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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).

Pursuing a Just and Renewable Energy System: A Positive and Progressive Permitting Vision to Unlock Resilient Renewable Energy and Empower Impacted Communities

By staff - The Climate and Community Project, et. al., May 2023

It is indisputable that the climate emergency requires the United States to rapidly transform its majority fossil energy system to 100% clean and renewable energy.

The United Nations Intergovernmental Panel on Climate Change’s recent sixth synthesis report makes absolutely clear that an unprecedented bold transition to renewable energy with an equally aggressive effort to halt new fossil fuel development and phase out existing fossil fuel usage is absolutely vital to avoiding the most catastrophic consequences of climate change.

This necessary transformation presents a tremendous opportunity to pursue a far more just path forward—one that ends the status quo entrenchment of the fossil fuel industry; empowers federal agencies to use their authorities to accelerate the transitions to a justly sourced, justly implemented, resilient, and equitable power system; actualizes the principles of environmental justice; and preserves our core environmental laws.

This system is composed of our most commonsense and affordable solutions that can be deployed in an efficient and just manner: energy conservation, distributed and resilient renewable energy and storage, and responsibly-sited utility-scale renewables, all paired with robust community engagement and opportunities for real energy democracy.

However, both Congress and the Biden administration are failing to exercise their imaginations to embed justice in a renewable energy future.

After the passage of the Inflation Reduction Act, both Democratic and Republican Congress members have proposed numerous “permitting reform” proposals, but the majority continue to argue that achieving a fast transition to renewable energy necessarily means undermining bedrock environmental laws like the National Environmental Policy Act (NEPA).

This false logic must be interrogated. While these proposals might marginally improve the deployment of utility-scale renewable energy particularly on pristine lands, our energy needs can and must also be met with renewable energy on built surfaces that is more resilient, affordable, and respectful toward communities and wildlands.

Furthermore, any such purported gains of “permitting reform” proposals would be massively dwarfed by the emissions of fossil fuel projects that would also be expedited and result in deepening substantial environmental injustices for countless communities around the nation.

Download a copy of this publication here (PDF).

A Frontline Response to Andreas Malm

By Madeline ffitch - Verso, April 22, 2023

Earth First! activist Madeline ffitch responds to Andreas Malm: "What if the mass climate movement was focused on supporting frontline direct action?"

By the time I read How to Blow Up a Pipeline, I had already seen its neon cover around, the unmistakable title plastered across the front in large block print. I had seen activists reading it, but not the activists I’d expected. These were well-heeled and buttoned-up types, people from environmental nonprofits, people I would associate with a permitted rally rather than an act of eco-sabotage. When I showed the book to one of my movement elders, a far less well-heeled person, they grimaced. “Who the hell comes up with a title like that?” they asked. “Does he think this is a game?” This movement elder, known for being grumpy and speaking plainly, is a decades-long veteran of direct-action eco-defense, a walking repository of tactical knowledge and movement history. They’re also an old Earth First!er. I’m a slightly younger one.

In his sensationally titled book, Andreas Malm tells us that between 1973 and 2010, Earth First!, the Earth Liberation Front, the Animal Liberation Front, and related groups pulled off 27,100 separate acts of direct action and sabotage. These would seem to be laudable examples in service of Malm’s central proposal, which is that climate activists must be willing to escalate tactics and consider property destruction. Yet Malm includes these actions only in order to disqualify them. “All those thousands of monkeywrenching actions,” he writes, “achieved little if anything and had no lasting gains to show for them. They were not performed in dynamic relation to a mass movement, but largely in a void.” Malm goes on to say that these actions “petered out just as the climate movement came into its own.”

