivotal moment for me. The foresight of my mom to throw fuel on the fire played a huge role in where I am today. She was a very strong, opinionated person. There are still times I wish I could bounce ideas off of her.

What figures do you most admire? Whose leadership model do you follow?

In the Old Testament there's this guy, Nehemiah. He was a cupbearer for the Persian king. Upon learning that the walls of his home-town Jerusalem were torn down and that the city was in disarray, he asked the king to send him back to rebuild the walls. He overcame extreme obstacles and adversity to unify a people and accomplish this goal, ultimately serving as the governor of the province. There are a lot of lessons to be learned from him. More recently, Tony Hsieh of Zappo's is an example of someone who put it all on the line to overcome some ridiculous adversity to follow his dream of building a customer service company. If you haven't read Delivering Happiness, go grab it now.

Regarding leadership style: If you like hot dogs, you don't ask how they're made. For me, this means surround yourself with talented people equipped to do their job. Then get out of their way.

Whom do you seek out for advice?

While I've made it a point to surround myself with some solid, level headed folks to go to for advice, first and foremost I value the feedback from my wife. She had a keen intuition about people and a knack for calling things as she sees them. I talk with my dad a lot as well. They both keep my head on straight.

How is your life different now than it was before you started this project?

Well, it's a lot busier, that's for sure. Right as Gowalla was taking off our second daughter was born. Startup life is both a sprint and a marathon at the same time. Adding two young daughters to the mix and I have a very full life. I get to travel a good bit as well. Seeing the world through the eyes of others around the world is one of biggest perks Gowalla has to offer.

What excites you or concerns you about your generation?

Culture warring and an entitlement mentality are likely the greatest dangers my generation is facing, especially in America. Both have the capacity to derail our society. On the flip side, the energy and creativity of my generation is driving remarkable innovation. We also seem to be less attracted to a lifestyle of consumerism than previous generations embraced. There is an authenticity in the air that is refreshing.

If you had 60 seconds with President Obama what would you tell him or ask him?

I'd ask him what he plans to do after his Presidency. He's relatively young and has the capacity for greatness well beyond the Oval Office. I'm curious and excited to see his impact on the world once he's off the clock, so to say.

How has technology and social media affected your work?

The iPhone was certainly a catalyst for what we're building. Every time we release an update to Gowalla, I feel like we're pushing the technology of today's mobile devices right to the edge. What we're building today wasn't even remotely possible 3 years ago. It's exciting to creating a service in a space so new and fresh. And of course, Gowalla is all about sharing. Facebook and Twitter are key ingredients for our service.

What was or what is your biggest challenge?

Surrounding myself with the right people. It's one thing to find talent. It's another to find like-minded people passionate about changing the world. You certainly need competency. But you need character and chemistry as well. I work with an amazing team of nearly 30 people. There is very little management. Everyone comes prepared to play hard and solve problems. Flexibility and humility are valued in the same way as and boldness. We'll often pass over dozens of qualified folks before making a hire simply because we haven't found the right culture fit. It requires a great deal of patience at times, but the rewards in the end are worth it. It makes the work so much easier when your co-workers are also your best friends.

What assets or challenges do you have or face because you're young?

Oftentimes it's the little things, like simply getting taken seriously by others. A businessman from a nearby office once stopped by and asked if he could lease one of our conference rooms for a while because his"grown up"company likely needed it more than we did. Just because we wear jeans and TOMS to work, doesn't mean we don't take this very seriously. I also have a young family. My girls are the spark that keeps me going. Balancing time with them during travels and heavy work schedules requires a lot of communication. I certainly wouldn't be doing this without a lot of help from and sacrifices made by my family.

How would the world be different in 10 years if you had your way?

We'd have patriotism and national pride without being skeptical of other cultures. America is likely the best place in the world to be an entrepreneur and the freedoms we are afforded here are unparalleled. That said, there is so much we can learn from our friends around the world. I cannot help but be inspired by the people I've met abroad in places like China, Latin America and the Middle East. I guess I'd say that I'd like to see the return of a civil"public square"where people from varying backgrounds and walks of life can debate differences peacefully, improving the whole by listening and learning from one another.

If you weren't doing this, you'd be ...

Starting up something else. Probably in a foreign country. Or a ski bum.

Anything else we should know ...

If you're ever in Austin, you need to grab a doughnut from Gourdough's. Trust me.

Follow Josh on twitter @jw.

