going to explain this for us. thank you. [applause] >> thank you. rebecca doesn't mention i bought because i do not have one. i could talk about any privacy topic. what i found most useful to share with you today is online tracking and how companies are tracking is online when we browse. let me show you this cartoon. do you remember the famous tagline that but with this? that was the early innocent days of internet. it makes you feel nostalgic doesn't it? imagine what that would've sounded like if that cartoon was published today. it would be something like -- it is the internet. they know your favorite brand of pet food. this is the reality that we live in today.

this is what i wanted to talk to about. i want to give you batting good news. the bad news is that we live in a world with exploding complexity of online tracking. i have a team of students at princeton that i'm working with where i am a professor and we are reverse engineering the companies are doing online in terms of tracking us and our personal data. i want to give you good news. you have a lot of power in the situation. there are a lot of things you can do and i want to share that with you as well. what i want to talk about pacific league when i talk about online tracking is what i call online tracking which i considered the most insidious form of online tracking. it is where sites other than the ones you are visiting that are typically invisible are collecting profiles as you are browsing. you might wonder how does this happen? let me show you a screenshot --

this is from a study at stanford of online tracking. this is from the new york times and you can see in the picture how many areas are highlighted in red and these are all content that are being served by sites other than the new york times. when this happens your browser connects to other sites that are concealed in all of these other sites now know you have visited the new york times and whatever other site you visited and that is how they compile information on you. one study revealed there are 64 independent tracking mechanisms on one website. just to drive home this point of how subtle these trackers can be, let me show you a screenshot let me show you what these third-party trackers could be. it could be well-known companies. it could be companies that you probably have never heard of.

there was one track at that we found in our database which is very prominent. you probably visited this site and they remember you because they are in the business of remembering you. here is a screenshot of the national health service and you are looking at their syphilis page. a lot of information -- good information. there was a facebook like button on their and five people have clicked it. [laughter] the scary part is that not i table but -- like it, the people who visited was not aware there was a facebook tracker on this page and that facebook is watching what they browse online. facebook has your identity and knows who you are because you have left your browser locked into facebook like most of us

do. if that does not convince you there are some invisible trackers, let me summarize why one may want to worry about this online tracking. there is basically our intellectual privacy because people behave differently when they know there are hundreds of people watching what you do. that is a freedom to protect. there is behavioral profiling and targeting. that is the level of targeting and profiling that this data can reveal about you. there is also polluting area evidence that browsing can be used for price dissemination. you might be the type of person that does not care about this and you only being safe from the government. tell me about the nsa.

i have news for you. in the recent nsa leaks, it was revealed that one of the things they're using to track you is double-click tracking cookies. these third-party companies are doing nsa's work for them. scary stuff. i have been working -- researching the online space for four years now. let me share with you some of the things i have found that with what works and what does not work in how you can protect yourself. one piece of good news is that

something that does work is public opinion. this might seem logical that a lot of these companies really care if there is a privacy backlash. there have been many incidents because there was a backlash. you might remember google buzz. let me give you an example that is closely related to third- party online tracking. there was this feature called facebook instant personalization. i consider this the most riotously privacy intrusive. facebook talk silently in the background and they tell you who you are and various things about you like your location and various movies that you like. many experts complained about this. organizations who we have heard about several times already picked up this. because of that, facebook limited to a very literary rollout and not happening today. the internet could be a worse place for privacy if this was allowed to happen. we are living in the reality of facebook. that is one piece of good news. on the other hand, here is something that does not work. efforts for privacy advocates to sit down at the table do not seem to have worked. when they tell me the story of do not track. i am one of the research behind the do not track proposal. they are saying, if you're

worried about tracking, we are ok with that because we believe most people will be convinced of the advantages of it. let's make a browser setting so that the browser can help you. browser vendors got on board with this. it is on every browser today. that is called the do not track. what happened? there was two years of constant negotiations and what tracking companies are obligated to do and not obligated to do. everybody has finally agreed that these negotiations are going nowhere. this idea of being on the same page and talking about it together, that has not worked

out. i would say that for do not track, it is time to move on. we are in a world where the interests of the tracking companies in the interests of consumers are misaligned. i am ok with that. we tried but it did not work. i want to tell you there was a bunch of these blocking tools from eye tracking and these blocking tools work really well. adblock plus is an example of what i use. there are more. these are typically browser add- ons. when i tell people about blocking tools, one of the things they say is, this is not a good solution for me because there are new privacy intrusions all the time so i have to go and change the settings again or have to install another blocking tool. here is my answer to that. i do not necessarily on top of

all the privacy intrusions that are going on. there are a lot of organizations that are in the business of staying on top of this and telling you about them. there is a privacy company that i like. there are others. one of the things you could do that is very powerful is just get on the twitter feed of these organizations that are in the business of always knowing whenever there is a new privacy intrusion and telling you in very simple steps what you have to install. that is a method that can work for most people. to put it differently, the price of online privacy is vigilance. but we have today is that this eternal vigilance is a problem that can be solved by technology. people give up when they hear you have to keep changing your privacy settings all the time. i have been doing that and teaching people to do that and that is not hard.

all you have to do is set aside an hour or two per month to stay on top of this. that is an easy tool everybody can use. in my years of researching, there is one other point that is come out which has been people get into an arms race. if it is an arms race, bring it on. the balance of power is with consumers. this is because of the legal nuance. safari had a feature to block third-party cookies. google, in one of the tracking features, try to circumvent this tracking protection. an independent researcher found this out, who i am going to show you in a second, because of that the federal trade commission was

able to step in and said this was a circumvention of the existing privacy tool. google was given a large fine. if he gets into an arms race, there are legal mechanisms to protect us such as the federal trade commission. go ahead, be comfortable in calling those privacy tools. a success story is that reverse engineering i independent researchers has helped a lot in revealing the state of online tracking. these are a couple of guys who have been heroes in this new wave of research. let me summarize the three takeaways that i have for you. the first one is to support privacy groups because it is true these groups -- a lot of these tools are given news.

the second one is going to be to voice her concerns to companies and regulators because we have seen that public opinion has been a powerful force for companies to change their privacy policies. the most important one is that these blocking tools really work. the only caveat here is you have to pick the right tools and stay updated. it involves effort. even though the price of privacy is eternal vigilance, that is not hard. get on twitter, follow some of these privacy newsfeeds. that will almost take care of the problem for you. you will feel like you're in control because you will find out about things as soon as they happen anyone know how to protect yourself. i will leave you with that thought. thank you for your time. [applause] >> thank you so much. i use a few of those blocking

tools on my different browsers and i have to say, yeah, they are impressive and how they work. last but not least, while google may be a household name, there is another search engine that most of you have not heard of. this is a search engine upper websites for devices that are connected to the internet. this search engine is basically scanning the internet for the ip addresses of various devices and enabling people to search and locate these devices. our next speaker is going to be talking about the research he does to determine network security logistics and to perform testing for his clients using this search engine, among other things.