Malm gets a lot right in his slim neon polemic, but when he dismisses existing traditions of militant eco-defense, he undermines his own good ideas. Direct action is not made relevant by its link to mass movements. It is the other way around. The more out of touch the climate movement is from what is happening on the frontlines, the more irrelevant it becomes. The frontline might sound to some like revolutionary jargon, but it’s simply another name for the often rural and sparsely populated places where people must defend their homes and lifeways from being sacrificed to industrialization. Here, theory is put into practice. There is real work to do—dishes, chopping wood, hauling water, physically stopping a pipeline from being built—and this means that the abstractions that bog down mass movement participation (ideological pacifism, climate fatalism) are less likely to gain a foothold. If the climate movement is looking for direction, as Malm claims, it would do well to pay attention to the tactics and strategies of those who defend the land and water far away from major centers of commerce and policy, often with only a handful of people and by whatever means necessary. In comparison to mass movement maundering, the ethical and strategic clarity on the frontlines is bracingly refreshing.

Germany: War, gas price protests and solidarity with Ukraine: An ecosocialist perspective

By Federico Fuentes and Christian Zeller - Green Left, October 19, 2022

Across Europe, protests have been growing over rising gas prices, with Germany no exception. Politicians have sought to blame Russian President Vladimir Putin’s war on Ukraine — or, alternatively, sanctions imposed by Europe — for the situation.

But is this the case? How should ecosocialists approach the interrelated issues of climate, war, gas prices and international solidarity?

Green Left’s Federico Fuentes discussed these issues with Christian Zeller, a professor of economic geography and editorial board member of the German-language journal, emancipation — Journal for Ecosocialist Strategy. Zeller is also the author of Climate Revolution: Why we need an ecosocialist alternative (available in German).

Labor Network for Sustainability says workers need environmental protection, not Joe Manchin’s dirty side-deal

By Labor Network for Sustainability - Red, Green, and Blue, September 17, 2022

Right now there is a new threat to environmental protection. A recently leaked draft bill text – bearing the watermark of the American Petroleum Institute – would override the National Environmental Policy Act (NEPA) by accelerating permitting review and timelines for energy development projects. West Virginia Senator Joe Manchin and Senate Majority Leader Chuck Schumer are now planning to attach these requirements to a “must-pass” federal budget resolution.

The deal would likely undermine the National Environmental Policy Act (NEPA), the fundamental law protecting the US environment, which was passed almost unanimously by Congress half-a-century ago. It is expected to greatly shorten the time available to consider whether projects should be given permits for fossil fuel infrastructure – meaning that our local communities simply won’t have time to make effective arguments to pipelines, wells, and other projects that may damage their environment forever.

The Fight to Stop the Inflation Reduction Act’s Fossil Fuel Giveaway

By Yessenia Funes - Atmos, August 10, 2022

Depending on whom you ask, the United States is on the verge of passing one of its most beneficial climate bills—or one of its most harmful. The Inflation Reduction Act is historic, hands down, but it’s also imperfect in the way it continues to prop up the fossil fuel industry at a time when we need to urgently invest in new energy sources. 

The Senate voted to pass the bill Sunday (which all Republicans opposed), and it’s now in the hands of the House of Representatives, which is slated to vote on it later this week. For the first time in my lifetime at least, the U.S. government is on course to pass a climate policy that can actually reduce emissions on a national scale—but at what cost?

Welcome to The Frontline, where we’re still awaiting climate justice. I’m Yessenia Funes, climate director of Atmos. President Joe Biden promised us sweeping climate action, and he finally delivered. However, the Inflation Reduction Act is not built on the foundations of climate and environmental justice. It continues the traumatic legacy of sacrificing Black and Brown communities—of handing over their lives to the fossil fuel sector. Leaders on the frontlines are preparing to fight back.

Stop EACOP Trade Union briefing July 2022

Fossil Fuel Phaseout–From Below

By Jeremy Brecher - Labor Network for Sustainability, March 2022

Protecting the climate requires rapidly reducing the extraction of fossil fuels. That’s a crucial part of the Green New Deal. While the federal government has done little so far to reduce fossil fuel production, people and governments all over the country are taking steps on their own to cut down the extraction of coal, oil, and gas.

