Fracking boom brings job and income loss to Appalachian communities: study

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.

Just Transition for Pennsylvania estimated to cost $115,000 per worker in latest report from PERI

In the latest of a series of reports titled Green Growth Programs for U.S. States, researchers provide analysis and proposals for economic recovery for Pennsylvania, considering both the impacts of Covid-19 and a necessary transition to a cleaner economy.  In Impacts of the Reimagine Appalachia & Clean Energy Transition Programs for Pennsylvania:  Job Creation, Economic Recovery, and Long-Term Sustainability, Robert Pollin and co-authors estimate that clean energy investments scaled at about $23 billion per year from 2021 to 2030 will generate roughly 162,000 jobs per year in Pennsylvania. They detail those investment programs for sectors including public infrastructure, manufacturing, land restoration and agriculture, and including plugging orphaned oil and gas wells.

The report estimates that 64,000 people are currently employed in Pennsylvania in fossil fuel-based industries – including in fracking for natural gas from the Marcellus Shale regions, as well as other oil and gas projects, coal mining, and fossil fuel-based power generation. As the state transitions away from fossil-fuel industries, the authors estimate that about 1,800 workers will be displaced each year between 2021 – 2030, and another 1,000 will voluntarily retire each year.  The authors estimate that the average costs of supporting these workers will amount to about $115,000 per worker, with an overall cost of about $210 million per year over the duration of the just transition program. The report emphasizes: “It is critical that all of these workers receive pension guarantees, health care coverage, re-employment guarantees, wage insurance, and retraining support, as needed”.

The full series of reports, Green Growth Programs for U.S. States, includes similar analysis and proposals for Ohio, Maine, Colorado, New York, and the state of Washington.  They  are co-written by experts including Robert Pollin,  Shouvik Chakraborty, Heidi Garrett-Peltier, Tyler Hansen, Gregor Semieniuk, and Jeannette Wicks-Lim.  The series is published by the  Department of Economics and Political Economy Research Institute (PERI) University of Massachusetts-Amherst.        

Canada Pension Plan continues to risk Canadians’ retirement savings – this time, fracking investments in Colorado

The Canadian Pension Plan Investment Board continues to display a hypocritical disregard for its own sustainability principles, as reported in  “CPPIB’s fracking operation in U.S. raises questions” in the Toronto Globe and Mail on September 27. The Globe and Mail describes the fracking activities and political donations of Crestone Peak Resources, a company 95% owned by the Canada Pension Plan Investment Board, and formed out of the ashes of Encana. The article reports that Crestone spent more than US$600,000 to support pro-business candidates who opposed tougher regulation of fracking in the 2018 Colorado state elections. Friends of the Earth Canada were involved in the Globe and Mail investigation and has posted unique information here .

The Energy Mix also published “’Canadians Don’t Want This: Fracking Company Owned By Canada Pension Plan Spent $600,000 To Influence Colorado State Elections” (September 30).The article quotes  Professor Cynthia Williams, Osler Chair in Business Law at Osgoode Hall Law School in Toronto, who states:  “It’s a “perfectly correct statement of corporate law” to say that CPP and Crestone are separate companies”, …. But it’s “an imperfectly correct answer to the ethical questions about CPPIB using its heft, based on the involuntary monetary contributions of millions of citizens and other people working in Canada, to try to shape politics to support its oil and gas investments, in Colorado, even as the Government of Canada has committed to working to transition to a low-carbon economy.”

Professor Williams  is the author of  Troubling Incrementalism: Canadian Pension Plan Fund and the Transition to a Low-carbon Economy , published in September by the Canada Climate Law Initiative.  The report discusses CPPIB investments in fossil fuels in the last six years in detail, including fracking companies in Ohio and the Crestone company in Colorado, as well as oil sands expansion in Alberta and Saskatchewan. The report concludes by calling on CPP Investments to fundamentally re-evaluate its role, stating:

“Our view is that CPP Investments should be, and could be, making a substantial contribution to Canada’s future economy by supporting new technologies, new companies, and the just transition to a low-carbon economy. We argue that doing so would be more consistent with its statutory mandate to manage the assets of the CPP Fund in the best interests of the twenty million Canadian contributors and beneficiaries than is its current approach. It would also be more consistent with its common-law fiduciary duties, which require intergenerational equity.”