he is here to share with us how we can use this information in empowering ways to carry out repetitive practices of our own. here he is the tell us about all of the rather amazing things that one can find just by searching the internet. thanks, dan. [applause] >> hello. i will be your ponytail for this evening. over the last two years, i have had this habit of finding things on the internet and displaying them in presenting them. this is a very short compilation of some of the things i have found on the internet. it is easy to find interesting stuff online if you know where to look. you don't need special tools. you don't need special skills. you need a browser. a lot of stuff can be found by searching google, but even more

so there is a search engine called showdown that is exposing to the internet versus a webpage. this is the front end of it. this is where you type your query. it is just like google essentially. it is to show you what is connected beyond web servers. you have to imagine the internet like america's freeway system. if you were to get out and look around, if you are a step out over an overpass, you could look inside every truck bed and convertible car. the internet is the same way. people are exposing things either willingly or unknowingly and anybody can look at the know where to look. there are tons of internet cameras. i found 972,000 publicly

accessible webcams. this happens to be in somebody's office. somebody put it on the internet. why? i have no idea. this is another system. this is a camera system i found on the internet. >> ok. too much. this is a hydrogen fuel cell. why someone would want to put that on the internet is beyond my comprehension but it is there and you can get to it if you want to. these things tend to be found at the base of 4g cell phone towers. wind farms are connected to the internet.

here is an interface or one, publicly accessible. it could be italian. some very large industrial system controlling something that looks like it could be under a lot of pressure publicly accessible to the internet. i can control the pumps. do not let me control the pumps. it is a bad idea. this is a private residence. this is a house. it is someone's home. this thermostat might look familiar. this is a thermostat system that i think is made by honeywell. is a popular controller to do this kind of thing. these are connected to the internet as well and they have touch panels you can control using a vnc protocol over the

internet. larger systems that could be in large buildings like this one, this is a system that controls the boiler room. this is contents under pressure situation where the system is publicly accessible online. you probably don't want nefarious people getting their hands on it. you have to ask yourself -- this system has been online for years and years. if a bad guy wanted to do bad stuff with it, why haven't they already? to take that a step further, some of today's other speakers have elaborated. you can start to confer things based on this information that you find and you can cross-link information to find more interesting things. this is a short little example of that. this is a camera system that i found somewhere in the united states that is using another internet ash network phase -- network interface. i can control this over the internet using a browser.

i can pan around and spy on the girl at the front desk and i can look around the room and a lobby. so i did. there is a cool tool you can put into chrome. it will tell you some small details about the website you are visiting, the the city is in, whether it is scary or not, it things like that. you can validate where this thing lives. in this case it is an newberry port, massachusetts. panning the camera over to the logo on the front door which laughably says security integrators. using that information and their city, i was able to find out on google where they are and this is as close as google maps would let me get to them. this was done with a browser. i use nothing but google chrome to do this. no special tools, just playing on the internet.

you can take it up a notch and do some simple social engineering. it is amazing when you can do and this was not me, but these were sent to me. it is amazing what you can do when you call a person working at a pizza place and say, we are watching you, you should do some stuff. i've been doing this talk for a while and based on what i've done, people on the internet have you some tools i released in one of them was inside of a pizza place. they call the place and you see the monitor on the far left is covered in brown paper. they told the girl that was something wrong with the computer and that in order to fix it they had to put brown paper around it and she had to write "omg hax." massive cooling equipment could

not be found on the internet. i never really worked on an industrial setting before but this is a building that has 15 youth average of coolers. this is the interface. it is publicly accessible. us talk about information linkage -- begins. this is a ui. if you can tell what the name of the guy is that at men's this when i am not doing it, i will give you one dollar. he even mailed me because my computer's name appeared in the list when i landed on this controller. things in the world around you are keeping track of and loosely logging places in not a lot of people look. the protocol that was designed

to bring together hvac systems and industrial systems that were running in businesses like this one. if you wanted the air- conditioning to talk to the garage or the alarm, you could use this to do that. echelon makes the system and they are stackable. there is a place in denmark that has one place controlling all the controllers in the city. the lower controllers were password-protected but the upper one that controls everything was not. i found a place that was like a convention center under that basketball floor, i guess, is an ice rink that you can defrost if you are up to it. why these controllers are online, i am not sure. i am guessing it is for the

convenience of the organization. they should have taken five minutes to think about what they were doing before they put it on the internet and i found it. they have conveniently placed their floor plans on their website so you want to mess with certain parts of the building, you can. other organizations that are controlled by this system -- another version of this talk has another dozen of these things that is controlled by the same unit. you get into one and can control the rest. it'd think your phones are safe, maybe, depends. this is a screenshot of an application you can install on an android phone. this is a phone that someone has set up in the living room is publicly accessible that is monitoring their living room. you can sit there and watch what they are doing in their living room. not only can you watch the video, you can use drop on the

room. if you really want to scare them, you wait until it gets dark and you can turn the flash on and off. you can morse code at them with the phone. you can tell that to these things and put them into test mode. you can mess with stoplights. i guess people went back to the 1990's, security, security, i will put it on the internet and no one will find it. you can scan the internet over and over again and keep finding this stuff. i will keep doing it and keep laughing at the guys that do this. the idea that you can put something online it will be safe if you don't tell anyone about it is not a good idea. this is another fun find. it has a website, or i should say the units that are deployed

that have web interfaces that look like this. they keep track of every single car that drives to the intersection. i thought the red light cameras but they actually take pictures of everyone. why that is, i am not sure. a c, you can change the destination place where they go. this is a french hydroelectric plant that i found it is directly connected to the internet. i did not let the job or run because i thought it was a malicious website. yes, that does read kilowatt. this is a french hydroelectric plant on the internet that is still online today. i've a story that involved our government and the french government talking and he basically said, "eh," and left it. the french really like their hydroelectric plants on the internet.

