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Does Shale Gas Extraction Grow Jobs?

Mineworkers Union Supports Biden's Green Energy Plan

By Brian Young - ucommBlog, April 21, 2021

One of the biggest impediments to President Biden’s climate plan has done a 180 and is now supporting the plan.

The United Mineworkers of America (UMWA) announced this week that they support the President’s green energy policies in exchange for a robust transition strategy. The union hopes that this will mean more jobs for their members as it becomes clear that more industries are moving away from coal. The move by the UMWA is especially important as they have a close working relationship with West Virginia Senator Joe Manchin whose support will be needed to pass any green energy plan. Manchin is also the Chairman of the Senate Energy and Natural Resources Committee. The union is also calling on Congress to allocate funds to train miners for good-paying jobs with benefits in renewable energy sectors.

President Biden has proposed allocating $16 billion to reclaim abandoned mines and to plug leaking gas and oil wells. This would not only provide bridge jobs for workers in areas like West Virginia, but it would also address serious environmental issues that these abandoned mines and wells are causing.

Mineworkers President Cecil Roberts said in a live-streamed event with the National Press Club that coal jobs decreased by 7,000 last year leaving only about 34,000 active coal miners in the United States.

“Change is coming, whether we seek it or not. Too many inside and outside the coalfields have looked the other way when it comes to recognizing and addressing specifically what that change must be, but we can look away no longer,” the United Mineworkers stated. “We must act, while acting in a way that has real, positive impact on the people who are most affected by this change.”

“We have to think about the people who have already lost their jobs,” Roberts said. “I’m for any jobs that we can create that would be good-paying jobs for our brothers and sisters who have lost them in the UMWA. As we confront a next wave of energy transition, we must take steps now to ensure that things do not get worse for coal miners, their families, and communities, but in fact get better."

To help these workers through a just transition, the union is proposing significant increases in federal funding for carbon capture technology and storage research and development funding. They are also calling for building out a carbon capture infrastructure such as pipelines and injection wells. This would allow coal-fired plants to remain open, but they would have to install technology that would capture emissions and store them underground instead of in the atmosphere.

Preserving Coal Country: Keeping America’s coal miners, families and communities whole in an era of global energy transition

By staff - United Mineworkers of America, April 20, 2021

At the end of 2011, nearly 92,000 people worked in the American coal industry, the most since 1997. Coal production in the United States topped a billion tons for the 21st consecutive year. Both thermal and metallurgical coal were selling at premium prices, and companies were making record profits.

Then the bottom fell out. The global economy slowed, putting pressure on steelmaking and metallurgical coal production. Foreign competition from China, Australia, India and elsewhere cut into met coal production.

Domestically, huge increases in production from newly-tapped natural gas fields, primarily as a result of hydraulic fracturing of deep shale formations, caused the price of gas to drop below that of coal for the first time in years. As a result, utilities began switching the fuel used to generate electricity from coal to gas. An enlarging suite of environmental regulations also adversely impacted coal usage, production and employment.

By 2016, just 51,800 people were working in the coal industryii. 40,000 jobs had been
lost.

Companies went bankrupt. Retirees’ hard-won retiree health care and pensions were threatened. Active union miners saw their collective bargaining agreements – including provisions that had been negotiated over decades -- thrown out by federal bankruptcy courts. Nonunion miners had no recourse in bankruptcy courts and were forced to accept whatever scraps their employers chose to throw their way.

Since 2012, more than 60 coal companies have filed either for Chapter 11 reorganization bankruptcy or Chapter 7 liquidation. Almost no company has been immune.

In 2017 and again in 2019, the United Mine Workers of America (UMWA) and its bipartisan allies in Congress, led by Sen. Joe Manchin (D-W.Va.), Sen. Shelley Moore Capito (R-W.Va.) and Rep. David McKinley (R-W.Va.), successfully preserved the retiree health care and pensions that the government had promised and tens of thousands of miners had earned in sweat and blood.

The UMWA was successful in preserving union recognition, our members’ jobs and reasonable levels of pay and benefits at every company as they emerged from bankruptcy, but in no case has the contract that came out of bankruptcy been the same as the one our members enjoyed when a company went into bankruptcy

Read the text (PDF).