Introduction

The U.S. needs to cut around 60% of its greenhouse gas (GHG) emissions by 2030 to reach zero net emissions by 2050.[1] The world will need to decrease fossil fuel production by roughly 6% per year between 2022 and 2030 to reach the Paris goal of 1.5°C. Countries are instead planning and projecting an average annual increase of 2%, which by 2030 will result in more than double the production consistent with the 1.5°C limit.[2]

In the previous two commentaries in this series we have shown how initiatives from cities, states, and civil society organizations are expanding climate-safe energy production and reducing energy use through energy efficiency and conservation. These are essential aspects of reducing climate-destroying greenhouse gas emissions, but in themselves they will not halt the burning of fossil fuels. That requires action on the “supply side” – freezing new fossil fuel infrastructure and accelerating the closing of existing production facilities. That is often referred to as a “phaseout” or “managed decline” of fossil fuels.

Such a phaseout of fossil fuel production is necessary to meet the goals of the Green New Deal and President Joe Biden’s climate proposals. The original 2018 Green New Deal resolution submitted by Rep. Alexandria Ocasio-Cortez called for a national 10-year mobilization to achieve 100% of national power generation from renewable sources. Biden’s Build Back Better plan sought 100% carbon-free electricity by 2035 and net zero GHG emissions by 2050. These goals cannot be met without reducing the amount of fossil fuel that is actually extracted from the earth.[3]

While the US government and corporations are failing to effectively reduce the mining and drilling of fossil fuels, hundreds of efforts at a sub-national level are already cutting their extraction. 50 US cities are already powered entirely by clean and renewable sources of energy. 180 US cities are committed to 100% clean energy.[4] According to a report by the Indigenous Environmental Network and Oil Change International, Indigenous resistance has stopped or delayed greenhouse gas pollution equivalent to at least one-quarter of annual U.S. and Canadian emissions.[5] Such reductions are an essential part of a widespread but little-recognized movement we have dubbed the “Green New Deal from Below.”[6]

"Freedom" Comes to Canada

By Bryan D. Palmer - Verso, February 15, 2022

Canada has been rocked in recent weeks by the "Freedom Convoys" that have descended on the nation's cities and blocked border crossings across the country. Bryan D. Palmer maps the political and social composition of this new alt-right uprising.

Everything happening in the United States comes to Canada, only a little later and a tad more politely. The rage that erupted in a Presidential-endorsed riot in Washington on 6 January 2021 has now exploded to the north. Fueled by a confused swirl of resentment against the array of pandemic protocols that all advanced capitalist states have invoked to curb and contain Covid-19 – including vaccination passports, mandatory masking, business lockdowns, and cross-border restrictions – so-called “Freedom Convoys” have descended on the nation’s capital Ottawa, holding the city hostage. US-Canada border crossings have been blocked in Ontario, British Columbia, Manitoba, Saskatchewan, and Alberta, and the convoys have staged sporadic protests across the country, from Fredericton, New Brunswick to Surrey, British Columbia.

Ostensibly led by “truckers,” the mobilization has generated international attention. Copy-cat movements are springing up around the world, with Wellington, New Zealand besieged, Washington, DC threatened, and the Los Angeles – hosts of the recent Super Bowl LVI – worried that they would have had to face the blaring horns and diesel-fume spewing tractor trailer rigs of the “No Mandates: Freedom Now!” crusade. In Europe, Paris and Brussels are currently targeted by the vehicular brigade, although Macron’s gendarmes, fresh from street battles with the gilets jaunes, have indicated they will brook no blockades.

“Freedom” in the face of the pandemic we have all been living through has a nice ring to it. But the politics of these Canadian convoys do not. They are animated by a Breitbart-like appreciation that destabilization of the status quo is the first step in halting the rush to a Marxist-inspired, totalitarian world order and the restoration of a political economy of acquisitive individualism. You do not have to scratch too deeply below the surface of the leadership of this movement to discover alt-right conspiracy theories, Q-Anon claptrap, and racist anti-Muslim and white supremacy sensibilities. Twitter chatter has dubbed this mobilization the FluTruxKlux.

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