other people have found this hydroelectric plant and broken it and cause it to flood people. apparently it is still open and people can still get to it. i put that on twitter. the dhs called me, so police they are listening. the french really do like to leave their power plants online. here's another one, and a third, and a fourth. after four, i give up. satellite systems are online as well. storage arrays, emergency telecommunications equipment, home automation systems, you can control a guy's garage door if you want. swimming pool -- why would you put a swimming pool on the internet? i don't know. why would you give me control of the acid pump controlled by the system? you can put it into manual mode" the acid into the pool. openly, publicly. anyone who knows the ip address

of the system would be able to dump the acid into the pool. ge system that is meant to link together m.r.i. systems. wikipedia has an article that says it is like 27 of them that talk to each other. some genius thought it would be a good idea to put that on the internet. medical stuff, imaging. so, i went looking for it and i found a lot of them. direct the connected to the internet. this is what it looks like when you search for ge centricity. when you look at this, it you can see some stuff. i looked it up and it turns out it is a breast, liver, and prostate imaging tools that is used is hospital. this is publicly accessible on the internet.

why are people putting this on? i'm sorry, i'm like two minutes over. >> people are telling me i'm going to have to thank you very much. ♪ thank you for the time, i really appreciate it. primetime, wein are bringing you encore presentations of the c-span q and a program. tonight, our interview with the former reagan budget director and recent author, david stockman. here is a look. think the success attributed to reaganomics is totally unwarranted. we had a gated -- the greatest deficit between reagan and the first bush administration.

we did have an economy that rebounded because fulcher killed inflation and the deficits were enormous and they stimulated the economy but they established a president for continuous chronic massive peacetime deficits and put the republican party, the old defender of the treasury that, into the position dick cheney so in eloquently said that deficits don't matter. that was the beginning of the end. if there is no conservative party defending the taxpayer, you will have a free lunch competition between tax cutters the republicans, and spenders, the democrats, and that's why you have $17 trillion of national debt today and why it's out of control and why we have a doomsday machine. >> you can watch the entire

interview with former reagan budget director david stockman tonight starting at 7:00 eastern here on c-span. >> we are here in the west front of the capital to tell you about our year in review series. . tonight, immigration laws. senate bill buster rule changes. we wrap up the week on friday with the u.s. budget and the federal government shut down. at 8:00 p.m.ght eastern on c-span. moste thing i care about is to make it more of a museum, with more pieces of useful. sure that along to old presidents.

most of what is dates from 19 to==02. the thing is, thomas jefferson did the most wonderful thing of putting of beautiful furniture and the sad thing was the war of 1812 when everything was burned. piecemealhad to start since then. every president who came with throw what he didn't like of what was there, these to have auctions. the president could change the decor of a they wanted. pilot, he hadroom robins egg blue, and that was all stopped at the time of theodore roosevelt. >> first ladies, influence and image, c-span2. lou hoover to jacqueline

kennedy. over the weekend a memorial service was held at the lockerbie memorial in arlington honoring70 -- cemetery those killed in the bombing of pan am flight 103. casualties included 85 americans, including syracuse university students. speakers include eric holder, tsa administrator john pistol, and robert mueller. the ceremony was 45 minutes. [applause] >> thank you, mary kay, for that kind introduction. i hold you personally responsible for the weather today. congratulations. [laughter]

it has been said time heals all wounds. you here know that that is not necessarily true. i always remember, will never forget one of the visits i made to lockerbie, where i had the occasion to see the small wooden warehouse in which were stored the various effects of your loved ones. a white sneaker, a syracuse sweatshirt, christmas presents, photographs. these ordinary items brought home to me and came to symbolize for me your pain and your loss, pain and loss that have not diminished even after so many years. they brought home to me the certainty that not all losses are equal.

in those early days, you lived the words of king david from psalm 11. fly away like a bird through the mountain, for the wicked have drawn their bows and aim their arrows to shoot from the shadows at good people, and there is nothing a good person can do when everything falls apart. and yet you did not fly away. you did not hide. you stood your ground and maintained the courage of your convictions day after day and year after year. you sought answers and accountability. you sought solace through memorials, lovingly undertaken by so many around the world, and you worked diligently to ensure that other families would not have to endure such suffering. through your actions, through the lives you have led and choices you have made, we see that there is much a good person can do when the world falls

apart. you created light out of darkness, and out of that light has come a lasting legacy. a legacy of courage in the face of the greatest adversity, a legacy of solidarity and friendship in the face of isolation, and loneliness. a legacy of peace and understanding in the face of hatred. there can be no greater legacy than that. for many years now, we have stood together to mark this dark day. as we do so, we mark your strengths and your steadfastness. we mark the love between parent and child, husband and wife, sister and brother, friends and family alike, and we mark the friendship of like nations united in a common cause.

time cannot heal all wounds, and yet time breathes and shifts with the seasons, much like the storms of winter herald spring and the warmth of the sun. time does swallow pain and burnishes the sweetest of memories. time ensures that nothing remains firmly in place, nothing but the promise of better days to come, the promise of hope, and the promise of light. today, may the thought of your loved ones bring a smile to your lips. may you feel the warmth of those who have blessed your lives, even for too brief a time, and may we continue to do everything in our power to ensure a world that is safe and secure for all. may god bless you, your families, and your loved ones.

thank you. [applause] >> i let him get away too fast. the victims of pan am flight 103, our organization is based on four objectives. seeking the truth, providing emotional support, improving aviation security and safety, and combating terrorism. there is an award we set aside for some special recipients. it is called keeping the spirit alive. it was developed to recognize the person or persons who over a long period of time have succeeded in keeping the government and public aware of the important lessons learned from this terrorist action.

we honor those working with the victims of pan am flight 103, to achieve these goals while remembering those lost by keeping their spirits alive. i would like to present this award to robert mueller. [applause] >> good afternoon. i have another introduction much like mary kay's of a longtime friend of the pan am families. the attorney general of the united states is, to my mind, the head of the most important government agency.

he is the nation's top lawyer, much like frank mulholland, he doesn't have a title -- he's not called right, reverend, honorable, whatever it is. [laughter] they don't even call our attorney general secretary, but the department which has thousands and thousands of lawyers, many of whom are here today, and fbi members are here today, but it is an agency -- to some of us, it's the most important. if you ask someone what the word justice means, i asked 10 people out there. you would probably get at least five different answers. another five would google it and see what wikipedia says justice means.

we know what it means. we have an innate feeling of what it is. it's the main reason our group was formed. we're not there yet. we are very close, and we're close because of people like eric holder, who has worked on this case from the very beginning, and kept us apprised of what was going on to the extent he could. he's been here several times. last year the weather was terrible and he had to leave because he said his boss had called a meeting. if you are in cabinet, you know who the boss is. he said, i will be here next year. and he is. we are very honored to have the chief lawyer of the united states, and a longtime friend of the families. eric holder. [applause] >> good afternoon. thank you for those kind words, and for your many years of

service and leadership alongside your fellow members of the families of the victims of pan am flight 103. i would also like to recognize the dedicated public servants here today, including my dear friend bob mueller, who has been involved in this case since he led the justice department's criminal justice division. u.s. attorney of the northern district of new york, whose sister was aboard flight 103 on that fateful night. the victims group calls for a presidential commission on airport security. i know that rick's mother and sister and their families are among the many family members in the crowd today.

