December 2017
Industry Leaders Outlook 2018

#Fossilfuelsreallymatter (really)

My formula for success is rise early, work late, and strike oil – J. Paul Getty, founder, Getty Oil Co.
Robert Warren / Baclenna

My formula for success is rise early, work late, and strike oil – J. Paul Getty, founder, Getty Oil Co.

A century ago, petroleum—what we call oil—was just an obscure commodity; today it is almost as vital to human existence as water – James Buchan, Scottish novelist and historian.

You’ve got to be very careful if you don’t know where you are going, because you might not get there – Yogi Berra, New York Yankees Hall of Fame player and manager.

Near the end of 2016, an interesting development occurred that few people properly predicted, and no one could describe the probable impact on the energy industry. The arrival of Donald J. Trump and Team Trump at 1600 Pennsylvania Avenue in Washington, D.C., was at once as baffling as it was a ray of hope for the industry that drives the economy of this nation—and the world. 

While he is an enigma to many, and an example of boorish indiscretion to most, this President has made his presence known on several national and international fronts. Two of which include his certain attitude toward achieving energy dominance by the U.S., together with those he has placed in his administration to accomplish that significant goal. Had his opponent been elected, a much different agenda would have most certainly been directed toward the steady de-legitimization of fossil fuels as a fundamental and strategic American security requirement—a fact sometimes lost in the conversation.

With the transition that followed Inauguration Day, a number of congressional and Executive Branch developments began to evolve rapidly: lifting of the export ban, approval of the XL Pipeline, withdrawal from the Climate Change Treaty, review of the regulatory structure, and other actions. These are indications that there was substance in the campaign promises that had resonated with a sufficient cache of voters, who worked to tip the election, one result of which became the march toward a much more progressive energy policy. 

But while the Administration’s direction with (energy) policy appears cautiously promising, should we believe that industry health is assured? It was just over a year ago that the industry was hemorrhaging career people by the tens of thousands, amid dire predictions that true recovery was a dream.

It’s the Message, Stupid. Back in November 1992, former President George H. W. Bush was defeated in his bid for a second term, in large part by the clever adversarial messaging over the economy, and the constantly repeated claim that he just didn’t “get it.” Our industry is similarly stalked and attacked as evil and unnecessary by a coalition of hardcore activists, and many others who don’t know who—or what—to believe about fossil fuels, except that it’s causing climate damage and ruining the planet. 

Over the years, we’ve lamented the fact that the oil and gas industry—even while making extraordinary advancements in E&P operations—did not coordinate the basic message of the remarkable gift that this resource is to our nation. PR campaigns may be helpful, but they are not easily sustainable at the grass roots level, and a small minority of antagonists has worked non-stop to terminate or irreparably damage development programs underway—onshore and offshore.

Here’s the rub—in spite of much effort to stem the purposed poisoning of thinking in American society, the fossil fuel industry has long been hammered on two very connected levels: 1) the Legislative/Regulatory realm, and 2) the national education system from K-12, and then BA to PhD. The first group makes the rules and laws, and the second doesn’t (or can’t) teach the most basic components of earth science to young people, who learn little, if anything, about the energy journey from the reservoir to the pump or product. The cycle becomes more entrenched, as the newly taught eventually become the teachers and professors. 

The Message and Inconvenient Facts matter. Those who would have us riding bicycles and traveling by stagecoach are not dwindling in number, and their efforts at controlling the energy future of this nation will not cease. Most who have been elected to public office and appointed to the regulatory bodies are open to hearing the facts when fairly presented with logic and scientific data. Industry representative groups are engaged daily with messaging and information on behalf of their members. All members would do well to increase their participation, direct support,
and positive advocacy engagement whenever possible. 

The separate-but-essential linkage is the educational process. Organizations on the front lines today include the IPAA/PESA Energy Education Center, based in Houston and sponsoring five high school Petroleum Academies—four in Houston, one in Fort Worth. The school programs emphasize STEM curriculum and are making a difference in preparing graduates for the energy industry and beyond. One of the schools is the Young Women’s College Preparatory Academy, recently recognized among America’s Most Challenging High Schools (19th nationally). 

The Offshore Energy Center, also based in Houston, supports energy education through teacher workshops, and includes the Mobile Oilfield Learning Unit (MOLU) program that travels to elementary and middle schools throughout the U.S., explaining the fossil fuel story to teachers and young people. An interesting observation is the effort made by young women in these programs. Some people once believed that the industry was best left to the menfolk, but the young women are equal to the task and more. They could well lead the transformation that we must have in the next generation—and society—toward fossil fuels. There’s not much time left to get it right, since elections have consequences. 

About the Authors
Robert Warren
Baclenna
Robert Warren is president of Baclenna, Inc., an energy consulting service based in Katy, Texas. He holds a BS degree in petroleum engineering from Texas Tech University, an MBA degree from the McCombs School of Business at the University of Texas, and has completed the Corporate Social Responsibility Program at Harvard Business School. Mr. Warren has over 45 years of industry experience in foreign operations and executive corporate management. His perspectives are his, alone, but may represent the views of others.
Connect with World Oil
Connect with World Oil, the upstream industry's most trusted source of forecast data, industry trends, and insights into operational and technological advances.