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A generator was available to power IT systems, but it When business continuity planners identify the
could not power the air conditioning, so equipment number of work spaces needed for first degree or critical staff,
overheated and had to be shut down. they should consider adding shared desk space so that
Scope and Purpose managers can schedule times to touch base, connect with and
update all staff members.
The purpose of the Disaster Preparedness Working Group was
to meet and share lessons learned during Hurricanes Katrina Better Practice: Ensure that employees have been given
and Rita and make recommendations to the global oil and gas guidelines for their own personal preparedness. For foreseen
industry on proper steps to take before, during and after events like hurricanes, allow employees some time to make
natural disasters to minimize the negative impacts on the personal preparations, especially those that will need to be
business, the employees and their families. working critical functions. Workspace impacts of longer than
The Working Group limited the scope of “natural 30 days duration (e.g., complete loss of a building) may
disasters” to: require different long-term contingencies (e.g., lease new
Weather-related events – hurricanes, floods, office space in the event of a fire). After the disaster,
tornadoes, lightning, snow, ice and earthquakes; employees that must travel for the company into the disaster
Large-scale illnesses – epidemics and pandemics; and area must have lodging, food and funds.
Terrorism and bio-terrorism.
The best practices discussed at the meetings of the
Working Group – and in this paper – do not include Better Practice: A typical mitigation strategy for loss of key
operational issues such as oil spills or gas leaks, although personnel resources was to have each business function /
many practices may pertain to such disasters as well. The department identify critical staff members and their alternates
scope of discussions encompassed the three key aspects of and communicate to them ahead of time that they will be
People, Process and Technology, and the Working Group expected to continue their duties in the event of a disaster.
formed three subcommittees to address each one, although it They should be informed of the company’s policies
was acknowledged that there was quite a bit of overlap and considering their immediate family and their home. Alternate
interconnection of these three topics. workspace strategies among the participating companies
The Working Group did not seek to establish a set of generally required more people than in the previous year.
official, comprehensive disaster preparedness “recommended
practices” like the American Petroleum Institute (API), nor did
it seek to validate or certify any particular set of existing When a natural disaster such as a hurricane is
corporate best practices. Rather, it sought to identify a set of imminent, communicate preparedness recommendations for
good industry-specific practices and lessons learned via food, water and shelter and any evacuation routes or shut-
working group discussions, reviews of case studies, and down processes employees should immediately implement.
presentations delivered in public forums. While most of these Remind them to charge their cell phones and laptop batteries
“better practices” resulted from disaster preparation lessons and fill their vehicles with gasoline and propane tanks for gas
learned from the 2005 hurricane season, others are in response grills for cooking if the power goes out.
to general heightened awareness and sensitivity to business Communicate ways for employees to secure their
risks. homes and consider ways to provide time to do so if the
employee is part of a critical business team. If an employee
People leaves town five days early to begin failover in another city,
who will board up that person’s house?
Before a natural disaster, companies can take numerous Provide employees and their family’s adequate time
steps to ensure their workers and their families have the to get out of harm’s way. If an employee is part of a critical
information they need to survive and continue critical business business team, offer financial assistance to facilitate travel to
operations. “People want to know what to do,” one oil an alternate work site, if necessary. One company paid the
company representative said. “They need to know who’s in expenses to move the employee, the family and even pets to
charge and where to get information.” another city to work there during the hurricanes of 2005.
The first step is to have an up-to-date employee “We need to get people to a place they can work, but
directory, with all contact information, including cell phone, we can’t assume the whole staff is willing to move to a second
next of kin address and phone number, and likely places to office,” one oil company representative said. “We need to be
which each employee may evacuate. prepared to have other staff in other cities pitch in and help.”
Upon hiring an employee and at each annual The HR department of this company books hotel rooms in the
performance review, each employee should be informed city of its inland office when a hurricane threatens Houston.
whether the role is first degree (critical), second degree (key) Meet with employees to update business continuity
or third degree (everyone else), and what is expected in case plans, discuss their roles, the company’s expectations of them,
of a disaster. First degree means no breaks in continuous and the business activities or projects currently underway.
operation. Second degree means important to core business Ensure that employees know the ways to get information from
continuity. Duties and responsibilities should be clearly the company and ways of providing information about their
detailed and understood. status to the company. Provide employees with regular status
updates as the impending crisis nears.
[Paper Number] 3
problems during the crisis and repairing their homes and additional drills would both raise awareness and comfort that
belongings afterward. plans were adequate. The number of lessons learned and
Understanding and documenting the applications resulting mitigation projects generated from the 2005
portfolio as well as the infrastructure portfolio was a key hurricane season was proof that companies hadn’t adequately
concern. It was generally agreed that substantial consideration drilled for such a scenario. Since then, companies that had
needed to be given to restarting applications after a disaster. previously had only crisis management programs have
Applications need to be brought back up in a certain order, developed formal business continuity or disaster preparedness
especially if they have been integrated with middleware or programs.
plug-ins. One operator commented: “You’re not just restoring
a database but a whole environment. You can’t bring it up Miscellaneous Tips and Suggestions
linearly – it’s too integrated.”
