Nick Snow
OGJ Washington Editor
WASHINGTON, DC, Dec. 16 -- A 15% reduction in its work force is only part of a major reorganization designed to modernize the American Petroleum Institute, API Pres. Jack N. Gerard said.
“We will achieve some savings, but the reorganization was not driven by budget issues. It was driven by our need to meet the demands of this century,” Gerard told OGJ.
Effective advocacy remains API’s primary mission, according to Gerard.
“The very art of advocacy has changed dramatically over the past decade. Today, through modern technology and social media, you can accomplish much more with much less,” he said. “We have expanded our grassroots capability and developed the wherewithal to touch millions of people, educate them, and mobilize them as public policy is shaped.”
He considers it essential to educate the industry’s workers and be able to mobilize them in response to issues.
“Today, we directly and indirectly employ 9.2 million people and provide 7.5% of the US gross domestic product. We are a significant component of the domestic economy,” he said.
API’s standards and practices program will continue to be an essential part of its advocacy mission.
“The standards-setting and certification programs are about the industry and what it represents. When you take those standards and how they are implemented through the industry, that in itself is advocacy at multiple levels,” Gerard told OGJ.
Becoming nimble
The trade association also plans to become more nimble and efficient, he said.
“There’s a vast difference between the size and scope of the association and the industry generally. The association is more like a small business. The issues we face in being effective and efficient can be different from what the companies face,” Gerard said.
One aspect of API which hasn’t changed is the challenge of developing a consensus from a wide range of opinions.
“I think we’re doing much better developing consensus positions, and we continue to move forward. I think it’s all about how you develop those positions. Since I’ve come here, we actually try to talk about the issues at board meetings and share ideas to fill opportunities we have in the current political climate,” Gerard said.
“We’re no different from any other industry. You’re always going to have differing opinions. When they are shared, it helps us refine our thinking and come to a good resolution. So we welcome those views from the senior-most leaders of our member companies,” he said.
Political issues can become opportunities, he noted.
“We see those opportunities today in discussions over climate. We’ve had a great opportunity to talk about the oil and gas industry as a major job creator in the US economy,” the API president said. “People are starting to pay attention. Democrats and Republicans alike are saying they probably should look to oil and gas to help bring the US economy back to health.”
API eliminated about 40 employee positions as part of the restructuring.
Contact Nick Snow at [email protected].