What can Canadians do to move their pension funds away from fossil fuels?

Friends of the Earth Canada offers an online letter to Heather Munroe-Blum (Chair, Canada Pension Plan Investment Board) and Mark Machin (CEO), with five recommendations arising from the Crestone investigation. FOE is also conducting open informational meetings about the CPP investments throughout Canada in October.

Shift Action  is a project of Tides Canada which advocates for environmentally-responsible pension management.  Their press release (Sept. 29) cites the Crestone investment, highlights the nearly $12 billion invested in Chinese coal mines and other fossil fuel companies (double its clean energy investments),  and warns: “The CPP is betting Canadian retirement savings against the unstoppable transition to a clean energy economy, and fueling the global climate crisis in the process.”  In an interview published in The Energy Mix , Shift Action’s Executive Director, Adam Scott urges Canadians:  “One of the best ways to have an impact in this crisis is to make sure the funds that are invested on your behalf are invested in solutions to climate change, not in the problem. There’s a tool on our website that makes it easy for all Canadians to send a note to their pension funds asking what they’re doing on climate risk and how they’re investing.”   Shift Action published a detailed guide to engagement in June 2019, Canada’s Pension Funds and Climate Risk: A Baseline For Engagement . It concludes with tips which include:  “Each of Canada’s major pension plans has a different structure for governance and accountability. Beneficiaries should understand this structure and have a clear sense of their pension plan’s sponsors and governance model. Beneficiaries should engage with all relevant points of contact, for example a union pension representative or a government appointed pension trustee.”

And finally, for pension fund trustees, the Canada Climate Law Initiative  flagship initiative is the Canadian Climate Governance Experts program, which offers “pro bono sessions on effective corporate governance to address climate-related financial risks and opportunities to corporate boards of directors and Canadian pension fund boards.”

 

 

Canadian doctors call for moratorium on fracking for gas

On January 29, the Canadian Association of Physicians for the Environment (CAPE) released a report which documents the serious health and environmental dangers associated with fracked natural gas, calling for the phase-out of existing fracking operations and a moratorium on any new fracking projects. CAPE also calls for Just Transition plans to help workers and the communities which would be affected.  Canada is the world’s fourth largest producer of natural gas, and in 2018, 71% of that was “fracked gas”, mostly produced in northeastern British Columbia.  The Narwhal offers a good  (though now dated) explainer about fracking in Canada, and offers several in-depth articles, including “Potential health impacts of fracking in B.C. worry Dawson Creek physicians” (April 2019). The Narwhal has also published recent articles by Ben Parfitt of the Canadian Centre for Policy Alternatives B.C., who has also written extensively about fracking and LNG in B.C. Most recently, Peace River Frack-up  was released by CCPA-BC in January,  calling for an immediate ban on fracking activity for operations  close to BC Hydro’s two existing Peace River dams and the Site C dam, because of the risk of dam failure from fracking-caused earthquakes.

The CAPE report, Fractures in the Bridge: Unconventional (Fracked) Natural Gas, Climate Change and Human Health  documents the environmental and climate change impacts of fracking, with an over-riding concern about the significant health dangers, especially for communities and workers. The report notes: “Data from the US show that the risk of death among workers in this sector is two-and-a half-times higher than the risk for workers in construction and seven times higher than the risk for industrial workers as a whole.”  “America’s Radioactive Secret” is a troubling article which appeared in Rolling Stone on January 21, summarizing a journalistic investigation of the  unregulated trucking of fracking waste: “Oil-and-gas wells produce nearly a trillion gallons of toxic waste a year. An investigation shows how it could be making workers sick and contaminating communities across America.”

Fractures in the Bridge provides a Canadian perspective on the overwhelming evidence from established studies which have reported “negative health outcomes including adverse birth outcomes, birth defects including congenital heart defects and neural tube defects, cancer, cardiovascular diseases, dermal effects, gastrointestinal symptoms, neurological effects, psychological impacts and respiratory illnesses.” Fractures in the Bridge  also provides a very complete bibliography as well as an appendix showing how fracking is regulated in each province in Canada.

