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Hoodwinked in the Hothouse (Third Edition)

Edited by Lucia Amorelli, Dylan Gibson, Tamra Gilbertson, the Indigenous Environmental Network, et. al. - Various Organizations (see below), April, 2021

Authored by grassroots, veteran organizers, movement strategists and thought leaders from across our climate and environmental justice movements, the third edition of Hoodwinked in the Hothouse is an easy-to-read, concise-yet-comprehensive compendium of the false corporate promises that continue to hoodwink elected officials and the public, leading us down risky pathways poised to waste billions of public dollars on a host of corporate snake-oil schemes and market-based mechanisms. These false solutions distract from the real solutions that serve our most urgent needs in an alarming climate justice moment of no-turning-back. By uncovering the pitfalls and risky investments being advanced by disaster capitalists to serve the needs of the biggest polluters on the planet, Hoodwinked also provides a robust framework for understanding the depth of real solutions and how they should be determined. As a pop-ed toolbox, Hoodwinked promises to be instructive for activists, impacted communities and organizers, while providing elected officials with critical lenses to examine a complex, technocratic field of climate change policy strategies, from local to national and international arenas.

The second version of Hoodwinked in the Hothouse was released in 2009 as a pop-ed zine collaboratively produced by Rising Tide North America and Carbon Trade Watch with the Indigenous Environmental Network and a number of allied environmental justice and climate action organizers leading up to the 2009 United Nations climate conference in Copenhagen (COP 15). During that mobilization and in years since, this zine has played a major role in raising awareness across climate movements around the world – both helping frontline organizers in their fights against destructive energy proposals and shifting policy positions of large non-governmental organizations.

With the proliferation of false solutions in the Paris Climate Agreement, national and subnational climate plans, the third edition of Hoodwinked in the Hothouse aims to provide a resource that dismantles the barriers to building a just transition and a livable future.

Includes contributions from the following organizations:

  • Biofuelwatch
  • Energy Justice Network
  • Global Alliance for Incinerator Alternatives
  • ETC Group
  • Global Justice Ecology Project
  • Indigenous Climate Action
  • Indigenous Environmental Network
  • Just Transition Alliance
  • La Via Campesina
  • Movement Generation Justice and Ecology Project
  • Mt. Diablo Rising Tide
  • Mutual Aid Disaster Relief
  • North American Megadam Resistance Alliance
  • Nuclear Information and Resource Service
  • Rising Tide North America
  • Shaping Change Collaborative

Read the text (PDF).

The oil and gas industry is failing its offshore workers. It’s time to give them a way out

By Helle Abelvik-Lawson - Greenpeace, March 31, 2021

Offshore oil and gas workers have been the backbone of Britain’s energy industry for fifty years. So it would seem that the government’s decision to continue issuing offshore oil licences in the North Sea would be welcome.

But all across the North East – from the Humber Estuary to Teesside in England, and all the way up to Aberdeen in Scotland – things aren’t actually going that well. The oil and gas industry is volatile, and communities are suffering from this volatility.

After years of decline, falling prices due to financial crises, Covid, and other economic shocks thanks to global oil politics, the UK’s oil and gas workers have been dealt a raw deal. Restructuring by major oil companies and their contractors and agencies has meant insecure work and falling salaries. And it’s some of the most dangerous work out there.

Now, the government’s focus on new oil licences ‘with climate conditions’ attached, is just kicking offshore workers’ problems into the long grass.

It shows how the government has so far been unable to get a grip on the needs of the UK’s energy key workers. According to a 2020 survey of offshore oil and gas workers, these overwhelmingly centre around government support to transition towards work in a stable, growing renewables sector.

This is not the way the government should be treating the country’s energy key workers. And it shows there is no government plan to help offshore workers transition smoothly to work in renewable energy.

Plus, If everyone copied the UK’s approach to fossil fuels, our globally agreed climate targets would not be met. The UK’s not exactly leading by example, ahead of hosting the COP26 climate talks in Glasgow this year.

Pipelines, Pandemics and Capital’s Death Cult: A Green Syndicalist View

By Jeff Shantz - LibCom, March 29, 2021

We can see this within any industry, within any capitalist enterprise. It is perhaps most clearly apparent, in an unadorned fashion, in extractives industries like mining, logging, or oil, where the consumption of nature (as resources) for profit leaves ecosystems ruined, where workers are forced to labor in dangerous, often deadly, conditions, and where it is all is carried out through direct dispossession, invasion, and occupation of Indigenous lands and through processes of mass killing, even genocide. And when it is all done, little remains except the traces of profit that have been extracted and taken elsewhere.