i had a chance to meet with them yesterday in the justice department. although a quarter-century passed since the world was shaken, and so many lives were devastated by a heinous and cowardly act of terror, no amount of distance or time can ease the pain or erase a loss that was inflicted on that day. even now it is difficult to comprehend the magnitude of a senseless crime that claimed the lives of 259 innocent men, women, and children in the skies above scotland, along with lives of 11 residents of the peaceful town of lockerbie. some were traveling to the u.s. for the very first time. some were enjoying quiet evenings with their families. some were on their way to visit

with friends and relatives. some were simply trying to come home. and although their respective journeys and individual lives were cut tragically short, all will continue to be dearly loved and deeply missed by everyone who knew them, and especially by those who come together on this patch of what is truly hallowed ground each year to pay tribute to the lives that were stolen, and heal those who were irreparably changed. we will always remember the heartache and the pain that was etched into our collective memory on the 21st of december, 1988. we also recall as we gather each year, the tremendous generosity of the scottish people, in particular the people of lockerbie, who despite their own losses, opened their homes to the families and victims who

streamed into that small town from around the world in the days after the bombing. in the midst of their anguish, these generous men and women gave what comfort they could offer. we recall the determination that the families and victim advocates to join together to seek answers and understanding. some of these individuals, including many of the current and former fbi agents, justice department, prosecutors and other officials who are with us today helped selflessly defined the quest for justice in the aftermath of this crime as their life's work. more than anything, as we assemble in this place of remembrance year after year, we recall the moments of unity and of love that have arisen from the grief that we share. we remember the occasions that have brought this community together.

not only in mourning, but in search of healing and hope. and in celebration of the extraordinary lives. we keep calling for change and fighting for justice on behalf of those no longer with us. we rededicate ourselves and our nation to the qualities that defined the men and women that we lost. we continue to be drawn together every year on this date, faces old and faces new, friends long departed, and members of fresh generations, including some who bear the names of absent loved ones, to lend our voices to this solemn memorial homage. still striving to build from an unspeakable evil a lasting legacy of compassion, fellowship, and love. it lives in the resolve that brings us together and pushes us forward each day. it persists in our unfinished

but ongoing work to see that justice is done and to ensure that those who commit acts of terror are held accountable to the fullest extent of the law. it endures in our determination to secure a brighter future for ourselves and our fellow citizens, a future that is free from hatred and senseless distruction that has touched your lives and far too many others. may our continuing efforts serve as a monument to those who were taken from us 25 years ago. may we never tire in our work to forge a society and a world worthy of the empathy and grace that unites this remarkable group. and may god bless the memories of those we have lost. and the great nation we will

forever hold the victims of pan am flight 103 in our hearts. each of the loving families as well that we hold near and dear in our hearts. thank you all. [applause] >> the next thing on our program is playing "taps." i would ask that everybody stand for that. we will have the wreath laying first, and then "taps." ♪

>> you may be seated. the next part in the program is we have a couple of awards to give out.

it says me, but i'm not going to hand them out, and i would ask for glen johnson and brian flynn, if they would please come forward and help me with this next part of the program. >> there have been very many people who have been able to devote their talents to helping this organization, people we do not always acknowledge. i would like to take this time to take a couple and let them know how much we really appreciate what they have done. they have worked with our

organization for a long time. they have done so much for us, in ways in which they do not receive recognition. when they took our little newsletter and in three years created it into the news we are able to publish not only for our families, but also for others in the government and people who want to help us in our efforts, it is a worthy publication of which everyone is aware of. also, every time we have been able to put on a major event, they have been working very diligently to prepare and let everyone see what we are about. if we take a look today at the program, you will see the quality. there is a lot of love and work

that has gone into this, and so, steve and wendy, would you come forward, i would like to show appreciation from the organization. [applause] >> the first thing i would like to do is thank the victims of pan am flight 103.

it is amazing when ordinary people come together and accomplish extraordinary things. a group of families that have come together through the years have inspired us. i want to thank them. i am quite honored to sit here and pay tribute to my mother. that is quite stressful. i better not screw that up. kathleen has been a tireless crusader from the moment she learned her son was murdered on pan am flight 103.

when she first learned about what was called an accident, she knew seconds later it was a bombing. mothers have an instinct about this thing. i remembered more than two weeks after the bombing we went over to lockerbie, and i saw my mother cross the room and start lecturing margaret thatcher about how justice had to be done. i thought, what is she doing? but that was just her getting started. her good friend, ian mclachlan, i remember kathleen on the phone with her. we were not getting much sleep back then. i remember her yelling at her friend, saying, i will not have my son die in vain. justice has to be done. i knew then that even though my brother was dead that our lives were going to change. when ann was asked to leave the commission to investigate what

happened and how it could have been prevented, she knew she had no choice, or kathleen would have killed her as well. [laughter] kathleen helped work with frank and others on the commission as a pseudo-staff member. she quickly became a force. she made many trips back to new york to join protests at the u.n. people in these situations often use their gifts for different things. kathleen had many gifts, and one of which was imposed on her by the nuns at marymount, the gift of the pen. op-eds in "the daily record," and dozens

of others. she made hundreds of tv and radio appearances, including a memorable one where she accomplished the impossible. she shamed alan dershowitz on "the today show," not an easy feat. alan was considering supporting fema and quickly changed his mind after facing kathleen. during the trial, she told her husband, we're not leaving until there is a verdict. on the day of the verdict, kathleen was scheduled for breast cancer surgery. after watching closed-circuit television, she hopped in a cab to get to her appointment. the verdict was too important, and her surgery would have to wait. i remember the doctor saying, why can't you get here on time? she made her son and daughter- in-law to bear witness.

we were given very specific instructions on what our messaging points were, which appeared in an op-ed in "the wall street journal." cathleen's passion to honor her justice, protect others from the act of terrorism, and to honor her country. with all this, she still managed to be a great mom. thanks. [applause] >> this is mary lou's niece, and she will perform a beyonce song probably as good or better than beyonce. [laughter] ♪

[applause]

>> thank you. that was beautiful. it really, really was. in addition to thanking diane, i want to make sure i thank the choir. they first started singing for us because i think mary kay used to go to that church many years ago, when she lived in virginia. she got the connection started. they have been coming back ever since. they have been wonderful. we have a new piper this -- yes. yes, thank you. [applause] we have a new piper this year, ray bilter. our piper we had the last few years has injured his hand. i do not know if he will be able to continue.

