Are unconventional gas players not providing adequate compensation?

The unconventional gas exploration and production companies in Australia are met with great resistance from local communities, and at times, government. There is debate surrounding the actual environmental implications that hydraulic fracturing can have on the environment, but as projects are being developed, producers are creating local jobs and boosting local economies as way of improving public opinion.

There could be a few explanations for why communities are still resisting unconventional gas exploration. Even though the explorers and producers have information sessions about projects and provide hotlines for locals to call to ask questions, there is still a fear of the unknown and the consequences that the projects can have.

Creating jobs in communities and boosting local economy does not seem to affect the perceptions of the locals as a group. The explorers and producers are still seen as the “bad guys” and are seen to have significant amounts of capital and this could be a reason for why people’s impressions are not improved by injections into the economy.

It is a difficult path for explorers and producers to identify what they can give back to communities to improve public perception. What will need to happen is that they need to find out what the communities truly value because there is no point in giving something to someone, if they don’t want it.

Improving community engagement will be discussed at this year’s Coal Seam Methane World which will be co-located with Shale World.  If you have any questions about the event, get in touch with camilla.kamsvaag@terrapinn.com