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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.”

Just Transitions, Power and Politics

Workers and Just Transition: A Global View

By various - Labor Network for Sustainability, December 5, 2021

With the election of a President who acknowledges the threats of climate change and of ongoing economic devastation for working people, we have an opportunity to seriously address how to make a transition to a climate-safe, socially-just, worker-friendly society. The primary objective of the Just Transition Listening Project (JTLP) is to ensure workers and community voices are central to the conversation of a Green New Deal and other climate policies. 

On Saturday, Dec. 5 at 12 p.m. Eastern, the Labor Network for Sustainability and the JTLP Organizing Committee will bring together labor and policy leaders to share perspectives, stories, and strategies from the frontlines of the struggle for a just transition globally. This will be the sixth webinar in the JTLP series. In addition to the webinar series we conducted interviews with more than 100 community leaders and workers to learn of their experiences and perspectives on Just Transition. Our report from these interviews will be available in January.

From the experiences of metalworkers in South Africa to the coal miners in Spain, to workers across sectors in Latin America and across the world, the struggle for a just transition is truly global. In order to effectively address the worldwide transitions we are facing in our jobs, environments, and homes, we must demand a worldwide response. Join us on Saturday, Dec. 5 as we learn from each other and set the stage for finalizing and distributing our report to help us win the struggle to protect jobs, communities and the right to thrive as we work toward a society that is ecologically sustainable and just. 

Open Letter to the Contra Costa County Board of Supervisors on Just Transition

By Andreas Soto and Ann Alexander - Communities of a Better Environment and NRDC, November 20, 2020

Candace Anderson, Diane Burgis, John Gioia,
Karen Mitchoff, and Federal D. Glover
Contra Costa County Board of Supervisors
651 Pine Street, Room 107
Martinez, CA 94553

Dear Chair Anderson, Vice-Chair Burgis, and Supervisors Gioia, Mitchoff, and Glover, The undersigned organizations applaud your recent Declaration of a Climate Emergency in Contra Costa County, which underlines the need to "plan for a ' Just Transition' away from a fossil-fuel dependent economy." In furtherance of this goal, we seek your immediate action to ensure just transitions for workers and communities threatened with sudden abandonment by refineries located in the County. We believe climate protection must go hand in hand with environmental and economic justice. All of this is now at risk in the Contra Costa County oil belt.

As you know, Marathon abruptly announced in August the immediate permanent end to crude processing at its Martinez refinery. Phillips 66 followed suit with notice of the impending partial closure of its San Francisco Refinery Complex facilities in Rodeo, Franklin Canyon, and Arroyo Grande. Both companies proposed switching to significantly downsized production of non-petroleum fuels, which will involve fallowing of large portions of the refineries. Neither announcement identified any explicit commitment to full cleanups of the contaminated industrial sites. Of even more immediate concern, neither company committed to support the wages, health care, or pensions of all whose jobs these facility closures threaten.

These refinery downsizings—which may well be a harbinger of additional closures in the future—will jeopardize not just the livelihoods of the refinery employees, but those of thousands of families in the surrounding communities whose jobs are indirectly dependent upon the existence of the refineries. Refinery downsizing and shutdown also threaten a significant portion of the tax base upon which community government and essential services depend. Ultimately at risk are future prospects for environmentally healthy and economically sustainable development in communities hosting the decommissioned plant sites.

The Rural Climate Dialogues: A Community-Driven Roadmap for Climate Action in Rural Minnesota

By Tara Ritter - Institute for Agriculture & Trade Policy, November 17, 2020

Rural America has a central role to play in meeting the climate crisis and rural residents have innovative ideas about how to do it. Rural America encompasses 97% of the land area in the United States and is home to nearly all the nation’s energy production, including wind and solar farms, oil drilling and power plants. The nation’s vast agricultural and forested land, which are essential natural resources in responding to climate change, are managed by the 19% of the population that lives in rural America. It seems obvious that rural Americans should be deeply involved in developing climate policy; yet, rural perspectives and ideas are too often not part of the discussion.

