COVID-19

By Daniel Raimi, Neelesh Nerurkar, and Jason Bordoff - Columbia Center on Global Energy Policy, School of International and Public Affairs, and Resources for the Future, July 2020

The global economic damages wrought by COVID-19 have dramatically magnified the suffering caused by the deadly virus. US lawmakers have already approved $3 trillion in aid to help offset the economic damage, and additional measures are under consideration. At the same time, the need to invest trillions in economic recovery has prompted calls to “build back better” by making the recovery a greener, less carbon-intensive one.

This paper, a joint effort between Resources for the Future and the Center on Global Energy Policy at Columbia University, examines the potential to boost US employment in the oil and gas workforce while also reducing pollution through a federal program to plug orphaned and abandoned oil and gas wells. These wells can leak methane and other pollutants that contribute to climate change, poor air quality, and other health and environmental risks. This research included interviews with key regulatory and industry officials to present the most up-to-date information on this rapidly evolving issue.

While states and the federal government fund well plugging activities through bonding requirements, industry fees, and other sources, these funds have not historically been adequate to reduce the inventory of orphan unplugged wells. Many of these sites date back to the 19th and early 20th centuries, when regulations including bonding requirements were weak or, in many cases, nonexistent. Estimates for the total number of orphaned and abandoned wells range from several hundred thousand to 3 million, depending on the definition of such wells needing attention. At the same time the oil and gas industry, which has seen employment drop to levels not seen since 2006, appears able to scale up to carry out this work. Labor and equipment are readily available due to the low oil price environment created by the collapse in demand from the coronavirus.

The paper finds:

• A significant federal program to plug orphan wells could create tens of thousands of jobs, potentially as many as 120,000 if 500,000 wells were plugged. Addressing 500,000 wells would require state, tribal, and federal agencies to identify and prioritize hundreds of thousands of additional wells, most of which are unaccounted for in current inventories of orphaned wells. These inventories indicate that the largest number of orphaned wells are in Pennsylvania.
• A widespread federal effort to plug orphaned and abandoned oil and gas wells would reduce local air pollution, safety risks, and greenhouse gas emissions at a cost of roughly $67 to $170 per ton of CO2-equivalent, well within the range of other policy options.
• A significant pool of labor from the oil and gas industry could be deployed toward and benefit from such a program. More than 76,000 direct industry jobs were lost from February to June of 2020, a number that is likely to rise in the months to come. The job losses have been especially acute in rural regions where domestic oil and gas production occurs and where economies are closely tied to industry fortunes, such as the Permian Basin in West Texas and New Mexico, the Marcellus in Pennsylvania and Ohio, the Bakken in North Dakota, and parts of California, Colorado, Louisiana, Oklahoma, and other states. In these regions, this downturn not only affects workers but also funding for schools, infrastructure, public safety, and more, as a prior collaboration between RFF and CGEP found.
• The costs of plugging and restoring well sites vary widely, and the total outlay of a well plugging program to address the known inventory of 56,600 orphaned wells could plausibly range from $1.4 billion to $2.7 billion. Expanding the program to identify and plug 500,000 wells could plausibly cost between $12 and $24 billion. States have different technical requirements for plugging wells and restoring surface locations, and some wells pose greater risks to groundwater, are harder to access, or are deeper than average. All these factors affect plugging and restoration costs.
• One potential challenge of a very large program (i.e., addressing hundreds of thousands of wells) is that state regulatory offices would likely need to scale up administrative capacity to oversee such programs.
• While states and the federal government require oil and gas companies to post bonds or other forms of financial assurance to pay for well plugging in case firms go bankrupt before plugging wells, these bonds often do not cover the full costs. Federal funding could exacerbate this problem if states and companies see it as alleviating their responsibility to plan for future remediation costs adequately. To avoid this, a federal program could prioritize plugging wells abandoned decades ago that were not subject to modern regulatory frameworks.

Read the text (PDF).

By staff - Global Witness, July 2020

For years, land and environmental defenders have been the first line of defence against climate breakdown. Yet despite clearer evidence than ever of the crucial role they play, far too many businesses, financiers and governments fail to safeguard their vital and peaceful work. 

The climate crisis is arguably the greatest global and existential threat we face. As it escalates, it serves to exacerbate many of the other serious problems in our world today – from economic inequality to racial injustice and the spread of zoonotic diseases.

For years, land and environmental defenders have been the first line of defence against the causes and impacts of climate breakdown. Time after time, they have challenged those companies operating recklessly, rampaging unhampered through forests, skies, wetlands, oceans and biodiversity hotspots.

Yet despite clearer evidence than ever of the crucial role they play and the dangers they increasingly face, far too many businesses, financiers and governments fail to safeguard their vital and peaceful work. 

