Reducing the dependence on oil
Ildo Sauer, Gas and Energy Director, Petrobras.

Brazil's energy sector is following the worldwide
tendency towards greater diversification of primary energy
sources and the increased use of natural gas and
biofuels. There are several reasons for this change. The
most important are the environmental restrictions that
are gradually being adopted in the world's principal
energy-consuming markets and the need to reduce the
dependence on oil, set against a scenario of accelerated
depletion in oil reserves and escalating prices.
The share of gas in Brazilian primary energy
consumption has more than doubled in a short period,
increasing from 4.1% in 1999 to 8.9% in 2004, and this
share is forecast to rise to 12% by 2010.
Over the past two decades, the world gas industry
has experienced a structural and regulatory
transformation. These changes have altered the strategic
behaviour of gas firms, with an intensification of
competition, the search for diversification (especially in
the case of power generation) and the internationalisation
of industry activities. Together, these changes have
radically changed the economic environment and the level
of competition in the industry.
Brazil's gas industry is characterised by its late
development, although in recent years, internal supply
imports and demand have grown significantly - the
growth trajectory of recent years exceeds that of countries
with more mature markets, such as Spain, Argentina,
the UK and the US. And the outlook is positive for
continued growth over the next few years, particularly
when set against the investment plans already
announced in Brazil.
The country has a small transportation network
concentrated near the coast. The distribution network is
concentrated in the major consumption centres.
Domestic gas sources are largely offshore in the Campos
basin and Bolivia provides imports. Given the degree
of gas penetration in the country's primary energy
consumption, the industry is poorly developed when
compared with other countries. The industry requires
heavy investment in expanding the transport and
distribution (T&D) networks, as well as in diversifying and
increasing its supplies. Such investments are necessary
for realising the industry's enormous potential.
Another key industry highlight is the changing profile
of gas supply. A large part of the gas produced
domestically to date has been associated with oil
production. The latter diluting or even totally absorbing
the costs of exploiting the gas. In most cases, gas
production was feasible only in conjunction with oil
production activities. However, the country's latest gas
finds are non-associated. Thus, an exclusively dedicated
structure must be developed to produce this gas -
translating into a significant rise in production costs. This
is more significant when analysed against the high costs
associated with the market for exploration and production
(E&P) sector equipment. In recent years, the leasing costs
of drilling rigs and E&P equipment have been climbing in
parallel with escalating oil prices. This directly affects endconsumer
prices.
In a world of primary energy consumption
diversification, of greater environmental restrictions and
the reduced dependence on oil, Brazil has been seeking
to develop alternative energy sources - principally natural
gas and biofuels. The gas industry holds enormous
potential for Brazil, although there is still a long way to go
before it reaches maturity and major investment is
required.

Reducing the dependence on oil
Ildo Sauer, Gas and Energy Director, Petrobras.

