Social Crisis Management in the Oil & Gas Industry

An oiled duck, one of at least 16, found covered in Canadian crude oil that leaked from the ExxonMobil Pegasus pipeline on March 29, 2013 in Mayflower, Arkansas

Lisa J. LindseyIndividual Teaching Project

Syracuse University#SCMgmt_4Energy

Social Crisis Management in the Oil & Gas Industry

• Background• Research Questions• Literature Review• Industry Thought Leader Interviews• Best Practices • Challenges • Conclusions• What’s Next

“When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity.”

John F. Kennedy

Background

Definition of a CrisisCrisis: Any situation that is threatening or could threaten to harm people or property, seriously interrupt business, significantly damage reputation and/or negatively impact the bottom line.

Source: BERNSTEIN CRISIS MANAGEMENT, INC. Website (2013)Jonathan Bernstein

Background

What is Crisis Communication Management?

“Crisis communication management – is an ongoing and holistic process, in which the place [organization] actively communicates with the public in order to minimize any damage to the place [organization] image.”

Source: Media Strategies for Marketing Places in CrisisBy: Eli Avraham and Eran Ketter, 2011

Background

• What is Crisis Communication Management?

Crisis communication …is sometimes considered a sub-specialty of the public relations profession that is designed to protect and defend an individual, company, or organization facing a public challenge to its reputation.

Source: Wikipedia – The Free Encyclopedia (2013)

The 10 Steps of Crisis Communications

PRE-CRISIS• Anticipate Crises• Identify Your Crisis Communications Team• Identify and Train Spokespersons• Spokesperson Training • Establish Notification and Monitoring Systems • Identify and Know Your Stakeholders• Develop Holding Statements Post Crisis• Assess the Crisis Situation• Finalize and Adapt Key Messages • Post-Crisis Analysis

Source: BERNSTEIN CRISIS MANAGEMENT, INC.

Crisis Communication - BEFORE

Event Occurs Response Media Media to public

Original design creation by Gerald Baron, Agincourt Strategies LLC Crisis Blogger (2011)Re-created by Lisa Lindsey 2013

“Social Media & Crisis Comm: A Whole New Game”Gerald Baron (2011)

Social Media’s Influence on

Crisis Communication Management

Social Media

“Social media is the perfect place for brands to foster relationships. Forward-thinking oil and gas companies can leverage social networks to demonstrate their value to the communities where they operate. This will build trust and help Americans to see how important our businesses are to the economy – both locally and nationally.”

Source: 4 Oil and Gas Companies that are Killing It in Social Media James Hahn, II Social Media Manager at Drillinginfo

OZGUR ALAZ: 7 Steps for Social Media Crisis Management

• Preparation Is A Must• Are Your Relationships Ready?• Do You Know Your Stakeholders?• Choice of A Strategy• Micro Management /Know Your Tools• Abundant Records, Abundant Information Flow• Making Statements On Social Media

Source: Ozgur Alaz on August 4, 2013. www.psfk.com/2013/08/social-media-crisis-management.html

Crisis Communication - NOW

Event Occurs Crowd Informs Crowd Public Response Participation Crowd Informs Media Informs Crowd

Original design creation by Gerald Baron, Agincourt Strategies LLC Crisis Blogger (2011)Re-created by Lisa Lindsey 2013

Research QuestionsResearch Question: How are oil & gas companies utilizing social media as a communication tool during a crisis situation?”

1. How is the oil & gas industry currently using social media for crisis communications?

2. What are the most effective/proven social media channels for oil and gas during a crisis?

3. How does the oil & gas industry communicate with media during a crisis?

4. How important is it for the oil& gas industry to embrace social media as a means to engage stakeholders’ during a crisis? How does this impact their reputation?

Research Questions con’t

Research Question: How are oil & gas companies utilizing social media as a communication tool during a crisis situation?”

5. Where do you believe the oil & gas industry’s social media engagement will be in the next five years?

6. Why is the oil & gas industry reluctant to engage in social media?

7. What percent of oil & gas companies utilize social media in a crisis?

8. What are some best practices in the oil & gas industry when it comes to social media?

Literature Review

• Examination of research articles on Social Media and Traditional Channels

Analysis of Communications Theories• Crisis Communication Theory (Combs, 2007)• Risk Management Theory (Palenchar, 2005)• Reputation Management Brown (2006)

Gerald Baron, Agincourt Strategies, LLC, CEO & Founder www.agincourt.us

Innovative education, training and consulting for crisis communication and emergency management. Founded January, 2011.

In his varied career, Gerald Baron has been a university professor, a publisher of regional business and special interest magazines, a candidate for state elected office, and a serial entrepreneur. He is the founder and creator of PIER Systems which was acquired by O’Brien’s Response Management in late 2009. He served as Executive Vice President, Communications for O’Brien’s until January, 2011 and continues as a Senior Advisor to the company, the leader in crisis and emergency response management.

