Posted by Stacy Richter on November 17 at 4:30 PM
No Oil. I Want Off Oil. You would never know that these are taglines from a marketing campaign by a carpet manufacturer exhibiting at the Greenbuild Conference and Exhibition last week in Phoenix, AZ. You also may or may not be surprised about a segment that aired on The Newshour with Jim Lehrer) questioning if the impact of producing the oil sands is worth it.
Elizabeth Brackett was reporting on the value vs. the impact of the oil sands (click here to see the segment:
The Newshour). Although I feel the portrayal in this piece was the most fair I’ve witnessed in a long time, the oil and gas industry still does not come out ahead. Frankly, I’m not surprised.
The beginning of the piece recognizes that Canada, in particular the oil sands, is the single largest provider of oil and gas to the United States. Much of the discussion centers on the ‘toxic tailings’ and the amount of fresh water used to produce bitumen. One source from the Pembina Institute states that “[producing bitumen] emits about [3x] as much greenhouse gas [per barrel] as conventional Canadian or American oil.”
From what I learned at the Oil Sands Conference in Edmonton late September, processes eliminate the need for tailings ponds creating ‘dry tailings’. Technologies are being used that eliminate the use of fresh water in favour of saline water, which is not potable. So why is there a recent story about the oil sands environmental sins using old information? Which story do you think the public will see and believe... the well known news report broadcast over the internet or a single line statement buried in a company’s sustainability message of this year’s annual report?
Here are some tips to managing PR in the Oil and Gas industry:
1. Don’t ignore Public Relations as an element in your overall marketing program.
PR is one of the lowest costs, highest value marketing tactics compared to advertising and some other initiatives1. “Use press releases, speaking engagements, contributed articles and white papers to create company awareness and credibility.” The industry could use a lot more credibility.
2. It’s a matter of relationships and being a resource.
A key component of PR is building relationships with editors, reporters, analysts, etc. They will be on top of what is hot at any given time and with the right relationship, they will keep you on top as well. Create a mutually beneficial relationship where they will get good stories to tell and you are able to have good stories told about you.
3. Don’t just think “news release.”
News releases can be effective given the right timing and situation but takes considerable expertise and finesse. Most of the oil and gas industry uses them simply to release financial reports or for crisis management. Engage in addressing trade associations or business groups. Industry groups are good but be sure to include non-industry groups as well. No sense in soap boxing solely to a crowd that agrees with you. There’s no opinion to be won there.
4. It’s not what you say, it’s what others say.
If advertisements are what you say about yourself, PR is what others say about you. PR is about building your reputation. Would you believe a person who boasts of their own exploits or the person who tells you about the exploits of another? Good or bad, the ENGO’s have a much greater impact on your reputation than you. This will affect your share price, your employee morale and your bottom line.
Public Relations are an effective tool to market your company. But like any tool, it cuts both ways if used incorrectly. If you don’t have a PR firm, find one. If you do, get another one.
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1. Hirigoyen, Patrick. (2009). Principle of PR for insurance pro. Best's Review, 110(5), 20.
doi:Business Source Complete
2. Habrock, Colleen. (2009). Maximizing your marketing on a lean budget.. SDM: Security
Distributing and Marketing, 39(10), 160. doi:Business Source Complete
Topics: energy, strategy, sustainability SHARE: 
5 Comments so far...
Great post. It's a shame that energy companies still bury their heads in the sand about these issues. I know from experience oil and gas companies think that their business is none of anyone else's business, even when they are trying to do the right thing. Get over it guys, it is not 1950, start engaging the public on your own, before someone starts forcing you to!
Posted by Jason on November 18 at 9:04 PMThe PR approach can't be slick and carpet bombing advertising campaigns will do more harm than good.
Authenticity, accuracy and comprehensive commentary are keys to credibility. Any traditional media massaged messaging crafted to key messages only digs deeper holes.
Anyone who thinks the K.I.S.S. principle will work in explaining these complexes issues should be voted off the island.
For some serious insight for Albertans especially, as owners of the hydrocarbons in the province, read Green Oil by Satya Das. Available on line at www.greenoilbook.com. Full disclosure, Das is my business partner and I published the book
Posted by Ken Chapman on November 19 at 12:08 PMStacy, the oil sands have unresolved environmental impacts that will have to be cleaned up before anyone is going to buy the advertising.
The tidbits you heard at the Oil Sands Conference are just that - pie in the sky R&D that are not representative of what the industry is doing on the ground. Sure, stakeholders want dry tailings, but what is happening in the lab is different from the millions of new litres of liquid waste produced every day. Likewise, some companies are looking at saline, but freshwater use is going up!
Industry and Government documents already read like propaganda. Because of industries singular focus on expaninding production, cumulative impacts in 2009 are worse than they were last year, and so on, and so on.
As far as I can tell, industries only talking points are 1) You need our oil - suck up the impacts 2) We are not as bad as China/Coal Plants etc
Neither of these options are very attractive, so maybe this is why we do need to get off oil in the long term.
Posted by Darcy on November 20 at 11:33 AMKen,
I agree with you that creative PR 'spins' will only aggravate the issue and I like that you brought up authenticity and accuracy as key components. I would also like to add sincerity.
I would say that traditional media massaged messaging, as you put it, does not have these elements. The new face of branding is not necessarily will your logo be more recognizable than the next (of which PR and advertising are good at doing), but a matter of congruence. It's not enough for the oil and gas industry to say they do this or that but to prove that they do it and for the right reasons. Social media will be the judge and jury.
Thanks for your comments.
P.s. Thanks for mentioning Green Oil. I've read the book (electronic copy of course) and loved what Satya had to say and better yet, the way it was said. Great job!
Posted by Stacy Richter on November 30 at 4:30 PMDarcy,
Thanks for your input. I have no arguments that the oil and gas industry needs to do much better by way of the environment. I truly believe that the executives and employees of these organizations truly do not want to continue polluting and excess.
And you're also right.. the government and organizational documents do read like propaganda. Part of the reason is that we, Joe Public, don't quite believe it yet. We're always hold back that part of our opinion that wonders what sinister acts are they hiding behind the nice press releases.
The industry needs to put action behind words. They would be right that our energy needs, as consumers, will not be satisfied at a price we are willing to pay using 100% renewables.
I think it was an interview with Jeroen van der Veer (former CEO of Royal Dutch Shell) for whom can not recall the reference, where he said that 90% of energy today comes from oil and gas. By 2050 only 60% of energy will come from oil and gas but our energy needs will triple.
Using hydrocarbons for energy is not likely to fade out in our lifetime but perhaps we can make it's use easier to swallow.
Thanks for you post.
Posted by Stacy Richter on November 30 at 4:45 PM