Sales & Marketing Alignment: How to Synergize for Success
Social Crisis Management in the Oil & Gas Industry
1. 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. Lindsey
Individual Teaching Project
Syracuse University
#SCMgmt_4Energy
2. Social Crisis Management in
the Oil & Gas Industry
• Background
• Research Questions
• Literature Review
• Industry Thought Leader Interviews
• Best Practices
• Challenges
• Conclusions
• What’s Next
3. “When written in Chinese, the word 'crisis' is
composed of two characters. One represents
danger and the other represents opportunity.”
John F. Kennedy
4. Background
Definition of a Crisis
Crisis: 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
5. 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 Crisis
By: Eli Avraham and Eran Ketter, 2011
6. 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)
7. 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.
8. 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
9. “Social Media & Crisis Comm: A Whole New Game”
Gerald Baron (2011)
Social Media’s Influence on
Crisis Communication Management
10. 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
11. 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
12. 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
13. Research Questions
Research 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?
14. 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?
15. 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)
16. 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
17. 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
18. 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
19. 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.
20. 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
21. Industry Thought Leaders
What 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
22. Industry Thought Leaders
What 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
23. Case Study
BP 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.
25. 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
31. Oil & Gas Best Practices
Digital 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
32. 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.
33. 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
34. 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
35. 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)
36. 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.
37. 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…
38. 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
39. “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