Don’t call it a Just Transition: United Mineworkers announce Principles for Preserving Coal Country

By Elizabeth Perry - Work and Climate Change Report, April 20, 2021

United Mine Workers of America president Cecil Roberts was accompanied by West Virginia’s senior Senator Joe Manchin on April 19 when he announced the UMWA’s new principles for addressing climate change and the energy transition. Preserving Coal Country: Keeping America’s coal miners, families and communities whole in an era of global energy transition is built on three goals: “preserve coal jobs, create new jobs, and preserve coalfield families and communities.” The UMWA statement calls for specific steps to achieve those goals, including enhanced incentives for carbon capture and storage research, with a goal of commercial demonstration of utility-scale coal-fired CCS by 2030; tax incentives for build-out of renewable supply-chain manufacturing in coalfield areas, with hiring preference for dislocated miners and families; and provision of wage replacement, family health care coverage, and pension credit/401(k) contribution, as well as tuition aid. For the community, the principles call for direct grants to coalfield counties/ communities/school districts to replace lost tax revenues for 20-year period, as well as targeted investment in infrastructure rehabilitation and development – roads, bridges, broadband, schools, health care facilities. 

The document concludes with a statement of willingness to work with Congress, President Biden, and other unions, and with this: “This cannot be the sort of “just transition” wishful thinking so common in the environmental community. There must be a set of specific, concrete actions that are fully-funded and long-term. The easiest and most efficient way to fund this would be through a “wires” charge on retail electric power sales, paid by utility customers, which would add about two-tenths of one cent per kilowatt hour to the average electric bill. This would amount to less than $3.00 per month for the average residential ratepayer.”

Summaries appeared in: “Miners’ union backs shift from coal in exchange for jobs” from Associated Press, published in the Toronto Star; “Surprise news from the miners union gives Democrats an opening against Trumpism” in the Washington Post; “A coal miners union indicates it will accept a switch to renewable energy in exchange for jobs” in the New York Times, and “America’s largest coal mining union supports clean energy (with conditions)” in Grist.

At the same press conference on April 19, West Virginia Senator Joe Manchin announced that he will co-sponsor the Protecting the Right to Organize Act, or PRO Act, as reported by Reuters here. Passage of the PRO Act is also one of the action items in the Mine Workers Preserving Coal Country statement, and a key goal for American unions.

Climate Movement Applauds Coal Miners' Demand for Just Transition, Green Jobs

By Kenny Stancil - Common Dreams, April 19, 2021

The largest union of coal miners in the U.S. announced Monday that it would accept a transition from fossil fuels to renewable energy as long as the federal government takes care of coal workers through the provision of green jobs and income support for those who become unemployed.

"There needs to be a tremendous investment here," said Cecil E. Roberts, president of the United Mine Workers of America (UMWA) International. "We always end up dealing with climate change, closing down coal mines. We never get to the second piece of it."

Ahead of a press conference outlining the UMWA's approach to addressing the climate emergency in a way that improves rather than diminishes the well-being of workers in the dirty energy sector, Roberts said in a statement that "energy transition and labor policies must be based on more than just promises down the road. We want to discuss how miners, their families, and their communities can come out of this transition period and be certain that they will be in as good or better shape than they are today."

"Much of the coal-producing areas of Appalachia and elsewhere are already in bad economic shape," said Roberts. "Washington has taken little action to address it over the past decade. That must change."

"As we confront a next wave of energy transition," he added, "we must take steps now to ensure that things do not get worse for coal miners, their families, and communities, but in fact get better."

Sunrise Responds to Decision by United Mine Workers Association, Commits to Fighting Alongside Them and Demands Manchin Supports 'Tremendous Investment'

By Ellen Sciales - Common Dreams, April 19, 2021

Today, in response to the news that the United Mine Workers Association, the main and essential union for coal miners, and Senator Joe Manchin are supporting the transition to renewable energy, Evan Weber, Political Director of Sunrise Movement, released the following statement:

“For generations, coal communities have sacrificed to keep the lights on for all of us, while they’ve been abandoned by executives and politicians in DC. Sunrise Movement stands with and celebrates the United Mine Workers Association announcement today as they lean in to the transition towards a renewable energy economy, and we renew our commitment to fight alongside them to ensure the government leads in ensuring coal communities are whole and not left behind. We fully support their calls for job training, investments and prioritization of coal communities to receive economic development, and guaranteeing wages and benefits for workers impacted by the urgent and necessary transition towards a carbon-free economy.