Brazil's energy sector is following the worldwide
tendency towards greater diversification of primary energy
sources and the increased use of natural gas and
biofuels. There are several reasons for this change. The
most important are the environmental restrictions that
are gradually being adopted in the world's principal
energy-consuming markets and the need to reduce the
dependence on oil, set against a scenario of accelerated
depletion in oil reserves and escalating prices.
The share of gas in Brazilian primary energy
consumption has more than doubled in a short period,
increasing from 4.1% in 1999 to 8.9% in 2004, and this
share is forecast to rise to 12% by 2010.
Over the past two decades, the world gas industry
has experienced a structural and regulatory
transformation. These changes have altered the strategic
behaviour of gas firms, with an intensification of
competition, the search for diversification (especially in
the case of power generation) and the internationalisation
of industry activities. Together, these changes have
radically changed the economic environment and the level
of competition in the industry.
Brazil's gas industry is characterised by its late
development, although in recent years, internal supply
imports and demand have grown significantly - the
growth trajectory of recent years exceeds that of countries
with more mature markets, such as Spain, Argentina,
the UK and the US. And the outlook is positive for
continued growth over the next few years, particularly
when set against the investment plans already
announced in Brazil.
The country has a small transportation network
concentrated near the coast. The distribution network is
concentrated in the major consumption centres.
Domestic gas sources are largely offshore in the Campos
basin and Bolivia provides imports. Given the degree
of gas penetration in the country's primary energy
consumption, the industry is poorly developed when
compared with other countries. The industry requires
heavy investment in expanding the transport and
distribution (T&D) networks, as well as in diversifying and
increasing its supplies. Such investments are necessary
for realising the industry's enormous potential.
Another key industry highlight is the changing profile
of gas supply. A large part of the gas produced
domestically to date has been associated with oil
production. The latter diluting or even totally absorbing
the costs of exploiting the gas. In most cases, gas
production was feasible only in conjunction with oil
production activities. However, the country's latest gas
finds are non-associated. Thus, an exclusively dedicated
structure must be developed to produce this gas -
translating into a significant rise in production costs. This
is more significant when analysed against the high costs
associated with the market for exploration and production
(E&P) sector equipment. In recent years, the leasing costs
of drilling rigs and E&P equipment have been climbing in
parallel with escalating oil prices. This directly affects endconsumer
prices.
In a world of primary energy consumption
diversification, of greater environmental restrictions and
the reduced dependence on oil, Brazil has been seeking
to develop alternative energy sources - principally natural
gas and biofuels. The gas industry holds enormous
potential for Brazil, although there is still a long way to go
before it reaches maturity and major investment is
required.

Reducing the dependence on oil
Ildo Sauer, Gas and Energy Director, Petrobras.

Brazil's energy sector is following the worldwide
tendency towards greater diversification of primary energy
sources and the increased use of natural gas and
biofuels. There are several reasons for this change. The
most important are the environmental restrictions that
are gradually being adopted in the world's principal
energy-consuming markets and the need to reduce the
dependence on oil, set against a scenario of accelerated
depletion in oil reserves and escalating prices.
The share of gas in Brazilian primary energy
consumption has more than doubled in a short period,
increasing from 4.1% in 1999 to 8.9% in 2004, and this
share is forecast to rise to 12% by 2010.
Over the past two decades, the world gas industry
has experienced a structural and regulatory
transformation. These changes have altered the strategic
behaviour of gas firms, with an intensification of
competition, the search for diversification (especially in
the case of power generation) and the internationalisation
of industry activities. Together, these changes have
radically changed the economic environment and the level
of competition in the industry.
Brazil's gas industry is characterised by its late
development, although in recent years, internal supply
imports and demand have grown significantly - the
growth trajectory of recent years exceeds that of countries
with more mature markets, such as Spain, Argentina,
the UK and the US. And the outlook is positive for
continued growth over the next few years, particularly
when set against the investment plans already
announced in Brazil.
The country has a small transportation network
concentrated near the coast. The distribution network is
concentrated in the major consumption centres.
Domestic gas sources are largely offshore in the Campos
basin and Bolivia provides imports. Given the degree
of gas penetration in the country's primary energy
consumption, the industry is poorly developed when
compared with other countries. The industry requires
heavy investment in expanding the transport and
distribution (T&D) networks, as well as in diversifying and
increasing its supplies. Such investments are necessary
for realising the industry's enormous potential.
Another key industry highlight is the changing profile
of gas supply. A large part of the gas produced
domestically to date has been associated with oil
production. The latter diluting or even totally absorbing
the costs of exploiting the gas. In most cases, gas
production was feasible only in conjunction with oil
production activities. However, the country's latest gas
finds are non-associated. Thus, an exclusively dedicated
structure must be developed to produce this gas -
translating into a significant rise in production costs. This
is more significant when analysed against the high costs
associated with the market for exploration and production
(E&P) sector equipment. In recent years, the leasing costs
of drilling rigs and E&P equipment have been climbing in
parallel with escalating oil prices. This directly affects endconsumer
prices.
In a world of primary energy consumption
diversification, of greater environmental restrictions and
the reduced dependence on oil, Brazil has been seeking
to develop alternative energy sources - principally natural
gas and biofuels. The gas industry holds enormous
potential for Brazil, although there is still a long way to go
before it reaches maturity and major investment is
required.

