American Oil and Gas Reporter - November 2015 - 118

ConventionSection: Arkansas Independent Producers & Royalty Owners

Oil, Gas Target Of International Crime
LITTLE ROCK, AR.-As domestic
oil and natural gas production grows,
the United States is taking over the international market's center stage. This
means it also attracts unwanted attention
from international criminals and terrorists,
the Federal Bureau of Investigation suggests.
FBI Special Agent Laura Garrett spoke
on such threats at the Arkansas Independent Producers & Royalty Owners
Association annual convention, Oct. 6-7
at the Little Rock Embassy Suites Hotel.
Garrett said the FBI's mission was to
protect and defend the United States
against terrorists and foreign intelligence
threats, uphold and enforce the criminal
laws of the United States, and to provide
leadership and criminal justice services
to federal, state, municipal and international agencies and partners.
"Everyone wants to attack, slow, or
disrupt the American oil and gas industry,"
Garrett commented. "Arkansas has become
a target for oil investment scams and
other crimes associated with the oil and
gas industry, because-to most people-
Arkansas seems to be relatively new to
the oil and gas game. So, there are a lot
of vulnerable, misinformed people of
whom the scam artists can easily take
advantage."
Among possible thieves of oil and
gas companies' proprietary information,
Garrett listed:
* Domestic and foreign commercial
rivals;
* Domestic and foreign startup companies;
* Foreign intelligence officers;
* Disgruntled employees, which are
considered insider threats; and
* Organized crime rings.
"Threats from any of these could affect
your companies' revenue, employment,
reputation, investment for research and
development, and production," Garrett
warned.
She said international companies or
foreign powers might target U.S. companies because "our industry has a lot of
resources and information that they don't,
and the easiest and fastest way for them
to catch up is to steal our companies'
proprietary information."
Garrett shared an anecdote about a
pipeline installation company employee
who was approached by a foreign agent

to trade company secrets for $100,000.
The employee pondered taking the money,
she said, but ultimately turned the agent
over to the authorities. "We hear that
there is so much money in espionage,
but the spies aren't getting as much as
we would think," she described. "The
sad truth is, crime does pay, but it doesn't
pay that well."
To combat such threats and security
issues, Garrett recommended companies:
* Not store vital information on devices connected to the Internet;
* Use encryption software when needed;
* Update fire walls regularly; and
* Be aware of suspicious behavior,
especially on a job site.
"It really doesn't take a lot of money
to be more secure," she stated. "The FBI
can help your companies evaluate security
risks and so on. Many threats are easily
preventable if you learn how to be more
aware, and how to protect the information
that is vital to your industry and our
country."

118 THE AMERICAN OIL & GAS REPORTER

Tommy Foltz, executive vice president
of the Consumer Energy Alliance, recommends industry representatives focus
their outreach efforts on political independents and nonpartisans. Foltz also
cautioned industry advocates from mischaracterizing and stereotyping opposition groups, because they "know the
law very well, and know how to utilize
social media," he said.

Speaking For Consumers
Tommy Foltz, executive vice president
of the Consumer Energy Alliance, discussed energy politics and the anti-industry
movement during AIPRO's opening day
general session. Foltz described CEA as
"opposition to the opposition groups,"
and said the alliance "speaks for oil and
gas consumers."
He remarked that CEA had seen opposition groups moving away from advocating all-out bans to seeking "reasonable setbacks." He also noted that groups
opposing oil and gas development were
"moving against downstream companies
and activity."
"These groups have climate change
and public opinion of the industry as
their moral motivation," Foltz said. "I
would expect at least 25-30 percent of
the population to be against the industry,
no matter what the issue is."
Thus comes a "battle for the middle,"
as Foltz described, because while many
political independents or nonpartisans
believe climate change is important, "they
tend to think other issues, such as jobs
and the economy, are more important."
"These are the people we need to
reach," he suggested. "People in the
middle of the political spectrum are the
least susceptible to confirmation bias.
They are the most open to reasonable arguments, and they tend to let facts guide
their decisions."
Foltz cautioned industry members and
pro-industry groups not to mischaracterize
the opposition groups through stereotypes.
"The anti-industry members are not outside
agitators or 'occupy Wall Street' types,"
he said. "These groups include parents
and professionals who are simply misinformed. And these groups do understand
government, such as the permitting process
and regulatory issues. They are also very
active on social media."
Foltz advised industry members and
their allies to "motivate the middle on a
retail basis, do a better job of using social
media, and establish credibility that the
industry is not perfect."
Oil Market Trends
Kyle Isakower, vice president for regulatory and economic policy at the American Petroleum Institute, gave the keynote
speech during AIPRO's membership dinner Oct. 6. He provided insight into how

American Oil and Gas Reporter - November 2015

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