How shale gas operators can optimise relationships with governments

Ok, so I think it’s pretty obvious that for Shale gas development to work anywhere, operators need to work effectively with governments.

I’ve been thinking of some of the tips operators have told me about during my research for the Shale Gas World Europe congress, and I thought I’d share a few.

1) Know the system inside out.

Understand the structure of the government, the decision making processes, the key people and most of all know the key drivers and motivators of the people in government. You must also develop an understanding of the role of the regional governments –  the opportunities and challenges of shale gas for regional government can be quite different to federal or national governments.

2) Be patient.

Taking the time to fully appreciate the government’s position on a fiscal, tax or licensing query requires patience. Operators must be prepared to invest a lot of time in building trust with the government.

3) Be prepared to compromise.

Let’s face it, there are always going to be disputes in any oil & gas development. To optimise the outcome, operators must be willing to compromise and demonstrate sensitivity to the government’s position.

These are just three I can think of from the top of my head. I’d welcome any further suggestions.