but i thought ray did a magnificent job. if he can continue with us, great. and we will have two more scottish pipers a little bit later. if they want to come back, i will be glad for them to. you will hear them later. anyway, i do want to make note of the people that have helped us a lot in this service. the arlington people that have bent over backwards. we have already mentioned steve. we could not do this ourselves, melanie and me. our next -- it says in the program that the next speaker will be fbi director james komi. there are things that changed in this program.

he is out of town. he sends his regrets. that was an unavoidable thing that happened after the program had been printed. anyway, he is not here. but i get to introduce our next speaker, who is the head of the tsa. and he is a wonderful man that has been coming for the last -- i don't know. three or four years, maybe. he has been the tsa administrator since july 2010, and he is in charge of 450 airports across the united states, and the air marshal program, and security for highways and railroads. all kinds of transit systems and stuff. before that, he was an fbi agent. we have got plenty of fbi guys

here, former and present. and i -- i wish -- i talked to him earlier, because this year was kind of a rough year for him. this is the first time in the tsa history that they have lost an agent in the line of duty. hernandez, right? we offer our condolences. but i would like to welcome tsa director john pistole right now. [applause] >> thank you. it is good to be here once again

as we gather together to remember those souls that were lost that fateful day 25 years ago now. it is good to see so many people again, whether you have come from scotland or from syracuse or anywhere else. welcome. these grounds at arlington national cemetery know no borders. it belongs to you. i appreciate the opportunity to speak once again as we commemorate that event and the lives that were lost. as we have noted in ceremonies past, there is nothing we can say to undo the horror or lasting damage caused by the monstrous and cowardly act of terror carried out over lockerbie. yet we see the ability of the human spirit to heal and grow at in the loving eyes and faces of our children and grandchildren.

there is some comfort. the healing that began following that unspeakable act will continue as young ones grow older and are taught to carry forward the memories of those we honor here today. even though the pain of your loss may be somewhat tempered by the 25 years that have gone by, all of us remain fully committed in our search for the truth and our desire to hold everybody accountable for their crimes. your advocacy and support in support of earning justice for your loved ones honors them. those of you who travel every day, whether it is for business, to visit family, or simply to explore the wonders of our world, you deserve to do so safely and securely. this is a small and steady victory over the hatred carried out by terrorists throughout the world. since being called into service following the atrocities of

9/11, the men and women of the transportation security administration have devoted themselves to protecting our freedom to travel. we are eager to safeguard the free flow of goods. we help you world do business free from the district of desires of criminals and terrorists alike. the vigilance of the global law enforcement community teaches us lessons that help to strengthen our international aviation security efforts and make it less likely that our adversaries can succeed, focusing our resources in such a way as to mitigate this and enables us to stay ahead of those determined to strike fear into the lives of good and decent people. a few weeks ago, we saw the world come together to mourn the loss and celebrate the life of the remarkable nelson mandela. in his struggle, we were reminded that the gears of justice may at times move quite

slowly. but it was also affirmed that in the end good wins over evil. it is this same spirit that our search for justice must remain unstoppable. we owe to each of you and the families you have built, and in many cases rebuilt -- no one can return what was taken from you that night. but we can and will continue to work and fight for each of you. thank you. may god bless you and keep you. may his face shine upon you and give you peace. [applause] >> he is a tall man. thank you so much, mr. pistole, for your remarks. at this time, i am very pleased and honored to introduce our next guest. the right honorable david mundell, member of parliament, and the parliamentary

undersecretary of state for scotland. he is a member of the parliament representing the scottish constituency of dumfrienshire and clydesdale at westminster. he grew up in lockerbie. he went to lockerbie academy and was head boy, which is the equivalent of president of his class. he studied law at the university of edinburgh and gained a diploma in legal practice there. he received an mba from the university business school. he worked as a solicitor and then joined in 1991 bt, a british telecommunications services company, one of the largest in the world, as group legal advisor for scotland. he became their head of national affairs, remaining with bt until becoming a member of scottish

parliament. he was elected to the scottish parliament in 1999. in 2003 as a list member of the scottish parliament for the south of scotland. being the sole conservative representative of his constituency he quickly gained public attention, relative to newly-elected mp's. he was appointed to shadow cabinet as shadow secretary of state for scotland in december 2005, a post in which he served until 2010, the 2010 general election in the u.k. at which time he assumed the role of parliamentary under secretary of state for scotland. he has been a strong supporter of the syracuse-lockerbie scholarships, which support lockerbie academy students to study at syracuse university each year. the connections made by these

young people are a good indication of the strong bond between our countries that he has nurtured through his career. he has come to syracuse university several times, most recently this past october, during remembrance week, for the observances. he took the time to attend the annual meeting for our membership, and took part in the panel of scottish representatives as they made their remarks and answered our questions. we are very grateful to him that he was able to join us at that time, and for his interest in our story and in our case. please join me in welcoming the right honorable david mundell. [applause] >> thank you very much. as someone who grew up in lockerbie and has the privilege

of representing my hometown in parliament, it is an honor for me to be here today to represent both my community and my country. to demonstrate our solidarity with you on a day of remembrance, a day of reflection and a day for looking forward. i want you to know that you are in the thoughts and prayers of people in and around lockerbie and across the united kingdom, as church services are going on simultaneously with this event in drysdale parish church, in lockerbie, and in westminster abbey. although compared to this afternoon in arlington, it is cold and very wet in scotland today, the warmth of our feelings toward everyone here in the united states affected by the events of the 21st of december 1988 remains as strong

as it was on those first days and weeks, when many present visited lockerbie for the first time. the lockerbie air disaster remains the largest ever loss of life in a single event in the united kingdom. like everybody from the lockerbie area, i remember exactly where i was when i heard the news, and the emotions i felt as the event unfolded. that is, however, nothing to what you and families back in the u.k. and other parts of the world have had to bear. to lose a loved one in an unexpected fatality, especially a young person, is heartbreaking. but to do so under an unprecedented global media

spotlight, which has lasted all of these 25 years, is beyond compare. and for that, you, along with the townspeople of lockerbie and everyone else caught in these events, have our utmost admiration and respect. many people in and around lockerbie never have and never will speak openly about these events, although they have been deeply affected by them and the loss of anonymity for our small town. on behalf of them and everyone else in and around lockerbie, i offer you our continuing sympathy for your loss, our gratitude for the friendships forged and the bonds strengthened, and our determination to continue to support you in the years ahead. thank you. [applause]

