Today, the industry faces a new challenge of getting its product market. But this problem won’t be solved through engineering marvels. Instead, the solution lies in public relations and community engagement.
And the industry might be taking a page out of McDonald’s Corporation (NYSE:MCD) PR playbook.
How McDonald’s silenced its critics
In 2012, McDonald’s Corporation (NYSE:MCD) Canada stood up to its critics.
For several years the fast food industry was besieged by ever growing criticism. McDonald’s management was convinced that there were certain myths and misconceptions festering about the quality of the company’s ingredients and how its food was prepared.
In response to this problem, the company devised a bold campaign to address these misconceptions head-on using transparency to put any negative rumors to rest. The company launched a series called ‘Our Food. Your Questions.’ and encouraged customers to share their concerns. In exchange, McDonald’s Corporation (NYSE:MCD) would provide clear answers.
Customers asked questions like ‘Is the chicken meat real?’, ‘Do you use GMO ingredients?’, and ‘Are we supposed to believe your burgers are 100% beef?’
In one case a customer asked “Why does your food look different in the advertising than what is in the store?” McDonald’s Corporation (NYSE:MCD) responded by providing a behind the scenes look into how its food was prepared and styled before a photo shoot.
As reward for such an unguarded access the video has been watched nearly nine million times on YouTube. The effort silenced the company’s harshest critics and turned bench-sitters into fans. The innovative campaign even earned McDonald’s Corporation (NYSE:MCD) the title of Marketer of the Year by Marketing Magazine.
Oil industry tries the same approach
Much like McDonald’s Corporation (NYSE:MCD), the Canadian energy industry had done a poor job in making its case for further oil sands development. Prior to 2010, the Canadian Association of Petroleum Producers’ communication efforts were primary internal. This created an information vacuum for a well organized and funded environmental lobby to fill.
The industry has paid a heavy price for its slow reaction. The oil sands became the tar sands and TransCanada Corporation (NYSE:TRP)‘s Keystone XL pipeline became the front line against further fossil fuel development.
Today, the energy industry is borrowing the same techniques McDonald’s Corporation (NYSE:MCD) developed and applying them to their own communication strategy.
CAPP now has a series of videos that tell the oil sands industry’s story through the experiences and stories of its workers and community members.
Cenovus Energy Inc (NYSE:CVE) has emerged as a leader in trying to re-brand the oil sands. Cenovus Energy Inc (TSE:CVE) has embraced social media, reposting positive information on Twitter, YouTube and Facebook Inc (NASDAQ:FB) as well as using negative comments to encourage discussion.
The company has undertaken a massive marketing blitz. New television ads place oil sand extraction as part of a Canadian tradition for innovation and ingenuity. Print ads run not in business magazines but general interest publications like Chatelaine, Canadian House and Home, and Macleans.
Advertisements feature aerial photographs of its Foster Creek in-situ project nestled in a green, boreal forest. This contrasts significantly from the lunar landscapes of traditional strip mines.
Suncor Energy Inc. (USA) (NYSE:SU)’s goal is to encourage an open dialogue to discuss the country’s energy future as well as address myths and misconceptions.
The company has sponsored a speaker series with The Walrus Foundation called ‘The Walrus Talks Energy.’ No Suncor Energy Inc. (USA) (NYSE:SU) spokespersons will speak at these events. Rather presentations will strike a discussion between media personalities and scientists seeking to strike a balance between ‘End Fossil Fuels’ and ‘Drill Baby Drill’ extremes.
Will it work?
It’s still an open question whether the industry’s efforts will be enough to turn society’s opinion from its anti-fossil fuel views. But in the court of public opinion, actions speak louder than words. Recent safety issues continue to damage the industry’s credibility.
Last April, thousands of gallons of Alberta crude flooded an Arkansas suburb when an Exxon Mobil Corporation (NYSE:XOM) pipeline burst.
This week, Kinder Morgan Inc (NYSE:KMI) reported a second spill along its Trans Mountain pipeline. This follows only one month after the company’s 540,000 b/d pipeline expansion proposal along the same route.
At the time of this writing, a derailed Canadian Pacific Railway Limited (NYSE:CP) train carrying pipeline diluent threatens to fall into Calgary’s Bow River.
Ultimately, clever communication strategies won’t save the industry if it can’t solve chronic safety and environmental issues.
Foolish bottom line
While most investors focus on reserves and utilization rate, the future of the oil sands will be determined not by engineering ingenuity but by the industry’s ability to win over public support.
Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of McDonald’s Corporation (NYSE:MCD).
The article What McDonald’s Taught the Oil Sands originally appeared on Fool.com.
Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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