“The radical truth is that at the end of the day, most of us want the same thing — a good, reliable job with a stable wage and a sense of comfort and security. And the brutal reality of the climate crisis is that it has threatened our jobs, our homes and the lifestyles that some of us have known for centuries. We agree wholeheartedly with Cecil E. Roberts, president of the United Mine Workers of America’s warning that there must be ‘tremendous investment’ as this transformation takes place. From the climate crisis, to technological shifts, to global pandemics, the 21st century promises more disruption — but our government can and must take care of its people along the way. In addition to what the mineworkers have outlined, we support a federal job guarantee to ensure every American has the right to a good job as our society faces more disruption, and see a fully funded Civilian Climate Corps employing millions of Americans in jobs tackling the crisis and revitalizing our communities as a step in that direction.

“Whether or not America has noticed, there has been a movement in West Virginia and across the United States growing around these basic ideas — and towards our vision for a Green New Deal. And today, the labor movement and young activists have proven they can be more powerful than the executives who have delayed action for years. While we may not agree on all of the specifics of how we get there, we are more aligned on the destination than those who seek to divide us would like you to think.

“At Sunrise, we say we have no permanent friends and no permanent enemies, and when we see stances that reflect our values, we’ll celebrate those. With Senator Manchin’s support on the PRO Act and for a just transition for coal workers, it is our hope that today marks a turning point for Senator Manchin. If he is truly committed to protecting this community and West Virginians, he will support the ‘tremendous investment’ the Mineworkers call for, starting with $10 trillion over the next decade, or $1 trillion per year, in order to ensure we can truly transition in a way that leaves no one behind. He’ll also stop pretending that this is an agenda that the Republican Party, which has long abandoned its desire to productively deliver for the American people, will come along with, and urge passage of this important agenda for Mineworkers and West Virginians through a simple majority by abolishing the filibuster.” 

To Save America, Help West Virginia

By Liza Featherstone - Jacobin, March 30, 2021

A Democratic swing vote in an evenly divided Senate, West Virginia Democrat Joe Manchin has already proved to be a significant obstacle to progressive policy. His opposition was a significant reason for Biden’s failure to raise the minimum wage to $15; Manchin also played a key role in shrinking the household stimulus checks, as well as the weekly unemployment checks. He will be a necessary and highly undependable vote as Democrats attempt to address the climate crisis, advance union organizing rights, and counter racist Republican efforts to legislate voter suppression.

However, the infrastructure bill that Biden and the Democrats are preparing to unveil, which is expected to call for $3 trillion in investment in public goods and services, presents an opportunity for West Virginians — and for all of us. Manchin has been championing this legislation, even calling for it to be funded with an increase in taxes on corporations and the wealthy. On this issue, Eric Levitz of New York magazine has convincingly argued, Manchin is actually pulling Biden to the left.

Manchin’s salience puts West Virginia in a powerful position. The state has urgent needs, given the long decline of the coal industry and the double impact of the opioid and coronavirus public health crises. Almost a third of West Virginians filed for unemployment between mid-March 2020 and the end of January 2021.

A report by University of Massachusetts economists with the Political Economy Research Institute (PERI), released in late February, proposed a recovery plan for West Virginia, with good jobs and environmental sustainability at its center. The study showed how compatible these priorities really are. The state’s coal industry has spent years successfully demonizing Democrats and environmentalists as job killers. Under recent regimes of neoliberal austerity, there might been some truth to that, but with more generous investment from the federal government, West Virginia can redevelop its economy and lead the nation in fighting climate change at the same time.

PERI found that the struggling Appalachian state could reduce carbon emissions by 40 percent by 2030 and reach zero emissions by 2050 — the targets the Intergovernmental Panel on Climate Change (IPCC) determined in 2018 were needed in order to avoid irreversible damage to our planet and to human civilizations — while creating jobs and promoting prosperity. The UMass researchers found that $3.6 billion per year in (both public and private) investments in a clean energy program — averaged over the 2021–2030 time period — would generate about 25,000 West Virginian jobs per year. The PERI researchers also analyzed the effect of $1.6 billion a year — also over 2021–2030 — in investments in public infrastructure, manufacturing, land restoration, and agriculture, finding that these efforts would generate about 16,000 jobs per year.

In fighting for such priorities, progressives need resist the pull of what we might call “woke neoliberalism.” Woke neoliberalism functions by using charges of racism and sexism — very real problems! — against initiatives that could help the entire working class. (Remember Hillary Clinton’s, “If we broke up the big banks tomorrow, would that end racism?”) In the debate over the Biden infrastructure bill, some well-meaning people are falling into that trap, already pitting investment in care work and infrastructure against each other.

