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American Petroleum Institute (API)

The Fossil Fuel Industry Is a Jobs-Killer

By Wenonah Hauter - In These Times, February 14, 2022

For years now, any discussion about climate action or the need to move off fossil fuels has run headlong into a familiar quandary: The industries fueling the climate crisis create good jobs, often in areas of the country where finding work that can support a family is incredibly difficult. 

This leaves activists gesturing towards well-intentioned goals like a ​“just transition,” a promise that likely rings hollow for workers and many labor unions because it’s hard to see where this has actually happened — even though, by every measure, we need to create some real policies that turn this vision into reality. While there are encouraging examples of labor unions throwing their support behind robust climate plans, it has proven difficult for the climate movement to find its way out of the jobs versus environment framing. 

But that is especially true when we refuse to question the original premise. The truth is that the fossil fuel industry wildly inflates its employment record, and the recent data show they are producing more fuel with fewer workers. Instead of avoiding this reality, perhaps it is time to tackle it head on. Dirty energy corporations are not creating jobs as much as they are cutting them these days, and that provides an opening to envision the kinds of employment — in areas like orphaned well clean up and energy efficiency — that will provide employment for the thousands of workers the industry is no longer employing. 

Some of the most common jobs estimates are produced by the American Petroleum Institute (API), the powerful oil and gas trade association. Over the years, API has released reports claiming that the domestic fracking industry creates somewhere between 2.5 million to 11 million jobs, both directly and indirectly. These numbers — or versions of them — are floated in political debates and in the media, but they are significantly out of step with other estimates, including the federal government’s labor reports. Food & Water Watch, an organization I founded, created a more accurate model that relies on direct jobs and relevant support activities, including pipeline construction and product transportation. The total comes to just over 500,000 in 2020, or about 0.4 percent of all jobs in the country. 

How to explain the massive gap between industry propaganda and reality? The API figures include a range of employment categories; in addition to direct industry employment, they add indirect jobs (those within a supply chain) and induced jobs (those that are supposedly ​‘supported’ by direct and indirect jobs). These categories make up the vast majority of their total. Convenience store workers, for example — working where gas happens to be sold — make up almost 35 percent of the industry’s supposed employment record.

12 Guilty Fogeys: Big Oil’s $86 billion offshore tax bonanza

By staff - Friends of the Earth, Bailout Watch, and Oxfam, September 2021

Few letter-soup acronyms in Washington bureaucratese are so aptly pronounced as GILTI and FOGEI, two esoteric provisions in the tax code worth tens of billions of dollars to Big Oil’s multinational majors.

Under the Trump Administration’s radical 2017 tax law, companies that extract oil and gas overseas enjoy special exemptions within the Global Intangible Low-Tax (GILTI) regime covering Foreign Oil and Gas Extraction Income (FOGEI).

It is a fitting accident of nomenclature: FOGEI’s GILTI carveout helps prop up the fossil firms most culpable for the climate crisis — to the tune of $84 billion. An additional international tax loophole enjoyed by Big Oil is worth at least another $1.4 billion, for a grand total of over $86 billion in offshore tax giveaways.

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.

Oil Industry Inflates Job Impact From Biden’s New Pause on Drilling on Federal Lands

By Nick Cunningham - DeSmog, January 27, 2021

On Wednesday, President Biden signed an executive order directing his Department of Interior to hit pause on entering new leases for oil and gas drilling on federal lands, the latest in a string of climate-related directives aimed at cutting greenhouse gas emissions.

On the campaign trail, then-candidate Joe Biden proposed a ban on new leases on public lands, a pledge the Trump campaign falsely claimed would “end fracking.” After Biden’s victory, a coalition of nearly 600 organizations from western states wrote a letter in December to the president-elect, urging him to follow through on his promise. The executive order begins that process.

About 25 percent of U.S. fossil fuel production came from federal lands over the past decade. Perhaps unsurprisingly, federal lands account for roughly 24 percent of U.S. greenhouse gas emissions, stemming from the production of oil, gas, and coal, along with the methane released during the extraction process, and the combustion of those fuels, according to the U.S. Geological Survey.

A big slice of that comes from coal, an industry that has been in decline for years. But drilling for oil and gas in the U.S. has increased dramatically in recent years, thanks in large part to fracking. While the oil industry quickly applauded the Biden administration for rejoining the Paris Climate Agreement, it was incensed that he would halt new drilling leases on federal lands.

