1. Energy Security Initiative Federal Bureau of Investigation SSRA Matthew W. Espenshade 10/07/2008 Ft. Worth, Texas UNCLASSIFIEDUNCLASSIFIED UNCLASSIFIED

2. Today’s Topics Today’s Topics  FBI Oilfield Theft Task Force  Infrastructure Protection  Economic Espionage

3. FBI Priorities Terrorism Foreign Counterintelligence High Technology Crimes Public Corruption Civil Rights Transnational Criminal Organizations White Collar Crime State, Local, International Cooperation Technology Upgrades

4. Energy Security Initiative : The evolution  Terrorism – Concentrated on infrastructure protection. FBI and private sector coordinating response to incidents or mitigated attacks, investigation and monitoring of threats. JTTF establishment.  Economic Espionage  Oilfield Theft Task Force – equipment, product, services

5. Critical Infrastructures Services so vital that their incapacity or destruction would have a debilitating impact on the defense or economic security of the United States. - Executive Order 13010 - Executive Order 13010 Services so vital that their incapacity or destruction would have a debilitating impact on the defense or economic security of the United States. - Executive Order 13010 - Executive Order 13010

7. Counterterrorism Oil and Gas Infrastructure Counterterrorism Oil and Gas Infrastructure  Targeting of oil and gas infrastructure has been discussed by UBL since 1993.  Al Qaeda has discouraged attacks on Middle East production facilities.  Encourages attacks on distribution and refinement that supplies the West.  Recent call for attacks on infrastructure in U.S., Canada, Mexico, and Venezuela.

8. Infrastructure Attacks Infrastructure Attacks  2006 attack on Abqaiq oil refining facility.  Upsurge in Nigerian attacks and kidnappings.  South American pipeline attacks.  Relatively small number by actual Al- Qaeda.  Continued threat by domestic groups.

9.  “SVR’s activities in the West have been increasingly driven by interests of Russian oil, gas, and defense companies….. Energy sales require scientific-technical espionage networks which the SVR has been actively developing since the 1990s” -Jane’s Sentinel, March 2004 Espionage Trends

10. Economic Espionage Act of 1996 Title 18 U.S.C., Section 1831 Title 18 U.S.C., Section 1832 Knowingly targets or acquires Trade Secrets For the benefit of Foreign government, instrumentality, or agent Anyone other than the owner Max imprisonment (Individual) 15 years 10 years Max fine (Individual) $500,000 less than $500,000 less than $500,000 Max fine (Organization) $10 Million $5 Million

11. Trade Secrets  All forms and types of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, whether tangible or intangible, and whether how stored….

12. The KEY!!  The owner of the trade secret has taken has taken reasonable measures to keep such information secret.  The information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by the public.  AG can commence civil action at any point in investigation to protect further disclosure.

13. ECONOMIC ESPIONAGE 101  WHO are the players?  WHAT are they after?  HOW do they accomplish it?  WHY do people engage in this?

14. WHO: Foreign Threat  Friend and Foe  Rich and Poor  Low and High Technologies  Government and Private 90 Countries Targeted U.S. Technologies

15. Foreign Collectors  Companies Only way to compete with U.S.Only way to compete with U.S. Gain access to U.S. dominated marketGain access to U.S. dominated market  Individuals Bolster their stature in a foreign firmBolster their stature in a foreign firm Revenge (Terminated)Revenge (Terminated) Private

16. Foreign Threat

17. BUSINESS INFORMATION COMPUTER SOURCE CODE ACCESS CARD CONTROL TEST MATERIALS GENETIC SCREENING DNA CELL LINE ENGINEERING PLANS DRUG DELIVERY SYSTEMS MICRO PROCESS RESEARCH CUSTOMER ACCOUNT INFORMATION NETWORK SWITCH PLANS SOFTWARE DESIGN ULTRASOUND BLUEPRINTS WHAT are they after?

18. Unsolicited e-mails Front companies Recruitment by foreign intelligence services Liaison with universities that have ties to defense contractors Attending & hosting conferences Hacking Visiting scientific and research delegations Circumventing export control laws Researches and facilities relocated overseas HOW do they accomplish it?

19. Collection Techniques  US Travelers Abroad Electronic monitoring devicesElectronic monitoring devices Foreigners IOs trained to ask the right questionsForeigners IOs trained to ask the right questions AirportsAirports  Traditional Espionage Spotting/Assessing/RecruitingSpotting/Assessing/Recruiting

20. WHY do people engage in this? Recruited By Family or Friend Recruited By Foreign IO Volunteers Money Ideology Disgruntlement/RevengeIngratiation CoercionThrills/Self-importance Personnel Security Research Center (PERSEREC)

21. HUMAN FIREWALL What projects are you working on? Would you be interested in joining me in a joint project? I’ve lost my access card/password; can you help me out? Come here often? Can I answer this question without giving away trade secrets? Why are you offering this to me? Do you have legitimate access? Mirror Mirror …

22. Oilfield Theft Task Force  Identified over $78 million in losses due to theft 2005-2007.  Similar per capita losses in Rocky Mountain Region.  Concentrate efforts on organized / interstate major theft organizations.

23. Mission Statement  “To reduce the impact of oilfield theft by prioritizing and targeting the most significant organizations and individuals responsible for the theft and interstate shipment of oilfield equipment and product.”

24. The Toolbox  Employ proactive intelligence collection.  Effective liaison with private sector.  Law Enforcement cooperation.  Sophisticated investigative techniques.  Enterprise Theory of Investigation.

25. Questions SA Matthew W. Espenshade matthew.espenshade@ic.fbi.gov (432) 570-0255