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Is Big Oil a Big Job Creator?

By Hadrian Mertins-Kirkwood - Rabble.ca, October 29, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Job creation is high on the oil industry's list of go-to arguments for increased investment in the oil sands. Energy extraction is a key driver of employment growth, they tell us, and the benefits extend well beyond Alberta. "Almost every community in Canada has been touched by oil sands development through the stimulating impact it has on job creation," according to the Canadian Association of Petroleum Producers.

The industry's favourite number? 905,000. That's the projected increase in oil sands jobs in the next two decades, up from a meager 75,000 today, according to an oft-quoted report by the industry-funded Canadian Energy Research Institute (CERI).

But what does that number mean? And is it as impressive as it sounds?

According to the report, 905,000 is the total number of new oil sands-related jobs that will be created in Canada by 2035. That means it includes not only direct employment in the Alberta oil sands, but also indirect employment in associated industries, like truck manufacturing, and any "induced" employment that may be created throughout Canada due to increased economic activity in the oil sands.

Even if we take that 905,000 figure at face value -- CERI makes a wide variety of optimistic assumptions and an accurate 25-year employment forecast is pretty farfetched -- it works out to just 36,000 new jobs per year. And if we cut out indirect and induced employment, the report says the oil sands will create only 12,000 new jobs per year.

To make matters worse, the 905,000 lump sum hides huge regional disparities. According to CERI, 86 per cent of new oil sands-related job creation will be in Alberta, including 100 per cent of direct job creation. That's hardly a recipe for widely shared economic prosperity.

The oil industry is trying to cherry-pick cumulative data rather than presenting the annual and regional numbers we're used to. "905,000 new jobs in Canada" is meant to sound more impressive than "12,000 new jobs in Alberta." But at the end of the day the job creation reality doesn't live up to the hype, even by CERI's optimistic calculations.

And those calculations are really optimistic. According to the non-partisan Canadian Occupational Projection System (COPS), the oil and gas industry will add only 4,500 new jobs per year in the coming decade, not 12,000 like the CERI report claims. The COPS estimate even includes oil and gas industry jobs outside the Alberta oil sands.

To put that number in perspective, the health-care industry in Canada will create more than 40,000 new jobs per year for the next 10 years. In fact, COPS predicts that almost a dozen different industries will create more jobs for Canadians in the coming decade than the energy sector will, including the education, retail, and computer services sectors.

By manipulating the numbers, the oil industry is trying to put a positive spin on a non-story. If there's a benefit to the Canadian economy from the oil sands, you won't find it in the job market.

Hadrian Mertins-Kirkwood is the CCPA's 2014 Andrew Jackson Progressive Economics Intern. Follow Hadrian on Twitter @hadrianmk.

Ending the Oil Age

By Jess Worth; lead image by Jenna Pope - New Internationalist, November 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

In September 2014, the $860 million Rockefeller Foundation made an historic announcement. Timed to coincide with massive marches for climate action all over the world, the fund revealed it was going to divest from fossil fuels. Following in the footsteps of the World Council of Churches, the British Medical Association and Stanford University, the latest major institution to make such an announcement is also the most symbolic. Because the Rockefeller fortune owes its very existence to oil.

The Rockefeller story is also the story of the rise and fall of the first ‘oil major’. Standard Oil, founded by John D Rockefeller in 1870, soon came to control the burgeoning US oil industry, from extraction to refining to transportation to retail.

It built an unprecedented monopoly that ultimately became so publicly despised that the US government stepped in and broke it up – birthing Exxon, Mobil and Chevron, among others. But by then, Standard had already set the Western world on a path to oil dependence that we are still shackled to, chain-gang-style, today.

The forced break-up created the Rockefeller millions. A century later, those millions are being used to make a dramatic point: we are witnessing the beginning of the end of the oil age.