Bailed Out and Propped Up: US Fossil Fuel Pandemic Bailouts Climb Towards $15 Billion

By Dan L. Wagner, Christopher Kuveke, Alan Zibel, and Lukas Ross - Bailout Watch, Public Service, Friends of the Earth, November 2022

The fossil fuel industry received between $10.4 billion and $15.2 billion in direct economic relief from federal efforts under President Donald Trump.

During a year of massive economic losses caused by climate change-driven wildfires and hurricanes, the U.S. government has sent billions in pandemic-related economic aid to the fossil fuel companies most responsible for catastrophic climate damage.

An analysis by BailoutWatch, Public Citizen, and Friends of the Earth reveals the fossil fuel industry received between $10.4 billion and $15.2 billion in direct economic relief from federal efforts under President Donald Trump to sustain the economy through the pandemic.

These direct benefits were magnified by indirect lifelines, most notably the implied seal of approval conferred on some companies’ debt when the Federal Reserve bought $432 million in oil and gas bonds from private investors on the secondary market. The Fed earlier signaled its support for the broader bond market, including junk-rated debt, by buying Exchange-Traded Funds that included $735.4 million of fossil fuel bonds.

By demonstrating its willingness to take on fossil fuel debt — and risky debt from any part of the economy — the Fed drew private investors back into a shaky market. This fueled a lending boom of more than $93 billion in new bond issuances by oil and gas companies since the Fed intervened in March — the fastest rate of energy bond issuance since at least 2010.

The Fed’s bond purchases, along with the new issuances they spurred, amounted to indirect benefits totaling $94.7 billion. Together with direct benefits worth up to $15.2 billion, likely more, the 2020 fossil fuel bailouts add up to $110 billion.

Read the text (PDF).

Fox Guarding Henhouse: Oil-By-Rail Standards Led by American Petroleum Institute

By Justin Mikulka - DeSmog Blog, July 9, 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.

“How did it get missed for the last ten years?”

That was the question Deborah Hersman, chair of the National Transportation Safety Board (NTSB), posed to a panel of industry representatives back in April about how the rail industry had missed the fact that Bakken oil is more explosive than traditional crude oil.

“How do we move to an environment where commodities are classified in the right containers from the get go and not just put in until we figure out that there’s a problem,” Hersman asked during the two-day forum on transportation of crude oil and ethanol. “Is there a process for that?”

The first panelist to respond was Robert Fronczak, assistant vice president of environmental and hazardous materials for the Association of American Railroads (AAR). His response was telling.

“We’ve know about this long before Lac-Megantic and that is why we initiated the tank car committee activity and passed CPC-1232 in 2011,” Fronczak replied, “To ask why the standards are the way they are, you’d have to ask DOT that.”

So, now as the new oil-by-rail safety regulations have been sent from the Department of Transportation (DOT) to the White House’s Office of Information and Regulatory Affairs, it seems like a good time to review Hersman’s questions.

How did we miss this? Is there a process to properly classify commodities for the right container before they are ever shipped? 

How This U.S. Rail Safety Measure Has Been Delayed for 44 Years … And Counting

By Justin Mikulka - DeSmog Blog, April 30, 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.

On August 20, 1969, two Penn Central commuter trains collided head-on near Darien, Conn. Four people were killed and 43 were injured. The crash led the National Transportation Safety Board (NTSB) to recommend that railroads implement new safety technology called positive train control — a system for monitoring and controlling train movements to increase safety.

The NTSB first recommended positive train control in 1970. In 2008, after another fatal train collision that killed 25 people, Congress finally passed the Rail Safety Improvement Act, which mandated positive train control be implemented by the railroad industry by the end of 2015.

Fast-forward another six years to multiple congressional hearings in recent months, during which the railroads have informed Congress that positive train control simply won’t be implemented by the end of 2015. It’s been 44 years since the NTSB first recommended positive train control to improve rail safety in the U.S. and it is still not being used.

Looking at the way the positive train control scenario has played out for the past 44 years offers valuable lessons on how the U.S. is now dealing with safety regulations for shipping oil by rail.

Last week, the NTSB held a two-day forum on rail safety regarding the transportation of crude oil and ethanol. One of the main topics was how to improve rail tank car safety and what to do with the DOT-111 tank cars currently being used to ship crude oil and ethanol.

Much like positive train control, the NTSB has been recommending for decades that the DOT-111 tank cars not be used for ethanol and crude oil transportation due to the high risks they pose in derailments.

So why hasn’t anything been done? Mostly because of opposition by oil and gas industry groups, such as the American Petroleum Institute (API).

The Fine Print I:

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