These intersections have come to the forefront with particular clarity under conditions of the Covid-19 pandemic. The death cult of capital on full display in all its variety of ways.

Workers and Communities in Transition: Report of the Just Transition Listening Project

By J. Mijin Cha, Vivian Price, Dimitris Stevis, and Todd E. Vachon, et. al. - Labor Network for Sustainability, March 17, 2021

The idea of “just transition” has recently become more mainstream in climate discourse. More environmental and climate justice advocates are recognizing the need to protect fossil-fuel workers and communities as we transition away from fossil-fuel use. Yet, as detailed in our report, transition is hardly new or limited to the energy industry. Throughout the decades, workers and communities have experienced near constant economic transitions as industries have risen and declined. And, more often than not, transition has meant loss of jobs, identities, and communities with little to no support.

While transition has been constant, the scale of the transition away from fossil fuels will be on a level not yet experienced. Fossil fuels are deeply embedded in our economy and society. Transition will not only affect the energy sector, but transportation (including passenger and freight), agriculture and others. Adding to the challenges of the energy transition, we are also transitioning to a post-COVID-19-pandemic world. As such, we cannot afford, economically or societally, to repeat the mistakes of the past that left so many workers and communities behind.

To better understand how transition impacts people, what lessons can be learned, and what practices and policies must be in place for a just transition, in the Spring of 2020 we launched the Just Transition Listening Project (JTLP). The JTLP has captured the voices of workers and community members who have experienced, are currently experiencing, or anticipate experiencing some form of economic transition.

Those who have suffered from transitions are rarely the ones whose voices are heard. Yet, no one is more able to fully understand what workers and communities need than those who have lived that experience. The JTLP is the first major effort to center these voices. In turn, the recommendations provided can make communities and workers whole. In many ways, these recommendations are common sense and fundamental to creating a just society, regardless of transition. Yet, the failure of elected officials to deliver just transition policies points to the need for wide scale movement building and organizing.

This report summarizes lessons learned and policy recommendations in three overall concepts for decision-makers: Go Big, Go Wide, and Go Far.

Read the text (PDF).

Political deregulation of Texan grid to blame for near total collapse & bills of $15,000+

By Andy Rowell - Oil Change International, February 25, 2021

If shivering with cold dark for days in sub-zero temperatures was not enough for many Texans, those lucky enough to still have electricity during the recent freezing weather have been hit with exorbitant electricity bills.

In some cases unlucky customers have been charged a whopping USD $15,000 for one month’s power, or put another way over 70 times the normal cost people pay for all their utilities.

One customer Susan Hosford of Denison told the AP that normally she pays around $2.50 for power per day, but got charged $1,346.17 for the first two weeks of February. “This whole thing has been a nightmare,” she said.

Another customer, Karen Knox, a teacher in Bedford, not only lost power but now owes $7,000 to Griddy, an electricity provider located in Houston. She told the Texas Tribune there was no way she could pay.

Such is the outcry that Governor Greg Abbott, a Republican who is heavily funded by Big Oil, had to hold an emergency meeting with legislators to discuss the outrageous bills.

Abbott and others are now promising relief for those hit by sky-high bills, although how people are compensated is yet to be worked out.

As the anger has grown, so too has the political fall-out and finger pointing and as to what has gone wrong and who is to blame.

The reason the grid failed is simple: political deregulation. Along with sixteen other states Texas had deregulated its power market. The market was deregulated in 2002, under the then Governor Rick Perry, who would later become President Donald Trump’s Secretary of Energy.

Perry established the Electric Reliability Council of Texas (known as ERCOT), with roughly 70 providers. And then the politicians cut Texas off from the rest of the country, the only state in the contiguous U.S. that was operating its own electric grid.

And because the Texas grid was then disconnected from the rest of the country, no reserves could be imported when the grid got into trouble.

“As someone who has spent the past two decades studying electricity deregulation, I know that extreme power bills in Texas result partly from the state’s market-driven approach to running the power grid,” wrote Seth Blumsack, Professor of Energy and Environmental Economics and International Affairs, at Penn State in the Conversation yesterday.

