Perceptions in Texas

Feb. 21, 2005
Negative perceptions of the petroleum industry persist even in Texas, a state with an economy extensively intertwined with oil and natural gas for a substantial part of its history.

Negative perceptions of the petroleum industry persist even in Texas, a state with an economy extensively intertwined with oil and natural gas for a substantial part of its history. But the Texas Alliance of Energy Producers is one organization hoping to change this negative bent.

The Texas Alliance, formed in 2000 through the merger of the North and West Texas oil and gas associations-two of the oldest petroleum associations in the US-has about 2,300 members in 19 states.

It initiated a pilot program to determine if educating the public could alter some negative views.

The first part of its pilot program involved a benchmark survey, conducted by two outside independent agencies. The other parts will involve television and print advertising and a follow-up that measures the pilot program’s results.

Its benchmark survey included 753 phone interviews in Houston and 300 statewide in Texas, three focus groups composed of two general population groups and one opinion leaders group, and interviews with 10 Texas legislators and 31 industry leaders.

Survey conclusions

Changing the image of the industry at least in Texas might not be insurmountable in that 45% of the phone respondents in the benchmark survey felt that the image of the Texas oil and gas industry was good or very good. Only 26% thought the image was bad or very bad. The remaining respondents were either neutral or had no opinion.

The environment was a major concern for many respondents with about 70% in the phone survey saying that government pressure is the only reason that companies clean up sites. Also more than 50% thought government should increase its regulation of the industry, and more than 70% would support legislation to give surface rights supremacy over mineral rights.

On the mineral rights issue, one of the industry leaders said, “We used to have a natural alliance with ranchers and farmers on the land where you drilled. Now as we’re having to go into more urban areas, that alliance has disappeared. It’s a whole new group.”

Others from the industry leaders group saw themselves as deeply committed to the environment as hunters and fisherman and lovers of the outdoors but were frustrated that consumers did not share this view of them. Also they said the public did not understand that the industry’s footprint has shrunken considerable through such technologies as horizontal drilling. But even the industry leaders group was largely unaware of the industry’s $100 million contribution during the last 10 years for cleaning up abandoned well sites in Texas.

Another concern of the industry leaders was that the public lack knowledge of the industry’s use of “space age” technologies that have revolutionized its ability to find oil in places previously inaccessible.

The response from the Texas legislators was largely positive in that they recognized the importance of the industry to the state and the nation and indicated their willingness to work with the industry. But it also indicated that many legislators did not know much about the industry.

Most legislators did not think that oil companies conspired to set prices, but that prices were set in the world market and that high gas prices result from the high oil price. On the other hand, 40% in the statewide phone survey and 26% in Houston phone survey thought that industry greed led to the high prices.

One concern of the respondents from independent companies was that the public did not realize that, “The onshore oil and gas industry is mostly independents. As independents we work and live in their communities. We feel an obligation not to pollute but to be good corporate citizens because we live here, too.” Also one independent added, “We’re real people making an honest living. We’re not huge corporate enterprises.”

General perception

Choosing a picture that best represents the Texas oilman, most focus group participants chose the risk-taker or the cowboy, symbolizing the “good old boy.” They passed on the well-educated professional scientist or the negative images of a J.R. Ewing from the Dallas television show and a cigar-smoking loudmouth driving a Cadillac with longhorns.