@gbaron

Industry Thought Leaders – Meet the Expert

Industry Thought Leaders – Meet the Expert

William Salvin, President & Founder, Signal Bridge Communications www.signalbridge.com

Bill is an accomplished communications trainer with extensive experience working with the aviation/aerospace, defense, energy, higher education and healthcare industries. He has conducted hundreds of programs for companies such as Lockheed Martin, United Space Alliance, BP, Chevron, NASA, DuPont, Quicken Loans, University of Nebraska and many others. Bill has conducted training courses across six continents and prepared senior executives for interviews with CNN, Dateline NBC, 20/20 and The Wall Street Journal.

Bill has more than two decades of experience in communications training, corporate public relations, journalism and military public affairs. Bill has worked in nearly all 50 states and many foreign countries. Bill’s international experience includes conducting training sessions in Argentina, Canada, England, Australia, Singapore, Peru, Oman, Qatar, Djibouti, Hong Kong, Malaysia, Kazakhstan, Venezuela, Trinidad and Thailand.

@azquad6

Industry Thought Leaders – Meet the Expert

Kate Trgovac, President and Co-founder of LintBucket Media www.LintBucketMedia.com

President of Vancouver-based LintBucket Media, a boutique marketing agency specializing in social media marketing and digital content creation. Her clients include large corporations like Suncor Energy and Maple Leaf Foods as well as startups like Kinzin and Osmosus.

Her previous clients included Nike, Molson, Nabisco Canada, Procter and Gamble, Fido Mobile and Petro-Canada.

Kate has been a part-time lecturer in the University of Toronto's Faculty of Information Studies and has served on the Advertiser’s Council of the Interactive Advertising Bureau of Canada. She is an authority on social media and has been designated one of Canada's Most Influential Women in Social Media. Kate writes about the intersection of marketing and technology on her blog MyNameIsKate.ca.

@mynameiskate

Industry Thought Leaders – Meet the Expert

@itsgalinda

Michael Toyne, Director at Risk Angels www.riskangels.co.uk

Providing risk and crisis management training and consultancy to the public and private sectors. In doing so addressing the requirements of a broad range of clients within the oil and gas, shipping, security and financial industries, and including the United Nations and NGOs operating in hostile environments.

Developing and delivering risk and crisis management training and products to the Oil and Gas Industry. The introduction of risk based assessment and management to an international money transfer company. Crisis management training and consultancy to International shipping companies regarding piracy and kidnap. Risk and Crisis training to counter terrorist operatives in South East Asia. Designing and developing risk management processes for the UN in IRAQ. Developing risk and crisis processes for an international children's charity.

Industry Thought Leaders – Meet the Expert

Pamela Walaski, President - JC Safety & Environmental, Inc. www.jcsafety.com

Pam Walaski holds the Certified Safety Professional (CSP) designation from the Board of Certified Safety Professionals (BCSP), and a Certified Hazardous Materials Manager (CHMM) designation from the Institute of Hazardous Materials Management. She is a Professional Member of the American Society of Safety Engineers (ASSE), currently serving as the Administrator of the Society's Consultants Practice Specialty and the Chair of the Technical Publications Advisory Committee. Pam is also a Full Member of the American Industrial Hygiene Association and a Master's Level Member of the Alliance of Hazardous Materials Management (AHMP).

In 2011 Pam was the recipient of the ASSE President's Award, and the WISE 100 Women of Safety.

@jcsafety

Industry Thought LeadersWhat do they say?

Question 1. Does the oil & gas industry currently use social media for crisis communications?“There seems to be an increasing awareness in the oil and gas sector that social media is a powerful medium for communicating during a crisis.” Michael Toyne

Industry experts state that is the primary social crisis communications tool used by oil & gas professional that that use Social media.

“Yes. Twitter is the primary crisis communications tool used during a response. It is typically used to link to each company's web site where more complete detail is posted. Facebook is also used to a certain extent, but this is usually a reposting of material posted to the company's main website. “ Bill Salvin

“…Oil & gas companies are increasingly utilizing Youtbue and Flicker to communicate during a crisis.” Gerald Baron

Industry Thought LeadersWhat do they say? Con’t

Question 4. How important is it for the oil& gas industry to embrace social media as a means to engage stakeholders’ during a crisis? How does this impact their reputation?

• 25% of the people who use the Internet use Twitter. It has become the de facto place for breaking news during a crisis.

• Oil and energy companies that aren't engaged on social media risk being overtaken by others that will use social media in a crisis. – For example, employees of BP's Cherry Point Refinery That is a fact of life in crisis communications

these days.

• The conversation will go on with or without you, the question is whether a particular company wants to be part of it.

Bill Salvin, President & Founder, Signal Bridge Communications

Case StudyBP will always be remembered for “Getting it Wrong”

Deephorizon Explosion April 20, 2011• 11 Killed• 92,000 bpd (172 Million Gallons) in the Gulf • Coast• 85 Days to Stop the Gush of Oil• Four Days Before BP Responded • Had an active Twitter Account – 1st message

posted after 1 week.

