fracking

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).

By Daniel Randall - Extinction Rebellion Trade Unions, May 4, 2023

By Clara Paillard - Extinction Rebellion Trade Unions, May 10, 2023

By Hazel Graham - Extinction Rebellion Trade Unions, April 30, 2023

Ellen Robottom, Tina Rothery, and Allan Todd - Climate Justice Alliance, February 8, 2023

By Pablo John, GMB for a Green New Deal - Greener Jobs Alliance, October 16, 2022

Recently, the GMB’s General Secretary caused outcry by declaring support for fracking and calling Green New Deal activists bourgeois. For those outside of GMB this statement may seem surprising but to understand where such statements come from you need to look at GMB’s history.

GMB has been around for a long time and it has seen every form of de-industrialisation and modernisation under the sun. For a lot of GMB members “modernisation” means a loss of work, a loss of conditions and anti-union policy. So naturally, the union is suspicious of change when it is couched in these terms.

Its roots in the legacy fossil fuel industry run deep. So for a lot of people in GMB, the promises of good quality jobs in renewables seem too good to be true; they’ve been promised similar things before.

So what can we do in the climate movement to win over GMB members? Well, there are two prongs: reassurance of current GMB members and recruitment of new, young renewables workers into GMB.

For workers, the benefits of the green new deal are massive. A full transition from fossil fuels to fully renewable energy sources could create more than three times as many jobs in these sectors than in oil and gas. By current estimates, the growth of jobs in wind energy exceeds the number of oil jobs affected by a transition to renewables. 

There is also a division of age, as a 23-year-old who works in renewables, most GMB members don’t look like me. Whilst a lot of legacy energy jobs are in fossil fuels, most new energy jobs are in renewables. This means many of my friends in the renewable industry aren’t unionised, because they don’t feel GMB represents us.

A lot of these new renewable start-ups are not union-friendly and it will take a lot of work to get inside these sites. But if we don’t we’ll be replacing one set of BP and Shell billionaires with another set of renewables billionaires. We need rapid transit away from fossil fuels in the next 10 years, we need to make that change or it will be done to us for the benefit of the billionaires.

So climate activists need to meet trade unionists where they are, but above all, we need to ensure any transition is worker-led. We can’t have a top-down transition of giant companies sacking workers and rehiring non-unionised workers in their wind farms. It needs to be a bottom-up movement, with politicians, workers and the climate movement hand in hand.

My union, GMB, needs to follow the examples of the TSSA and FBU in wholeheartedly supporting a Green New Deal. While everyone has a stake in the transition to renewables, who better than the workers of GMB to design, implement and power the green new deal?

By Gareth Dale - Truthout, September 21, 2022

Britain will soon see the first license to drill for shale gas issued since 2019, when the practice was banned following a Magnitude 2.9 tremor at a fracking test well near Blackpool in Lancashire.

Overturning Britain’s ban on fracking was one of the first initiatives announced this month by the incoming government under Tory leader Liz Truss. It belongs to a package of demand-and-supply interventions aimed at addressing the high price of gas.

The message from Downing Street is clear: This government will not seek to lessen the hold of fossil fuel corporations over citizens’ lives by transitioning from hydrocarbons through efficiency measures (such as building insulation), rapidly ramping up renewables, and a further windfall tax on the oil and gas industry. Instead, it will arrange payment of the full-market price for gas to the energy firms while subsidizing consumer and business bills, particularly for rich, energy-profligate households. The cost, estimated at £150 billion, will be loaded onto future taxpayers and energy consumers. It is the largest single act of U.K. state intervention outside wartime.

Given Truss’s market-fundamentalist instincts, this cannot have been easy. But she has coupled it with a laissez-faire thrust on the supply side: to tear up red tape and issue licenses to drill. The market, she believes, will resolve its problems as new supply brings prices back down.

The focus is North Sea oil, but fracking is part of the program. Fracking also offers the incoming government an opportunity to throw red meat to Tory Party members and the right-wing Daily Mail tabloid. To reactionaries, Truss’s move signals that her government intends to bash the tree-huggers, goad them into setting up camps at fracking sites where the security forces will persecute and ultimately defeat them, much as Lady Thatcher did to the feminists who peace-camped at Greenham Common.

The government’s rationale for fracking, then, has an economic and a political edge. Will either succeed?

On the economic side, the prospects are sufficiently enticing to have sent the shares of some fracking companies soaring, notably Union Jack Oil. (Its very name sets Tory hearts aflutter.) Some pundits are predicting a great British gas rush. Shale extraction, claims the Daily Mail, may begin slowly, but by 2037 could “eclipse” fossil gas output from North Sea wells. At the wilder end are predictions that Britain will enjoy a U.S.-style shale revolution, contributing to lower global prices and securing mega profits for the fossil fuel sector.

By Bianco Castro, Clara Paullard, Ashim Roy and Ilksen Dinçer Baş - Global Climate Jobs, September 19, 2022

By Leonor Canadas, Jeremy Brecher, Andreas Ytterstad - Global Climate Jobs, September 18, 2022

By Paul LeBlanc, Tabitha Spence, Mette Haugen, and Chris Baugh - Global Climate Jobs, September 18, 2022