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Time for a makeover Canadian oil sands sector admits it has some catch-up to do in tackling public concerns; leaders to focus on positive message Gary Park For Petroleum News
The Canadian petroleum industry has no tougher image battle on its hands than putting some sparkle on the oil sands, commonly referred to as the tar sands by its critics — conveniently ignoring the fact that tar is a man-made substance — and as “dirty oil” by others.
The challenge has been building faster than oil sands proponents have been able to keep pace over recent years, with the oil sands labeled as Canada’s environmental culprit because of the greenhouse gases it emits and its impact on area residents, the landscape, waterways, fish and wildlife.
Perhaps too late to make a difference, the Canadian Association of Petroleum Producers has started what it calls a “different conversation,” by asking Canadians for their candid views on oil sands development.
It started in June and July by conducting interviews with 425 Edmonton residents and 429 Toronto residents, releasing those findings Jan. 8.
Mea culpas Accompanying the results was a chorus of mea culpas from industry leaders.
“Canadians are telling us we need to do better,” said Bruce March, president and chief executive officer of Imperial Oil. “We have received a clear message: The economic and security benefits of the oil sands cannot come at the expense of the environment. … We accept that criticism.”
But he said the industry is encouraged that those who participated in the survey “believe responsible development of the oil sands is possible.”
Dave Collyer, president of the Canadian Association of Petroleum Producers, conceded “We’ve dropped the ball on getting our message out and communicating. We have not dropped the ball on environmental performance as an industry.”
He said oil sands companies “can’t afford to drop the ball in terms of engagement with Canadians, engagement with policy-makers and continuing to do the things that will sustain this industry in the longer term, despite the near-term challenges.”
“We need to maintain the focus of this (communications) program during a period when the industry is in a bit of a slowdown.”
As a result, industry leaders will be more visible, spend more time explaining what companies are already doing to raise their environmental performance and debunking misconceptions while working on better ways to develop bitumen deposits, Collyer said.
‘Broader dialogue’ needed Don Thompson, president of the Oil Sands Developers Group, a nonprofit, industry-based organization whose objective is to disseminate credible information on the oil sands, said the sector has “overcome technical challenges during difficult times … in periods of US$10 crude oil.”
He said the challenge now for the industry is to embark on a “broader dialogue.”
Marcel Coutu, chief executive officer of Canadian Oil Sands Trust, the lead partner in Syncrude Canada with a 36.74 percent stake in the consortium, said wakeup call is “maybe a bit strong,” but the poll result is a clear indication of where Canadians perceptions are.
He said the industry, through the Canadian Association of Petroleum Producers, will now begin a national information campaign to “roll out our contradictions to the myths and tell the public what we are doing and what we have achieved.”
“There are some wild misconceptions in the public about this industry,” Coutu said.
It’s a tough road ahead for the industry, with spokesmen for environmental groups scoffing at efforts to repair its stained reputation.
Greenpeace: a long way to go “CAPP’s new poll tells us what we already know,” said Greenpeace spokesman Mike Hudema. “The industry has a long way to go to clean up their mess.”
Simon Dyer, an oil sands researcher at the Alberta-based Pembina Institute, an environmental think-tank, said more talk will not restore public trust.
He said the oil sands sector must “move on practices that would allow development to proceed more responsibly. Yet industry and the government still focus on this as a communications and public relations issue.”
Dyer said Pembina wants a moratorium on new projects until existing environmental problems are dealt with.
“We will continue to see the companies’ social license erode,” he said. “The time for dialogue is past. We need solutions and we need them quickly.”
Poll results The poll showed:
• Forty-two percent of respondents have a positive view of the oil sands and 32 percent have a negative view, with the rest undecided.
• Forty-six percent believe oil sands companies have not done a good job of balancing the environment and the economy; 22 percent believe a balance has been achieved.
• Seventy-one percent believe it is possible to achieve economic benefits from the oil sands and protect the environment; 11 percent doubt that can be accomplished.
• Twenty-six percent rate impacts on freshwater supply as the most significant oil sands environmental issue; 19 percent cite the impact on local wildlife and habitat.
• Sixty-three percent think Canada benefits from oil sands development; 19 percent disagree.
• Sixty-four percent believe the oil sands are an important part of Canada’s future oil needs.
• Half the respondents say they do not believe what oil sands executives say in the news media; 13 percent do.
The Canadian Association of Petroleum Producers said it will conduct another survey early this year and extend the polling beyond Edmonton and Toronto.
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