i would also like to take this opportunity to read a message from our british prime minister, david cameron. mr. cameron says, the loss of pan am flight 103 over lockerbie at 7:03 p.m., december 21, 1988, was a shocking event, a loss made more poignant still by being so close to christmas. lockerbie remains one of the worst aviation disasters in history, and the deadliest act of terrorism ever committed in the united kingdom. although 25 years have passed, memories of the 243 passengers, 16 crew, and 11 lockerbie residents who lost their lives on that terrible night have not dimmed. over the last quarter of a century, much attention has been focused on the perpetrators of the atrocity. today, our thoughts turn to its

victims and to those whose lives have been touched and changed by what happened at lockerbie that night. to families, friends, neighbors, loved ones, and all those caught up in the painful process of recovery, let us say to them our admiration for you is unconditional. for the fortitude and resilience you have shown. for the determination never to give up. you have shown that terrorist acts cannot crush the human spirit. and that is why terrorism will never prevail. and even in the darkest moments of grief, it is possible to glimpse the flickering flame of hope. the tragedy of pan am 103 continues to forge a strong bond between lockerbie academy and syracuse university. syracuse lost 35 of its own that fateful evening. nothing can restore the promise of those young lives cut short. yet their memory is honored by

the scholarships syracuse awards each year to two lockerbie students and 35 of its own undergraduates. they represent a growing band of beneficiaries given the chance to fulfill their own youthful promise. this is a lasting and optimistic legacy bequeathed to future generations on behalf of those who lost their lives on this day 25 years ago, and who we remember here today. thank you. [applause] 17president obama is on a day christmas vacation with his family in his birth state of

hawaii. sometime today or tomorrow the president plans to an role for have carol on the healthcare.gov website. today was announced as the final day for individuals to purchase insurance if they wish to be covered by january 1. new sources are confirming that the white house has extended the deadline to sign up by one more day. primetime we in are bringing you on core presentations of c-span's una program. tonight, former powers is when david stockman -- congressman david stockman. you can catch our entire conversation tonight at 7:00 eastern on c-span. >> as 2013 wraps up, we're here on the west front of the u.s. capitol to tell you but are you c-span he -- your reviews. tonight, immigration laws, on tuesday, senate filibuster rule

changes. an essay surveillance on wednesday, thursday, eight look at gun laws. and we wrap up the week on friday with the u.s. budget and the federal government shut down. starting tonight at 8:00 p.m. eastern, on c-span. if you're a middle or high school student, c-span student cam video competition wants to know what is the most important issue congress should address next year? , fora 5-7 minute video your chance to win the grand prize of $5,000, with $100,000 in total prizes. the deadline is january 20. get more info at student cam.org. >> a look now at mexico's new push to push its energy sector over to private investment. legislation ending the state monopoly on energy was approved by congress earlier this month. this is just under two hours.

>> good morning. i am the director of the atlantic. i would like to welcome all of you to the atlantic council for this incredible timely event on mexico's reform which was passed by the congress last thursday and declared constitutional yesterday after being approved by the majority of state legislatures. i would like to recognize how pleased and honored we are that the mexican ambassador is with us today. we're lucky to have him in washington.

we are lucky that he is a friend of the atlantic council. thank you very much for coming. he did so on very minimal sleep after working tirelessly to get the reform passed through congress in the past few weeks. we would like to welcome the many guests who are here. atlantic council members, friends of the atlantic council as well as those who are here for their first event. i would like to welcome those who are joining us remotely via webcast and those joining us via c-span3 as well. many members of the mexican press are here. we have arranged a special postevent briefing for them and other members of the press. i ask that they hold this to ask questions during this event. i would like to thank all those

who helped make this a success. and the atlantic council's fabulous external relations team. the center began operations in october. we are off to a running start. our center was started with the generous support of philanthropist adrienne. we are broadening awareness of many of the transformations of across latin america and to change the nature of the discussions about the region and to heighten the potential as a strategic and economic partner for europe, the united states and beyond. we cannot think of a better

first report than what we are releasing today. it shows the new dynamism in mexico and reflects the changes being seen. an editorial this week says that it opens the door for a mexican economic take off. our report reflects the philosophy of our news center which is a timely analysis succint yet vigorous. we will speak for about 15 minutes. he has agreed to take a few questions from the audience that will be measured by the director peter schechter. after that, the mexico rising comprehensive energy reform. he will spend about 10 minutes to give an overview of his findings in the report that all of you should have. this has now been made live on

our site at 8:30 this morning. they will then join others in the conversation moderated by peter. there will be lots of time for audience questions. we will also be taking questions via twitter and c-span. if you want to live tweet the event, as long as you're not checking your own e-mail, you can live tweet #mxemreform. it is all on the agenda you got. we are joined by a very impressive group of speakers. you have their full bios. i will not read each one. duncan is the director of the mexico institute of the woodrow wilson center. he is both a mexico and energy expert. he is one of the foremost

thinkers here in washington on issues. we are excited that he is with us today. this is at the university of texas at austin. david goldwyn is president of goldwyn global strategies. he is an energy guru, essentially a black belt third degree in the energy world. with an incredibly nuanced understanding of the energy industry that is reflected in his report. he has had multiple dharma positions including special envoy positions and a variety of other high-level energy posts. we are especially pleased to welcome under-secretary enrique ochoa. he has not slept in probably weeks.

he is the point person on many of the issues of the reform. there cannot be a better person from mexico to travel from mexico to join us and talk about the reform. he has worked tirelessly over the last few weeks to secure passage in congress. he combined his unique and important knowledge of energy and his incredible understanding of business with this intersection of policy. we are so thankful that you agree to come on a plane and come to washington. that you endured our customs here to get into the country. and to discuss the reform at such a busy time. we are happy you traveled to washington right before the christmas holiday. we are expecting a great program.

please join me first in welcoming under-secretary ochoa. [applause] >> good morning. on behalf of the secretary, it is an honor for me to speak to you so close to christmas and so far away from home. i have not slept. i want to thank the ambassador for being here with us. when peter first asked me to come here, i thought it was such an honor. i am glad that i am here. i want to use a powerpoint presentation to help look at the figures that show how we got here and where are we now with the constitutional reform. and what is next.

somebody is going to help me with the presentation? we have the history of mexico's recent oil reduction. we reached a high point in 2004 with 3.4 million barrels per day. since then we have decreased by almost a million barrels per day in the last eight years. this is a huge concern for mexico. we have done so in a time where we have more than tripled our investment in oil and gas. we put money into appeals. we have come out short. we have not failed that budget in mexico. at the same time, the prices have tripled. as you can see, they were $31 per barrel. now they are around $100. our production declined.