Reducing the dependence on oil
Ildo Sauer, Gas and Energy Director, Petrobras.

Brazil's energy sector is following the worldwide
tendency towards greater diversification of primary energy
sources and the increased use of natural gas and
biofuels. There are several reasons for this change. The
most important are the environmental restrictions that
are gradually being adopted in the world's principal
energy-consuming markets and the need to reduce the
dependence on oil, set against a scenario of accelerated
depletion in oil reserves and escalating prices.
The share of gas in Brazilian primary energy
consumption has more than doubled in a short period,
increasing from 4.1% in 1999 to 8.9% in 2004, and this
share is forecast to rise to 12% by 2010.
Over the past two decades, the world gas industry
has experienced a structural and regulatory
transformation. These changes have altered the strategic
behaviour of gas firms, with an intensification of
competition, the search for diversification (especially in
the case of power generation) and the internationalisation
of industry activities. Together, these changes have
radically changed the economic environment and the level
of competition in the industry.
Brazil's gas industry is characterised by its late
development, although in recent years, internal supply
imports and demand have grown significantly - the
growth trajectory of recent years exceeds that of countries
with more mature markets, such as Spain, Argentina,
the UK and the US. And the outlook is positive for
continued growth over the next few years, particularly
when set against the investment plans already
announced in Brazil.
The country has a small transportation network
concentrated near the coast. The distribution network is
concentrated in the major consumption centres.
Domestic gas sources are largely offshore in the Campos
basin and Bolivia provides imports. Given the degree
of gas penetration in the country's primary energy
consumption, the industry is poorly developed when
compared with other countries. The industry requires
heavy investment in expanding the transport and
distribution (T&D) networks, as well as in diversifying and
increasing its supplies. Such investments are necessary
for realising the industry's enormous potential.
Another key industry highlight is the changing profile
of gas supply. A large part of the gas produced
domestically to date has been associated with oil
production. The latter diluting or even totally absorbing
the costs of exploiting the gas. In most cases, gas
production was feasible only in conjunction with oil
production activities. However, the country's latest gas
finds are non-associated. Thus, an exclusively dedicated
structure must be developed to produce this gas -
translating into a significant rise in production costs. This
is more significant when analysed against the high costs
associated with the market for exploration and production
(E&P) sector equipment. In recent years, the leasing costs
of drilling rigs and E&P equipment have been climbing in
parallel with escalating oil prices. This directly affects endconsumer
prices.
In a world of primary energy consumption
diversification, of greater environmental restrictions and
the reduced dependence on oil, Brazil has been seeking
to develop alternative energy sources - principally natural
gas and biofuels. The gas industry holds enormous
potential for Brazil, although there is still a long way to go
before it reaches maturity and major investment is
required.

Reducing the dependence on oil
Ildo Sauer, Gas and Energy Director, Petrobras.

