fossil fuel capitalism

By Jason Wang, Will Noe - Pembina Institute, August 24, 2023

Alberta’s proven, economic, and available wind and solar resources position it to become Canada’s renewable energy capital. In fact, three-quarters of renewable energy projects built in Canada last year were in Alberta. At a time when the investments are trending towards renewable energy growth globally, accelerating the buildout of renewables in the province is a no-regrets economy-building decision. Renewable energy reduces electricity costs, creates jobs, and has been a growing source of investment in Alberta. Since 2019, projects have drawn nearly $5 billion in investments, creating close to 5,500 jobs.

But on August 3, 2023, the Government of Alberta announced a seven-month pause on approvals for renewable energy projects over 1 megawatt (MW) – including wind, solar, and geothermal, though excluding microgeneration.

Natural resources should be developed responsibly with care to mitigate environmental impact and address stakeholder concerns. However, there are several measures in place already for the responsible development and reclamation of renewable energy resources in Alberta. In addition, renewable projects are only developed with interested landowners. There are improvements that can be made to the measures in place, but they can be undertaken without hampering the industry and stakeholders involved in project development.

We reviewed the Alberta Electric System Operator’s (AESO) list of electricity generation projects in development in relation to their approval status from the Alberta Utility Commission (AUC) to determine how many projects are impacted by Alberta’s renewable energy development moratorium and what this means for investments, revenues, and jobs in the province.

Public data shows that 118 projects are currently in development and are either waiting for permitting approval or could submit an approval application within the next few months. These projects represent at least $33 billion of investment and more than 24,000 job-years.

Download a copy of this publication here (link).

By Jon Hurdle - Inside Climate News, August 23, 2023

Natural gas production in the Appalachian region of the United States has failed to produce promised increases in jobs and income since the fracking boom began there in the late 2000s, with economic stagnation likely to persist now that output of the fuel has passed its peak, according to a report issued on Tuesday.

The study from the Ohio River Valley Institute, a nonprofit research group, found that gas-producing areas of Pennsylvania, Ohio and West Virginia lost more than 10,000 jobs from 2008 to 2021 and that their personal income growth trailed that of the three states and the U.S. as a whole. Their population dropped by more than 46,000 during the period.

Even though gross domestic product of the 22-county region surged at four times the rate of the states overall from 2008 to 2019, little of that new wealth helped local economies because natural gas investment is mostly made in capital, not labor, and because many of the industry’s workers came from distant areas like Texas or Oklahoma where oil and gas skills were more readily available, the report said.

“GDP, which is often cited as a principal barometer of economic health, failed to produce commensurate gains in local measures of prosperity and well-being, including job, income and population growth,” it said.

By Sean O'Leary - Ohio River Valley Institute, August 22, 2023

By the first quarter of 2020, EQT Corporation, the nation’s largest domestic producer of natural gas, was supplying more than 4 billion cubic feet of natural gas per day. Just a decade earlier, EQT’s output wasn’t even one-tenth as much and the company ranked an undistinguished 25th for output among US producers. But EQT had the good fortune and foresight to base all of its operations in Appalachia, which made it the greatest beneficiary of what turned out to be the world’s richest natural gas field. 

In those early days of 2010, when EQT was the scuffling little guy trying to find a place among giants, such as ExxonMobil, the company employed just 1,815 people. But, by 2020, when EQT’s production had surpassed that of ExxonMobil and all others, its employee count mushroomed to . . . 624.

Yes, EQT’s head count actually declined by nearly two-thirds between 2010 and 2020. In fairness, some of EQT’s job reduction was attributable to its spin-off of Equitrans Midstream (EQM) in 2018. But, even if you add EQM’s 2020 head count to EQT’s, combined employment at the two companies was only 1,395 in 2020, still a quarter smaller than EQT’s workforce in 2010.