Four Years After the BP Disaster, Vietnamese Oyster Fishermen and Shrimpers Struggle to Survive

By Cherri Foytlin - The Life Support Project, October 6, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Undeterred by the blazing sun and high humidity of a mid-August afternoon in Biloxi, Mississippi, Tuat Nguyen and Bien Do moved nimbly around their shrimp boat, making last-minute preparations to leave for Lake Borgne, where the Louisiana shrimp season would open in a few days. Watching them work, moving with ease from one end of the boat to the other, climbing up and down, it was hard to believe both are in their seventies and each has been making a living on the water for more than six decades.

While Bien made final preparations to depart– they’d already had mechanical problems earlier that day – Tuat, who speaks only a little English, invited community leader and interpreter Thao Vu and myself to sit down for a few minutes at the small table in the boat’s tidy galley.

Tuat says her father taught her how to shrimp when she was only 8 or 9 years old. The invention of GPS and modern technology were still decades away, so at night the moon and the stars were their guide. She remembers following the sun during the day, following it as it moved from east to west. Everything was done by hand. Someone would blow a horn to guide them into the dock after dark.

She says her husband, Bien, can’t remember a time he didn’t work on a boat. He’s a hardworking oyster fisherman and a shrimper, livelihoods that go back generations.

After leaving Vietnam, they settled in Biloxi, drawn by the warm Gulf waters where they could make a living dredging for oysters and shrimping. The Gulf’s abundance and their own hard work allowed them to be productive, independent and part of a thriving community.

But that was before BP.

Open Letter: Laborer Challenges Union Support of Fossil Fuel Export Projects

By Tim Norgren  - Portland Rising Tide, October 5, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

The following is an open letter from  union member Tim Norgren to Laborers’ International Union of North America (LIUNA). Read on as Tim explains why union support of fossil fuel export projects is short-sighted and generally not in the best interest of workers. 

Dear LIUNA and Fellow Workers,

In joining forces with avowed union enemies to lobby for export projects like coal and bitumen/oil terminals and pipelines, which would create some short term, but VERY FEW long term local jobs, I strongly feel we’re selling ourselves out, along with every worker in America!

The propositions stand to benefit billionaires like the Koch brothers and other members of ALEC, which as you know are behind state by state attacks on worker’s rights via campaigns like the “right to work” bill recently pushed in OR (see www.alecexposed.org for more).

Export proponents Arch and Peabody coal (ALEC members) were featured in the Labor Press last summer for shifting pensions worth over $1.3 BILLION (owed to some 20,000 beneficiaries) to a shell company- then bankrupting it, leaving retirees destitute. This “success” opened the door for Detroit to become the first city to declare bankruptcy and default on pensions. Scrutiny showed this to be an ALEC “model” scheme. Supporting companies which commit such crimes against dedicated workers is UNACCEPTABLE for anyone who purports to be part of a labor movement!

According to Greg Palast (investigative reporter for the BBC), the Koch brothers stand to save about $26 a barrel bringing in the oil from the Keystone XL instead of from H. Chavez in Venezuela. The Koch’s Houston refineries are designed to refine only the high carbon tar sands oil available from those sources and cannot even process the lighter Texas crude. $26 a barrel would add up to a lot more ammo in their union-busting arsenal.

Should proposals succeed, then when our job’s over, coal will continue being extracted from public lands, with mainly non-union miners and huge federal subsidies (taxpayer expense) in obscenely higher quantities than now, then carted though our neighborhoods alongside explosive fracked oil tankers. Tar sands oil will keep flowing into Koch Industries refineries. And while NOT keeping us working, it WILL continue to profit enemies of labor (fueling their next campaigns) as it’s shipped to Asia, providing cheap fuel for deathtrap factories where subsistence workers slave at jobs outsourced from living wage employment in America!

Indeed as industrial and other jobs are replaced with government subsidized resource extraction and privatization schemes, across the board from fossil fuels and lumber to such basic staples as water and social services, we can see in our mirror a third world nation.

