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Just Recovery Workshop: Another World is Possible

The End of Oil Is Near: the pandemic may send the petroleum industry to the grave

By Antonia Juhasz - Sierra, August 24, 2020

This past spring, coastlines around the globe took on the feel of an enemy invasion as hundreds of massive oil tankers overwhelmed seaports from South Africa to Singapore. Locals and industry analysts alike used the word armada—typically applied to fleets of warships—to describe scenes such as when a group of tankers left Saudi Arabia en masse and another descended on China. One distressed news article proclaimed that a “floating hoard” of oil sat in tankers anchored across the North Sea, “everywhere from the UK to France and the Netherlands.” In April, the US Coast Guard shared an alarming video that showed dozens of tankers spread out for miles along California’s coast.

On May 12, Greenpeace activists sailed into San Francisco Bay to issue a challenge to the public. In front of the giant Amazon Falcon oil tanker—which had been docked in the bay for weeks, loaded up with Chevron oil—they unfurled a banner reading, “Oil Is Over! The Future Is Up to You.”

The oil industry has turned the oceans into aquatic parking lots—floating storage facilities holding, at their highest levels in early May, some 390 million barrels of crude oil and refined products like gasoline. Between March and May, the amount of oil “stored” at sea nearly tripled, and it has yet to abate in many parts of the world.

This tanker invasion is only one piece of a dangerous buildup in oil supply that is the result of an unprecedented global glut. The coronavirus pandemic has gutted demand, resulting in the current surplus, but it merely exacerbated a problem that’s been plaguing the oil industry for years: the incessant overproduction of a product that the world is desperately trying to wean itself from, with growing success.

Today, the global oil industry is in a tailspin. Demand has cratered, prices have collapsed, and profits are shrinking. The oil majors (giant global corporations including BP, Chevron, and Shell) are taking billions of dollars in losses while cutting tens of thousands of jobs. Smaller companies are declaring bankruptcy, and investors are looking elsewhere for returns. Significant changes to when, where, and how much oil will be produced, and by whom, are already underway. It is clear that the oil industry will not recover from COVID-19 and return to its former self. What form it ultimately takes, or whether it will even survive, is now very much an open question.

Under President Donald Trump, the United States has joined other petroleum superpowers in efforts to maintain oil’s dominance. While government bailout programs and subsidies could provide the lifeline the industry needs to stay afloat, such policies will likely throw good money after bad. As Sarah Bloom Raskin, a former Federal Reserve governor and former deputy secretary of the Treasury, has written, “Even in the short term, fossil fuels are a terrible investment. . . . It also forestalls the inevitable decline of an industry that can no longer sustain itself.”

In contrast to an agenda that doubles down on dirty fuels, a wealth of green recovery programs aim to keep fossil fuels in the ground as part of a just transition to a sustainable and equitable economy. If these policies prevail, the industry will rapidly shrink to a fraction of its former stature. Thus, as at no other time since the industry’s inception, the actions taken now by the public and by policymakers will determine oil’s fate.

The Greenpeace activists are right. Whether the pandemic marks the end of oil “is up to you.”

Solidarity School #1: Our Fight for A Just Recovery

Equitable Access to Clean Energy Resilience

By various - The Climate Center, August 5, 2020

Featuring Janea Scott, California Energy Commission; Genevieve Shiroma, California Public Utilities Commission; Carmen Ramirez, Mayor Pro Tem of Oxnard; Ellie Cohen, The Climate Center and others about policies to support climate justice and community energy resilience in lower-income communities who suffer disproportionately from pollution and power outages.

This summit gave overview of what California is doing now for clean energy resilience and what new policies are needed to provide access to clean and reliable power for all. Mari Rose Taruc, Reclaim Our Power Utility Justice Campaign; Gabriela Orantes, North Bay Organizing Project; and Nayamin Martinez, Central California Environmental Justice Network discussed the issue of equitable access from an Environmental Justice perspective.

Mark Kyle, former Director of Government Affairs & Public Relations, Operating Engineers Local 3 and currently a North Bay attorney representing labor unions, nonprofits, and individuals; Jennifer Kropke, Workforce and Environmental Engagement for International Brotherhood of Electrical Workers, Local Union 11, and Vivian Price, CSU Dominguez Hills & Labor Network for Sustainability talked about the Labor perspective.

Carolyn Glanton, Sonoma Clean Power; Sage Lang, Monterey Bay Community Power; Stephanie Chen, Senior Policy Counsel, MCE, and JP Ross, East Bay Community Energy discussed the work that Community Choice Agencies are doing to bring more energy resilience to lower-income communities.

Letter from USW Local 675 on Orphan Wells

By Philip Baker and David Campbell - United Steelworkers Local 675, August 5, 2020

We write to support an important economic recovery opportunity that will create jobs, provide tremendous health and environmental benefits to frontline communities, and advance a just transition away from fossil fuels: the accelerated remediation of oil and gas wells in California.

California law already requires that oil and gas operators fully fund the cost of oil and gas well remediation in California.

The job creation from this work is substantial. A recent national study estimated a total of 15.9 total jobs (direct, indirect, and induced) per million dollars spent.

Remediation of Oil and Gas Wells Must be Accelerated in Tandem with a Halt on Permitting New Wells and a Managed Phaseout of Oil and Gas Extraction.