An important related source of information, updated in 2019, is the Compendium of Scientific, Medical, and Media Findings Demonstrating Risks and Harms of Fracking (Unconventional Gas and Oil Extraction) , published by the Concerned Health Professionals of New York (CHPNY) and Physicians for Social Responsibility (PSR).

Federal government announces $275 Million subsidy to LNG Canada in B.C.

Despite the ongoing contentious development of Liquified Natural Gas (LNG) in British Columbia and commitments to end fossil fuel subsidies, on June 24 federal Finance Minister Morneau  announced that the federal government will invest $275 million into LNG Canada’s $40 billion liquefied natural gas project in Kitimat: $220 million to be spent on energy-efficient gas turbines for the project, and  $55 million spent on replacing the Haisla Bridge in Kitimat. The announcement is summarized by the CBC in “Feds announce $275M ‘largest private sector investment in Canadian history’ — Kitimat, B.C.’s LNG project”

The Narwhal maintains an ongoing archive of excellent articles which chronicle the controversy over fracking and LNG in B.C,  here .  Two recent “must read” articles from: “6 Awkward Realities behind B.C.’s big LNG Giveaway”  (April 6)  which discusses the B.C. government’s move to bundle tax exemptions and cheap electricity rates into a $5.35 billion  incentive package for  LNG Canada in March 2019, and “B.C. government quietly posts response to expert fracking report” (June 28) which discusses the government’s  response to the report of its own  independent Scientific Review of Hydraulic Fracturing in British Columbia, released in February 2019. As noted in the Narwhal article, the panel was mandated to assess the potential impacts of fracking on water quantity and quality; on seismic activity, and on  fugitive emissions – but not on public health, despite concerns raised and the known scientific evidence.  According to the government news release,  a working group has been established to address the  97 recommendations made by the expert panel.

Some recent relevant reading about LNG and the fracking associated with its production: 

RE the Emissions of LNG: The New Gas Boom , published  on July 1 by the Global Energy Monitor, an international non-governmental organization that catalogues fossil-fuel infrastructure. The report states that a growing global supply of natural gas is on a “collision course” with the Paris Agreement, and that the increase in natural gas is driven largely by the North American fracking boom- with 39% of new development  occurring in the U.S., 35% in Canada.  The GEM report is discussed from a Canadian viewpoint in  “Global boom in natural gas is undermining climate change action: reportNational Observer (July 2)  and  “’Clean’ natural gas is actually the new coal, report says: Don Pittis” at CBC  .  Previous to the Global Energy Monitor report, Marc Lee had weighed in on the high GHG emissions of fracked natural gas in  “ LNG’s Big Lie”, an article in the Canadian Centre for Policy Alternatives Policy Note ( Lee’s arguments were also published in The Georgia Straight,  (June 17) and an OpEd in The Globe and Mail . )

compendium re frackingIn the U.S.   in June 19, The sixth edition of the Compendium of Scientific, Medical, and Media Findings Demonstrating Risks and Harms of Fracking  was published by Physicians for Social Responsibility and Concerned Health Professionals of New York. Written by scientists, doctors and journalists, it is an analysis of original research studies published from 2016-2018 on the health impacts of fracking . One of the most impactful statements from the press release: “The notion that natural gas can serve as an intermediate “bridge fuel” between coal and renewable energy is fallacious and now disproven by new scientific evidence showing that methane is a more powerful greenhouse gas than formerly appreciated and escapes in larger amounts from all parts of the extraction and distribution process than previously presumed, including from inactive, long-abandoned wells. Grossly underestimating methane emissions threatens to undermine the efficacy of efforts to combat climate change.” A summary press release is here ,  or see the Common Dreams article “’We Need to Ban Fracking’: New Analysis of 1,500 Scientific Studies Details Threat to Health and Climate”   (June 19).

International Energy Agency report, LNG Market Trends and their Implications   (June 20) provides statistical analysis of the changing Asian markets for LNG.