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March 19, 2015 06:49 AM UTC

Step Right Up and WIN! This Boom will never Bust, Baby!

  • 13 Comments
  • by: PKolbenschlag

 (Promoted by Colorado Pols)

This Time Is Going to Be Different, Really…

 

“All that I am asking for is $10 gold dollars, and I can win it back with one good hand.  …I got no chance of losing, this time….”      The Loser, R. Hunter/J. Garcia

Colorado is about to lose thousands of jobs, again, as the latest boom and its promise of vast riches crashes into the reality of a volatile commodity market.  Again.

Like in the last bust in 2008 that hit the western Colorado gas fields, it was just months prior that the boosters, peddlers, hucksters and snakes, oil-salespeople were all saying this time would be different, this time we would ride the mineral riches to everlasting everything. 

Until we’re not.  Until the prices, in the most volatile of animal spirited commodities—fossil fuels, drop. Again.  And then Colorado is left holding the bag.  Again.

Last month there was an article about how poorly reclamation is happening, if at all, in Colorado’s oil and gas patch, a dry time in a dry land.

Sure the PR teams at shops popping up like mushrooms in the mountains after a monsoon, weave webs of spin to convince you, Colorado, otherwise. 

This time will be different.  Just like the last time would be different.  And the time before that. 

I love you, Colorado, I would never hurt you.

Again.

Of course Colorado is no stranger to the vagaries of volatility, in the boom and bust that is—in fact—the historical mark of the Mountain West.  

The original mining boom that put Colorado towns on the map 150 years ago — and the toxic waters that still leech from these mines today,  a century later.  

Historical coal mines collapsing under homes, or still burning, or venting copious amounts of potent heat-trapping methane, 65 years after operations stopped.  

It’s more than thrice-told-tale—in towns that never quite do as well for themselves as they ought: our Nuclas, our Leadvilles, our Somersets

Hundreds of millions of dollars to clean up irradiated messes across the Colorado Plateau, a whole town removed to a waste cell. Tens of millions more from the U.S. Treasury to clean up after the boom-that-never-was, oil shale. 

Whatever profits were made in these decade bursts of activity sandwiched between longer decades of struggle and decline, have long been secured away while the bills keep coming due, stamped: U.S. Taxpayer. 

So who will clean up the mess this time?  Just the obvious stuff, not the lingering and long term threats that loom from an ever increasingly toxic planet.  Not the climate damage being wrought by pursuing our dirty, deadly carbon addiction into the very dregs of the earth, cracking open rock for another fix beneath our own homes, water supplies, and communities.

Who will clean up just the physical mess on the landscape? The weed infested pads? The eroding roads?  Who will ensure that abandoned or mothballed equipment does not spew pollutants, deteriorate, corrode and leak as operators go belly up, dump non-profitable assets, lay off workers? 

Who will pay for the state regulators leveraging tens of thousands of dollars in bonds against hundreds of thousands of dollars in remediation?

If history is a guide we already know the answer.

Comments

13 thoughts on “Step Right Up and WIN! This Boom will never Bust, Baby!

  1. “If history is a guide we already know the answer”.

    Yes, we do… This is an old story, repeated for us here in the 21st century…

    Good diary, thanks PK.

      1. Truly said,  but I doubt that the chain and the nose ring will be pried off.  Facts and history are so inconvenient and irrelevant to the o & g people and in the m individual’s world.  They leave behind a moldering ideology and and a tremendous amount of damage.  And, they just don’t care.  They can’t see the very bad karma that follows them like the big black cloud we will try to clean up.  

        1. And, they just don’t care.  

          you are correct.   As a young man I worked in the industry for a couple of years. I returned to carpentry mostly because of the culture and the Karma of the business

          They are special…and don’t you forget it…                    

    1. We do not like oil and gas – the industry, not its workers – for the reasons stated in the (most excellent) diary: when all is said and done, the oil and gas extraction companies leave, and they leave the taxpayer with all the damage they’ve done. Air pollution, abandoned toxic wells and ponds, unsightly equipment blighting the landscape, waiting to rust out into some future environmental disaster…

      The petrochemical industry is not a good steward of our lands. They are not interested in being conservative; they’re self-centered, greedy, and live only for the moment. They don’t care about their legacy 10, 20, or 30 years down the road; they don’t have children who will inherit the land, who might want to use it for something…

      Liberals aren’t really for people losing jobs. Perhaps you’ve equated us with some other group who is constantly looking to downsize our workforce.

  2. The amount of oil and gas jobs is vastly overstated by the industry. Relative to agriculture, meat processing, manufacturing, and insurance/health claims processing, actual oil and gas roughnecking jobs rank 3rd or 4th in number, even in Weld County. See table, below, from 2012  CU Leeds School of Business study, “Assessment of Oil and Gas Industry”, table 10, page 12.

    Regardless, nobody wants to see another human lose their livelihood. Which is why, as Democrats, we vote FOR the federal budget to have plenty of funds to retrain displaced workers, provide food stamps and unemployment benefits to help families survive the transition, and encourage research and development in new technologies.

    Most of the displaced O&G workers have skillsets which would transfer readily to constructing and repairing infrastructure – highways, bridges, pipelines. That is, if we could ever get Republicans to vote for maintaining and repairing infrastructure. The kind of person who likes to work with their hands and work outdoors should also enjoy setting up and maintaining wind and solar facilities.

    Gasoline stations will still be selling gas, milk, and other items – those 14,000 jobs are not at risk. The 6K or so office and professional jobs will still be employed in finance and related fields, even if their fracking clients are not active anymore. Lobbyists and their staffs will still be lobbying, as you know very well.

  3. Of course the oil and gas grown ups know that, like any fossil fuel biz, theirs is a boom and bust deal and they’re going to be putting towns, whole regions, on the map and letting them shrivel and die because that’s the way it works. They don’t care about jobs. They care about profits. They know the people they hire are doomed to be out in the cold down the line and they don’t care. Let them go to work in retail. The only energy economy that will ever break the boom an bust cycle is one based on renewable or constantly available resources like wind, solar etc. The jobs that go with that kind of energy economy aren’t going to keep ballooning and disappearing, rinse repeat. The O&G people know that too. They just don’t care. As long as they hang on to all their wealth and power they think they’ll always be able to take care of themselves whatever happens. The only resource they care about is personal wealth and the only people they care about are themselves.

  4. PS. They’re also really good at getting the suckers to vote for their interests instead of their own. And nobody is more easily suckered than grass roots Republicans. Just look at Modster. 

  5. Profit:  Those monies any business earns between the time of convincing fools and politicians to fund operations, and before filing bankruptcy. 

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