Brazil's energy sector is following the worldwide
tendency towards greater diversification of primary energy
sources and the increased use of natural gas and
biofuels. There are several reasons for this change. The
most important are the environmental restrictions that
are gradually being adopted in the world's principal
energy-consuming markets and the need to reduce the
dependence on oil, set against a scenario of accelerated
depletion in oil reserves and escalating prices.
The share of gas in Brazilian primary energy
consumption has more than doubled in a short period,
increasing from 4.1% in 1999 to 8.9% in 2004, and this
share is forecast to rise to 12% by 2010.
Over the past two decades, the world gas industry
has experienced a structural and regulatory
transformation. These changes have altered the strategic
behaviour of gas firms, with an intensification of
competition, the search for diversification (especially in
the case of power generation) and the internationalisation
of industry activities. Together, these changes have
radically changed the economic environment and the level
of competition in the industry.
Brazil's gas industry is characterised by its late
development, although in recent years, internal supply
imports and demand have grown significantly - the
growth trajectory of recent years exceeds that of countries
with more mature markets, such as Spain, Argentina,
the UK and the US. And the outlook is positive for
continued growth over the next few years, particularly
when set against the investment plans already
announced in Brazil.
The country has a small transportation network
concentrated near the coast. The distribution network is
concentrated in the major consumption centres.
Domestic gas sources are largely offshore in the Campos
basin and Bolivia provides imports. Given the degree
of gas penetration in the country's primary energy
consumption, the industry is poorly developed when
compared with other countries. The industry requires
heavy investment in expanding the transport and
distribution (T&D) networks, as well as in diversifying and
increasing its supplies. Such investments are necessary
for realising the industry's enormous potential.
Another key industry highlight is the changing profile
of gas supply. A large part of the gas produced
domestically to date has been associated with oil
production. The latter diluting or even totally absorbing
the costs of exploiting the gas. In most cases, gas
production was feasible only in conjunction with oil
production activities. However, the country's latest gas
finds are non-associated. Thus, an exclusively dedicated
structure must be developed to produce this gas -
translating into a significant rise in production costs. This
is more significant when analysed against the high costs
associated with the market for exploration and production
(E&P) sector equipment. In recent years, the leasing costs
of drilling rigs and E&P equipment have been climbing in
parallel with escalating oil prices. This directly affects endconsumer
prices.
In a world of primary energy consumption
diversification, of greater environmental restrictions and
the reduced dependence on oil, Brazil has been seeking
to develop alternative energy sources - principally natural
gas and biofuels. The gas industry holds enormous
potential for Brazil, although there is still a long way to go
before it reaches maturity and major investment is
required.

Reducing the dependence on oil
Ildo Sauer, Gas and Energy Director, Petrobras.

Brazil's energy sector is following the worldwide
tendency towards greater diversification of primary energy
sources and the increased use of natural gas and
biofuels. There are several reasons for this change. The
most important are the environmental restrictions that
are gradually being adopted in the world's principal
energy-consuming markets and the need to reduce the
dependence on oil, set against a scenario of accelerated
depletion in oil reserves and escalating prices.
The share of gas in Brazilian primary energy
consumption has more than doubled in a short period,
increasing from 4.1% in 1999 to 8.9% in 2004, and this
share is forecast to rise to 12% by 2010.
Over the past two decades, the world gas industry
has experienced a structural and regulatory
transformation. These changes have altered the strategic
behaviour of gas firms, with an intensification of
competition, the search for diversification (especially in
the case of power generation) and the internationalisation
of industry activities. Together, these changes have
radically changed the economic environment and the level
of competition in the industry.
Brazil's gas industry is characterised by its late
development, although in recent years, internal supply
imports and demand have grown significantly - the
growth trajectory of recent years exceeds that of countries
with more mature markets, such as Spain, Argentina,
the UK and the US. And the outlook is positive for
continued growth over the next few years, particularly
when set against the investment plans already
announced in Brazil.
The country has a small transportation network
concentrated near the coast. The distribution network is
concentrated in the major consumption centres.
Domestic gas sources are largely offshore in the Campos
basin and Bolivia provides imports. Given the degree
of gas penetration in the country's primary energy
consumption, the industry is poorly developed when
compared with other countries. The industry requires
heavy investment in expanding the transport and
distribution (T&D) networks, as well as in diversifying and
increasing its supplies. Such investments are necessary
for realising the industry's enormous potential.
Another key industry highlight is the changing profile
of gas supply. A large part of the gas produced
domestically to date has been associated with oil
production. The latter diluting or even totally absorbing
the costs of exploiting the gas. In most cases, gas
production was feasible only in conjunction with oil
production activities. However, the country's latest gas
finds are non-associated. Thus, an exclusively dedicated
structure must be developed to produce this gas -
translating into a significant rise in production costs. This
is more significant when analysed against the high costs
associated with the market for exploration and production
(E&P) sector equipment. In recent years, the leasing costs
of drilling rigs and E&P equipment have been climbing in
parallel with escalating oil prices. This directly affects endconsumer
prices.
In a world of primary energy consumption
diversification, of greater environmental restrictions and
the reduced dependence on oil, Brazil has been seeking
to develop alternative energy sources - principally natural
gas and biofuels. The gas industry holds enormous
potential for Brazil, although there is still a long way to go
before it reaches maturity and major investment is
required.