EQT’s tale of skyrocketing output accompanied by a shrinking workforce helps us understand important things about the shale gas industry. It helps explain why, as the Ohio River Valley Institute documented in 2021, the Appalachian natural gas boom failed to deliver what had been expected to be hundreds of thousands of new jobs for the region. And it demonstrates that as the natural gas industry matures, it becomes less jobs-intensive and its already meager contributions to economic development and prosperity become even fewer. The dynamic is simple. As a larger share of output comes from existing wells and fewer new ones are dug and work is completed on the construction of processing plants and pipelines, fewer workers are needed. 

Consequently, if production stagnates and the only need for new wells is to replace those that retire, the economic value of the gas industry to Appalachia may diminish even further. And if the Energy Information Administration is correct in its most recent forecast for domestic natural gas production between now and 2050, that is exactly the scenario Appalachia and its natural gas industry are facing.

According to the EIA’s “Annual Energy Outlook 2023”, Appalachian natural gas production likely peaked in 2022. Although this year’s events may prove that forecast to be incorrect in the short term, the long-term trend is clear. Production is leveling off. Indeed, data show that Appalachian production began to plateau as early as 2019. And, as this report will show, economic outcomes in the 22 counties in Ohio, Pennsylvania, and West Virginia that are responsible for 90% of Appalachian gas production deteriorated even further since 2019, which was the last year examined in ORVI’s original study of the Appalachian natural gas boom’s economic impacts in the counties where it is concentrated – an area christened “Frackalachia.”

Download a copy of this publication here (PDF).

By Rebecca Burns - The Lever, August 9, 2023

Fossil fuel and corporate lobbying groups blocking action on climate change are also fighting labor protections meant to safeguard workers from its intensifying effects. As record-high temperatures kill the workers who grow our food, deliver our packages, and build our homes, industry lobbying has stalled heat safety measures in Congress and at least six states, according to a Lever review.

As a result, most of the nation’s workers still aren’t guaranteed access to water, rest, and shade — the basic precautions needed to fend off dangerous heat stress. Heat exposure could already be responsible for as many as 2,000 workplace deaths each year, and research suggests that it is three times as deadly when combined with exposure to air pollution from sources like wildfire smoke.

Business lobbies representing the agriculture, construction, and railroad industries have also opposed state rules protecting outdoor workers from smoke exposure.

The key opponents to worker climate protections include the National Federation of Independent Business (NFIB), a well-funded influence machine that describes itself as “the voice of small business” while pushing corporate agendas like the rollback of child labor protections. The group reported spending more than $1 million lobbying the federal government last year on issues including legislation to fast-track heat protections for workers. Soon after, the bill stalled.

By Claire Kovach, Stephen Herzenberg, Amanda Woodrum, and Ted Boettner - ReImagine Institute, Keystone Research Center, Ohio River Valley Institute, July 25, 2023

The Appalachian region has long suffered from not having enough good paying jobs. Even when the unemployment rate is low, too many Appalachians are disconnected from the workforce entirely due to a myriad of factors. The result has been a long-term structural unemployment problem that has persisted for decades, with too many Appalachian adults out of the workforce entirely and unable to secure a decent paying job where they live.

A federal job subsidy program that is targeted at breaking down barriers to employment – such as improving the skills and experience of potential workers to meet current employer demands in their local labor market – and connecting them with a job could not only boost incomes and improve the livelihood of thousands of Appalachians but also give people self-esteem, a source of identity, and feel more connected to their community.

This report examines the economic conditions of Appalachia with a particular focus on the Appalachian counties of four states—Kentucky, Ohio, Pennsylvania, and West Virginia—that comprise the footprint of ReImagine Appalachia and the Ohio River Valley Institute. This includes describing how Appalachia has been a “region apart” from the rest of America, including its history of resource extraction and exploitation, the collapse of the steel industry, and now coal, that has led to large employment losses in the area, and how the region’s uneven development has led to chronically low rates of employment, disenfranchisement from the labor market and even loss of hope underpinning the opioid epidemic from which the Appalachian region was particularly hard hit.

Download a copy of this publication here (PDF).

By Gaby Sarri-Tobar, Crystal-Cavalier, Thomas Meyer, Ted Glick, and Ben Goloff - Center for Biological Diversity, July 12, 2023

By Tahir Latif, Claire James, Ellen Robottom, Don Naylor, and Katy Brown - Working People, July 7, 2023

Greenwash is not always easy to challenge: the claims to offer climate solutions; the PR offensive in local communities; and promises of 'green jobs' that in reality are neither as numerous or as environmentally friendly as promised.

