DUG Canada Conference - Earning & Maintaining Social License


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DUG Canada Conference - Earning & Maintaining Social License

  1. 1. DUG Canada ConferenceEnvironment & Operating Excellence PanelEarning & M aintaining Social License Dave Collyer, P resident Calgary, Alberta June 22, 2012
  2. 2. N.A. Natural Gas Supply –The Opportunity• Shale gas supply a game- changer.• Technology breakthroughs.• New producing regions.• 100 years + supply.• Market growth opportunities (power generation, transportation, LNG exports).
  3. 3. Industry Key Success Factors• Key success factors: • Attract capital (supply & infrastructure) • Maintain / enhance support from stakeholders & public• Competitiveness • Fiscal • Regulatory • Market Access (infrastructure & tolls) • Costs• Social License = Performance + Communications
  4. 4. Industry Reputation / Social License –Framing the Issues● Local / Regional:  Environment (air, land, water, biodiversity impacts)  Social (noise, dust, activity levels, impact on local services, infrastructure & wages, local benefits, employment, etc.) … … .The prim ary focus of landow ners, com m unities, m any Aboriginal peoples, m any in public.● National / Global (first oil sands, now shale gas):  Global climate change  Oil and gas infrastructure  Role of fossil fuels in future energy system … … .The prim ary focus of m ost EN GOs, som e in the public.
  5. 5. Industry Reputation / Social License –Key Elements Perform ance + Com m unication● Performance  Continuous industry improvement: • Technology is the key lever. • Industry operating practices…..to raise bar on industry performance.  Solutions-oriented advocacy for balanced policy.  Robust & credible regulatory framework.  Science-based monitoring, 3rd party validation, transparent reporting.● Communications & Outreach:  Messaging – balanced, fact-based, solutions – oriented, “high road”.  Delivery – diversity of mediums, approaches, spokespersons.  Strong focus on outreach / engagement – local / regional / national.  Grounded in performance improvement.
  6. 6. Public Concerns About Shale Gas• People  Health effects of hydraulic fracturing chemicals.• Land  Surface footprint.  Induced seismicity.  Wildlife disruption.• Air  Air quality during extraction, processing, delivery and end-use.• Water  Groundwater contamination – migration of methane gases and fracturing chemicals.  Volumes of water used.  Handling and disposal of fluids.• GHGs  Emissions from production & processing.
  7. 7. CAPP Guiding Principles forHydraulic Fracturing W e w ill safeguard the quality and quantity of1 regional surface and groundw ater resources, through sound w ellbore construction practices, sourcing fresh w ater alternatives w here appropriate, and recycling w ater for reuse as m uch as practical. W e w ill m easure and disclose our w ater use2 w ith the goal of continuing to reduce our effect on the environm ent. W e w ill support the developm ent of fracturing3 fluid additives w ith the least environm ental risks. W e w ill support the disclosure of fracturing fluid4 additives. W e w ill continue to advance, collaborate on and5 com m unicate technologies and best practices that reduce the potential environm ental risks of hydraulic fracturing .
  8. 8. CAPP Operating Practices for rHydraulic Fracturing  Guide developm ent.  Ex pected practice, but not m andated by CAP P .  I nform / com plem ent regulations.  Contribute to safe, responsible operations.
  9. 9. Implementation of Operating PracticesCAPP Operating Practice Implementation StatusFracturing Fluid Additive • Mandatory disclosure in BC on FracFocus.caDisclosure • Mandatory disclosure in AB expected this year • Advocating for mandatory disclosure across CanadaFracturing Fluid Additive Risk • Developing CAPP chemical screening tool toAssessment & Management increase awareness of risks and drive selection of ‘greener’ productsBaseline Groundwater Testing • New West Partnership overseeing development of regional groundwater monitoring policies/protocolsWell Construction & Quality • Drafted procedures for conformance with theAssurance practice, for individual company modification and adoptionWater Sourcing, Measurement • Procedures to be developed this year& ReuseFluid Transport, Handling, • Procedures to be developed this yearStorage & Disposal
  10. 10. 2012 Communications StrategyBifurcated approach:• Primary Focus – Securing social license to operate (unconventional gas development)• Secondary Focus – Promoting the positive attributes of natural gas to increase domestic use and raise awareness of new uses and new markets for Canadian natural gas.. Data & Reporting Advertising An integrated, Measurement Issues Management long-term Scorecard Web & Social Media com m unications plan. Issues Management & Media Education & Engagement Strategy R esearch
  11. 11. Communications Focus• Advertising (TV & Print)  Raise awareness, promote positive attributes  Promote broader use  Line of sight to economic benefits  Provide a cleaner energy choice for Asian markets  Targeted print advertising for producing areas - focus on safe and responsible shale gas development• Engagement and Outreach • Natural Gas Dialogues across Canada • Community engagement • Outreach via web and social media• Media Relations  Continue with rapid-response, zero-tolerance  Media tours
  12. 12. Advertising - Upstream
  13. 13. Summary● Shale gas - a game-changer for N.A. across value chain.● Key success factors:  Competitiveness  Social License● Social License = Performance + Communications● Highly regulated industry  Leading regulators  CAPP’s Operating Principles and Practices – progressive initiative complementing regulations● Industry commitment to responsible energy development  Excellent track record  Environmental performance improvement  Increasing transparency  Consulting with our stakeholders● Strong industry commitment to communications & outreach…..for the longer term.