Reducing the dependence on oil
Ildo Sauer, Gas and Energy Director, Petrobras.

Brazil's energy sector is following the worldwide
tendency towards greater diversification of primary energy
sources and the increased use of natural gas and
biofuels. There are several reasons for this change. The
most important are the environmental restrictions that
are gradually being adopted in the world's principal
energy-consuming markets and the need to reduce the
dependence on oil, set against a scenario of accelerated
depletion in oil reserves and escalating prices.
The share of gas in Brazilian primary energy
consumption has more than doubled in a short period,
increasing from 4.1% in 1999 to 8.9% in 2004, and this
share is forecast to rise to 12% by 2010.
Over the past two decades, the world gas industry
has experienced a structural and regulatory
transformation. These changes have altered the strategic
behaviour of gas firms, with an intensification of
competition, the search for diversification (especially in
the case of power generation) and the internationalisation
of industry activities. Together, these changes have
radically changed the economic environment and the level
of competition in the industry.
Brazil's gas industry is characterised by its late
development, although in recent years, internal supply
imports and demand have grown significantly - the
growth trajectory of recent years exceeds that of countries
with more mature markets, such as Spain, Argentina,
the UK and the US. And the outlook is positive for
continued growth over the next few years, particularly
when set against the investment plans already
announced in Brazil.
The country has a small transportation network
concentrated near the coast. The distribution network is
concentrated in the major consumption centres.
Domestic gas sources are largely offshore in the Campos
basin and Bolivia provides imports. Given the degree
of gas penetration in the country's primary energy
consumption, the industry is poorly developed when
compared with other countries. The industry requires
heavy investment in expanding the transport and
distribution (T&D) networks, as well as in diversifying and
increasing its supplies. Such investments are necessary
for realising the industry's enormous potential.
Another key industry highlight is the changing profile
of gas supply. A large part of the gas produced
domestically to date has been associated with oil
production. The latter diluting or even totally absorbing
the costs of exploiting the gas. In most cases, gas
production was feasible only in conjunction with oil
production activities. However, the country's latest gas
finds are non-associated. Thus, an exclusively dedicated
structure must be developed to produce this gas -
translating into a significant rise in production costs. This
is more significant when analysed against the high costs
associated with the market for exploration and production
(E&P) sector equipment. In recent years, the leasing costs
of drilling rigs and E&P equipment have been climbing in
parallel with escalating oil prices. This directly affects endconsumer
prices.
In a world of primary energy consumption
diversification, of greater environmental restrictions and
the reduced dependence on oil, Brazil has been seeking
to develop alternative energy sources - principally natural
gas and biofuels. The gas industry holds enormous
potential for Brazil, although there is still a long way to go
before it reaches maturity and major investment is
required.

Google as well as Yahoo, Microsoft and AOL among

others are gearing up to keep a much closer eye on all of us,

so that within five years these and other firms will routinely

track our movements, friends, interests, purchases and

5 correspondence – then make money by helping marketers

take advantage of the information.

These companies' brash plans are pushing us toward a

thorny choice that will determine the future of computing.

Google and other Web-oriented, information-service giants are

10 determined to build a breathtaking array of services based on

your personal information, and they're betting you'll be willing

to share it with them in order for you to reap the benefits. But

if we cooperate and let them in on the details of our lives, we'll

lose much of our privacy, and possibly a lot more.

15 A privacy backlash, however, would stifle these potentially

revolutionary services before they get off the ground – and

leave the computer industry's biggest plans for growth in

tatters. That may be just what some people want. The U.S.

