Going the Extra Mile Annual Report 2014
WHAT IS CRED? Coloradans for Responsible Energy Development (CRED) is a 501(c)6 nonprofit organization created to educate Coloradans about the energy, economic and environmental benefits of safe and responsible oil and natural gas development. CRED’s purpose is simple and clear: get the facts on fracking first before you make a decision. Anadarko Petroleum Corporation and Noble Energy Inc., two leaders in the Colorado oil and natural gas community, formed CRED to provide scientifically sound information about fracking. Even though the oil and natural gas industry has utilized fracking safely for more than 60 years, most Coloradans admit to not knowing or understanding what the process involves. As industry leaders, Anadarko and Noble are among the most technically qualified to explain the practice of hydraulic fracturing to Coloradans.
2
WHAT IS FRACKING? Hydraulic fracturing, also known as fracking, is a process used to unlock oil and natural gas typically more than a mile beneath the earth’s surface. To date, more than 2 million wells have been fracked across the United States (Energy.gov). Additionally, 95 percent of all oil and natural gas wells drilled have been fracked sometime during their lifespan (Society of Petroleum Engineers). The fracking process usually lasts anywhere between three to five days per well.
1.2 MILLION
WELLS
To keep groundwater safe, each well is encased in multiple layers of protective, industrial-grade steel pipe called casing, which is surrounded by cement. After completion, a well can produce for as long as 20 to 40 years, providing energy to consumers and long-term revenue to governments and mineral owners. In addition, completed wells sustain local jobs. 3
FRACKING COLORADO The oil and natural gas industry has helped drive Colorado’s economy for more than 60 years. In 2012 alone, Colorado’s oil and natural gas industry supported: • 110,000 jobs. • $29.6 billion in economic activity. • $1.6 billion in tax revenues for things like schools, law enforcement, first responders, parks, roads, bridges and infrastructure. • $81.5 million in severance tax revenue to the Department of Natural Resources to help protect wildlife, forestry and conserve water (Leeds School of Business at the University of Colorado Boulder).
Fracking helps keep Colorado’s energy prices approximately 23 percent below the national average and saves Colorado households $500 per year (Energy Information Administration).
4
Colorado has some of the toughest and most stringent environmental rules and regulations in the country around oil and natural gas development. The industry continues to invest in new technology to further improve the process and keep Colorado safe. landscape and return it to pre-drilling conditions. With more than 10,000 oil and natural gas wells drilled in western Colorado over the past several years, tourism, outdoor recreation activities and agriculture production continue to thrive alongside energy production.
WATER Colorado was the first state to require groundwater sampling before and after drilling operations. The Interstate Oil and Gas Compact Commission (IOGCC) and Environmental Protection Agency (EPA) have never found a case of underground water contamination due to fracking (U.S. Department of Energy/ Groundwater Protection Council, Interstate Oil & Gas
AIR Colorado is leading the way in air pollution regulations. Recently, the oil and natural gas industry worked with Governor John Hickenlooper and environmental groups to pass first-in-the-nation regulations on methane emissions from oil and gas operations. These rules will eliminate an estimated 92,000 tons of pollutants a year and protect public health (Colorado.gov, 2014).
Compact Commission).
According to the Department of Water Resources and the Colorado Water Conservation Board, fracking accounts for 0.1 percent of total statewide water usage. LAND Fracking, combined with horizontal drilling, limits land disturbance by allowing multiple wells to be located in a single location. Additionally, after a well is fracked, companies reclaim the
5
#1 OIL & NATURAL GAS PRODUCER
IN THE WORLD.
ENERGY INDEPENDENCE Advancements in horizontal drilling and fracking technology have put the U.S. on the path to energy independence. With more domestic oil and natural gas being produced than ever before, 2013 was a record-breaking year. Here’s why:
6
The U.S. surpassed Russia and Saudi Arabia as the #1 oil and natural gas producer in the world.
Net energy imports were the lowest in 20 years. And we’re producing so much energy that total exports reached a 20-year high (Energy Information Administration).
