It started as a grand event. Black Elk Energy, a small independent oil and gas company located in Houston, wanted to give back to the communities in which it had active projects, primarily in Louisiana. Titling its event “Empowering the Community,” the company was going to host a gala event in New Orleans that featured government officials, famous stars and athletes, and a smorgasbord of events holding serious sponsorship potential. Proceeds would go to the Louisiana Association of Community Action Partnerships (LACAP), a private, non-profit agency organized to promote programs engaged in raising the social and economic standards of low-income residents in the state of Louisiana.

As they say, when the going gets tough, the tough get going.

The original event, of course, was conceived when oil and gas prices were high. Even then it made sense — communities still trying to recover from several serious hurricanes in the past three years and faced with exorbitant gasoline and energy costs needed a break from the bills. But when the bottom dropped out of the market, while the details may have been scaled back, the intent remained the same — give back to the community.

I recently talked to John Hoffman, president and CEO of Black Elk Energy, about the seeming futility of trying to host a major charity event in trying times. Much like the charities that exhort people not to just donate during the holidays, Hoffman offers a fresh alternative to the concept that serving those in need should only happen when budgets are flush.

“While a lot of companies would view the tough economic times as a time to pull in their horns and trim back the ‘easy’ things, like how they deal with the community, I like to go counter to the flow,” Hoffman said. “When we originally formed Black Elk, one of our key drivers was making sure that we were a good corporate citizen and that we give back to the community. We thought that was a key differentiator compared to some of the small independents that are all about profits.”

Black Elk was formed in October 2007 after Hoffman and several of his colleagues had spent much of the 1990s living in Cairo as expats for another company. He said living in that type of community caused the expats to pull together as something more than just co-workers. Prior to that, Hoffman learned the strength of giving back to the community while growing up in a small mining town in Missouri.

“The company was all about the people, and the people were all about the company,” he said. “That’s what I experienced growing up.”

Currently Black Elk has a mix of onshore and offshore properties to balance its portfolio.

So while the gala event in New Orleans is on the shelf for now, the company still plans to hold an event to support LACAP and the people who depend on it. Current plans call for a golf tournament in Katy, Texas, followed by a dinner. The event will be held June 2 at the Willow Fork Country Club in Katy. The downscaling is both an acknowledgment of the drop in commodity prices and a stubborn refusal to give up altogether.

“I would say that we’re steady as she goes,” Hoffman said. “We did, based on sponsorship feedback, scale back the scope of the event. But we never considered canceling it.”

He added that the ultimate goal is that money will still find its way to LACAP. “If we don’t have an event, if that’s how we can maximize the donations to LACAP, then that’s the right thing to do.”

Part of the hope is that this inaugural event, held in tough times, will pave the way for future events that will generate more money when times are good. For now, holding the event near Houston cuts down on logistical headaches, and hopes are that at least US $150,000 will still find its way to LACAP.

LACAP’s agenda, he added, aligns well with “the general social sentiment”: energy efficiency, weatherization, and helping people pay their energy bills.

In addition to events such as “Empowering the Community,” Black Elk focuses on helping local communities in any way it can, including creating jobs and hiring as many local vendors as possible.

“I think a lot of folks don’t appreciate the amount of production that comes from independent producers,” he said. “I think something like 80% of US energy is produced by independents, and of that, about 80% of the independents are small companies with 20 people or less.

“We will continue to live up to our original charter, which is to do things the right way, impact the community positively, and provide adequate profits for our investors.”
For more information about “Empowering the Community,” visit www.blackelkenergy.com or www.empoweringthecommunity.com.

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