Crises Management in the Oil and Gas Industry

Crises are situations that disrupt systems, processes, and lifestyles. They adversely impact individuals, assets, prospects, operations, and reputations of organizations and societies on short and long-terms with significant environmental, social, economic, political, and legal consequences hence the need for priority attention to crises management. This study focused on crises in the oil and gas industry with special emphasis on the lingering situation in the Nigerian-Niger Delta between the communities, the oil and gas companies, and the Government. They became international concerns due to kidnappings, fatalities, assets destruction, environmental degradation, and poverty in the oil-rich region. Despite the industry’s substantial expenditure on security, kidnapping and vandalism persist as restive youths who feel marginalized, seek to hurt systems they believe, denied them quality life. Despite general knowledge and blames traded by parties involved, the study used qualitative-historicalnarrative- approach to interview representatives of communities, oil and gas companies, and Government to discover root causes of the crises. Coping theory by Lazarus and Folkman and crisis decision theory by Sweeny were utilized to understand the reasoning and responses of the people to the decisions and management strategies of the Government and oil and gas companies. Results revealed the root causes of the crises as specific policies and strategies of the Government and oil and gas companies, ethnic crises in the region, environmental pollution and degradation and failure to remediate polluted areas, lack of basic infrastructures, lack of human and infrastructural development, unemployment, and noninvolvement of the people in decisions affecting the region. Findings were used to develop recommendations to aid Government and Oil and Gas Companies on how best to stem crises and foster peace in their areas of operation. The enormous consequences discovered by the study provide crucial lessons for operators the world over and findings can be leveraged on to ensure appropriate and proactive crises management approach in the industry.