There are real challenges in engaging rural communities on climate policy, including longstanding political obstacles that run deeper than views on climate change. The divide between rural and urban is not just geographic, but also cultural and political, and here in Minnesota the gap is widening. Urban and rural Minnesotans have grown apart in many ways — age, income, educational attainment, race and culture. Ignoring these differences, or trying to ram through them, has thus far delayed action on climate change.

Climate change offers an opportunity to engage differently with rural communities in a way that focuses on solutions rather than assigning blame. Instead of trying to “sell” climate policy to rural communities, we must engage organizations and leaders rooted in rural areas in the development stage to identify solutions that work for them. As important, we need community-level engagement tools designed to overcome our current toxic political environment and map out rural-appropriate responses to climate change that feed up into policy and concrete action.

Since 2014, IATP, in partnership with the Jefferson Center, has hosted Rural Climate Dialogues (RCDs) in five Minnesota counties. This method of civic engagement emphasizes listening and empathy building; focuses on each community’s distinct hopes, challenges and sense of place; and ultimately creates locally driven climate action plans. This report will discuss the context in which we have done this work, provide an overview of each community’s recommendations and actions, and share what we have learned.

Read the text (PDF).

Climate Jobs and Just Transition Summit: The Importance of Labor Leading on Climate

Climate Crisis, the Deindustrialization Imperative and the Jobs vs. Environment Dilemma

By Richard Smith - TruthOut, November 12, 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.

Since the 1990s, climate scientists have been telling us that unless we suppress the rise of carbon dioxide emissions, we run the risk of crossing critical tipping points that could unleash runaway global warming, and precipitate the collapse of civilization and perhaps even our own extinction. To suppress those growing emissions, climate scientists and the UN Intergovernmental Panel on Climate Change (IPCC) have called on industrialized nations to slash their carbon dioxide emissions by 80 to 90 percent by 2050. (1)

But instead of falling, carbon dioxide emissions have been soaring, even accelerating, breaking records year after year. In May 2013, carbon dioxide concentrations topped the 400 parts per million mark prompting climate scientists to warn that we're "running out of time," that we face a "climate emergency" and that unless we take "radical measures" to suppress emissions very soon, we're headed for a 4-degree or even 6-degree Celsius rise before the end of the century. And not just climate scientists have made warnings, but also mainstream authorities, including the World Bank, the International Energy Agency (IEA) and others. In 2012, the IEA warned that "no more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if we hope to prevent global warming from exceeding more than 2 degrees Centigrade." (2) In September 2014, the global accounting and consulting giant PricewaterhouseCoopers warned that

For the sixth year running, the global economy has missed the decarbonisation target needed to limit global warming to 2˚C . . . To avoid two degrees of warming, the global economy now needs to decarbonise at 6.2 percent a year, more than five times faster than the current rate, every year from now till 2100. On our current burn rate we blow our carbon budget by 2034, sixty-six years ahead of schedule. This trajectory, based on IPCC data, takes us to four degrees of warming by the end of the century. (3)

Yet despite ever more dire warnings from the most conservative scientific, economic and institutional authorities, and despite record heat and drought, superstorms and floods, and melting ice caps and vanishing glaciers, "business as usual" prevails. Worse, every government on the planet is pulling out all the stops to maximize growth and consumption in the effort to hold on to the fragile recovery. (4)

Greening of the IWW: What Happens When We Win?

By Jess Grant - Industrial Worker (August 1989)

The time has come for the IWW to tackle head-on the question of post-industrial production, better known as “What do we do now that we won the General Strike?” We can no longer duck the issue by saying that workers’ committees will decide all that when the time comes. We must firmly put to rest the misconception that Wobblies are factory fetishists by taking a clear stand against the kinds of work that harm our planet or alienate us from our labor. Let us envision a world where the earth and our labor are honored equally.

Assuming that people are naturally inventive and enjoy contributing to their communities, and that people displaced from harmful industries will want to be retrained rather than put out to pasture, then we must find an answer to those who ask, “What will I do if my factory is shut down?” If millions of jobs are lost as the result of decommissioning harmful and unnecessary industries, then conversion to an ecological, self-managed economy will demand an imaginative program of apprenticeship and education.

