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Appalachia

Appalachian Economy Sees Few Gains From Natural Gas Development, Report Says

By Jon Hurdle - Inside Climate News, August 23, 2023

Natural gas production in the Appalachian region of the United States has failed to produce promised increases in jobs and income since the fracking boom began there in the late 2000s, with economic stagnation likely to persist now that output of the fuel has passed its peak, according to a report issued on Tuesday.

The study from the Ohio River Valley Institute, a nonprofit research group, found that gas-producing areas of Pennsylvania, Ohio and West Virginia lost more than 10,000 jobs from 2008 to 2021 and that their personal income growth trailed that of the three states and the U.S. as a whole. Their population dropped by more than 46,000 during the period.

Even though gross domestic product of the 22-county region surged at four times the rate of the states overall from 2008 to 2019, little of that new wealth helped local economies because natural gas investment is mostly made in capital, not labor, and because many of the industry’s workers came from distant areas like Texas or Oklahoma where oil and gas skills were more readily available, the report said.

“GDP, which is often cited as a principal barometer of economic health, failed to produce commensurate gains in local measures of prosperity and well-being, including job, income and population growth,” it said.

Frackalachia Update: Peak Natural Gas and the Economic Implications for Appalachia

By Sean O'Leary - Ohio River Valley Institute, August 22, 2023

By the first quarter of 2020, EQT Corporation, the nation’s largest domestic producer of natural gas, was supplying more than 4 billion cubic feet of natural gas per day. Just a decade earlier, EQT’s output wasn’t even one-tenth as much and the company ranked an undistinguished 25th for output among US producers. But EQT had the good fortune and foresight to base all of its operations in Appalachia, which made it the greatest beneficiary of what turned out to be the world’s richest natural gas field. 

In those early days of 2010, when EQT was the scuffling little guy trying to find a place among giants, such as ExxonMobil, the company employed just 1,815 people. But, by 2020, when EQT’s production had surpassed that of ExxonMobil and all others, its employee count mushroomed to . . . 624.

Yes, EQT’s head count actually declined by nearly two-thirds between 2010 and 2020. In fairness, some of EQT’s job reduction was attributable to its spin-off of Equitrans Midstream (EQM) in 2018. But, even if you add EQM’s 2020 head count to EQT’s, combined employment at the two companies was only 1,395 in 2020, still a quarter smaller than EQT’s workforce in 2010.

EQT’s tale of skyrocketing output accompanied by a shrinking workforce helps us understand important things about the shale gas industry. It helps explain why, as the Ohio River Valley Institute documented in 2021, the Appalachian natural gas boom failed to deliver what had been expected to be hundreds of thousands of new jobs for the region. And it demonstrates that as the natural gas industry matures, it becomes less jobs-intensive and its already meager contributions to economic development and prosperity become even fewer. The dynamic is simple. As a larger share of output comes from existing wells and fewer new ones are dug and work is completed on the construction of processing plants and pipelines, fewer workers are needed. 

Consequently, if production stagnates and the only need for new wells is to replace those that retire, the economic value of the gas industry to Appalachia may diminish even further. And if the Energy Information Administration is correct in its most recent forecast for domestic natural gas production between now and 2050, that is exactly the scenario Appalachia and its natural gas industry are facing.

According to the EIA’s “Annual Energy Outlook 2023”, Appalachian natural gas production likely peaked in 2022. Although this year’s events may prove that forecast to be incorrect in the short term, the long-term trend is clear. Production is leveling off. Indeed, data show that Appalachian production began to plateau as early as 2019. And, as this report will show, economic outcomes in the 22 counties in Ohio, Pennsylvania, and West Virginia that are responsible for 90% of Appalachian gas production deteriorated even further since 2019, which was the last year examined in ORVI’s original study of the Appalachian natural gas boom’s economic impacts in the counties where it is concentrated – an area christened “Frackalachia.”

Download a copy of this publication here (PDF).

Black Lung is Killing Coal Miners Again; They Don’t Have to Die

By Kim Kelly, Union Jake and Adam Keller - The Valley Labor Report, August 16, 2023

Kim Kelly, labor journalist, author of "Fight Like Hell: The Untold Story of American Labor," and friend-of-the-show, joins us to talk about another disease epidemic that no one's talking about that is hurting some of the country's hardest workers.

Read Kim Kelly's full report on how Silica is destroying the lives of coal miners and their families: here.

