Executive viewpoint

For decades, the U.S. oil and natural gas industry has lamented its public perception, and the lingering lack of trust between the public and industry. Despite periodic calls for more industry openness, as well as 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 hydrocarbons that make modern living possible.

In this era of technological disruption, many industries are fighting to stay relevant. Oil and gas are facing a time when energy abundance is creating a permanent oversupply. This abundance not only keeps prices low, it also allows consumers to make new choices about their energy usage. In this environment, public perception of the industry is ever more critical.

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 gas companies are trustworthy on important issues, such as protecting the environment. Most importantly, Americans recognize that the industry efficiently delivers products they need, but, increasingly, people would prefer other sources. Consumers base how much they value oil and gas largely on necessity, a weak attribution for long-term appreciation and support. Consumers are waiting for the next best thing when it comes to their energy. In the meantime, they will accept oil and gas. 

Public angst demands the right response. These perceptions color every opinion that the public has of industry companies—from their reputation as corporate citizens to their attractiveness as workplaces. People’s perceptions are created from a number of sources, where they may see repeated information that may or may not be accurate. Social media, mainstream media, and other forms of real-time communication entrench these perceptions and become many people’s realities, regardless of these perceptions’ accuracy or distortion. When industry responds to criticism with technical answers alone, many people with visceral concerns view industry as treating corporate social responsibility as a business add-on, and not a driver. 

Research reveals that consumer choices are becoming more deliberate and value-driven. Consumers’ definitions of wealth broadened over the last decade, to include what constitutes responsibility, leadership, quality, and corporate kindness and empathy. People will support organizations, industries, and companies based on these criteria. Knowing these trends provides an opportunity for our industry. 

There is a very real opportunity to create 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 gas play in Americans’ everyday lives. This type of connection is more than an opportunity. Earning the trust of the public 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.

Communicating industry’s responsibility. Some would say that the purpose of business is to make money and deliver investor value and, to balance out the profits, we should pursue a program of good works and philanthropy that is distinct from the business we are doing—a “public relations” program. However, a majority of oil and gas drilling and production companies see responsibility not as an add-on, afterthought or public relations gloss. These companies understand that responsibility comes through what we do and the way we do it, not by adding some extra activity. Those companies fulfill their responsibility by supplying goods and services at prices that people can afford, and in a sustainable manner. 

The complexity of the process, from beginning to first oil production, is remarkable. Companies manage not only the geology and engineering, the construction of oil development, and market access, but also 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 up in good works and philanthropy. They are integral elements managed to make projects viable. Responsibility is not additional; it is absolutely integral.

People want to know that the industry cares. We should continue to address public concerns about 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 that approach to include information about how companies already care about people’s needs and concerns. We also should communicate and illustrate how responsibility is an integral part of industry’s considerations and decisions. 

Technical answers are often lost on the public and come across as “out of touch.” Combining technical answers with explanations of how integral responsibility is to industry actions provides transparency, empathizes with people’s concerns, shows leadership on those concerns, and underscores the considerable extent to which industry’s and society’s values align, all of which helps foster public trust, loyalty, commitment and support. 

About the Authors

Edward Cross

Kansas Independent Oil & Gas Association

Edward Cross serves as President and COO of the Kansas Independent Oil & Gas Association (KIOGA), where he is responsible for public policy advocacy and interaction with external stakeholders, including elected officials, regulators, government decision-makers, and community leaders. Mr. Cross has served in this position since September 2003. At KIOGA, he is director of staff, editor of the association’s publications, serves as an industry spokesperson for media and other forums, and is an industry advocate as a registered legislative agent. On behalf of KIOGA members, Mr. Cross lobbies in both Topeka, Kansas, and Washington, D.C. He serves as an executive board member to the Domestic Energy Producers Alliance (DEPA) and a board member of the Council for a Secure America. He is an active member of IPAA and serves as an advisory committee member to the U.S. Global Leadership Coalition. Mr. Cross also serves as Secretary/Treasurer of the Liaison Committee of Cooperating Oil and Gas Associations. In addition, he is a Kansas-appointed Associate Representative to the Interstate Oil & Gas Compact Commission. He is a licensed professional geologist and holds a B.S. degree in geology and an MBA from Southern Illinois University.