American Oil and Gas Reporter - September 2017 - 115

Responsibility Integral To Oil And Gas
By Edward P. Cross

For decades, those of us in the U.S.
oil and natural gas industry have lamented
prevailing public perceptions and the lack
of trust that lingers between the public
and industry. Despite periodic calls for
more industry openness, as well as a number of high-profile campaigns to inform
the public, Americans seem less mindful
than ever of how important oil and gas
are in their everyday lives, and appear increasingly skeptical toward companies
that find, produce and deliver the oil and
gas that make modern living possible.
In this era of technological disruption,
many industries are fighting to stay relevant. Oil and gas face a time of energy
abundance that creates an enduring oversupply that not only suppresses prices,
but also allows consumers to make new
choices about their energy usage. In this
environment, public perception about the
industry is more critical than ever.
Recent consumer research has gauged
how the public and industry think about
a number of key energy issues. The study
finds that Americans value the industry
for its expertise and its technological
prowess, but they remain unconvinced
that oil and natural gas companies are
trustworthy on important issues such as
protecting the environment. Most importantly, Americans recognize that the oil
and natural gas industry efficiently delivers
essential products, but people increasingly
prefer other sources. Consumers base
how much they value oil and gas largely
on necessity, a weak attribute for longterm appreciation and support. Consumers
are waiting for the next preeminent energy
source. In the meantime, they will accept
oil and natural gas.
These perceptions color every opinion
the public has of oil and natural gas companies-from their reputation as corporate
citizens to their attractiveness as potential
workplaces. Peoples' perceptions are created from a number of sources where
they may see repeated information that
may or may not be accurate. Social and
mainstream media, and other forms of
real-time communication, entrench these
perceptions and become many peoples'
realities, regardless of whether those perceptions are accurate or distorted. When
industry representatives respond to criticism only with technical answers, many
people with visceral concerns view industry as treating corporate social responsibility as an add-on to their businesses
and not a driver.

Research also reveals that consumer
choices are becoming more deliberate and
value-driven. Consumers' definitions of
wealth have broadened during the last
decade to include views on what constitutes
responsibility, leadership, quality, and corporate kindness and empathy. People are
willing to support organizations, industries
and companies based on broader criteria.
Knowing these trends provides the oil and
gas industry with an opportunity.

An Opening
There is a very real chance to form a
stronger, more effective connection with
the American people that recognizes their
values and concerns while improving
their understanding of the critical role
that oil and natural gas play in Americans'
everyday lives. This type of connection
is more than an opportunity. Earning the
American public's trust will become an
absolute necessity to protect and enhance
the many key elements of business success-from recruiting and retaining talent
to access to capital, regulatory stability,
tax fairness and more.
According to some, the purpose of
business is to make money and deliver
investor value, and so balancing the
profits we take from society obligates us
to pursue a program of good works and
philanthropy that are distinct from the
business in which we actually engage-a
program of "public relations." However,
I find that a majority of oil and gas exploration, drilling and production companies see responsibility not as an addon, afterthought or public relations gloss.
These companies understand responsibility comes through what we do and
how we do it, not by adding some extra
activity. Those in the oil and natural gas
industry fulfill this responsibility by supplying goods and services at affordable
prices in ways that make the activity
sustainable.
The complexity of the process, from
the beginning to first oil production, is
remarkable. Companies manage not only
the geology and engineering, all the associated technology of constructing an
oil development, and market access, but
also all the issues of landowner relations,
environmental impact, workforce development, political challenges and more.
Those issues are not add-ons for the
people developing these resources. They
are not questions of public relations
dressed in the language of good works
and philanthropy. They are integral elements managed to make projects viable.

Augmented Approach
People want to know that the oil and
natural gas industry cares. We should
continue to address public concerns about
important economic and environmental
issues with accurate, fact-based information that separates fact from fiction, reality
from myth, and proven practices from
hyperbole. However, we should augment
our approach to addressing big-issue, visceral concerns to include information
about how companies already care about
peoples' needs and concerns. We also
should communicate and illustrate how
responsibility is an integral part of industry's considerations and decisions.
By themselves, technical answers often
are lost on the public and strike many as
out of touch. Combining technical answers
with explanations of how integral responsibility is to industry actions provides
transparency, empathizes with peoples'
concerns, shows leadership in addressing
those concerns, and underscores the considerable extent to which industry's and
society's values align, all of which will
help foster public trust, loyalty, commitment and support.
r

EDWARD P.
CROSS

Edward P. Cross is president of
the Kansas Independent Oil & Gas
Association. He is an active member
of the Independent Petroleum Association of America and serves as secretary-treasurer of the Liaison
Committee of Cooperating Oil & Gas
Associations. In addition, Cross is a
past chairman of the Interstate Oil &
Gas Compact Commission Public
Outreach Committee. He serves as an
executive board member for the Domestic Energy Producers Alliance,
and also serves on the board of the
Council for a Secure America and as
an advisory board member to the Tertiary Oil Recovery Project. Cross is a
licensed professional geologist and
certified school business official holding a B.S. in geology and an M.B.A.
from Southern Illinois University.
SEPTEMBER 2017 115



American Oil and Gas Reporter - September 2017

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