CRED IS MOVING THE NEEDLE The alignment of CRED’s effort and the shift in tone in the media is both recognizable and undeniable. Through the various phases of its program, CRED educational efforts have moved the needle significantly.
72
percent of Coloradans have heard of CRED.
6
percent support from n u s n fr c n oper t ons
ne r
5
percent of Coloradans are ore l el to oppos e a orator on frac n
Here’s how we did it...
7
COMMUNICATING WITH COLORADANS Prior to CRED, 88 percent of Coloradans knew of fracking, but were unclear of what it was and how it worked. Coloradans were also receiving information two to one from anti-fracking groups and nearly 50:1 on social media. It was clear that the oil and natural gas industry’s messaging was not working. Additionally, local initiatives and the threat of a statewide ban on fracking were being openly discussed. In 2012, a ballot measure to ban fracking in Longmont passed and ballot measures for fracking moratoriums were voted on in Boulder, Broomfield, Fort Collins, and Lafayette. All passed. Over the next year, CRED changed the dialogue with the public. Instead of avoiding the subject and word “fracking,” we addressed it head on, educating Coloradans on the process and why it was safe. We partnered with business organizations, tapped into community groups and encouraged oil and natural gas employees–our best messengers–to talk to everyone from their neighbors to friends to strangers on the street. Giving a “face” to an industry often broadly referred to as “Big Oil,” helped chip away at the negative perception. Through traditional and digital media, an aggressive outreach which included going neighbor-to-neighbor, we were able to get Coloradans the facts about fracking. This started to move the public past the misleading, frightening sound bites put out by extreme groups, and towards CRED’s specific messages: the substantial economic benefits of fracking, energy independence, the fact that Colorado has some of the toughest regulations in the country, and the right of Coloradans to be free from governmental interference and control their private property.
8
9
The Advisory Committee is a bi-partisan group of distinguished political leaders that join CRED in its public education and outreach mission of building awareness regarding the importance of fracking, and its continued role in responsible oil and natural gas development in Colorado.
10
ADVISORY COMMITTEE HONORARY CHAIRS: • Bill Owens, Former Governor of Colorado • Roy Romer, Former Governor of Colorado • Hank Brown, Former U.S. Senator • Terrance Carroll, Former Speaker of the Colorado House of Representatives
ADVISORY COMMITTEE: • Chad Auer, Mayor of Firestone • John Barry, President and CEO, Boys & Girls Club of Metro Denver • John Brackney, Director of Strategic Community and Public Policy Engagement, Webolutions • Kelly Brough, CEO, Denver Metro Chamber of Commerce • Rob Cohen, CEO, IMA Financial • Terry Fankhauser, Vice President, Colorado Cattlemen’s Association • Cathy Garcia, President and CEO, Action 22 • Diedra Garcia, CEO, Hispanic Chamber of Commerce • Barbara Kirkmeyer, Weld County Commissioner • Jim Martin, Former EPA Region 8 Administrator • Dr. Nancy McCallin, President, Colorado Community College System • Troy McWhinney, Chief Investment
• •
• •
• • •
Officer & Co-Founder, McWhinney Wendy Mitchell, President and CEO, Aurora Economic Development Council Roy Palmer, Senior Vice President, Public Policy and External Affairs, Xcel Energy Bruce Rau, Director of Land Development, Oakwood Homes David Tabor, Senior Vice President, Business Partnerships, Colorado Association of Commerce & Industry Ted Trimpa, CEO, Trimpa Group, LLC Jordan Vana, Program Director, Colorado Open Lands Tamra Ward, CEO, Colorado Concern
11
ADVERTISING A traditional advertising campaign is critical to CRED’s mission of educating Coloradans on the subject of fracking. Radio, television, and outdoor advertising with messages that address areas of misunderstanding identified through research allowed CRED to expand its effectiveness. Our strategy to use real Coloradans creatively has struck a balance by acknowledging there are legitimate questions regarding fracking, while also discussing the regulations and benefits of the oil and natural gas industry.