Our annual report into the killings of land and environmental defenders in 2019 shows the highest number yet have been murdered in a single year. 212 land and environmental defenders were killed in 2019 – an average of more than four people a week.

Read the text (PDF).

By staff - Labor Network for Sustainabaility - July 1, 2020

Todd E. Vachon, faculty coordinator of the Labor Education Action Research Network (LEARN) in the School of Management and Labor Relations at Rutgers, The State University of New Jersey and an active trade unionist and member of the Labor Network for Sustainability, recently wrote an article in the New Jersey Star-Ledger. Warning that “The Pandemic May Be a Preview of Our Climate Future.”

Todd says,

Vital government agencies have been defunded, understaffed or put under the charge of industry hacks who do not believe in the missions of the agencies they are tasked with running. The production of vital healthcare equipment has been outsourced in pursuit of cheaper labor and lax environmental regulations. And perhaps worst of all, the Trump administration has refused to use all the tools at its disposal to protect American lives. These ideologically driven actions have left the federal government incapable of marshaling the health and safety equipment needed to help critically ill Americans and protect the courageous first responders and healthcare workers trying to save them.

He calls for a Green Stimulus and an Emergency Green New Deal (EGND) “to not only get our economy back up and running after the COVID-19 crisis but also to reduce the risk of climate-related disasters and to increase our general preparedness for all disasters.” He says “such an effort would strengthen the social safety net, decouple health insurance from employment, and create millions of family-sustaining green jobs while accelerating a just transition away from fossil fuels and toward renewable energy.”

Read Todd’s entire piece »

Robert Pollin interviewed by C.J. Polychroniou - Truthout, June 26, 2020

The COVID-19 pandemic’s impact on the economy provides a golden opportunity for creating a fairer, more just and sustainable world as it shatters long-held assumptions about the economic and political order. Its impact on the energy industry in particular can boost support for tackling the existential threat of global warming by raising the prospect of nationalizing and eventually dismantling fossil fuel producing companies, a position argued passionately by one of the world’s leading progressive economists, Robert Pollin, distinguished professor of economics and co-director of the Political Economy Research Institute at the University of Massachusetts at Amherst.

C.J. Polychroniou: It has been argued by many that the coronavirus pandemic is a game changer for numerous industries, and could change the way we work and the way we use energy. We could also see the possible return of the social state and thus the end of austerity. First of all, are there any comparisons to be made between the current health and economic crises and what took place during the Great Depression?

Robert Pollin: There is one big similarity between the economic collapse today and the 1930s Great Depression. That is the severity of the downturns in both cases. The official U.S. unemployment rate coming from the Labor Department as of May 2020 was 13.3 percent. But a more accurate measure of the collapsing job market is the number of workers who have applied for unemployment insurance since the lockdown began in mid-March. That figure is 44 million people, equal to about 27 percent of everyone in the current U.S. labor market, employed or unemployed. By contrast, during the Great Recession of 2007-09, official unemployment peaked, and for one month only, at 10.0 percent.

By staff - Adapting Canadian Work and Workplaces to Respond to Climate Change - June 24, 2020

The Coalition of Black Trade Unionists joined Green Jobs Oshawa’s first “Retooling Our World for the Future” Summit; a summit for community leaders, environmentalists, labour and social justice advocates all working towards the common goal of public ownership and repurposing our world and jobs for socially beneficial manufacturing. Here is the link to the video of the summit and a description of the speakers on Youtube.

By staff - Just Transition Fund, Summer 2020

Workers and families affected by the changing coal economy are facing a profound crisis complicated by unique difficulties. Prior to the COVID-19 pandemic and economic decline, coal facility closures, layoffs, and cuts to vital services were devastating to people and places dependent on the coal economy—many of whom are still struggling following earlier economic declines, the loss of manufacturing jobs, or inequality and widespread poverty.

For low-income communities and communities of color already disproportionately left behind by the status quo, the need for equitable and inclusive economic growth is vital. But, now, with COVID-19, these unique challenges are exacerbated. The closure of even more coal facilities is accelerated, giving communities little time to plan for the disappearance of their largest employer and the erosion of the tax base, which provides critical funding for public services, local education, and health care systems.

Read the text (PDF).

By The LEAP - YouTube Video, June 9, 2020

By Vanessa Corkal, Philip Gass, and Aaron Cosbey International Institute for Sustainable Development, June 2020

Key Messages

• The COVID-19 crisis, while difficult and tragic, also provides a critical opportunity to align efforts to meet Canada’s climate goals with the challenge of economic reconstruction post-pandemic.
• IISD has developed seven "green strings" recommendations: key principles, criteria, and conditionalities that should be applied to government measures for economic recovery from COVID-19 to ensure a green recovery.
• Canada’s leading environmental groups, representing close to two million people, have signed on to the recommendations, including the Pembina Institute, Climate Action Network Canada, David Suzuki Foundation, Environmental Defence, Greenpeace Canada, Équiterre, Ecojustice, Ecology Action Centre, Conservation Council of New Brunswick, Stand.earth, Leadnow, Sierra Club Canada Foundation, and Wilderness Committee.