But whether it’s a ‘zero carbon’ coal mine, heating homes with hydrogen, importing wood to burn in power stations, ‘sustainable aviation growth’ or offsetting, there are common themes that can give a reality check on greenwash claims and misleading jobs promises.

Speakers:

• Claire James, Campaign against Climate Change
• Ellen Robottom, Campaign against Climate Change trade union group
• Don Naylor, HyNot (campaigning against HyNet greenwash and the Whitby hydrogen village)
• Katy Brown, Biofuelwatch (using slides from Stuart Boothman, Stop Burning Trees Coalition who was unable to make it).

By staff - Campaign Against Climate Change, July 2023

To have a chance of limiting global heating to 1.5 degrees, there must be no new oil and gas production. But fossil fuel industries have other ideas, aggressively promoting themselves as ‘green’, to ensure that extraction (and their mega-profits) continue.

Instead of focusing on proven solutions to cut emissions – renewables and energy efficiency – massive public subsidy is being diverted to develop carbon capture and storage (CCS), and related technologies: 'blue' hydrogen and burning biomass.

Here in the UK, £20 billion funding has just been announced for CCS. Two pilot industrial clusters are already being driven forward, on the East Coast (Humber/Teesside) and Hynet (Liverpool Bay/North Wales).

Carbon capture may prove necessary in a few industries, but industrial and energy policy is being dangerously distorted by the fossil fuel industry’s interest in prolonging the use of oil and gas whilst developing a lucrative new revenue stream in so-called 'carbon management'.

By Steve Keen - Carbon Tracker, July 2023

Pension funds are risking the retirement savings of millions of people by relying on economic research that ignores critical scientific evidence about the financial risks embedded within a warming climate.

This report reveals that many pension funds use investment models that predict global warming of 2 to 4.3°C will have only a minimal impact on member portfolios, relying on economists flawed estimates of damages from climate change, which predicts that even with 5 to 7°C of global warming, economic growth will continue. The report underscores that such economic studies cannot be reconciled with warnings from climate scientists that global warming on this scale would be “an existential threat to human civilisation.”

Loading the DICE against pension funds is a call to action for investment professionals to look at the compelling evidence we see in the climate science literature, and to implement investment strategies, particularly a rapid wind down of the fossil fuel system, based on a ‘no regrets’ precautionary approach. Behaving cautiously now and acting to avoid a 1.5°C increase (let alone the 4°C outcome featured in this report) will enable future generations to secure the prosperity and quality of life that comes from a healthy planet.

By Michael Zonta, Melanie Issett, Celinda Ma, and Olaf Weber - School of Environment, Enterprise and Development (SEED), University of Waterloo, June 26, 2023

This report presents the results of analyses conducted on a group of pension funds that face popular demands to decarbonize their investment holdings (Climate Safe Pensions Network (CSPN)). A key argument made by advocates is that fossil fuel-free portfolios would have seen superior investment performance during the last decade. The scope of the analyses includes the historical public equity investments of the funds and are based on data provided by either Bloomberg or Capital IQ2. The analyses were conducted between 2013 and 2022 for the funds with publicly accessible data. Data for eight of the funds were available, including:

Data for eight of the funds were available, including:

• Alaska Permanent Fund Corporation (APFC)
• Alaska Retirement Management Board (ARMB)
• California Public Employees' Retirement System (CalPERS)
• California State Teachers' Retirement System (CalSTRS)
• Colorado Public Employees' Retirement Association (CoPERA)
• New York State Teachers' Retirement System (NYSTRS)
• Oregon Public Employees' Retirement Fund (OPERF)
• State of Wisconsin Investment Board (SWIB)

if six of the eight U.S. public pension funds had divested 10 years ago, they would have been $21 billion richer, an average 13% higher return rate. These six pensions collectively represent approximately 3.4 million people.

Download a copy of this publication here (PDF).