How Can Natural Gas and Energy Companies Communicate with Stakeholders and Markets More Effectively? According to Derrick May, strategy reactions in the oil and gas business often fall into one of three categories: inconsistent, social, or environmental. But there is a method to combine the two and improve consumer and stakeholder communication. Here are some suggestions for captivating audiences. Determine the attitudes and motives of your target audience, and adapt your instructional campaign accordingly.
Oil and gas firms are reevaluating their strategic strategies in light of the urgency of the energy transition. Some businesses may need to seek alternate development strategies in addition to decarbonizing their operations. The future of energy will need a cheap and dependable supply of both gases and liquids. Moreover, in order to reach international climate goals, energy-related emissions must be reduced. In this setting, oil and gas players' strategic approaches often fall into three major categories.
In the low-carbon pure-play model, oil and gas companies prioritize the transition to clean, renewable, and carbon-free energy. Using this method, some mid-sized businesses have accelerated their transitions to a new company focus or organizational structure. Orsted, which sold its petroleum business to become the world's biggest offshore wind developer, serves as an example. With a more comprehensive strategy, it has garnered a favorable market reaction. In the meanwhile, Neste is becoming a global leader in renewable jet fuel and diesel.
Derrick May argues that the oil and gas sector has not created persuasive explanations for how its participation in decarbonizing global energy systems contributes to global warming. Although the Permian Strategic Partnership (PSP) is a partnership of energy corporations and oil and gas operators, its inconsistency reveals that the sector is not doing enough to explain the significance of natural gas in a low-carbon future. Shell, for instance, has been criticized for not providing investors with its 2015 report.
There are several mobilization drivers, including as public pressure, regulators, and shareholders. Meanwhile, renewables such as offshore wind, improved biofuels, and coal-to-gas fuel switching provide the oil and gas sector with huge new commercial potential. In order to position itself as an ally in a lower-carbon economy, the energy business must comprehend how to harness its knowledge. Although these prospects are promising, the sector must educate customers on their potential advantages.
There are several chances to combine environmental and social concerns with natural gas and energy communications. For instance, the PSP include worldwide oil and gas giants. US oil and gas corporations are nonetheless sensitive to social license and environmental, social, and governance (ESG) concerns, while not being subject to the same top-down pressure to decarbonize swiftly as their European counterparts. They have a long way to go in educating the public and market about the industry's contribution to climate change mitigation.
Derrick May notices that Xcel Energy is selling off its gas assets in secret. This action enables the corporation to sell its assets at a lower price than their initial purchase price. As renewable energy and hydrogen grow less expensive, incumbents will be compelled to move to these sources. Natural gas may be phased out in the United States quicker than coal. In Europe, however, natural gas will continue to be the dominant energy source until the end of the decade.
In addition, the research addresses how the gas business may cut emissions and achieve net-zero emission targets. Developing low-carbon gas technology, promoting the development of carbon management systems, and lowering methane emissions are the primary areas of activity. The latter is an effective means of reducing the carbon footprint of the industry. Several firms have already taken action in this sector. However, many are awaiting the implementation of these reforms before investing in renewable energy.