On Jul 13, 2008, at 10:50 AM, Andy Driscoll wrote:
> David Brauer writes for MinnPost. This important post on Strib-owner Avistas
> undisclosed editorial conflicts reveals why mainstream media outlets continue
> to shun their responsibility for maintaining the ethics they require of of
> politicians and (most) other corporations. Andy
>
> DAVID BRAUER
>
> Strib's offshore-drilling editorial boosts owner's interests
>
> The Strib began overhauling its editorial board nine months ago, so it
> shouldnt surprise that certain editorial positions have changed. In general,
> the page has shucked its rep as a lefty lightning rod; on some days, its hard
> to find a call to action at all.
>
> But a Sunday, June 29, editorial clearly moved away from the papers reliably
> pro-environment rhetoric. Writers pointedly accused offshore oil drilling
> opponents of turning the issue into an ill-informed litmus test of
> environmental credentials. A knee-jerk no has equaled a green candidate. A
> politician wanting to discuss the issue is derided as a pawn of Big Oil. The
> snap judgment approach is unfortunate.
>
> Even though many economists link surging prices to fundamental supply-demand
> gaps, with new offshore oil years from market, the Strib breathily declared:
> Just the possibility that domestic oil supplies are expanding would likely
> deter speculators, sending prices down. (Emphasis mine.)
>
> Worried about spills? Though some environmental advocates dispute this,
> drilling technology has advanced over the past quarter century. Oil companies
> can drill more efficiently in deeper water with significantly less risk to
the
> environment.
>
> But there was one unnoted fact: The company that bought the Strib last year
> is heavily invested in that technology.
>
> Avista Capital Partners, which raised $2 billion in 2006, has more
> investments in energy (seven) than its other sectors, health care (six) and
> media (five). Its impossible to tell which segment accounts for the bulk of
> the private companys revenue, but the company's offshore drilling
> concentration is undeniable and includes:
>
> Blake Offshore. The Metairie, La.-based company touts itself as the only
> remaining privately held Offshore Rig provider left in the United States.
> Avista invested $51 million in September 2006.
>
> Frontier Drilling. The Houston-based Frontier operates and manages
> conventional drillships, semi-submersibles and floating production, storage
> and offloading vessels, its website says. Avista invested $27 million in the
> company in September 2006.
>
> Peregrine Oil & Gas. Another Houston firm, Peregrine conducts exploration
> development and production operations in the Gulf of Mexico. Avista is listed
> as one of four primary equity investors who pumped in $160 million, though
its
> share isn't specified.
>
> Geokinetics Inc. A third Houston company, Geokinetics provides shallow-water
> cable and seismic data between land and deep marine, according to its
> website. Avista invested $100 million in September 2006.
>
> The companys three other energy sector holdings Celtique Energie, Manti
> Exploration and Laramie Energy II are on-shore companies.
>
> Now, Avistas holdings and the Stribs editorial position could be a
> coincidence. Writing a pro-drilling editorial isnt beyond the pale; however,
> not acknowledging the very specific corporate conflict of interest is.
>
> Editorials are the one place in a paper where the business side formally
> exerts influence: Publisher Chris Harte sits on the editorial board. And
while
> Harte isnt an Avista Capital partner, hes a Strib co-owner the partners
> partner, in other words.
>
> I emailed Editorial Page editor Scott Gillespie to see if Harte played a
role
> in the June 28 editorial; he said he'd "pass" on the question. As I think
> about it, Im not sure it matters very much, and establishing direct
> owner-to-writer influence isnt really the point, either.
>
> The bottom line is that readers would've been better informed had the
> editorial included this sentence: Full disclosure: Star Tribune owner Avista
> Capital Partners has several offshore drilling investments. Gillespie
> declined to offer his opinion on this, too.
>
> Lets face it, if Strib reporters were writing about another company or
> powerful pol, theyd eagerly note this level of entanglement. The Strib
> editorial page should hold itself to at least that standard, which doesnt
> demand an actual conflict but merely its perception.
>
> Where does it end? Does the Strib have to append a disclaimer any time it
> writes about oil or med-tech, or media? When the corporate interests are
> advanced this precisely, yes.
> A couple of side notes:
>
> The editorial preserved the paper's long-held opposition to drilling in the
> Alaska National Wildlife Refuge; I couldn't find any Avista investments in
the
> 49th state, though some of its broader energy-equipment holdings might
profit.
>
> Also, my own full disclosure: Two ex-editorial board members, Susan Albright
> and Steve Berg, now write for Minnpost.com but didn't inspire or inform this
> piece.
>
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