Calming O&G Development Concerns Through Understanding Public PerceptionPatricia EtrisManager, Community Relations and Investment

Tight Oil & Shale Gas, Water Management Canada Sept 26, 2013

Calming O&G Development Concerns Through Understanding Public

Perception ugh

Water creates strong emotions

NYSE: DVN www.devonenergy.com page 2

Have discussions before emotions are high

Canadian Oil and Gas Companies

• Canadian Oil and Gas industry has great advantages• The world is changing• Personal perspective

NYSE: DVN www.devonenergy.com page 3

The Alberta Advantage

A little personal background

• “Environmental Geologist”• MBA – Environmental Management and Sustainable Development• Eight years in community relations and investment

NYSE: DVN www.devonenergy.com page 4

Seeing community relations through a unique lens

Canadian Oil and Gas Companies

• Communities where we have operations– “License to Operate”

• Employees– Recruitment and retention

• General Public– Reputation of industry

Stakeholders

NYSE: DVN www.devonenergy.com page 5

Communities where we operate

• Community Relations Activities– Utilize local employees to gain local intelligence– Engage key community stakeholders such as municipal

government– Provide community investment funds– Provide educational and cultural programming– Have BBQ’s and open houses

Getting and keeping the bit in the ground What we do now

NYSE: DVN www.devonenergy.com page 6

Communities where we operate

• Positive– Builds trust– Clear economic benefits– Enjoy BBQ’s

• Negative– Not much control on messaging– Limited and unclear messaging– Neglects wider audiences– Changes to plans cause upset

Getting and keeping the bit in the ground Pros and Cons

NYSE: DVN www.devonenergy.com page 7

Communities where we operate

• Quantity– Fears we are “using up” water– Effects of hydraulic fracturing on water wells or surface water

• Quality– Effects of hydraulic fracturing on water well quality

• Miscellaneous– Pipeline safety– Surface spills– Disposal wells– Nuisance issues

Getting and keeping the bit in the ground What we hear about water

NYSE: DVN www.devonenergy.com page 8

Employees

• Focus – Pay and benefits

• What we have added recently– Community investments and volunteer opportunities– Make them “feel good”

NYSE: DVN www.devonenergy.com page 9

They are stakeholders tooWhat we do now

Employees

• Positive– Works pretty well, at least in short term

• Negative– Employees watch the news too– Very limited messaging

• Water concerns largely come from outside messaging

NYSE: DVN www.devonenergy.com page 10

They are stakeholders tooPros and Cons

General Public

• Investor Relations– Positive – bring in investors, spreads the wealth– Negative – many investors don’t realize they are benefitting,

coin phrases that confuse the public• Corporate Social Responsibility

– Positive – have great stories to share and data to back it up– Negative – limited circulation and even more limited

understanding

NYSE: DVN www.devonenergy.com page 11

The largely ignored stakeholdersWhat we do now

Employees and General Public

• Hydraulic fracturing effects – Water wells contaminated by

chemicals and methane. – Amount of water used

• Effects of deep water disposal• Lack of regulations• Pipeline leaks

NYSE: DVN www.devonenergy.com page 12

Those who don’t have direct experience with operations

Who to trust, what to believe?

Who can tell our story?

• Our employees and many local community members trust us• Educate them so they understand the business and technical

issues• Let them be our voice

NYSE: DVN www.devonenergy.com page 13

Make ambassadors of employees and communities

The issue of trust

What we can do better

• Basic earth sciences• Energy literacy

– Where does electricity come from– What are effects on environment from complete life cycle of

different energy forms

NYSE: DVN www.devonenergy.com page 14

Educate, educate, educateIt’s dark down there

What we can do better

• Our Business– How we protect the

environment– How we are regulated– How innovation helps– Economics of the

industry, who benefits and how

NYSE: DVN www.devonenergy.com page 15

Educate, educate, educateIt’s dark down there

Key Points

• Create Ambassadors to share our story• Educate, educate, educate

– Energy literacy, earth science• Communicate, communicate, communicate

– Think before we speak, be clear and simple• Yes, we are regulated!• Build trust

– Do what you say

NYSE: DVN www.devonenergy.com page 16

Get it? Southernmost point of US, in Key West.

Thank You