“Así que hablemos de ello. Y lleguemos a conclusiones claras basadas en hechos comprobados cientificamente. ¿En cuántos pozos se ha hecho fracking?”
Fracking has been safely used since
Get the on fracking
12
DIRECT MAIL 2.1 million pieces of mail were delivered to more than 550,000 households over the course of 2014. In September 2014, CRED sent postcards to 27,000 Coloradans who signed the CRED pledge, activating individuals throughout Colorado.
Coloradans for Responsible Energy Development PO Box 13015 Denver, CO 80201
PRSRT STD U.S. POSTAGE PAID DENVER, CO PERMIT NO. 4033 CRED-5
The natural gas industry supports hundreds of jobs in Larimer County – including mine. Fracking is key to our local economy. – Emily, Larimer County
Fact:
The oil and natural gas industry supports more than 2,300 jobs in Larimer County. Source: Western Energy Alliance, Oil and Natural Gas Industry 2014 Economic Impact Study
13
CRED.ORG In one year we drove 554,872 page views—making CRED a trusted source. And we’ve set a new industry standard by explaining fracking in a digestible and relatable manner. Through our blog, we’ve highlighted how fracking benefits Coloradans, explained how fracking works, and debunked fracking myths. We’ve put a face to our movement, featuring an impressive line-up of guest bloggers that include former Colorado governors, a former U.S. Senator, a regional EPA administrator, environmentalists, energy workers, military veterans, and county commissioners—just to name a few. These voices make fracking personable while validating the facts.
14
STUDYFRACKING.COM StudyFracking.com filled an information void in Colorado. Coloradans had questions about fracking and StudyFracking.com gave them a place to directly ask their questions and receive answers. With more than 487,964 page views, StudyFracking.com immediately became a popular resource for commonly asked questions about fracking. Our goal is to ensure no question goes unanswered. We welcome people to submit questions so that we can keep our site fresh and relevant. Lastly, rather than telling users what they should know, the search engine allows users to control their fact finding mission—legitimizing the content and increasing transparency.
15
SOCIAL MEDIA Our multi-channel digital approach amplifies CRED’s message, making it accessible and hard to ignore. Social Media gives CRED a 24-hour platform to effectively engage supporters and expand our base. By posting engaging content on Twitter, Facebook, and LinkedIn we’ve generated thousands of shares and created conversations online—activating a team of ambassadors to push CRED’s message across their social networks and offline. This social conversation helps familiarize Coloradans with fracking and persuade them that the oil and natural gas industry does benefit their communities and families.
16
CRED MOBILE APP The free CRED mobile app allows Coloradans to access facts on the go, which helps to spread our education movement to every corner of the state. Whether Coloradans are at a social event or talking casually with friends or neighbors at the grocery store, they can quickly fact check what they’re hearing and share information about the thousands of jobs, millions of dollars in tax revenue and lower energy costs that responsible oil and natural gas development generates. The CRED app is another tool in our fight to making Colorado’s fracking benefits known.
17
MEDIA AND COMMUNICATIONS A NEW RESOURCE FOR JOURNALISTS CRED is a go-to source for journalists so they can get all of their questions about fracking answered in a timely manner. CRED also began a rapid response system to correct inaccurate statements made in the press and issued more than 25 press releases in its first year. To date, CRED has fielded 520 media inquiries, been quoted or mentioned more than 220 times, published 25 guest commentaries and submitted more than 100 letters to the editor of various publications.
A NEW TWIST ON ADVERTISING CRED created an advertorial insert program in partnership with major Colorado publications resulting in a firstof-its kind, highly-visible, custom content publishing strategy tapping into existing news sources. The goal of each insert was to educate readers with accurate and unbiased information, such as industry’s beneficial impact on the economy and its work to protect environmental resources, as well as innovative technologies being used to further America’s energy independence. Combined, more than one million Coloradans are reached directly with CRED’s advertorials.