in our mexican economy, the economic impact is in production. next, please. this is natural gas. this is not much better than oil production. there's a lot of consumption in the industry. the blue line is our production. in 1997 we were sufficient. we produce the same amount that we are consuming. things have changed in the last 15 years. we are importing mostly from the u.s. despite having an enormous quantity of natural gas, we have the irony of not being able to produce as much as we should. in gasoline, the history is very similar to the past two slides. we are importing half of our gasoline.

we have not been able to keep up with the pace of our liberal economy. we are bringing from the u.s. mostly. 50% of our consumption. this is the last set your within the hydrocarbons which are petrochemicals. these are similar and even worse. now what we see here is that we are importing 65% of our [no audio] petrochemicals. what you can see in the last 15 years, we have strong degrees and other production. we have an increase in natural gas production. we are importing 50% of our consumption of gasoline. we are importing 55% of petrochemicals that does not seem to be the story of strong hydrocarbons. this is becoming a net importer of energy problems rather than a

strong exporter that we have been for decades. we see here for the first time since 1960, the oil and gas model and battled in article 27 was amended. let me put in to place this in context. what made it even more the third pool. not to allow private participation. it is really a very transformative reform that they have put through the mexican congress. we have two of knowledge that this is by over two thirds of it members in both houses. past the reform. yesterday it was enacted by the mexican congress.

now we are up for this. we start the process. next one, please. >> there we can see how the reform has put the new model. oil and gas is going to be administered by the mexican state to the ministry of energy. there was confusion. these parts were administered. not they're going to be run by the ministry of energy. exploration and extraction which remains a strategic element of the constitution of going to be done through contracts. they were previously prohibited in the constitution. article 27 was amended to allow

contracts which are common in the global markets. production sharing contract. this is a very strong concentration. it was absent in mexico. we are going to do something that has also happened in other countries that have had this type of confirmation which is around zero. it will allow them to have some kind of entitlement that will allow them to start off the limitation of the reform. i will talk about that in a few second. refineries will be open. you can participate in any would mexican or foreign companies associated between them.

we are also opening up for private participation. most of those sectors were close in public participation. you can also be done by price. next, please. what will be rounded zero? congress has established a pattern. it includes up to 90 days after the constitutional amendment has been published by the president to present to the ministry of energy those areas where they want to keep on working. they have 90 days to present technical elements that will allow the ministry of industry

and the commission to side on the technical basis. the minister of energy will have 180 days after the first 90 days to decide that. that will be that. [indiscernible] we will allow them between and three and five years to do so. where they are already extracting oil and all of that, they will keep those entitlements for the next rounds. they may propose this from the entitlements they were going to achieve to the new contracts that were going to go into place per second or isolation. that process will have to go

through, including the hydrocarbon commission. they have seen these models work elsewhere. next. this is a slide that i like to show. the 20 most important ones that produce oil. you can see that all of them had in their legal frameworks either concessions of reduction sharing contracts or licenses to work. we have the private sector to. there were two exceptions in that area. in these 20 countries, only mexico and hawaii had service contracts. no other type of contracts were allowed. that has hurt mexico in an important way. number 10, we not only have service contracts, we also have profit production, sharing, and licenses.

we are in a group of those countries that have legal frameworks that have allowed them to make that your use of any natural resources. next. this is very important. the natural resources, oil and gas remain owned by the nation. this is a fact. they allowed us to be part of it. how will that new system were? the ministry of industry will accept these that will be open for participation the technical assistance of the hydrocarbon commission. the ministry of industry besides the technical guidelines within the technical signs of the contract. the minister of finance will

decide the fiscal terms. the natural hydrocarbon commission decides on the winning bids and on behalf of the mexican state caps on the contractor this has been put into work on a yearly basis. they had the responsibility of the technical management of the contracts. the money that comes out from those contracts goes to mexican petroleum funds and development. this is going to be base in the central bank. it is similar to that. i'm going to explain how that works. next, please. this is the mexican petroleum. it is one of the strongest parts of the reform.

what we have is a committee headed by the minister of finance. it is ratified by a two thirds majority. when the money comes in, the first thing that the fund will do is pay the contractors. it is through profit-sharing that establishes costs. it submits to the federal budget of 24 point seven percent of gdp.

that is the base that right now that the oil sector submits to the budget. we are predicting that the base were in maine confident. we will go where they will not be suffering. after we reach that 4.7%, the rest of the money goes into long-term savings. that reaches up to three percent of gdp. once we reach three percent of gdp, we have that in the back. if we assume there is another dollar, it is in the following way. at least 40% of the new dollar goes again to the savings account. we increased the savings account until it reaches from three percent of the gdp up to 10% of the gdp.

we get it back to long-term savings. once we achieve that, up to 10% will go to the universal pension system. they got inspired. be seen to be pretty promising. they are in the regional industry developments. up to 10% goes to scholarships and regional industry

development. thatdea of this front is the money that comes through the mexican oil reform goes mostly to long-term projects. we established a base or a budget that would allow us not to have any hiccups. next, please. transparency is one of the most important elements of this reform. i haven't found a mexican who was satisfied with the way it is work so far. we need to have a new mechanism to do it better. the constitutional element goes to that. anybody can see it. this was being quoted in oil and gas contracts.

the citizens of mexico and the world can align and ask for those permissions. these are all associated to oil and gas contracts. the money goes to the front. these transactions shall be made public as well. to supervise cost recovery. it is very important. it is going to be public and transparent. we believe that we are stop wishing the four elements. in addition to that, there is an article that allows congress to establish special legislation. i am sure you have many questions.

i'm looking for that opportunity. they're savaging the guidelines looking forward. up to 120 days for secondary legislations which we believe will go through with the next process of congress will be between these dates. many will be fixed by congress. i just hope that they will invite me again on april so we can have another conversation. thank you very much. [applause] >> give us 15 minutes for questions. >> my welcome to everybody. i am going to do something which my colleagues know i rarely do, stay silent. i would like to open up for 15 minutes to a couple of questions from the floor or the

undersecretary. >> it has been my experience that they have held their geological data very close to the vest. my question is will that be disclosed in general for all of mexico? will you have it remain for when you open up a particular area that it will be available and how will it be available? >> these are very important questions. the constitutional reform establishes that the information they have been able to collect through the years goes to the natural hydrocarbons commission. the objective of that is to be able to make it public once the areas have been selected by the ministry of energy.

what we are opening up is that the national commission would make public the information that we have had for that area. in addition, we are giving the commission the responsibility to contract private sector or others to do the studies. right now we only have two dimensions studies. we need to increase the studies that we need. we open up the commission to be able to go through contracts for more information. we show the information. >> let me take something from here. >> i'm curious about the referendum. is there actually a realistic

chance of this could stop the reform? >> thank you. i do not think so. maybe it is something that will still be debated in mexico. as you know, secondary insulation to be approved by congress in order to regulate what we call a different technological affects in the referendum. the process has not been started yet. this will continue with our constitutional reform. it has established during this. >> how will this get resolved in the end? >> it is not there yet.