In my humble opinion as a member of LIUNA, pursuing these proposals rather than insisting on cleaner, more labor-friendly energy and transmission projects IS SUICIDE! Are we truly willing to follow the short-term carrot on a stick, like an ass to the slaughter? To feed ourselves willingly to those who would destroy us? Or do enough of us still have the conscience, guts and faith to stand up with those who’ve struggled at such cost to give us rights as workers?

Sincerely,

Tim Norgren, Laborers Local 320

Why we need to win the battle over the tar sands: the fight over the tar sands is among the epic environmental and social justice battles of our time

Book Review By Brad Hornick - rabble.ca, October 2, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

As our governments willingly unleash unprecedented destruction upon the earth through the promotion of extractive industries, and growing mobilizations of climate activists challenge climate emergency, I am reminded of a cautionary warning: "the Owl of Minerva takes flight at dusk."

This environmental metaphor conveys that the awareness of a historical period only becomes apparent when that era is coming to a close and as we come face-to-face with urgent tasks that need to be addressed.

As if responding to this desperate need to hurry the inauguration of a new historical era, Stephen D'Arcy, Toban Black, Tony Weis and Joshua Kahn Russell, editors of A Line in the Tar Sands, bring together the voices of activists and academics to argue "peoples' movements will either succeed in transforming our economic and political systems to build a new world, or we will burn with the old one."

This argument, cemented by Naomi Klein and Bill McKibben stating "the fight over the tar sands is among the epic environmental and social justice battles of our time" in the opening pages, suggests the very active tar sands struggle is no less than a life-and-death battle for the future of the planet.

It is a battle that pits these peoples' movement against the largest and most destructive industrial project -- a project driven by the big the most profitable and powerful transnational energy corporations: ExxonMobile, British Petroleum, Chevron, Royal Dutch Shell, Sinopec.

And, this is a battle on a geological time-scale.  

These corporations are digging up carbon that was produced by billions of years of decomposition of organic matter and remained underground through natural processes, permitting life to flourish on the planet's surface.

In a few short years, this capitalist enterprise has caused a dramatic overburdening, creating massive levels of carbon pollution as waste and a dangerous imbalance increasingly undermining those very life support systems.

And all is driven by crass and class politics.

For Oil and Gas Companies, Rigging Seems to Involve Wages, Too

By Naveena Sadasivam; image by Matt Nager - ProPublica, September 25, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

A ProPublica review of U.S. Department of Labor investigations shows that oil and gas workers – men and women often performing high-risk jobs – are routinely being underpaid, and the companies hiring them often are using accounting techniques to deny workers benefits such as medical leave or unemployment insurance.

The DOL investigations have centered on what is known as worker "misclassification," an accounting gambit whereby companies treat full time employees as independent contractors paid hourly wages, and then fail to make good on their obligations. The technique, investigators and experts say, has become ever more common as small companies seek to gain contracts in an intensely competitive market by holding labor costs down.

In the complex, rapidly expanding oil and gas industry, much of the day to day work done on oil rigs and gas wells is sub-contracted out to smaller companies. For instance, on one gas rig alone, the operator might hire one company to construct the well pad, another to drill the well, a third company to provide hydraulic fracking services and yet another to truck water and chemicals for disposal.

But for the thousands of workers in the hundreds of different companies, a single standard is supposed to apply: by law, they must be paid more than minimum wage and they must be fairly compensated for any overtime accrued.

In 2012, the DOL began a special enforcement initiative in its Northeast and Southwest regional offices targeting the fracking industry and its supporting industries. As of August this year, the agency has conducted 435 investigations resulting in over $13 million in back wages found due for more than 9,100 workers. ProPublica obtained data for 350 of those cases from the agency. In over a fifth of the investigations, companies in violation paid more than $10,000 in back wages.