18
CRED OUTREACH CRED’s outreach efforts are focused on creating a broad-based coalition of organizations and influencers, including: women, Hispanics, professional organizations, community leaders, public health, sportsmen, education, chambers of commerce, and the business community. CRED established an infrastructure for managing presentations and events throughout the state deploying trained presenters with effective educational materials and a large modular exhibition booth appropriate for both indoor and outdoor venues. Volunteers viewed and used the CRED events calendar and sign up for opportunities for shifts at CRED.org/volunteer. CRED’s outreach team recruited 60 individuals— community leaders, educators, scientists, engineers—for use with CRED’s advertising efforts, including television, radio, print and digital media. CRED’S PARTNER: VITAL FOR COLORADO
IN 2014 WERE ORGANIZED AND COMPLETED BY THE CRED AND VITAL TEAMS ACROSS COLORADO.
Vital for Colorado is a broad coalition of business and civic leaders who advocate on behalf of responsible energy development of oil and natural gas and touts the benefits associated with oil and natural gas production in Colorado. Vital strongly believes it’s time for the business community to exert its voice in this important debate. In 2014, Vital for Colorado’s supporters soared to almost 35,000 businesses, organizations and individuals. Vital members include all of the major chambers of commerce in Colorado, nearly 1,000 businesses and dozens of nonprofits, conservation organizations, and civic leaders from all corners of the state.
19
COMMUNITY OUTREACH AND EDUCATION A very active neighbor-to-neighbor outreach effort, which included speaking with Coloradans at their doors to educate them about the benefits of the oil and natural gas industry, as well as sign up supporters to help with the CRED effort, played an integral role in changing the conversation about fracking. In all, the CRED team of neighbor-to-neighbor messengers was more than 250 strong. These messengers were trained in the nuances of fracking and oil and natural gas development and were highly experienced at the doorstep. They’ve gone householdto-household spreading facts about fracking and the oil and natural gas industry in some of the state’s key communities in the middle of the fracking debate. The infrastructure and logistics that sustains the program include several hundred iPads, 20
complex mapping software, and new tools of data analysis. CRED’s first neighbor-to-neighbor project in Aurora and western Arapahoe County in January, February, and March set the stage for a strong educational outreach program. From there, the education effort continued to Larimer County in May and June and then a statewide effort spanning eleven counties throughout Colorado in the fall. This year’s neighbor-to-neighbor educational efforts were a success. Outreach teams moved from having to explain what CRED’s mission was to being warmly welcomed and recognized at the door over the course of 2014.
9,081 SHIFTS
1,079,191 KNOCKS
249,190
CONVERSATIONS
23%
CONVERSATION RATE
66,780
IDENTIFIED SUPPORTERS
THE NUMBERS Statistics include educational efforts through CRED and political efforts through Protecting Colorado’s Environment, Economy, and Energy Independence.
21
The oil and natural gas industry has partnered with state government and environmentalists to enact some of the country’s toughest environmental regulations to protect Colorado’s air, land, water and people.
22
COLORADO REGULATIONS CLEAN AIR, CLEAN JOBS (APRIL 2010) The state’s largest utility converted several of its oldest coal-fired plants to clean burning natural gas.
HYDRAULIC FRACTURING DISCLOSURE (DEC. 2011) Energy companies must publicly disclose the concentrations of all chemicals in hydraulic fracturing, which are published on FracFocus.org.
GROUNDWATER MONITORING (JAN. 2013) Colorado started the first-of-its-kind stringent water testing program, requiring both preand post-drilling water sampling.
SETBACKS FROM BUILDINGS (FEB. 2013) Oil and natural gas drilling rigs must be located at least 500 feet away from homes or offices and 1,000 feet from buildings with large numbers of people, such as schools and nursing homes.
METHANE LEAK DETECTION AND REPAIR (FEB. 2014) Colorado became the first state in the country to require energy companies capture 95 percent of emissions from both volatile organic chemicals and methane. 23
(800) 425-0856 info@CRED.org facebook.com/CREDorg twitter.com/CREDorg linkedin.com/company/coloradans-for-responsible-energy-development www.StudyFracking.com | www.CRED.org
For more information on the success of Coloradans for Responsible Energy Development, please contact the managing firm, Pac/West, at 720.259.4625. 24