Energy in Depth Frack Talk

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Chris Tucker

[email protected]

202-346-8825

American Business Conferences

Houston, TX

November 1, 2011

Understanding, Responding to, and Workingwith Environmental NGOs



Basic Background on Energy In Depth

• Launched by IPAA in 2009• Based in Washington, D.C.

• Coalition of more than 30 state assn’s, independentand major O&G producers, service companies

• Full-scale communications effort focused oneducation, outreach specific to shale/HF

• Started as a website; now draws on a team of

nearly 15 full-time staff across four states and DC



• Two categories of environmental groups: – Ones oriented toward solutions

– Ones committed to an ideology

Not All NGOs are Created Equal



Solutions-Oriented (Most of the Time!)



… Others Driven by Ideological Attachment



What They Said Then …

“Natural gas is going to play a critical

role in our energy mix for the next two tothree, if not four, decades.”

- Bruce Nilles, Feb. 23, 2010

"Natural gas is an excellent example of a fuel that

can be produced in quite a clean way. We see it aspart of the energy transition to a post-fossilfuel economy."

- Carl Pope, Sierra Club, Jan. 8, 2010

“A revolution in natural gas production over thepast two years has left America awash with naturalgas and has made it possible to eliminate most of our dependence on deadly, destructive coalpractically overnight … [N]atural gas is an

obvious bridge fuel to the ‘new’ energyeconomy.”

– Robert F. Kennedy, Jr., Financial Times, July 19, 2009

“I personally … am both convinced by thecase for more abundant domesticsupply than previously thought … and I

am convinced that this, fundamentally from

both economic and environmentalperspectives, is good news.”- Ralph Cavanaugh, NRDC, Feb. 15, 2011



… What They Say Now

“We’ve been able to stop [natural gasdevelopment] in New York State through very

good grassroots organizing. … We were able toreally do something extraordinary, which is

get a moratorium on drilling in New York State.

It’s a temporary moratorium, but I think with goodgrassroots organizing of the kind that we have in

place, that we can make it permanent.”- Robert F. Kennedy, Feb. 13, 2011

“[If] you live in New York, take additional action

now to tell your state legislators that we musthave a moratorium on any new gasproduction using controversial hydraulic

fracturing.”

- Kate Sinding, NRDC, June 21, 2010

“National groups such as the Sierra Club, the Environmental DefenseFund and the Natural Resources Defense Council have backed

natural gas as a so-called bridge fuel that can help the country moveaway from coal and oil without waiting for renewable sources of energy,

such as wind and solar power, to catch up.”



What Changed? A Review of the Data

Source: Energy Information Administration



A Reorientation of Energy Markets

Source: Energy Information Administration



Resource Estimates Now Jump Off the Page



A “Bridge” Becomes a “Highway”



Low-Cost Natural Gas - Not Everyone’s a Fan



Anatomy of a “Movement”: Start with $$$

“Scholarships in Higher Education”



Plant Your Seeds …

Environmental Working Group

NRDC

$150, 000

$100, 000

$100, 000

$150, 000

American UniversityJosh Fox “investigative

workshop” series

American RiversMost Endangered Rivers program



Plant Your Seeds …

Environmental Advocates of NY“Just Say No to Hydrofracking in New

York” project

EarthjusticeDrinking water program

$100, 000

$75, 000

$70, 000

$95, 000

OGAP Anti-Marcellus organizer for PA/NY

National Public Radio



> $ 7 0, 0 0 0



Manufacture Your Studies

“[We] have notreceived any of

what we wouldconsider intense

peer criticism.”

- Anthony Ingraffea,

Syracuse Post-Standard web chat,

Sept. 21, 2011

“Some of the leading academicstudies have been criticized for

their source of funding. The Cornellreport, for example, was partially

funded by The Park Foundation,

which has lobbied against gasdrilling.”



And Finally, Mobilize Your Attack



Any Room for Comprise? Yes.

• Plenty of room for collaboration with solutions-oriented groups

– Disclosure

– Closed-loop systems

– Water use & recycling

– Green fluids/completions



Not as much room to work with others

– “Temporary” moratoria – Local ordinances preventing development

– EPA permatorium over hydraulic fracturing

– Complete rejection of fossil fuels

“I think that we need to get off

fossil fuels entirely.”- Josh Fox, November 5, 2010



The Way Forward

• Going above & beyond on the ground: HSE, communityengagement

• Focus on local concerns – roads, dust, noise, etc.

• Maximize local opportunities: jobs, revenue, cost-savings

• Revitalization of the middle-class

• Reintroduction of great industries of the past – Rail, Steel, Manufacturing



The Way Forward

• EID/trade groups well-equipped engage ideologicalopponents

• Reorientation of communications approach

– General public our new “landowners,” “regulators”

• Blocking and tackling

– Accept every invitation, get as many folks to rig sites as possible

– Respond in a straightforward , expeditious manner



Questions? Comments? Suggestions?

Chris Tucker [email protected]

Documents

Energy in Depth Frack Talk