The reasons to set and apply "green strings" are clear:

• Conditions in the public interest are the government’s right and duty.
• The benefits of green stimulus and recovery measures are backed by evidence. 
• We need a new economic model for the workers of today and tomorrow.
• Urgent action is needed to address the climate crisis. 
• Health and climate change imperatives go hand in hand. 
• There is strong public support for ensuring a green recovery. 

The following seven “green strings” should be attached to COVID-19 recovery measures announced by Canada’s government:

1. Support only companies that agree to plan for net-zero emissions by 2050.
2. Make sure funds go towards jobs and stability, not executives and shareholders.
3. Support a just transition that prepares workers for green jobs.
4. Build up the sectors and infrastructure of tomorrow.
5. Strengthen and protect environmental policies during recovery.
6. Be transparent and accountable to Canadians.
7. Put people first and leave no one behind.

We can no longer continue with the status quo, worsening the climate and biodiversity crises and locking our country and the global community in to stark health, environmental, and economic outcomes. We must seize this difficult moment to transform our economy and our institutions to serve vital public policy goals from environment to equity. The stakes are high.

Read the text (Linked PDF).

By staff - Unifor, June 2020

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy.

The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

Unifor brings a modern approach to unionism: adopting new tools, involving and engaging our members, and always looking for new ways to develop the role and approach of our union to meet the demands of the 21st century.

Every person of working age in Canada has a right to a good job and the benefits of economic progress.

Unifor is presenting this plan in June 2020, four months after the novel coronavirus arrived in Canada, at a time when restric-tions on movement, activities and business operations are begin-ning to lift, but infection rates and illness continue to grow.

Read the report (PDF).

By Robert Pollin - Political Economy Research Institute (PERI), June 2020

The COVID-19 pandemic has generated severe public health and economic impacts in California, as with most everywhere else in the United States. This report proposes a recovery program for California that is capable of exerting an effective counterforce against the state’s economic collapse in the short run while also building a durable foundation for an economically viable and ecologically sustainable longer-term recovery. This is an anti-austerity recovery agenda, including the following main elements:

Establishing Effective Public Health Interventions. This will generate millions of jobs through allowing the state to recover safely. Some of the industries in which workers have been hardest hit include restaurants and hotels, in-person retail trade, and health care. Workers in these industries all need to be provided with adequate Personal Protection Equipment so they can perform their jobs safely. They also need their rights at work to be fully protected, including the right to paid sick leave.

Upgrading California’s Public Infrastructure. California’s economy would receive a major boost, both in terms of short-run stimulus and longer-term productivity, by undertaking a large-scale public infrastructure investment program now. The study estimates that $25 billion in annual infrastructure investments in California will generate about 315,000 jobs within the state. Roughly half of these jobs will be in the construction industry, including new opportunities for carpenters, electricians, glaziers, plumbers, pipefitters, and construction laborers. Most of the rest of the jobs will be in manufacturing and a range of services.

Clean Energy Investments and High Road Job Creation. This study estimates that public and private investments in California to achieve the state’s mandated emissions and climate stabilization goals are capable of generating about 725,000 jobs in 2020 – 2021 through $80 billion in public and private investments in 2020 – 2021, and larger numbers thereafter to 2030. These investments will entail both: 1) greatly enhancing the state’s level of energy efficiency, including through deep energy retrofits to public buildings; and 2) massively expanding the state’s supply of clean renewable energy sources, starting with solar and wind power. New job opportunities will open for, among other occupations, carpenters, machinists, environmental scientists, secretaries, accountants, truck drivers, roofers and agricultural laborers.

Just Transition for All Displaced Workers. Some workers in California’s oil and gas industry will experience displacement over time through the state’s clean energy transition. This study estimates that about 1,400 oil and gas workers will be displaced per year between 2021 – 2030 and another 1,400 will voluntarily retire each year. All of these workers require Just Transition support, including pension guarantees, health care coverage, wage insurance, and retraining support, as needed. In addition to the oil and gas industry, a substantial share of jobs in hard-hit service industries such as restaurants, hotels and retail are likely to not return in the aftermath of the recession. Workers in these industries also need just transition support, including the extension of 100 percent unemployment insurance, Medicare health insurance coverage while unemployed, wage insurance, and high-road job training and placement support.

Download (PDF).