The Washington Post reported on Monday, “Some people close to the White House say they feel that the emphasis on major physical infrastructure investments reflects a dated nostalgia for a kind of White working-class male worker,” citing SEIU president Mary Kay Henry’s private admonitions to the White House not to overlook the care economy. Henry said, “We’re up against a gender and racial bias that this work is not worth as much as the rubber, steel and auto work of the last century.” Economists Heidi Shierholz, Darrick Hamilton, and Larry Katz reportedly argued to the White House that investing in care work would create more jobs than investing in infrastructure.

Let’s not do this.

Fracking boom brings job and income loss to Appalachian communities

By Elizabeth Perry - Work and Climate Change Report, February 23, 2021

A February study examined the economic changes in 22 counties the authors call “Frackalachia” – home to the Utica and Marcellus shale gas industry. The report, Appalachia’s Natural Gas Counties: Contributing more to the U.S. economy and Getting less in return examines the period from 2008 to 2019, a time when the area went from producing a negligible portion of U.S. natural gas to producing 40%. The report summarizes the job forecasts provided by oil and gas industry economic impact studies, (over 450,000 new jobs for Ohio, Pennsylvania, and West Virginia), and shows the actual economic data from the U.S. Bureau of Economic Analysis – a 1.6% increase in jobs – at a time when the number of jobs across the U.S. grew by 9.9%. Detailed statistics demonstrate the differences amongst counties and states – with Ohio faring the worst and Pennsylvania faring the best. The report’s analysis shows that in the entire area represented by the 22 counties, the share of the national personal income fell by 6.3 percent, the share of jobs fell by 7.5 percent, and the share of the national population fell by 9.7 percent , while 90% of the wealth generated from fracking left the local communities.

The report was produced and published on February 10 by the Ohio River Valley Institute, a non-profit think tank based in Pennsylvania, founded in 2020 with the vision of “moving beyond an extractive economy toward shared prosperity, lasting job growth, clean energy, and civic engagement.” This report has been widely reported, including in “Appalachia’s fracking boom has done little for local economies: Study”(Environmental Health News , Feb. 12), which summarizes the report and adds context concerning the health effects of fracking, and the failed attempts to expand production to petrochemicals and plastics using ethane, a by-product of the fracked natural gas.

Appalachia's Natural Gas Counties: Contributing more to the U.S. economy and getting less in return

By Sean O'Leary - Ohio River Valley Institute, February 12, 2021

Economists debate whether there is such a thing as a “resource curse”.

Between 2008 and 2019, twenty-two old industrial and rural counties in Ohio, Pennsylvania, and West Virginia, which make up the Appalachian natural gas region, increased their contribution to US gross domestic product (GDP) by more than one-third. In 2008, the 22 counties were responsible for $2.46 of every $1,000 of national output. By 2019, the figure had climbed to $3.33. Their rate of GDP growth more than tripled that of the nation. However, during the same period, measures of local economic prosperity—the economic impacts of that growth—not only failed to keep pace with the increased share of output, they actually declined.

  • The 22 counties’ share of the nation’s personal income fell by 6.3%, from $2.62 for every $1,000 to just $2.46.
  • Their share of jobs fell by 7.6%, from 2.62 in every 1,000 to 2.46.
  • Their share of the nation’s population fell by 10.9%, from 3.26 for every 1,000 Americans to 2.9 for every thousand.

It is a case of economic growth without prosperity, the defining characteristic of the resource curse.

Most of the GDP increase in this group of counties was due to the Appalachian natural gas production boom, which was facilitated by the advent of a drilling technique called hydraulic fracturing, or “fracking” for short.

Read the text (PDF).

Appalachian Fracking Boom Was a Jobs Bust, Finds New Report

By Nick Cunningham - DeSmog, February 11, 2021

The decade-long fracking boom in Appalachia has not led to significant job growth, and despite the region’s extraordinary levels of natural gas production, the industry’s promise of prosperity has “turned into almost nothing,” according to a new report. 

The fracking boom has received broad support from politicians across the aisle in Appalachia due to dreams of enormous job creation, but a report released on February 10 from Pennsylvania-based economic and sustainability think tank, the Ohio River Valley Institute (ORVI), sheds new light on the reality of this hype.