Congress is considering four bills that would make it illegal to

20 collect and share information online or through cell phones

about people without clearer warning and permission. These

sorts of restrictions are already in effect throughout much of

Europe, thanks in part to European Union directives on privacy

and electronic communications passed in 2002 and 2003.

25 The good news is that there's no reason to choose

between technology and privacy. New technologies are

emerging that can doctor our data so that companies know

just enough about us to ply us with customized services, while

preventing them from getting a clear picture of our private

lives. The question is again one of trust: in this case, whether

people will come to trust the companies that are trying to build

these new technologies.

(abridged from Next Frontiers in Newsweek, April 3, 2006)

Google as well as Yahoo, Microsoft and AOL among

others are gearing up to keep a much closer eye on all of us,

so that within five years these and other firms will routinely

track our movements, friends, interests, purchases and

5 correspondence – then make money by helping marketers

take advantage of the information.

These companies' brash plans are pushing us toward a

thorny choice that will determine the future of computing.

Google and other Web-oriented, information-service giants are

10 determined to build a breathtaking array of services based on

your personal information, and they're betting you'll be willing

to share it with them in order for you to reap the benefits. But

if we cooperate and let them in on the details of our lives, we'll

lose much of our privacy, and possibly a lot more.

15 A privacy backlash, however, would stifle these potentially

revolutionary services before they get off the ground – and

leave the computer industry's biggest plans for growth in

tatters. That may be just what some people want. The U.S.

Congress is considering four bills that would make it illegal to

20 collect and share information online or through cell phones

about people without clearer warning and permission. These

sorts of restrictions are already in effect throughout much of

Europe, thanks in part to European Union directives on privacy

and electronic communications passed in 2002 and 2003.

25 The good news is that there's no reason to choose

between technology and privacy. New technologies are

emerging that can doctor our data so that companies know

just enough about us to ply us with customized services, while

preventing them from getting a clear picture of our private

lives. The question is again one of trust: in this case, whether

people will come to trust the companies that are trying to build

these new technologies.

(abridged from Next Frontiers in Newsweek, April 3, 2006)

Google as well as Yahoo, Microsoft and AOL among

others are gearing up to keep a much closer eye on all of us,

so that within five years these and other firms will routinely

track our movements, friends, interests, purchases and

5 correspondence – then make money by helping marketers

take advantage of the information.

These companies' brash plans are pushing us toward a

thorny choice that will determine the future of computing.

Google and other Web-oriented, information-service giants are

10 determined to build a breathtaking array of services based on

your personal information, and they're betting you'll be willing

to share it with them in order for you to reap the benefits. But

if we cooperate and let them in on the details of our lives, we'll

lose much of our privacy, and possibly a lot more.

15 A privacy backlash, however, would stifle these potentially

revolutionary services before they get off the ground – and

leave the computer industry's biggest plans for growth in

tatters. That may be just what some people want. The U.S.

Congress is considering four bills that would make it illegal to

20 collect and share information online or through cell phones

about people without clearer warning and permission. These

sorts of restrictions are already in effect throughout much of

Europe, thanks in part to European Union directives on privacy

and electronic communications passed in 2002 and 2003.

25 The good news is that there's no reason to choose

between technology and privacy. New technologies are

emerging that can doctor our data so that companies know

just enough about us to ply us with customized services, while

preventing them from getting a clear picture of our private

lives. The question is again one of trust: in this case, whether

people will come to trust the companies that are trying to build

these new technologies.

(abridged from Next Frontiers in Newsweek, April 3, 2006)

Google as well as Yahoo, Microsoft and AOL among

others are gearing up to keep a much closer eye on all of us,

so that within five years these and other firms will routinely

track our movements, friends, interests, purchases and

5 correspondence – then make money by helping marketers

take advantage of the information.

These companies' brash plans are pushing us toward a

thorny choice that will determine the future of computing.