One of those companies was Morco Geological Services, a company providing mud logging services for other oil and gas drilling companies. In 2013, the DOL found that Morco was paying some workers $75 daily for working virtually round-the-clock shifts. The company eventually agreed to pay $595,737 in back wages to 121 workers following the DOL's investigation. In another significant case, Hutco, a company providing labor services to the oil and gas industry, ended up paying $1.9 million to 2,267 employees assigned to work in Louisiana, Mississippi and Texas.

"The problem of misclassification has become pervasive," said Dr. David Weil, a former economics professor at Boston University who today heads the DOL's Wage and Hour Division.  "Employers are looking for opportunities in a changing business landscape at the employee's expenses to cut corners as much as possible, leaving room for wage and hour violations."

Over the last decade, the oil and gas industry has seen tremendous growth. Between 2007 and 2012, when average employment in all U.S. industries fell by 2.7 percent, employment in the oil and gas industry increased by over 30 percent. According to research conducted by Annette Bernhardt, a scholar on low-wage work, 84 percent of workers in the oil, gas and mining industry were employed by contractors in 2012.

At the same time, the industry has also seen an increase in fatalities and injuries on the job. There is, so far, no evidence to suggest that these accidents are a result of inadequate training or overworked laborers. But accounts from other industries that heavily outsource work suggest those risks could be present.

Chevron Sounds Alarm Against East Bay “Anarchism”

By Steve Early - CounterPunch, September 16, 2014
Photo by Shadia Fayne Wood - Waging Nonviolence, August 10, 2013

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

One of the great things about living near Chevron’s big East Bay refinery—yes, the one that caught fire and exploded two years ago—is its system of early warnings about new disasters about to befall Richmond, CA.

In our post-Citizens United era, the nation’s second largest oil producer is now free to spend $1.6 million (or more, if necessary) on direct mail and phone alerts, designed to keep 30,000 likely voters fully informed about threats to their city.

During the last week, glossy mailers from a Chevron-funded group called “Moving Forward” have been flowing our way, at the rate of one or two per day—almost seven weeks before Election Day.

And, then, just to make sure that Chevron’s urgent message is getting through, we’ve also been called by pollsters. They claim to be surveying  opinion about Richmond politics, but actually just recite the contents of these same Moving Forward mailers over the phone.

My favorite manifestation of this negative campaigning involves a Latino candidate for Richmond City council. His name is Eduardo Martinez and remembering the Eduardo part is important. By some strange coincidence, Moving Forward—the Chevron-backed “Coalition of Labor Unions, Small Businesses, Public Safety and Firefighters Associations”—is backing another Martinez for city council whose first name is Al and who is apparently not a public safety threat.

Big Oil Brown Greenwashes his Legacy at U.N. Climate Summit

By Dan Bacher - Indybay.Org, September 23, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Jerry Brown, one of the worst governors for fish, water and the environment in California target="_blank" history, spoke to world leaders at the United Nations Climate Summit in New York City today in a cynical attempt to greenwash his deplorable environmental record.

During his U.N. address, Governor Brown touted California’s controversial carbon trading policies as an example of "innovative climate strategies."

“The California story is a very hopeful one,” Brown gushed. “It’s a story of Republican and Democratic governors pioneering innovative climate strategies. It’s not been easy, it’s not without contest, but we’re making real progress."

“I believe that from the bottom up, we can make real impact and we need to join together,” added Governor Brown. “We’re signing MOUs with Quebec and British Columbia, with Mexico, with states in China and wherever we can find partners, because we know we have to do it all.”

Brown's remarks at the summit are available at: http://cert1.mail-west.com/oUyjbH/myuzjanmc7rm/21oUgt/r8kgy/vnqoU2xx1jy8d/uqc5hy21oUq/043i8kyepg?_c=d%7Cze7pzanwmhlzgt%7C12lu5pdhlx8v340&_ce=1411519461.60b50da8597e418eaeff8b1b85e25029)

In a video message ahead of the Summit, Brown claimed, "We are carrying on because we know in California that carbon pollution kills, it undermines our environment, and, long-term, it’s an economic loser. We face an existential challenge with the changes in our climate. The time to act is now. The place to look is California.”

