The Voice of Gas: “Can you hear me now?”
The voice of natural gas may be a bit soft, but by sending out the right messages it can earn the social license to operate and even help in efforts to mitigate climate change.
In a session entitled “Gas Communication: Gas the public debate: still a “fuel without a voice” at the World Gas Conference in Paris, several poll questions were posed to those in attendance.
The first regarded the “global voice of gas” - is it effectively conveying the merits of natural gas? 76% of attendees in the session answered “no.”
They were also asked to pick a slogan for gas among several plays on words; “Silence of the Lamps” came out the winner.
Finally, delegates were asked what energy technologies they'd invest in for their grandchildren's trust funds: 53% answered solar and 37% natural gas.
Mr. Mel Ydreos, Chairman, Coordination Committee at International Gas Union (IGU), opened up a debate concentrated on issues like “social license,” which he said has emerged on the radar screen. “One can say that the shale gas revolution has perhaps put it up on the radar screen, but it's beyond shale. Generally, energy infrastructure is becoming much more difficult to build, whether it's a gas pipeline, oil pipeline or a windfarm. And everything centers around the social license.”
Mr. Dave McCurdy, President and CEO, American Gas Association, admitted social license means different things to different people. “To me it means local community acceptance to a company or the activities that that company may be engaged in,” he explained.
As to how well it's being done in the US, he noted that the shale phenomenon is fairly new: since 2007-08.
“Today, the industry is doing a much better job trying to communicate with engaged communities about their activities. But in the beginning – the early stages – the shale production moved from areas where people were already accustomed to that activity, to areas that were new to shale or any energy production,” he said, adding “it was a rocky start.”
According to Mr. McCurdy, the industry at that time did not engage communities as effectively as they could have.
In one of his previous positions in the Internet industry, he said he had observed that the industries that are closest to consumers do a better job of messaging the public value, public good and engagement with the community. “The farther you're removed from the customer, I think the more challenging it becomes.”
For example, he argued there used to be a disconnect between production and distribution segments of the hydrocarbons industry. “I think that may be changing; I think there's an opportunity today that we can have more of a global positive voice about the benefits of natural gas.”
Still, he observed that there are still some in the industry that question whether social license should be discussed at all. He recalled, “In the old days we just produced it, and they needed it, therefore we sold it.
“That's no longer the case,” observed Mr. McCurdy, who noted perceptions of “big oil.”
The American Gas Association, he said, is the “face of gas in our communities. We deliver natural gas to consumers, they derive the benefit.”
According to him, social license goes beyond being involved in local charity. “It means actual engagement on a regular sustained basis. If you're going to build a pipeline in a region you'd better have an action plan beforehand, an engagement plan to make sure that there is real communication and dialogue – if not, you're going to be reacting.”
In contrast to social and environmental activists, he maintained that the industry is “fact-based” in its dialogue with legislators and regulators with whom such facts may still have relevance. “But in the realm and perception of public opinion emotion, feelings and arguments must be dealt with honestly. At the same time we have to connect on a level that people understand,” said Mr. McCurdy.
Mr. Ydreos observed that this year at WGC may be the first time he's ever observed consistent messaging on the part of the industry regarding its position and what the product can do.
Noting the great need for energy in Asia-Pacific, he questioned whether social license is an issue in Korea.
Mr. Kim Jae Seob, Secretary General, Korea Gas Union, said he wanted to stress the importance of focusing communication efforts on what the public perceives as a risk due to various online media, including social media. “There is a growing gap between perceived risk and actual risk,” he explained. “In other words, the public's perceived risk is more important than actual risk, and we need to focus on our communications efforts on reducing the gap.”
To illustrate this, he noted that the public's perception of terrorist attacks is much greater than the risk of cancer or a traffic accident; in the same way they might overestimate the risk of natural gas projects. The gas industry can help alleviate such fears, he added.
According to Mr. Jae Seob, the perceived strain on water resources by fracking. “However, even in Texas water used for hydraulic fracturing accounts for less than 1% of the total use in the state. In contrast, irrigation water accounts for 56% of total use; production of coal and coal-based ethanol requires 10 times and 1,000 times more water than fracking.”
He also challenged the allegations that fracking is linked to seismic activity.
Voters are not always rational, but they are always right, noted Mr. Gertjan Lankhorst, CEO, GasTerra BV.
In connection with climate change, he stated: “I think that voters are not impressed by our arguments that gas-fired power stations are better for the environment than coal-fired power stations. Substitution of coal-fired power production by gas-fired of 1% would equal the CO2 reduction of an 11% growth in renewables – that's a fact, but I don't think it's a message that appeals to voters.”
For them, he explained, it's important what's happening in their local communities, like the purchase of solar panels, which is predicated by their neighbors doing that and the perceived independence that goes along with it, including from the energy business.
“For people, the question will always be 'what's in it for me?' And that's one of the basic reasons shale gas is a success in the US and not in Europe; in the US the landowner gets a large piece of the pie, in Europe he doesn't – all the revenues go to the government.
“If that's not changed, we can argue for shale gas in Europe for 100 years, but it will not work.”
CEOs coming to Europe and pushing for shale gas, he called “counter effective.”
Mr. Lankhorst explained, “The image of shale gas in Europe is flaring, fracking, pollution.”
The industry, he said, must listen to voters, be consistent in messaging and consider effective communications strategies for rational arguments.
Eradicating energy poverty, Mr. Ydreos pointed out, is an important and big issue. “But are we doing a good enough job of communicating how gas can change the world from an energy poverty perspective, or should we let others carry that message for us?” he asked.
In his part of the world, the Middle East, Mr. Khaled Abubakr, Chairman, TAQA Arabia said natural gas is a sign of prosperity. He explained, “It means access to modernization. In the Middle East it means an introduction to introduction to heavy industry, petrochemicals, proper hygienic air conditioning and basic cooling in temperatures of 45-50 degrees C.”
In Egypt, he added, gas can replace unsafe LPG, interrupted supply with a safe, reliable gas network to homes and commercial facilities.
In the coming years, according to Mr. Abubakr, Sub Saharan Africa needs to add almost 100 gigawatts of power to its energy systems. In 16 countries in the region, 75% of the populations have no access to power, he noted, meaning that this translated into insufficient healthcare standards and no industry.
Gas, he opined, is the best choice for Africa and it is incumbent for the industry to communicate this.
Regarding the road to COP 21, which could be a breakthrough event for global targets, Mr. Ydreos noted the proclamation from the majors seeking a global price for carbon. “Has the gas industry done a good enough job communicating our role from a climate change/environmental perspective – should we be doing more? What's going to be effective in influencing the potential framework that may result out of COP 21?”
Mr. Langhorst opined that the gas industry is doing the right things as it moves towards COP, and trying to get a place at the table is extremely important. Referring to the call by six industry CEOs requesting a carbon price, he said, “It's a good move forward, because I think we must be credible. Just saying that COP 21 is important, but not contributing yourself, saying 'my fuel is better than the others' – that's not enough. You must also act accordingly.”
Meanwhile, delegates observed that the United States and China are willing to come to the table and deliberate regarding climate targets – the US success with natural gas has made such negotiations possible, along with the Chinese desire to mitigate pollution.
-Drew Leifheit