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Is Chevron, Shell's Twittering an Innovation Indicator?

By Kirsten Korosec | May 21, 2009

Big Oil’s embrace of social media falls somewhere between a limp handshake and a bear hug. So I was intrigued by Shell’s announcement that it will use Twitter to publish hurricane updates for the upcoming storm season. Shell’s not the only one riding the Twitter bandwagon. Chevron, for example, has a new media adviser, whose tasks include official company Twitterer.

With some much tweeting going on by tweeple, has the innovation litmus test shifted? And can energy companies educate, update and improve their image and bottom line in 140 characters or less?

Traditionally, energy companies are considered innovative when they invest in research or come up with new, more efficient ways to extract oil from hard-to-reach places. But how a company communicates is an indicator of innovation throughout its operations and within its executive ranks.

It’s not so important that oil companies are creating Twitter profiles. A quick search on the social networking site reveals a number of oil and gas producers with profiles. More indicative is how or if they actually use it. Most of the profiles have simply been reserved and there are no updates or followers. Or if you’re Exxon, someone unaffiliated with the company’s public relations machinery did the job for you.

Take Chevron, for example. The company’s new media adviser Justin Higgs tweets official company news and links to earnings reports and press releases. He also links to third-party news and blogs. Of course, that part is filtered. News and commentary posted on Chevron’s Twitter profile are NOT going to accuse the company of polluting Ecuador’s rainforest. Instead, the posts provide links to editorials, blogs and reports that offer a more supportive view.

What makes Chevron an interesting case is that he dialogues with his 316 followers. Whereas, Shell simply puts the information out there.

Shell’s hurricane tweets or its more official company tweets are probably not going to quell investor anger over its senior executive pay packages, which BNET wrote about earlier this week. But it’s tweets shouldn’t cause any additional problems either, so its a worthy public relations endeavor. Shell also has a blog on climate change.

Chevron is taking a riskier and more innovative approach because it is not simply sending out controlled messages. Company leaders are allowing Higgs to argue points on Twitter and in the greater blogosphere.

“I do all things social media,” said Higgs in a phone interview Thursday. For example, he works with the American Petroleum Institute and its Energy Tommorow Web site to involve Chevron executives in the trade organization’s blogging conference calls and podcasts.

Higgs also provides “crisis communication,” which means he monitors and responds to “misinformation about Chevron” within the blogosphere and the multiple platforms of social media. Some, not all, of that involves responding to blogs and articles covering the lawsuit filed against Chevron by Ecuadorean and American activists, he said.

“If a blog or article leaves something out or if there is misinformation, I will interject with the other side of things,” said Higgs.

Chevron also has launched a youtube page, where it aired its rebuttal to a planned “60 Minutes” report on the Chevron - Ecuador lawsuit. Chevron also will eventually add an official company Facebook page and, Higgs adds, will provide hurricane updates as well. I can’t wait for the Shell versus Chevron hurricane update Twitter-off.

Chevron’s interactive PR approach certainly displays innovation. It’ll be harder to determine if it actually contributes to its bottom line. That is, of course, until someone builds a tweets-to-profits APP.

Kirsten Korosec has been a print and online journalist for more than 10 years covering education, politics and business.

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  •  
    1

    plish

    05/21/09 | Report as spam

    RE: Is Chevron, Shell's Twittering an Innovation Indicator?

    It's not an indication of innovation just an indicator of smart business: http://bit.ly/yKiPX

  •  
    2

    kirsten korosec

    05/22/09 | Report as spam

    RE: Is Chevron, Shell's Twittering an Innovation Indicator?

    Plish - I like the equation (innovation = creativity x risk). It's probably just smart business if you weigh what Chevron is doing against all other companies out there in the world. Certainly, Twitter, Apple or Cisco is more innovative. But what about within its own industry?

    Couldn't you argue that Chevron is innovative within its own industry since it it using tools in a creative and risk-taking way that other Big Oil companies are not? And if so, does it mean they're more likely to take risks and be creative in other parts of their business model?

  •  
    3

    AnnaKay1979

    05/22/09 | Report as spam

    RE: Is Chevron, Shell's Twittering an Innovation Indicator?

    This is just another way to hide the truth, manipulate and
    avoid responsibility. Chevron should just stop that nonsense
    and help those poor Ecuadorians!
    Here's an interesting blog about the contamination that Justin
    from Chevron will not put up on his twitter:
    http://www.thechevronpit.blogspot.com

  •  
    4

    plish

    05/22/09 | Report as spam

    RE: Is Chevron, Shell's Twittering an Innovation Indicator?

    Having started my career in the petrochem industry, you are correct ? they can be pretty tight lipped. Can one say that since this type of behavior is new to the particular industry that it is innovative?

    If I give Chevron some matches and they decide to use them instead of rubbing sticks together (which is what everyone else is doing) they will no doubt be considered trailblazers/innovators in their industry while in fact some other companies will look on and say, ?Matches are a fad.? To the rest of the world, Chevron is entering the 21st Century. Not really innovative in the bigger scheme of things, yet, in a basic sense, they are doing something new to their industry.

    Is this an innovation indicator? Maybe. Most bigger companies are continually leveraging exciting new product launches against their money making base projects. They hedge their bets in this way. Given this, innovation in one part of the business, often does not translate into innovation in other parts of the business.

    Having said all that, what this DOES show is a paradigm shift, an openness that while not necessarily innovative on its own, will most likely result in changes in perspective and new market insights (provided they?re open to those insights and not just trying to convince others how great they are), which in turn can result in newer and truly innovative products. This shift in paradigm shouldn?t be trivialized.

    Great discussion!

  •  
    5

    net5000

    05/28/09 | Report as spam

    We twitter for our oil clients

    We twitter for our oil and gas clients. It can be great communication channel for oil and gas advertising.

    Don Lokke
    http://www.PetroleumAdvertising.com
    http://www.LokkeAdvertising.com

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