>> will there be in emphasis on the onshore versus the offshore, both of which have tremendous potential but different? >> thank you. he is very interested in keeping this onshore. what is happening with ground zero? once this is approved, it can go into the process of looking for help. we will also be very open to see how they plant seeds in shallow waters.

it seems to be the case that areas in the deep water of mexico in the northern part are from texas. it seems to be more promising for participation. >> please. >> georgetown university. >> wait for a microphone, please. >> united states and germany have embarked on a very ambitious plan for clean and renewable energy as hearts of the energy transformation process. could you talk a little bit about your plan for energy efficiency and standards in that regard? >> thank you very much. it has been a very important

topical conversation. two of them are in the constitutional reform. they can come up with a transition plan. it is going to be the responsibility to the ministry of energy. we see it is a very important, transitory fuel. right now we have this big irony in the country that we have strong resurgence. in means we would like to burn more natural gas to produce electricity in mexico. we do not have a strong supply and natural gas right now. we are burning fuel oil or diesel. it is more polluting but more importantly it cost us over four times more than if we would be burning.

for environmental reasons, we are not producing enough natural gas in our countries. more importantly, if we produce more electricity with natural gas, we would be able to use electricity in mexico which are very high. on average we are over 25%. we are paying 25% more electricity and mexico then you guys pay in the u.s. that is in our business sector. there are many areas where we have to tune it. it's part of the money that has been collecting, we will go to the renewal of energy. this establishes a particular responsibility for congress. it is 120 days once it is published.

there is as legislation to push forward renewables. it has to be enacted. we have the strong potential to have electricity. right now we have 26 different laws that have to do with that process. there's not a very clear process on how to get there. you have to deal with different institutions. every time you go you have to go back. it is just not right. we now have that responsibility through the constitutional reform to do it better. >> we will take one more question. the gentleman in the aisle. you, sir. thank you. wait for the microphone, please. >> i'm david johansen with the u.s. international trade commission. it has been 20 years since the act was implemented. there has been discussion in the united states and mexico. did the implementation of nasa lead to the opening of the energy sector to foreign investment?

thank you. >> thank you. i was very young when nafta -- [laughter] i will say that obviously we are looking to go in the same direction. in the near-term, we have had eight decreasing production of gas, of gasoline and of petrochemicals. that is the need of the mexican government. their responsibility to change the framework. secondly, we are interested in having a better economic integration. in a way that allows us to complete on a fair basis. if our cost of gas and electricity are higher than those of the united states, we do not benefit mexico or the region. we need to establish mechanisms to make the whole area competitive.

i think this reform colleges both objectives. >> thank you very much -- >> i will take a couple of more questions. i will be around, please. >> we will come around with a larger panel and a few minutes. i would like david goldwyn to talk a little bit about his report and frame it for the panel. [applause] >> thank you. mr. ambassador and mr. secretary, let me say inc. you to the atlantic council for the privilege of being part of this report. i want to thank three members of my team that are indispensable that made immeasurable contributions.

i think the finding we make in this report is that you have to appreciate what a remarkable feat of political statecraft and statesmanship this reform is. here in washington we pat ourselves on the back if we get bipartisan agreement to keep the government open for a few months. in the course of a year, mexico has the agreement of three parties that don't agree with each other much that education reform, labor reform, fiscal reform, and now with two of the three major parties, energy reform. it is a formidable accomplishment. it is breathtaking in its scale of ambition. if it succeeds it will move mexico from being a major to by 2025, i think a strategic supplier of oil. i think you have to understand that these changes are permissive and directive in nature. the constitution permits private investment into the upstream, midstream, and downstream, and directs legislature to create legislation and regulations to create that regulators to create regulations. it is all about execution and implementation.

there are five major competence of this reform. the first one is the introduction of private investment into these three sectors. the second is that mexico has separated energy policy from supervision. that is best practice. if safety, environment, managing the hotline system that have to be stand up. third is the transparent petroleum fund. much like the norwegian fund, it has independent supervision, caps on much money will come out for the federal budget. the mexican system will be among the most transparent. it will have a degree of public accessibility.

reports of funds and cost paid by the industry are directed to be transparent as well as the fund itself. that is quite remarkable. fifth is its commitment to sustainability. both electricity system and the hydrocarbon system are supposed to be sustainability goals. my sense is there are three main categories for commercial opportunities here. the first one is joint ventures with amex. they will be developed when they were high-pressure and then they were more or less abandon as they moved onto another high- pressure field. with basic enhanced oil recovery and a good deal of capital. it is likely mexico can increase its production by 3000-4000 barrels a day. you never know what kind of offers they might get. the transitory articles in the

constitution indicate that reserves will be bookable and they have taken every pain short of saying book reserves to say that this system is design to allow companies to account for the future benefits they are entering into. i think these joint ventures will be the first opportunities. the second i think will be the seismic area where there will be a need for 3-d seismic for both cnh and for company. third will be after a year of legislation, the new deep water. that is where you will see the greatest flood of private companies. we see seven significant challenges for mexico to overcome in a calm pushing this reform. the first is managing expectations because as people know, the ramp-up is kind of

slow and it will take a couple of years to get all of the regulators stood up. there will be a gradual but not an exponential rise. you need to develop an transport gas in order to substitute gas for fuel oil. it will be a while before you see those results in the electricity area. in the next five years, they will see the lions share of these benefits. the second challenge will be delivering competitive oil in gas exploration terms. there is a finance ministry on the terms. they have to move together and move quick. that to be competitive or we can be in a world with $80 oil. we also need to find out when we will figure out which scheme

will apply to which form of acreage. will it be a concession, will it be profit-sharing? these five fantastic framework regulates, but you will need people, you need rules, you need to move fast. it is whether mexico outsources and brings an external expertise to rates the gap to where they train their own own cohort of regulators. the third is radiation for the power sector. there is not enough -- as much detail in the power sector as opposed to the hydrocarbon sector. will they be able to sell to customers direct and how? what price? electricity and gasoline prices are subsidized. subsidy reform dropped out of the reform. how subsidies are dealt with i think will affect the power factor site -- reform as well. the frameworks is five