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David D. Bursteinis a young entrepreneur himself, having completed his first documentary18 in '08for which he wasawarded a $10,000 grantfrom Nancy Lublin's DoSomething.org. He is the Founder& Executive director of the youth voter engagement not for profit, Generation18. His book about the millennial generation will be published by Beacon Press in fall 2011.

David andFast Companyare producingChange Generation, a new series profiling a young generation of change-seekers. We'll be covering everything from educational activists to champions of political reform, creative entrepreneurs, and outright thrill seekers. We'll be hosting Q&As as well as video profiles with production partnershatterbox.

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Nanosys: We Can Replace Some Rare Earth Metals

Rare earth metals, a collection of 17 chemical elements found in the Earth's crust, are found in a variety of electronic devices, including LED lights, electric car motors, wind turbines, solar panels, and lithium-ion batteries. There's just one problem: The metals are only found in high concentrations in a few sites in China, the U.S., and Australia--and China hasthreatenedto stop exporting its supply. But instead of expanding rare earth metal mines, what if we look for more sustainable replacements?

EnterNanosys, a company that offers process-ready materials for the LED and energy-storage markets, among other things. Nanosys has been thinking about rare earth material shortages for years, which is why the company manufactures synthetic phosphors out of common materials--not the rare earth materials (i.e. yttrium) usually used in phosphors.

"We make a semiconductor phosphor that employs a nanomaterial called a quantum dot,"explains Nanosys CEO Jason Hartlove."It's made out of indium phosphide, and the synthesis process is all in the lab. There's no heavy metal mining, no destructive mining practices."

Nanosys's QuantumRail LED backlighting device is made out of quantum dots, which can purportedly generate brighter and richer colors than their rare earth metal counterparts--all while delivering a higher efficiency and lower cost.

Unsurprisingly, big-name electronics manufacturers are interested in what Nanosys has to offer."We work with LG, Samsung, and a number of other companies that are unannounced. Our customers have a strong interest in alternatives to rare earth metals,"Hartlove says. That's because LED backlighting is big business--think about all the televisions, cell phone displays, and computer monitors that rely on the technology.

The next step for Nanosys is scaling up as fast as possible."There are no scaling limits on what we can do in terms of production,"Hartlove explains.

Ariel Schwartz can be reached onTwitteror byemail.

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Office Parties: Breeding Grounds for Bad Behavior, Flings, and Unemployment

Ah, the holiday office party. A time for employees to wind down, loosen their ties, drink some bubbly, and enjoy a night of much-earned revelry with co-workers. That is, until they wake up hungover and half-naked on top of the copy machine, covered in Post-it notes and crumpled Four Loko cans, and realize their reputation is ruined.

According to a study by HR solutions firm Adecco, this kind of unsavory behavior at office parties is far more common than you might expect. Published this week, the survey of more than a thousand American adults found that about 40% of workers say they've either embarrassed themselves or know someone who has at a work holiday party. And a shocking 23%--1 in 4!--have been reprimanded for their actions.

Pink slips are almost as frequent as red faces. More than 1 in 10 Americans say they know someone who has been fired for their inappropriate behavior at a holiday party. This behavior may include saying something inappropriate to a colleague (7%) or boss (4%), or drinking too much (20%).

Hookups happen, of course, but not as often as you might expect. Just 3% of respondents said they had had a fling with a colleague at a work holiday party. It may be the kind of thing people don't own up to--or it may be that being inebriated hurts your chances as much as it helps.

So be careful this holiday season. Try not to drink too much, sleep with your co-worker, insult your boss, or get fired. It's not worth it.

{Photo byMichael Wade}

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Why Are the Rich So Good at the Internet?

Pew Internet has released a report finding that income is the strongest predictor of whether, how often, and in what ways Americans use the web. The report adds nuance--and a few surprises--to existing research on America's digital divide. It even suggests the existence of a tipping point, where Internet use takes off at a certain income level.

A lot of this makes intuitive sense. After all, laptops and broadband cost money. But the Pew report finds that even among groups that own the necessary technology, less wealth equates to less (and less varied) Internet usage.

"Many of these households are not impoverished,"the report's author, Jim Jansen, tellsFast Company."Many do have the technology, but for variety of reasons do not engage in certain activities as frequently."It's predominantly the wealthy who take advantage of the benefits offered by the web--even though it's the less wealthy who could use them more.

