The midstream serving the Appalachian unconventional plays has significant growth opportunities but it needs to “up its communications game” with the public to assure needed infrastructure gets built.
That was the theme of Patrick Henderson, director of regulatory affairs for the Marcellus Shale Coalition, in a Oct. 13 presentation at the annual Midstream PA conference in State College, Pa. It’s critical to remember that the oil and gas industry is still new to most people in the region. That means they have legitimate questions about new pipelines, gas plants and other infrastructure. It’s important for the industry to take time and adequately address those questions, Henderson said.
“This is new to them, there is no recent history of oil and gas and it’s fair that they have questions,” he added. “They are not an obstacle to get around, they are the end game—the consumers. They are ultimately important to success.”
But the industry also should identify its opponents and recognize there is a core group firmly opposed to the development of all fossil fuels and no arguments will persuade their deeply held beliefs, Henderson said.
“You can persuade some, and some not,” he said. “The opponents are not persuadable, they don’t care. All of us have been in those conversations. It’s important to target your message to the right audience.” What the industry can gain, however, is awareness of the successful communications methods employed by these opponents, Henderson noted.
The conference, held on the Pennsylvania State University campus, featured presentations by a dozen industry, government and trade group representatives.
Henderson said the industry’s rapid growth in the region makes it a common topic of public discussion. He added that the Keystone State rose from 15th in U.S. natural gas production in 2008 to No. 2 in 2015. Its production continues to rise, he said, as does production from Ohio and West Virginia. “This is a high-performance industry across the board,” he said.
That growth—in a region beset by years of economic decline—can create strong public support for the industry, Henderson emphasized, if the public learns more and gives it strong support.
“We need to articulate the benefits better and more consistently” to a public that generally knows little about the business. “We need to look at ourselves in the mirror and do a better job of telling our story,” he said.
Henderson said that the segment’s “market challenges must equal opportunities” and public support will be necessary if the midstream expects to build out the infrastructure that Appalachian producers need.
And they do need it, he added. A current lack of midstream infrastructure has bottlenecked the region’s surging production, leading to significant price differentials below the benchmark Henry Hub gas price.
“We need more infrastructure to reach existing markets, as well as new markets,” Henderson said.
Paul Hart can be reached at pdhart@hartenergy.com.
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