This past week, the oil and gas industry began seeing positive signs of life after COVID-19 with Rigzone reporting Light Crude Oil ending the week at $39.55, and Brent at $42.30. Refineries are beginning to increase production capacities in converting crude oil into jet fuel, gasoline, diesel and feedstocks used in the petrochemical industry. As industrial facilities begin restarting idled plants and bringing back furloughed employees, it’s critical that management begin having conversations with stakeholders about the impacts of resuming operations.
Some stakeholders, such as employees and community leaders, are applauding these plants’ for pumping out products and contributing to the nation’s economic recovery. Plant managers should ensure these celebrations don’t drown out the voices of other critical stakeholders that may have legitimate concerns about activities accompanying industrial operations.
Nearby neighbors have short memories. Although plants have been idled for just a few months, families quickly adjust to the reduced truck traffic, noise, odors and environmental impacts normally associated with industrial manufacturing. Anticipating the concerns of communities located within a 20-mile radius of a plant will reduce the potential disruption in operations by extending a company’s “consent to operate.”
All citizens have a stake in voicing concerns created by industrial operations. Plant management is responsible for keeping residents informed about what happens inside a plant’s fence line. Upfront communications about startup procedures, emergency preparedness, air monitoring capabilities, anticipated flaring and increased traffic to/from the plant will prepare local residents for any
potential community impacts.
The Houston Ship Channel provides industry best practices in community outreach through the East Harris County Manufacturers Association with its focus on chemical and public safety programs. Their CAER Line proactively contacts local residents when an emergency event occurs, and enables residents to check-in when a plant is undergoing maintenance or other activity that is not considered normal operations.
The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada’s upstream oil and natural gas industry. CAPP members advocate for economic competitiveness and safe, environmentally and socially responsible performance. They are active in building strong, respectful relationships with communities, residents and industry neighbors as essential cogs in a company’s success.
Here are questions nearby industry neighbors typically ask plant managers:
What is your frequency in air, water and soil monitoring?
What type of security does the plant have to prevent unauthorized access to plant property?
Does your plant participate in a Community Advisory Panel (CAP), and if so, how often do they meet?
When re-starting a unit that has been idled, how much flaring will occur? Is it possible to restart a unit without flaring?
What regulatory agency approves the plant’s permits to operate?
How much authority does a local planning and zoning board have on plant operations?
How many trucks will be entering the plant daily? Do trucks carrying hazardous materials and/or require a special license for the driver?
Will the recent drop in oil/gas prices result in this plant permanently shutting down?
All industrial plants should belong to a Community Advisory Panel (CAP) to facilitate two-way communications between residents and plant management. The U.S. Environmental Protection Agency has excellent resources in establishing a CAP if your community doesn’t currently have one in place.
About the author:
Aaron Woods, APR, is a Senior Counselor with Kinetic Communications Marketing, LLC with 30 years of experience in Corporate Communications, and can be reached at awoods@kinetic-llc.com or 281.923.5733.