The report, an umbrella analysis of three Pew surveys conducted in 2009 and 2010, compares Internet use among American households in four different income brackets: less than $30,000 a year; $30,000-50,000; $50,000-75,000; and greater than $75,000. Respondents--more than 3,000 people participated--were asked a variety of questions about how often they used the Internet, and what sorts of services they took advantage of (such as email, online news, booking travel online, or health research).

As might be expected, the wealthier used the Internet more. But the degree of the spread was a surprise, says Jansen. Almost 90% of the wealthiest respondents reported broadband access at home. Of those in the under-$30,000 households, that figure was only 40%."I would expect some type of correlation,"says Jansen."But we controlled for community type--urban, rural, suburban--educational attainment, race, ethnicity, gender, and age."None was nearly so strongly correlated as income.

Age did have some effect, and rural regions were a good deal less wired than their urban peers. Jansen guesses that has to do, simply, with broadband infrastructure; his own family lives"in the sticks of Missouri,"and still rely on dial-up access."But even with those--age, community type--the practical effects very minor,"he says.

The relationship between money and Internet use is a real puzzle. Once a modestly middle-class family buys a computer and Internet access, why is it that they spend less time researching products online than their wealthier counterparts, given that they have a tighter budget than the ultra-wealthy?

Jansen notes that for many questions Pew asked about Internet use, there appeared to be a tipping point somewhere in the $30,000-$50,000 range. Consider, for instance, the data on those who researched products online. Only 67% of lowest-income Internet users research products online. Make it over the hump into the $30,000-$50,000 bracket, though, and all of a sudden 81% of internet users do so--a jump of 14 points. But then as you climb the income ladder, the change in behavior begins to level out, just climbing a few percentage points with each bracket. It was a pattern noted in several other realms of Internet behavior.

"It would be interesting to look at what is going on at that particular income level,"says Jansen, suggesting a potential tack for further research,"that seems to indicate a fairly robust use of technology and interest."

Jansen, like any careful researcher, cautions against confusing correlation with causation. It may be that people are using the web to make their fortunes, and not using their fortunes to surf the web. But his report, which can be found on Pew Internet'ssite, shows the correlation clearer than anything yet."We're talking about double-digit differences in some of these activities. I found that very striking,"says Jansen.

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iFive: SAP's Billion Dollar Fine, Apple's Hot Sellers, Digital Health Data Sharing, HuffPo's Coupons, Kindle's Black Friday

I bet the computer you're reading this on is your tech pride and joy. But it's no comparison to the PC that's just beensold at auction in London--a unit that probably can't even access the Web: It's one of the limited clutch of Apple 1 PCs. Its bare-bones carcass went for $213,000. While you ponder that small change, here's the rest of the news:

1. German tech giant SAP hasjust been ordered to payU.S. tech giant Oracle a giant copyright fine: $1.3 billion in damages, which is about the same amount the E.U. fined Intel for anti-competitive shenanigans. SAP had been using a wicked piece of hacking software called Titan to wholesale rape Oracle's website of patches, updates and other code that was created for its customers. The CEO at the time of this evilness? The guy who'srecently replacedMark Hurd at HP. 

2. Anew report from IDCreveals that Apple computer sales growth over the last quarter was close to 30%--an impressive enough figure by itself. When you consider that IDC's data suggests the rest of the PC industry grew at a mere 9.7%, it's a whole new Macs vs. PCs game. It means Apple's stealing more and more marketshare, and becoming less of a minority seller.

3. The fringe industries of the digital healthcare craze on the Net aren't behaving themselves: A complainthas been lodged with the FTCthat some online health sites are sharing too much personal health data of their clients with marketers. Google is one of those accused of aggressive patient"profiling"and data sharing, with one worry being that employers and insurers may be getting access to medical info they have no business seeing. 

4. The Huffington Post is partnering with deals sites like Grouponin order to get in on the hot new craze of location-based sales. Yes, I know you're slightly confused--I also thought HuffPo was a news portal, not a money-grabbing ...oh,wait. CEO Eric Hippeau explains that the site's"increased the amount of content we produce covering local events"so the next logical step is to help consumers by offering local vouchers and deals.

5. Proof that the e-reader as a stand-alone device is doomed to have a brief moment in the sun? Amazon's Black Friday dealsinclude an old-generation Kindle 2for a tiny $89. Commoditization like that isn't a good sign for a nascent high-tech industry. Just ask Apple's competitors in the MP3 player market.

To read more news on this, and similar stuff, keep up with my updates by following me,Kit Eaton, on Twitter.