Yes, California, now under attack by the anti-environmental policies and carbon trading greenwashing campaign by Governor Brown, is definitely “the place to look” for one example after another of environmental destruction.

Once known as "Governor Moonbeam" for his quirkiness and eccentricities during his first two administrations from 1975 to 1983, has in his third administration transformed himself into "Big Oil Brown.”

A Gas Plant Fire Just Killed One Wyoming Worker; Here’s Why That Could Start Happening More

By Emily Atkin - Think Progress, September 24, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Four workers were caught in a storage tank “flash fire” at a natural gas production facility in Lincoln County, Wyoming on Tuesday. The incident, a spokeswoman for Salt Lake City’s University Hospital told ThinkProgress, left one worker dead, and two critically injured. The workers, who have not yet been named, were cleaning gas tanks when the fire broke out. The exact cause is still unknown.

The fire happened at a natural gas plant owned by Houston-based EOG Resources. Of the four workers who were caught in the fire, two were direct employees of EOG while others were contractors. It’s not yet clear if the worker who died was a direct employee or a contractor.

The incident is the latest fossil fuel-related workplace fatality in Wyoming, which has historically had one of the highest rates of oil worker injuries and deaths in the country. Worker death rates there have fallen — Wyoming oil workers are dying at half the rate they were five years ago — but so have the number of oil and gas rigs in the state. The correlation suggests that Wyoming may still be plagued with a problem it’s been facing for years: a high rate of occupational fatalities due to a lacking “culture of safety.”

The idea that Wyoming may have an endemic workplace safety problem comes from a 2012 report from state-hired epidemiologist Timothy Ryan, who analyzed occupational fatalities in Wyoming and found numerous problems with the overall business attitude toward safety. “Safety [in Wyoming] occurs as an afterthought,” he wrote. He found that from 2001-2008, 20 percent of all Wyoming’s worker fatalities came from the oil and gas industry, and that a whopping 96 percent of those deaths occurred when safety procedures were not followed.

Since then, progress appears to be happening, with the current state epidemiologist telling Wyoming’s local NPR affiliate last week that he’s optimistic — there’s been an increase in worker safety training programs and safety meetings, he said. But NPR’s report also pointed out that some aren’t convinced that the culture is really changing at all. And that’s a problem, because once-declining drilling activity is again starting to expand in the state.

If Wyoming hasn’t in fact changed its “culture of safety,” it will be even more susceptible to the dangers of what is widely known as an industry that the U.S. Bureau of Labor Statistics says is unprecedentedly dangerous to workers. Indeed, the fatality rate for onshore oil and gas workers is seven times higher than the national average, and injuries are even more common. Between 2007 and 2012, a total of 663 workers were killed in oil-related accidents nationwide.

Working with flammable substances and heavy machinery is one reason for this increased rate, but another reasons the oil and gas industry remains so dangerous could be the fact that oil worker deaths aren’t very widely publicized. An in-depth report on worker fatalities released by Wyoming Public Media last week pointed out that oil worker deaths rarely merit more than a few sentences in local newspapers, an unfortunate phenomenon driven by the nature of the deaths. Compared to a dramatic coal mine collapse — where dozens of workers are trapped or killed underground — oil worker deaths generally happen one-by-one, in small fires or explosions.

“They don’t get the same kind of attention as a disaster in a coal mine, where you have multiple miners that may be killed,” Peg Seminario, director of safety and health for the AFL-CIO, told Wyoming Public Media. “Nonetheless, the worker who’s working in oil and gas is more likely to be killed on the job than a coal miner. That’s a fact.”

San Francisco Bay Area Oil Infrastructure

The following pamphlet, compiled by Gifford Hartman (Fall 2014) offers a brief, and concise description of the five oil refineries in the San Francisco Bay Area, located northeast of San Francisco. [PDF File]

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