US oil and natural gas industry groups had some advice at a Denver industry conference that seemed counterintuitive at first: Accept your policy defeats, talk about climate change and put hydraulic fracturing front and center in the public conversation.

The groups have updated their public outreach strategies as the energy policy environment in the US, including parts of the West, appeared likely to remain challenging for fossil fuel companies. In recent years, the industry has faced growing attempts to block fossil fuel use in the transportation and building sectors, as well as a wave of rulemakings for Colorado oil and gas production, the groups acknowledged at the LDC Gas Forums Rockies and West conference.

The industry will probably continue to lose policy battles for the next few years, particularly in the West, according to Kevin Slagle, vice president for strategic communications for the Western States Petroleum Association (WSPA). The WSPA represents major petroleum producers, refiners, transporters and marketers in five states.

Recognizing this difficult environment, the industry should take a patient, consistent approach as policies such as zero-emission vehicle mandates and restrictions on gas use in buildings take effect, Slagle said during an Aug. 17 presentation.

"We're going to have to do it for the longer term," Slagle said. "It's really difficult to ... get out of the fight when it's right in front of your face."

Waiting out anti-gas policies

The approach starts with communicating to citizens about how these policies will affect their lifestyle, such as blocking their ability to cook with gas, he said. At the same time, the industry must explain how gas-based solutions and innovations can help states achieve their climate goals, he said.

"We don't have to necessarily attack the people behind the bans. We don't have to attack the bans and mandates themselves," Slagle said. "We need to tell people consistently over and over what the issue is, what it's going to mean to them ... and then we need to say there's a better way."

In Slagle's view, policies restricting oil and gas use will ultimately prove unworkable and become unpopular with the public. Patient, consistent messaging about gas-based decarbonization strategies will prepare the public to pivot to those pathways in the coming years, he said. The pathways discussed during the conference included lowering carbon intensity across the oil and gas supply chain by expanding emissions measurements and verification, incorporating renewable natural gas into distribution systems, and using waste heat recovery to power parts of pipeline systems.

Slagle also urged the industry to shift away from advertising campaigns that emphasize how much the world needs fossil fuels and instead focus on campaigns that solicit feedback from the public on how anti-gas policies affect them.

WSPA has focused on identifying groups of people who think similarly about energy, Slagle said. The group has launched a major new campaign aimed at Latinos, an important and growing voting block whose views on energy often align with the group's position. The initial effort collected roughly 400 stories about how anti-fossil fuel policies would impact respondents' lives and businesses, Slagle said.

Lessons from Colo. shale fields

Following many policy battles over oil and natural gas drilling regulations in Colorado, the state's producers have learned that they should lean into conversations about the environment and climate change, Colorado Oil and Gas Association President and CEO Dan Haley said during an Aug. 16 presentation.

The oil and gas industry should acknowledge the role that renewable energy will play in our future while pushing back on the idea that the country will phase out fossil fuels any time soon, Haley said. The industry should have honest conversations about the tradeoffs that come with all energy choices, he said.

Producers should also encourage domestic and foreign policymakers to visit modern, low-emitting US hydraulic fracturing sites, Haley said. The industry should talk to the public about the technology and innovations that allow companies to precisely target shale oil and gas formations through directional drilling, he said.

"People need to understand how we're getting cleaner, better in this industry, more innovative," he said.

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.