Google and other Web-oriented, information-service giants are

10 determined to build a breathtaking array of services based on

your personal information, and they're betting you'll be willing

to share it with them in order for you to reap the benefits. But

if we cooperate and let them in on the details of our lives, we'll

lose much of our privacy, and possibly a lot more.

15 A privacy backlash, however, would stifle these potentially

revolutionary services before they get off the ground – and

leave the computer industry's biggest plans for growth in

tatters. That may be just what some people want. The U.S.

Congress is considering four bills that would make it illegal to

20 collect and share information online or through cell phones

about people without clearer warning and permission. These

sorts of restrictions are already in effect throughout much of

Europe, thanks in part to European Union directives on privacy

and electronic communications passed in 2002 and 2003.

25 The good news is that there's no reason to choose

between technology and privacy. New technologies are

emerging that can doctor our data so that companies know

just enough about us to ply us with customized services, while

preventing them from getting a clear picture of our private

lives. The question is again one of trust: in this case, whether

people will come to trust the companies that are trying to build

these new technologies.

(abridged from Next Frontiers in Newsweek, April 3, 2006)

Google as well as Yahoo, Microsoft and AOL among

others are gearing up to keep a much closer eye on all of us,

so that within five years these and other firms will routinely

track our movements, friends, interests, purchases and

5 correspondence – then make money by helping marketers

take advantage of the information.

These companies' brash plans are pushing us toward a

thorny choice that will determine the future of computing.

Google and other Web-oriented, information-service giants are

10 determined to build a breathtaking array of services based on

your personal information, and they're betting you'll be willing

to share it with them in order for you to reap the benefits. But

if we cooperate and let them in on the details of our lives, we'll

lose much of our privacy, and possibly a lot more.

15 A privacy backlash, however, would stifle these potentially

revolutionary services before they get off the ground – and

leave the computer industry's biggest plans for growth in

tatters. That may be just what some people want. The U.S.

Congress is considering four bills that would make it illegal to

20 collect and share information online or through cell phones

about people without clearer warning and permission. These

sorts of restrictions are already in effect throughout much of

Europe, thanks in part to European Union directives on privacy

and electronic communications passed in 2002 and 2003.

25 The good news is that there's no reason to choose

between technology and privacy. New technologies are

emerging that can doctor our data so that companies know

just enough about us to ply us with customized services, while

preventing them from getting a clear picture of our private

lives. The question is again one of trust: in this case, whether

people will come to trust the companies that are trying to build

these new technologies.

(abridged from Next Frontiers in Newsweek, April 3, 2006)

Google as well as Yahoo, Microsoft and AOL among

others are gearing up to keep a much closer eye on all of us,

so that within five years these and other firms will routinely

track our movements, friends, interests, purchases and

5 correspondence – then make money by helping marketers

take advantage of the information.

These companies' brash plans are pushing us toward a

thorny choice that will determine the future of computing.

Google and other Web-oriented, information-service giants are

10 determined to build a breathtaking array of services based on

your personal information, and they're betting you'll be willing

to share it with them in order for you to reap the benefits. But

if we cooperate and let them in on the details of our lives, we'll

lose much of our privacy, and possibly a lot more.

15 A privacy backlash, however, would stifle these potentially

revolutionary services before they get off the ground – and

leave the computer industry's biggest plans for growth in

tatters. That may be just what some people want. The U.S.

Congress is considering four bills that would make it illegal to

20 collect and share information online or through cell phones

about people without clearer warning and permission. These

sorts of restrictions are already in effect throughout much of

Europe, thanks in part to European Union directives on privacy

and electronic communications passed in 2002 and 2003.

25 The good news is that there's no reason to choose

between technology and privacy. New technologies are

emerging that can doctor our data so that companies know

just enough about us to ply us with customized services, while

preventing them from getting a clear picture of our private

lives. The question is again one of trust: in this case, whether

people will come to trust the companies that are trying to build

these new technologies.

(abridged from Next Frontiers in Newsweek, April 3, 2006)