Blumsack continued: “the sky-high electric bills in Texas are partly due to a deregulated electricity system that allowed volatile wholesale costs to be passed directly to some consumers.”

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).

A Decade Into the Fracking Boom, Pennsylvania, Ohio and West Virginia Haven’t Gained Much, a Study Says

By James Bruggers - Inside Climate News, February 11, 2021

After fracking companies invested billions chasing the natural gas boom across West Virginia, Ohio and Pennsylvania, what do people living in the middle of the most prolific gas fields have to show for it, more than a decade later?

That’s the question the Ohio River Valley Institute, an independent think tank based in Johnstown, Pennsylvania, working to advance a more prosperous, sustainable and equitable Appalachia, asked in a report published on Wednesday.

Its answer: In short, not much.

To be sure, the report found that new horizontal drilling techniques involving hydraulic fracturing in the Marcellus and Utica shale formations, which helped reshape the nation’s oil and gas fortunes, produced a lot of economic growth. But it largely failed to bring the things that help people and local communities the most: jobs, personal income gains and population growth.

The natural gas industry hasn’t been an engine for economic prosperity, said Sean O’Leary, the institute’s senior researcher and principal author of the report, and “there is no basis on which we can see that it even can be, going into the future.”

It was unable to deliver on local prosperity even though gas production itself exceeded the most optimistic projections, he said.

The optimistic projections included a 2010 American Petroleum Institute report projecting robust job growth that was seized on by officials in Pennsylvania, Ohio and West Virginia to usher in the industry. But the institute found that jobs in the 22 counties that account for 90 percent of the production in the three states increased by only 1.7 percent, according to data from the U.S. Bureau of Economic Analysis, while nationally the number of jobs grew by 10 percent.

The fracking boom offered economic hope in the Upper Ohio River Valley after the collapse of the steel industry and amid the decline of coal mining, which was hastened by a glut of cheap gas.

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.”

President Biden’s Executive Orders and Keystone XL cancellation: what impact on Canada?

By Elizabeth Perry - Work and Climate Change Report, February 1, 2021

Incoming U.S. President Biden exceeded expectations with the climate change initiatives announced in week 1 of his term, and many have important repercussions for Canada. The most obvious came on Day 1, January 20, with an Executive Order cancelling the Keystone XL pipeline and taking the U.S. back into the Paris Agreement. Also of potential impact for the Canadian clean tech and auto industries – the Buy American policies outlined in Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers (Jan. 25). On January 27 ( “Climate Day ”), the Executive Order on Tackling the Climate Crisis at home and abroad (explained in this Fact Sheet ) announced a further series of initiatives, including a pause on oil and gas leases on federal lands, a goal to convert the federal government’s vehicle fleet to electric vehicles, and initiatives towards environmental justice and science-based policies. Essential to the “whole of government” approach, the Executive Order establishes the White House Office of Domestic Climate Policy to coordinate policies, and a National Climate Task Force composed of leaders from across 21 federal agencies and departments. It also establishes the Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization, “to be co-chaired by the National Climate Advisor and the Director of the National Economic Council, and directs federal agencies to coordinate investments and other efforts to assist coal, oil and natural gas, and power plant communities.”

The New York Times summarized the Jan. 27 Orders as “a sweeping series of executive actions …. while casting the moves as much about job creation as the climate crisis.” A sampling of resulting summaries and reactions: ‘We Need to Be Bold,’ Biden Says, Taking the First Steps in a Major Shift in Climate Policy” in Inside Climate News (Jan. 28); “Fossils ‘stunned’, ‘aghast’ after Biden pauses new oil and gas leases” in The Energy Mix (Feb. 1); “Biden’s “all of government” plan for climate, explained” in Vox (updated Jan. 27) ; “Biden’s Pause of New Federal Oil and Gas Leases May Not Reduce Production, but It Signals a Reckoning With Fossil Fuels” (Jan. 27) ; “Biden is canceling fossil fuel subsidies. But he can’t end them all” (Grist, Jan. 28); “Activists See Biden’s Day One Focus on Environmental Justice as a Critical Campaign Promise Kept” and “Climate Groups Begin Vying for Power in the Biden Era as Pressure for Unity Fades” (Jan 21) in The Intercept , which outlines the key policy differences between the BlueGreen Alliance (which includes the Service Employees International Union, the American Federation of Teachers, and the United Steelworkers in the U.S.) and the Climate Justice Alliance, a national coalition of environmental justice groups.

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