According to several large oil companies, an all-encompassing
Better Practice: The impact of a disruption of crisis plan is difficult to attempt. About 80% of it can be the
network connectivity requires rigorous review not only from a same from location to location, but the disaster plan must be
local perspective but also from all dependent sites. The customized for each locality. A crisis plan must be flexible
concentration of IT infrastructure at or near corporate or enough to be used as a whole or in part depending on the
regional headquarters meant that many field and remote sites nature of the crisis and extent of damage to community and
were linked via those hubs. As those hubs were shut down for technology infrastructures. Ensure that all types of crises
Katrina and Rita evacuations, network connectivity was lost. including bio-terrorism, pandemic, and weather are included
Some companies moved to “managed IP” solutions that in the planning process.
resulted in a network cloud rather than a hub-and-spoke A good disaster preparedness plan contains all of the
model, while others added inter-site connectivity, eliminating following elements:
the single points of failure. Chain of Command – Local chain of command
hierarchy as well as corporate level, with roles and
responsibilities spelled out in advance;
Additional Best Practices Communications – Flow of communications into and
out of the company to employees, management,
Threat Evaluation – Working Group participants considered vendors, customers, government agencies and the
the full spectrum of threats. Given the global nature of many press.
petroleum companies, there were few threats that were not Access to Facilities – Who can come in and go out,
relevant to operations in some part of the globe. In addition to including vendors, customers, government agencies
natural disasters, human malfeasance such as bombs, and the press.
terrorism, bio-terrorism, utility outage and computer viruses Resources – Lists of providers of outsourced
also need to be considered in disaster preparedness plans. services, vendors and humanitarian aid.
Further threat categorization may include “foreseen” versus One oil company has prepared a crisis management plan in a
“unforeseen” events, as well as those with global, regional and booklet that fits in a briefcase. This producer picked five crises
site impacts. and put them all on a grid on one page, with various phases
Better Practice: Over the course of 2005 and 2006 outlining steps to be taken (Phase 0 means there is some
most companies added the threat of an Influenza Pandemic to warming given with time to prepare).
their risk matrix and launched programs to prepare for such a
threat through their disaster preparedness efforts. Bird Flu is The effort put forth in developing a good plan will be
now present in 55 countries, with 39 of those added in 2006, invaluable in setting the pace for dealing with the disaster. It
and the majority of known human cases have been fatal. should ease everyone’s stress by reducing the number of
International companies with operations in Indonesia and East decisions that have to be made. It is imperative that companies
Asia have an immediate threat. Because petroleum companies keep the crisis plan alive by constant review and testing to
have a large and important role in the worldwide economic ensure that it will have the best results when it is needed. But
engine, a global threat like a pandemic would be particularly the most important part of the crisis plan is having employees
disruptive. Some companies have plans to make antiviral actually read it prior to a crisis!
medicines available, to support social distancing via working
at home, and to suspend operations safely if the worst is There were a variety of interesting tidbits shared by the
realized. Working Group and can be shared with others:
One producer raised some of its offshore platforms
Maintain and Exercise Plans – A table-top drill will ensure by 14 ft (4.3 m) at a cost of $15 million to minimize
that critical staff members are aware of their role in a disaster wave damage to the facilities.
or crisis, and it will give them a chance to think through the Text messaging became a defacto communication
process and submit changes or suggestions. In fact, they tool that seemed to function consistently during the
should participate in the development of the plans. hurricanes.
Better Practice: Scenario-based, functional exercises
Stock up on satellite phones and electricity
are the most effective way to identify gaps in any plan. There
generators.
was a general feeling among the Working Group members that
6 SPE 106920
Alternate area code cell phones improve call routing practices were shared, and those who provided company case
capabilities in an impacted area. studies and helped write up portions of this paper: Nicole
Laptops of key employees can be configured with Aguillard, CyrusOne; Cliff Dowden, Jim Rowan and Peter
wireless data Internet cards to enable remote Kaleda, Devon; Cynthia Johnson, Emilio Perez and Yanni
computing during an incident. Charalambous, Occidental Petroleum; Charles Russell and
Make plans to backfill critical roles in disaster-prone Bob Waring, BP; Ajay Savant, Larsen & Toubro Infotech; Al
locations with other employees in other areas in case Rivero, Telvent; Jonathan Rhoads, National Oilwell Varco;
you cannot contact your local subject matter experts. Mark Groeshel, Total; Micheal Wilson, El Paso; Philippe
Make sure your vendors and suppliers and Flichy, GlobaLogix; Anulika E. Ezekwe, ExxonMobil; Terry
contractors have disaster preparedness plans that will Read, Cimarex; J. Chilton and M. Hemstad, AGA Engineers;
keep them in business so your company can stay in Edward L. Haran, KPMG; James Johnson and Gary Crouse,
business. Help them with their plan and update it Siterra; Jeana Nguyen, NetIQ; Richard Crounse, Invensys;
regularly, as your supply chain is only as good as the John Wengler, Entergy; Anuarbek Imanbaev, Kerr-McGee;
weakest link. Eddy Krumholz, Booz Allen & Hamilton; Lance Stafford,
Protect critical hardcopy records from physical SAIC; Brandon Kniceley, Caprock Communications; Lars
damage by creating electronic copies. Eliassen, RigNet; Neil Campbell, Schlumberger; and Paul
Fire up your electricity generator at least twice per Miller and John McCormick, Halliburton.
year. Backup power generation equipment can be
made more weather-resilient and fitted with remote
automated monitoring and shut-down capabilities.
Update system documentation at least annually and
after every merger.
Make sure your network can handle employees
working from home, particularly for a pandemic
when people may be quarantined. Can they access
Linux and UNIX systems from home?
Conclusions
Acknowledgments
Determine events Identify and Scan options and Develop the Communicate the Update the plans
that can adversely quantify the select alternative business operations, plan to stake and assure
affect the impacts of business operating IT, communications, holders and train effectiveness
organization disruptions strategies and office space plan responders through drills
components
Figure 1. Disaster Preparedness Activities
Self-
When the company has assisted in every way possible to meet needs of the employee, the employee will feel
Actualization
empowered to make a lasting and significant contribution to the company in time of crisis.
Needs