Building Worker and Community-focused Economic Transitions in Coal Country

Miners Deserve Protection from Black Lung Disease

Targeted Employment: Reconnecting Appalachia’s Disconnected Workforce

By Claire Kovach, Stephen Herzenberg, Amanda Woodrum, and Ted Boettner - ReImagine Institute, Keystone Research Center, Ohio River Valley Institute, July 25, 2023

The Appalachian region has long suffered from not having enough good paying jobs. Even when the unemployment rate is low, too many Appalachians are disconnected from the workforce entirely due to a myriad of factors. The result has been a long-term structural unemployment problem that has persisted for decades, with too many Appalachian adults out of the workforce entirely and unable to secure a decent paying job where they live.

A federal job subsidy program that is targeted at breaking down barriers to employment – such as improving the skills and experience of potential workers to meet current employer demands in their local labor market – and connecting them with a job could not only boost incomes and improve the livelihood of thousands of Appalachians but also give people self-esteem, a source of identity, and feel more connected to their community.

This report examines the economic conditions of Appalachia with a particular focus on the Appalachian counties of four states—Kentucky, Ohio, Pennsylvania, and West Virginia—that comprise the footprint of ReImagine Appalachia and the Ohio River Valley Institute. This includes describing how Appalachia has been a “region apart” from the rest of America, including its history of resource extraction and exploitation, the collapse of the steel industry, and now coal, that has led to large employment losses in the area, and how the region’s uneven development has led to chronically low rates of employment, disenfranchisement from the labor market and even loss of hope underpinning the opioid epidemic from which the Appalachian region was particularly hard hit.

Download a copy of this publication here (PDF).

Black Lung is Killing Miners Again, and Government is FINALLY Responding

Gulf South and Appalachia Join to Fight Climate Injustice

By staff - Labor Network for Sustainability, June 30, 2023

The Gulf South and Appalachia have increasingly been the targets of environmental destruction by fossil fuel and other toxic industrial infrastructure – and the location of significant campaigns against that destruction. Over the past year-and-a-half the climate justice center Taproot Earth convened People’s Movement Assemblies to align grassroots organizers and regional efforts across the Gulf South and Appalachia. Along with the Climate and Community Project they have issued the “We Choose Now Climate Action Strategy” which highlights the deep connections between the Gulf South and Appalachia and calls for action to reject extractive economies and cultivate regional solutions that advance collective healing and climate justice.

The report notes that,

For many communities in the Gulf and Appalachia, the most lucrative financial paths are fossil fuels, military, or drugs. Future generations deserve more opportunities. We need solutions that move us away from labor that is extracted and exploited, to labor that is fulfilling and life-giving.

Proposed solutions include:

1. Repurpose fossil fuel infrastructure for renewable energy economy
2. Build a mine/well reclamation or fossil fuel transition workforce
3. Develop state Civilian Climate Corps and expand existing environmental job training programs

For Executive Summary: https://taproot.earth/wp-content/uploads/CAS_Executive_Summary_2023.pdf

For Full Reports: https://taproot.earth/category/reports/?eType=EmailBlastContent&eId=433c6f6a-c4d1-4906-bb49-a4cb89ac33eb

The Young Miners Dying of “An Old Man’s Disease”

By Kim Kelly - In These Times, May 17, 2023

Black lung is completely preventable. And it’s on the rise again.

“Is that the wind you hear howlin’ through the holler?
Or the ghost of a widow that cries?
For every man that died for a coal company dollar
A lung full of dust and a heart full of lies”
—“It’s About Blood,” Steve Earle (2020)

Adaptation is a way of life for John Moore. He’s worked construction, run a wig shop and now promotes concerts. The wig shop idea came to him because his middle daughter was having trouble styling her thick, curly hair. He didn’t know much about wigs, or hair in general, so he learned and started turning a profit soon after the grand opening. That’s the kind of man he is — someone who’s always looking out for the next opportunity, the next chance to make it.

When we meet, Moore is wearing a black puffer jacket, a black durag, work boots and a cautious smile. He’s soft-spoken but firm, and he lights up when he talks about his wife and three kids. At a glance, he seems strong, the kind of person who can win an arm-wrestling contest or help you move — like a man with a lot of living left to do.

But instead, Moore, at only 42, is dying of black lung disease.

You see, Moore’s résumé also includes a few lines familiar to many people in Central Appalachia. He spent about 11 years running coal and clearing debris in the mines of Southern West Virginia. During that time, a cruel disease took up residence inside his chest cavity. Now, it is slowly destroying him from the inside.

He’s not alone. Across Central Appalachia — and specifically Kentucky, Virginia and West Virginia — coal miners are struggling to breathe. Many of them aren’t much older than Moore — and many are much younger. Journalist Howard Berkes investigated the spike in a series for NPR in 2012, and multiple studies before and after have shown black lung (known more formally as coal workers’ pneumoconiosis, or CWP) has been on the rise for the past decade.

Storytelling on the Road to Socialism: Episode 4: A Coal Miner Speaks

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