Read the text (PDF).

Runaway Equality and COVID-19

By Les Leopold - Runaway Equality, August 2, 2020

Les Leopold looks at the runaway inequality roots of the pandemic response and police brutality.

The justice and equity implications of the clean energy transition

By Sanya Carley and David Konisky - Nature Energy, August 2020

The transition to lower-carbon sources of energy will inevitably produce and, in many cases, perpetuate pre-existing sets of winners and losers. The winners are those that will benefit from cleaner sources of energy, reduced emissions from the removal of fossil fuels, and the employment and innovation opportunities that accompany this transition. The losers are those that will bear the burdens, or lack access to the opportunities. Here we review the current state of understanding—based on a rapidly growing body of academic and policy literature—about the potential adverse consequences of the energy transition for specific communities and socio-economic groups on the frontlines of the transition. We review evidence about just transition policies and programmes, primarily from cases in the Global North, and draw conclusions about what insights are still needed to understand the justice and equity dimensions of the transition, and to ensure that no one is left behind.

Read the text (PDF).

Transition from Crisis

By staff - Victorian Trades Hall Council, August 2020

With workers and unions leading the transformation of the economy, we will not only help to avoid the worst effects of climate change, it will lead to a more just society in which workers have a much greater share of the wealth they create. This is a moment in time in which we can reduce inequality, increase control over our own working lives, and have our economy work in the interests of everyday people. Without workers and unions playing this leading role, we risk either climate and economic breakdown or a transformation that is authoritarian, gives priority to the interests of capital over workers, and replicates the economic, social and political injustices that characterise the world today.

There are few more important issues facing workers in Victoria than how our economy is restructured and rebuilt in the wake of the COVID-19 crisis to reduce the risks of climate change and to manage the effects of the warming that is already locked in to the climate system.

Climate change affects all workers, but in different ways. Health professionals like nurses, and emergency services workers like fire fighters and paramedics, are on the frontlines of the response to extreme weather and disasters and at the same time managing the pressures of other crises, like COVID-19. Public sector workers must manage everything from fire reconstruction work to welfare support to coordinating pandemic responses, often after years of federal funding cuts. In drought-affected communities, local workers can be hurt by the economic decline caused by lack of water, which has also led to closures of businesses such as dairy farming. Construction workers and farm workers must deal with the increasing number of hot days, often resulting in a downturn in industry productivity.

COVID-19 and its economic fallout have demonstrated that in times of crisis it is far too often women who disproportionally bear the brunt, both in job losses and also as frontline workers acting in response. It has also shown us that crises – whether climate or health related - exacerbate existing inequities, meaning those in insecure work, the low-paid, the disabled, migrant workers and First Nations communities are disproportionately affected. For instance, the link between insecure employment and the spread of the virus is now acknowledged by health authorities and the Victorian Government: workers without paid sick leave are more likely to go to work while sick. This tells us that in preparing for the challenges and likely crises of the future, including those climate-related, the elimination of these inequities and inequalities must be given high priority.

All of us will have to learn how to cope with a changing climate. But managing the economic restructuring that will be necessary to avoid the worst impacts of climate change will be particularly important for workers and unions. Workers and their unions know only too well what happens when individual firms or industries are restructured without workers or unions having a proper say: it’s workers who pay the price.

Read the text (PDF).

ReImagine Appalachia: a (Green) New Deal That Works for Us

By staff - ReImagine Appalachia, August 2020

Appalachians have a long history of hard work, resilience, and coming together to face enormous challenges. Our region is a place of ingenuity. A place where families and neighbors look out for one another.

Now is the time to put our ingenuity to use and imagine a 21st century economy that works for the people in the Ohio River Valley of Appalachia. An economy that is good for working people, communities, our health and the health of our neighbors. One that is grounded in the land and centered on creating wealth locally. One that relies on working people, already skilled in service, industry, trades and farming. One that offers hope to the next generation’s workers—regardless of the color of their skin, ethnicity or gender. And one that does our region’s part to meet the nation’s climate challenge, just as we met the call to provide coal energy to fuel a growing nation a century ago.

Right now, our nation is in crisis. We face the COVID epidemic, a deep economic downturn, extreme inequality, racism, police brutality, and the consequences of a changing climate such as severe storms and flooding. These crises demand from us real, lasting and structural change. It is not a matter of if, but when. When the nation rises to the occasion, people in Appalachia need to be at the table and helping to lead the charge. Together, we can build a vision for the Appalachia we want to live in.

Read the text (PDF).

Forward Together: A Good Jobs and Climate Action Budget

By staff - Canadian Labour Congress, August 2020

The Canadian Labour Congress (CLC) believes that saving lives, protecting public health, and containing the coronavirus outbreak must remain the federal government’s overriding priority. In the near term, this includes continued income support for individuals unable to work due to COVID-19, as well as proper personal protective equipment, workplace health and safety precautions, and training for workers.

As public health measures permit, fiscal policy measures responding to the recession and unemployment crisis will need to prioritize helping Canadians return to decent jobs. The economic crisis has disproportionately affected low-paid, vulnerable workers in precarious employment, especially women, young workers, newcomers, workers of colour, and workers with disabilities. Accordingly, the plan for economic recovery must be gendered, inclusive, inequality-reducing, and sustainable.

Read the report (PDF).

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