There’s no denying that the oil industry has had a major impact on communities across the United States. In many cases, that impact has been positive, bringing much-needed jobs and economic development to rural areas. Still, the negative headlines tend to steal attention from the benefits.
But it doesn’t have to be this way. There are plenty of examples of communities and oil companies working together to create a mutually beneficial relationship. By making community engagement a priority, oil companies can ensure that they’re not only operating in a socially responsible manner but also creating long-term value for their shareholders.
If you live in a town or city that is located close to an oilfield, we think you’ll agree. In this blog post, we drill into multiple ways that communities and oil companies can grow and thrive together.
Community Engagement
One of the most important things that oil companies can do is make community engagement a priority. This means proactively seeking out input from residents on everything from lease agreements to pipeline routes. How do you do this? Well, it starts with building relationships and listening.
It can be easy for oil companies to get caught up in the day-to-day grind and forget that they’re operating in someone’s backyard. But when companies take the time to connect with the people who live near their operations, it goes a long way in building trust and creating partnerships.
It also means being transparent about the company’s operations. You do this by providing ample opportunities for dialogue between community members and company officials.
Responsible Development
Another key way to create a mutually beneficial relationship between communities and oil companies is to focus on responsible development. This means working with environmental experts to develop best practices for drilling and production activities. How do you do this?
- Make sure you have a thorough understanding of the local environment and any potential impacts of your activities.
- Work with community leaders to ensure they are comfortable with your plans and that you have their support.
- Implement measures to mitigate any potential impacts on your operations.
- Regularly monitor your operations It also means implementing those practices in a way that minimizes the company’s footprint on local land and water resources.
Oil companies, following the four steps above, will serve as a blueprint for responsible development. And that will ensure the wind – in this case, the support of your community – stays at your back.
Local Procurement
A third way to create value for both communities and oil companies is through local procurement. By sourcing materials and services from local businesses, oil companies can boost the local economy while also reducing their own transportation costs. How does this apply?
For example, if an oil company is drilling in North Dakota, it makes sense to source as much of the project’s supplies from local businesses as possible. Not only does this create jobs and spur economic activity in the state, but it also reduces the company’s overall transportation costs.
The same principle can be applied to hiring local workers. Not only does this provide much-needed jobs to the community, but it also reduces turnover and training costs for the company. This is a win-win for everyone involved, and it’s something that more and more oil companies are beginning to prioritize.
Giving Back
Finally, oil companies can create value for both themselves and their communities by giving back. This could take the form of financial support for local schools or charitable organizations. It could also mean providing training and development opportunities for local residents. How do you do this?
It starts with finding ways to give back that are aligned with the company’s values. For example, if an oil company is committed to environmental stewardship, it could provide financial support for local organizations that are working to protect and restore the environment.
It’s also important to make sure that the company’s giving is having a positive impact on the community. This means working with local leaders to identify the most pressing needs and then tailoring the company’s giving to address those needs.
Oil and Gas Companies Can Be Backbones for Their Communities
The oil industry has had a major impact on communities across the United States, and it’s largely positive. There are many examples of communities and oil companies working together successfully.
By making community engagement a priority, focusing on responsible development, and sourcing materials and services locally, oil companies can create long-term value for their shareholders while also benefiting the communities in which they operate.
Are you in the oil and gas industry and looking for solutions to help you better develop your holdings? AOF Industries in Palestine, Texas, is here to help. Contact us today to learn more about our automated solutions.