Social media lessons from BP oil spill http://youtu.be/Rztu3lOF4rY

ExxonMobil Pegasus Pipeline Leak

Mixed Feelings about Results:

ExxonMobil, Pegasus pipeline leak March 29th, Mayflower, Arkansas

• Spewed 150,000 gallons of crude oil in Mayflower• Evacuated 20 families • Pumped crude oil into Cove of Lake Conway (oiled ducks)• Continuous updates on its Website• Engaged with Community

ExxonMobil Pegasus Pipeline Leak con’t

Oil & Gas Best Practices

LinkedIn – 110, 717 followersTwitter – 10, 796 followersFacebook – 6,391YouTube - 112,272

Oil & Gas Best Practices

5 LinkedIn – 494,176 followers LinkedIn group - 16,755 Twitter - 115,426 followersFacebook – 4,446,770 LikesYouTube - 12,209,350 views

Oil & Gas Best Practices

Twitter – 45,025Facebook - 20,362 LikesLinkedIn - 18,583 followers LinkedIn group - 7,646 members YouTube - 619,431 views

Oil & Gas Best Practices

Twitter - 1,435Facebook - 2,556 LikesLinkedIn - 119 followers YouTube -400,000 viewsiPhone app

Oil & Gas Best PracticesDigital Media

• Used to target specific stakeholders

• Overlays a company’s website or stood up in response to a crisis

• Company posts to site• Stakeholders send

inquiries• Gathers e-mail addresses

of stakeholders, pushes out messages to stakeholders directly

The oil and gas industry’s ‘Social CEO’

Michael Binnion, CEO of Questerre Energy, was dubed the ‘Social CEO’ in an article by Tom Liacas on March 3, 2013, www.socialdisruption.com.“…[he] is out there every day on his blog , on Twitter and Facebook , defending the merits of fracking and the shale gas industry.

Measurable Benefits From Using Social Media

• Brand awareness: If they do not know who you are and what you do, how can they buy from you?

• Public Relations: If your company has good things

happening, let people know about it. • SEO, or search engine optimization:

It is vital for potential buyers of your products and services to find you first.

• Transparency:Potential buyers want to know where you are located, what areas you are active in, how many people

you have on your staff and if you have partnerships that could benefit them.

• Though Leadership:Instead of just telling potential buyers you are an expert in your field; prove it.

Source: Foster Marketing Communications 2010 Survey Social Media and the Oil and Gas Industry

Best Practice Takeaways• “A Crisis isn’t when you should start “doing social media” – you need to build

your channel, your audience and your reputation long before that. Start now.” Kate Trgovac

• “Content that is good for social media isn’t typically corporate content: press releases, boring polished corporate videos, brochures, big annual reports. Create or edit content to fit the channel.”

• “Have personality. Social media is about people.”

• “It is important that you tell your companies story.” Kate Trgovac. “…Oil and energy companies that aren’t engaged on social media risk being overtaken by others that will use social media in a crisis…The conversation will go on with or without you, the question is whether a particular company wants to be part of it.” Bill Salvin.

• “Tone and authenticity online are key to building relationships.” Kate Trgovac

Three Main Challenges to Social Media Adoption

• Executive suite apprehension: “limited ability to control or provide a secure environment.” Don’t understand the technology.

• Legal ramifications (Content, context, video)

• Revenue loss (Stock Market)

Conclusion

• The oil& gas industry are beginning to recognize social media as an important and effective Crisis communication tool. But there’s still convincing to be done.

• Have presence and build relationships before a crisis.• Even if you choose to not engage proactively in social media

at this time (although increasingly, your silence is deafening), you must at least be listening.

• Be prepared to make and launch content in a variety of Social media formats and circumstances.

Industry experts believe that in five years, the oil and gas industry will still be slow adapters, but will:

• Social Media will become commonplace for oil and gas companies to be on Twitter and Facebook and to cross-post material from its website to those two platforms.

• “It will take another five years or so for most [oil & gas] companies to really understand and operate in a world where engaging and conversing are the norms rather than just pushing out highly controlled information through releases.” Gerald Baron, CEO & Founder, Agincourt Strategies, LLC

In five Years…

In five Years…

“At a minimum, I think it will become commonplace for oil and gas companies to be on Twitter and Facebook and to cross-post material from its website to those two platforms. I think energy companies are probably monitoring social media (with tools like Cision or Radian 6) more than they are using it. As they get more comfortable with it, the use will become more mainstream.

I would love to see companies use Twitter to send updates during a crisis. Why wait for an entire news release when you can give sentence by sentence updates via Twitter much faster than before. I'm not sure that will come in five years, but that's coming.”

Bill Salvin, President & Founder, Signal Bridge Communications

“When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity: Social Media to manage your reputation”

John F. Kennedy

Questions

?

Lisa J. LindseyCommunity Relations Manager

PBF Energy’s Delaware City Refining Company@LisaLinzz,

Lisa J. Lindsey+Lisa Lindsey