In the United States, the oil and gas industry is facing unprecedented scrutiny over the safety, environmental and societal impact of shale gas development. Media, political leaders, special interest groups and the general public are probing for information amid a cloud of skepticism and controversy.
Shale gas fundamentally changed the U.S.’s energy outlook. The American Natural Gas Association (ANGA) announced: “America has more untapped natural gas, than Saudi Arabia has oil”. This is music to the ears of a country desperate to reduce dependency on foreign oil. Many analysts and companies also expect shale gas to expand worldwide energy supply. So naturally, interest in shale gas potential has spread elsewhere - Canada, Europe, Asia and Australia.
But with more shale gas development, controversy mounts, only fuelled by any earlier mistakes, and fed by information – good or bad – that already exists. In the U.S., media reports question the environmental implications around industry practices; high-level investigations examine hydraulic fracturing (‘fracking’); and members of the Congress call for special hearings to probe the practice.
Non-governmental organizations (NGOs) and special interest groups are driving and/or echoing (you decide!) public anxiety about shale gas development, attracting attention online and in traditional media. The documentary “Gasland” by Josh Fox focuses on communities in the United States impacted by natural gas drilling and ‘fracking’. Challenged for bending the truth, the movie speaks to the fear and frustration that many citizens have.
So – in this emotionally charged setting – what should companies do to properly address the concerns of stakeholders? And how can forward-thinking companies operating in Europe or elsewhere avoid some of the communication pitfalls that occurred in the United States?
Communicate early and often. Organizations in the U.S. failed when they were forced to react to inflamed media reports, documentaries, reports, news items and NGO claims. Media and active special interest groups put industry on the defensive. Shaping an emerging issue, rather than responding to one that has already developed, allows an organization a better chance of successfully influencing public opinion.
With YouTube and Facebook you can share company and technical videos and visual materials directly. Don’t hold off outreach until you’ve found gas. Even before your geologists go out with their geo-phones and seismic trucks - the community has a right to know what’s going on.
Comprehensive stakeholder engagement strategy. That means assessing and addressing the real or perceived impact of shale gas development on all stakeholders, and handling the issues that arise. Don’t be naïve or arrogant. In the US there was a failure of imagination on what to expect with the mass introduction of shale gas development. When citizens watch ‘Gasland’ (and they will!) then you should address the movie head on and talk about the big concern it addresses, not just what the movie got wrong.
Empathy and humanity. Companies must have patience, listen to concerns, and present their case with humanity and empathy. Replace PowerPoint slide decks loaded with technical jargon, by face-to-face interaction and understandable language. Sure, there is a need to better educate the public on shale gas. You fear what you don’t understand. However, don’t confuse education (needed) with the urge to turn everybody into a mechanical engineer (not so needed). In addition, realize shale gas development is a value driven discussion – whether companies like it or not. Finding a way forward with stakeholders of differing values requires understanding and compromise.
Take it to the Streets. This is not a debate companies can win with typical opinion elite outreach. They have to take the debate online and into the impacted communities. Set up town hall meetings, put your seismic truck or information trailer in the town square, host visits to your drilling site and talk to local journalists.
Also make sure everybody gets involved in the communications effort – the operator, the contractor, the subcontractor. In the U.S. the first companies that moved in were often small, independent companies with limited communications resources. They just wanted to stay out of the paper. The result was that others filled the information gap.
Find common ground. There is a trade-off between energy production and environmental protection, but there is also common ground. The world needs energy from operators that can develop it responsibly and make it affordable. Natural gas is the cleanest burning fossil fuel and helps reduce emissions. Locally, shale gas development can provide real economic benefits. And after a few months of construction and traffic, a typical shale gas well will be a quiet industrial site - no bigger than a football pitch. But before emphasizing the long term benefits you must acknowledge and address the short term nuisance and disruption.
Transparency is the key. In the U.S. some operators resisted the call for information on chemicals used in the ‘fracking’ process because it was proprietary. The result was public outrage and a proposal for legislation that requires its disclosure.
Before trust comes openness. People might not like what they hear, but they have a greater capacity to understand when they have the facts. When they Google ‘fracking fluids’ - they find information on benzene, toluene, xylene, hydrochloric acid and sodium hydroxide. No wonder they are more concerned about the potential risks than about a company’s intellectual property.
“People don’t care how much you know until they know how much you care.” People will listen to people they trust. If a corporation shares both good and bad information and answers questions openly, it builds trust that ultimately allows stakeholders to make better choices about projects that could impact them directly.
However, it all starts with acknowledging concerns and putting yourself in the shoes of the community. As long as people don’t believe you share their concern, they won’t listen to you.
November 2011
WPNT’s Expertise in Shale Gas communications:
WPNT offers tailored communications training programs that are valuable in any corporate stakeholder interaction. We have an international client base – working across Europe, the U.S., Africa, Asia and the Middle East. In addition to executive training skills, we have extensive experience in the oil and gas sector. WPNT has gained insights because we have helped clients work through the ever-increasing scrutiny surrounding shale gas development. For more information, contact WPNT’s Dimitri Schildmeijer in Brussels at dschildmeijer@wpntworld.com or find us on www.wpntcommunications.com.