Labor unions are simply the social manifestation of an instinctive solidarity found among working class people, and the IWW is no exception. Unions were born out of conflict and designed as instruments of class struggle, and from this clash they draw their meaning. But in the absence of struggle, when the boss class has been evicted and the workers are busy redesigning society, unionism becomes irrelevant. As “work” is replaced with “play”, the shell of unionism will wither away and leave in its place an intricate network of freely associating cooperatives. 

That venerable Wobbly institution called Father Hagerty’s Wheel of Fortune, in which the various branches of industry are laid out in diagrammatic detail like a pizza with too many extras, was never meant to describe post-revolutionary society.  It’s a handy guide for understanding how industry (as we know it under capitalism) is organized, and thus how to coordinate our own struggle, but it’s a lousy model for the future. Let’s try to imagine what the wheel would look like if we could depose the boss class and put our lives back in balance with nature.

Every person has a calling, some talent or passion for a particular activity that best expreses that individual. People seem happiest when they have the freedom to pursue that calling. A primary goal of self-managed production, then, is to create this freedom of action. Most callings fit into one of several basic archetypes. It’s these Jungian archetypes, weighted with the power of myth, which will form the basis of our new Wheel of De-Industry.

Plant Closings and Technological Change: A Guide for Union Negotiators

By Anne Lawrence and Paul Chown - Center for Labor Research and Education, Institute of Industrial Relations, University of California (Berkeley), Date Uncertain, likely early 1980s

American industry today is under going a massive transformation which gravely threatens the job security, wages, and benefits of union workers. Economic recession, the flight of capital overseas, and to low wage areas, the declining competitiveness of domestic industry, and the introduction of labor saving technologies are producing an epidemic of plant closings and layoffs.

The problem of plant closures is stunning. The federal government does not count shutdowns directly, but estimates based on private research data show that over four million jobs a year were lost in the early 1970s as a result of plant closings and migrations. For every ten large manufacturing plants open in 1969, three had closed by 1976. No single area of the country was spared. Since then, hundreds of thousands more workers -- from steelworkers in Lackawanna, New York, to insurance company data processors in San Francisco; from autoworkers in South Gate, California, to tire builders in Akron -- have joined the victims of plant closings.

Technological change also poses a major threat to workers' job security. The development of the microprocessor, or "computer on a chip," has made possible an unprecedented transformation of the workplace. Electronic scanning devices at the supermarket, word processors in the office, electronic transfer of mail at the post office, robots on the assembly line, and numerically controlled machine tools in the shop threaten the jobs of the checkout clerk, secretary, postal clerk, autoworker, and machinist. Business Week has estimated that within the next decade, new technology may transform as many as 45 million jobs, half of them now unionized. As many as 25 million of these jobs may be completely eliminated.

Faced with the major job losses caused by plant closings and technological change, many unions have sought through collective bargaining to check further layoffs and lessen the hardship for those who are already out of work. Job security has always been a major concern of union negotiators. But today, with the highest unemployment since the Great Depression, it has moved to the top of the bargaining agendas of many unions. Provisions such as advance notice of shutdowns and layoffs and restrictions on management's rights to close plants, transfer work, and displace or downgrade workers are increasingly being used by unions to prevent or postpone layoffs. For workers who lose their jobs, unions are seeking improved severance pay, extension of health care benefits, transfer rights, and retraining assistance.

This manual is designed as a practical guide for union negotiators responsible for bargaining contract language on issues related to plant closings, transfer of operations, and technological change. The manual is organized by contract clause, such as advance notice or severance pay. Each section contains an introduction to the major bargaining issues and a checklist of items negotiators may wish to cover. The manual then provides samples of actual contract clauses recently negotiated by unions in a variety of different industries. Model clauses, included for each topic, may be used by negotiators in framing their own proposals for contract bargaining.

Read the report (PDF).

Pages

The Fine Print I:

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The Fine Print II:

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