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Boogeymen Trifecta: Murdoch Allies With Oil Company, Cheney

Rupert Murdoch is one of the world'sbest known media barons andmay or may not be a bud to Steve Jobs. But as hype swelled around his iPad digital project,The Daily, Murdoch was also investing in anIsraeli-American oil shale company with ties to Dick Cheney. Can hislegendary business savvy help out an upstart oil firm?

Oil shale may be the answer to worries about peak oil, but it is highly expensive to extract and has a high ecological cost.

Lord Jacob Rothschild and Murdochjustpurchased a joint 5.5% stake in Genie Oil and Gas Inc., adivision of the IDT Corporation. The equity stake purchase by Murdochand Rothschild is worth approximately $11 million. Genie is a newface in the energy market; the company justlaunched this summer.

Murdoch is slated to join Genie'sadvisory board. Other members include:

• American Shale OilCTO Alan K. Burnham

• Former Vice President Dick Cheney

• Genie chairman and Midland, Texas mayor Wes Perry

• FormerExxon Mobilexecutive vice president Eugene A. Renna

• Allan Sass, former president and CEO ofOccidental Oil Shale

• Hedge fund investor and philanthropist Michael Steinhardt

• Stephen M. Trauber ofUBS Investment Bank

• Harold Vinegar, former chief scientist atRoyal Dutch/Shell

American Shale Oil is a joint venturebetween IDT and French firm Total S.A.

Public statements by both Genie andtheir investors have stressed the firm's American andIsraeli (read: non-Arab, non-Iranian, non-Venezuelan) roots. According to a statement by Murdoch,“I believeGenie Energy's technologies and vast shale oil licenses have realpotential to spur a global, geo-political paradigm shift by moving amajor portion of new oil production to America, Israel, and otherwestern-oriented democracies.” Murdoch also said that “Coveringand distributing news has been my life's work {…} If Genie's effortto develop shale oil is successful, as I believe it will be, then thenews we'll report in the coming decades will reflect a moreprosperous, more democratic, and more secure world.”

Perry was even more explicit, statingthat“Both America and Israel have significant shale oil reserves.It’s difficult to overstate their potential to improve ourrespective economies and national security. {…} Genie Energy isdeveloping the technologies America and Israel want to make rapidprogress toward energy independence, whileIDT Energy is poised forcontinued growth in the consumer market. I’m very excited to workwith their management team to help meet the energy needs of the U.S.and Israel for decades to come.”

Genie is currently working on two oilshale exploration projects in the United States and Israel.

In Colorado, Genie is involved inAmerican Shale Oil's extraction testing project in Colorado'sGreenRiver Formation. The Green River Formation is the largest oilshale deposit in the world and is believed to contain anywherebetween 1.2 and 1.8 trillion barrels of oil. Much of the oil iscurrently inaccessible; however, even the currently accessible amount of 800 billion barrels in Green River exceeds SaudiArabia's explored oil reserves. American Shale Oil is one of fourcompanies that was given a tender to develop the Green RiverFormation; the firm's portion of Green River is believed to contain10 billion barrels of oil.

Meanwhile, Genie is embarking on alarge-scale project that could turn Israel into a major oil producer.Genie is the 89% owner ofIsraelEnergy Initiatives(IEI), which just landed a shale oilexploration and production license covering 238 square miles in theJudean Hills. According toAmiramBarkatof Israeli business publicationGlobes,“The company believes that its shale oil cracking technology canfree the world from dependence on Arab oil and turn Israel into anenergy powerhouse able to produce 300 billion barrels ofnon-conventional oil at a cost of up to $40 per barrel.” IEI isembarking on a pilot project in the Valleyof Elah in the JudeanHills to produce 500 test barrels of oil, despite fierce residentialopposition. Communities around the Valley of Elah have becomewell-off bedroom suburbs of Jerusalem and are home to alargenature reserveand a thriving wine industry.

Geopoliticaltroubles may prove to be a future headache for Genie: The shale oilformation their Israeli tender gives license isadjacentto the borderbetween Israel proper and the West Bank. Areas ofthe shale oil formation may spill over into the West Bank; theseparation wall between Israel and the West Bank runs adjacent to thebelieved oil-containing lands.

According to Rothschild,“Rupert Murdoch's extraordinaryachievements speak for themselves and we are very pleased he hasagreed to be our partner. Genie Energy is making good technologicalprogress to tap the world's substantial oil shale deposits whichcould transform the future prospects of Israel, the Middle East andour allies around the world.”

{Photo viaWorldEconomic Forum}

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