The report looked at how 22 counties across West Virginia, Pennsylvania, and Ohio — accounting for 90 percent of the region’s natural gas production — fared during the fracking boom. It found that counties that saw the most drilling ended up with weaker job growth and declining populations compared to other parts of Appalachia and the nation as a whole.

Shale gas production from Appalachia exploded from minimal levels a little over a decade ago, to more than 32 billion cubic feet per day (Bcf/d) in 2019, or roughly 40 percent of the nation’s total output. During this time, between 2008 and 2019, GDP across these 22 counties grew three times faster than that of the nation as a whole. However, based on a variety of metrics for actual economic prosperity — such as job growth, population growth, and the region’s share of national income — the region fell further behind than the rest of the country. 

Between 2008 and 2019, the number of jobs across the U.S. expanded by 10 percent, according to the ORVI report, but in Ohio, Pennsylvania, and West Virginia, job growth only grew by 4 percent. More glaringly, the 22 gas-producing counties in those three states — ground-zero for the drilling boom — only experienced 1.7 percent job growth.

“What’s really disturbing is that these disappointing results came about at a time when the region’s natural gas industry was operating at full capacity. So it’s hard to imagine a scenario in which the results would be better,” said Sean O’Leary, the report’s author.

The report cited Belmont County, Ohio, as a particularly shocking case. Belmont County has received more than a third of all natural gas investment in the state, and accounts for more than a third of the state’s gas production. The industry also accounts for about 60 percent of the county’s economy. Because of the boom, the county’s GDP grew five times faster than the national rate. And yet, the county saw a 7 percent decline in jobs and a 2 percent decline in population over the past decade.

“This report documents that many Marcellus and Utica region fracking gas counties typically have lost both population and jobs from 2008 to 2019,” said John Hanger, former Pennsylvania secretary of Environmental Protection, commenting on the report. “This report explodes in a fireball of numbers the claims that the gas industry would bring prosperity to Pennsylvania, Ohio, or West Virginia. These are stubborn facts that indicate gas drilling has done the opposite in most of the top drilling counties.”

A Boom Without Job Growth

This lack of job growth was not what the industry promised. A 2010 study from the American Petroleum Institute predicted that Pennsylvania would see more than 211,000 jobs created by 2020 due to the fracking boom, while West Virginia would see an additional 43,000 jobs. Studies like these were widely cited by politicians as proof that the fracking boom was an economic imperative and must be supported.

But the Ohio River Valley Institute report reveals the disconnect between a drilling boom and rising GDP on the one hand, and worse local employment outcomes on the other. There are likely many reasons for this disconnect related to the long list of negative externalities associated with fracking: The boom-and-bust nature of extractive industries creates risks for other business sectors, such as extreme economic volatility, deterring new businesses or expansions of existing ones; meanwhile air, water, and noise pollution negatively impact the health and environment of residents living nearby.

“There can be no mistake that the closer people live to shale gas development, the higher their risk for poor health outcomes,” Alison Steele, Executive Director of the Southwest Pennsylvania Environmental Health Project, told DeSmog. “More than two dozen peer-reviewed epidemiological studies show a correlation between living near shale gas development and a host of health issues, such as worsening asthmas, heart failure hospitalizations, premature births, and babies born with low birth weights and birth defects.”

Moreover, oil and gas drilling is capital-intensive, not job-intensive. As the example of Belmont County shows, only about 12 percent of income generated by the gas industry can be attributable to wages and employment, while in other sectors, on average, more than half of income goes to workers.

In other words, it costs a lot of money to drill, but it doesn’t employ a lot of people, and much of the income is siphoned off to shareholders. To top it off, equipment and people are imported from outside the region — many of the jobs created went to workers brought in from places such as Texas and Oklahoma.

Despite the huge increase in shale gas production over the past decade, the vast majority of the 22 counties experiencing the drilling boom also experienced “economic stagnation or outright decline and depopulation,” the report said.

The American Petroleum Institute did not respond to a request for comment.

“[W]e could see long ago that the job numbers published and pushed out by the industry years ago were based in bluster, not our economic realities,” Veronica Coptis, Executive Director of Coalfield Justice, a non-profit based in southwest Pennsylvania, told DeSmog, commenting on the report. “At industry’s behest and encouragement, Pennsylvania promoted shale gas development aggressively in rural areas for more than a decade. And yet, the southwestern counties at the epicenter of fracking do not show any obvious improvement in well-being.”

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