While I was preparing for my first trip to the Marcellus Shale region, I was approached by someone who lived in upstate New York to discuss the issues going on in DISH, as well as the Barnett Shale in general.
As we began discussing the lessons learned here about leasing, and the amount of money given at lease signing, he interrupted me to state that in several small towns in the upstate New York area, they were ready for drilling to begin ... for the jobs.
He further stated that everyone was waiting to get "their new white pickups and Halliburton hard hats."
That they were not even concerned about the leases, and that most had already leased for one or two dollars per acre.
He said that when I mentioned the $30,000 per acre once offered in the Barnett Shale, some would collapse in tears, knowing that they had been taken advantage of by this industry.
Throughout my several tours around the country, the question about jobs and the vast influx of money into the local economy came up constantly.
I quickly found that my new friend was right -- there were many people who really thought they would soon have a new white pickup and Halliburton hard hat.
I always asked the crowd, "How many certified pipeline welders do I have in the room?"
They seemed to get the point that most of the folks in rural New York would not have the skill set required to work in the industry.
Although, I do know of folks here in Texas that started working on a drilling rig with no experience, and worked their way into a nice-paying job, it is unlikely with the slowdown, that the industry would need to hire people with no experience.
So any jobs would be entry level and low-paying. There are plenty of folks out of work with experience in the industry.
In areas of Pennsylvania where gas exploration had begun, there was a noticeable amount of vehicles with Texas plates that highlighted this point.
I was almost offended when the local population complained about the number of Texans who followed the natural gas boom to this area.
It was apparent that the population increase was not something that they were yet comfortable with.
While growing up in the Oklahoma oil fields, we went through the boom and bust cycle several times. It seemed as though most of the males would go to work in the oil fields after graduating high school and made a decent living for themselves. However, with the economy based upon this one industry, the downturns were pretty severe on the local economies. When the bust came, it left everyone scrambling to find another job.
However, with the economy based on this one industry, most of the jobs were either in the industry or supporting the industry. Therefore, in the bust, there were not many jobs to be found. This resulted in many of the small rural towns to simply dry up, with people moving away to find work.
On a recent trip to New Mexico, I met with Gilbert Armenta, the New Mexico rancher depicted in the documentary "Split Estate" (another fine documentary you can order on the internet, show to friends before "Gasland" becomes available in December).
Mr. Armenta has spent his entire life living with the boom/bust cycle in northwestern New Mexico. In this part of the country, the oil and gas industry is the predominant industry. As the industry has cooled over the last year or two, he stated that there was 12 percent unemployment in that area.
I might add that the Farmington, N.M., mayor was nice enough to write a letter with some negative comments about yours truly, as well as talking about how great the industry was to him.
One thing that I had heard on several occasions is that when the eventual bust comes, the crime rate goes up almost immediately. Mr. Armenta confirmed this fact during his presentation, that crime levels increase particularly during the bust cycles. He further stated that the crime that increased the most was robbery.
Was has happened in Mr. Armenta's area is that it is solely an oil and gas economy. All other industries have moved on and therefore everything directly or indirectly is dependent on this industry.
So even if you do not work directly for the industry, when the bust comes, you are affected. In our local area I have noticed over the past several years, that we have been going through a transformation to an oil and gas economy. In some areas of the Barnett Shale, the transformation has already taken place. We managed to avoid an economic catastrophe only because the industry has continue d to drill when it wasn't profitable, knowing that regulation was coming. Otherwise, many of the towns in the western part of the shale would have simply disappeared.
It has become very tempting for cities to embrace the explorations for the quick shot of tax revenue with the budget shortfalls over the last couple of years. Falling to this temptation has led to more and more of the area transforming to this new economy. Unfortunately, when the bust comes, and we know it will, the entire area will be devastated. This may very well lead to this area being destroyed economically at some point, because we know that this is only temporary. It is key for cities to develop strategies for sustainable funding that is not primarily put on the backs of the taxpayer, and does not destroy future growth.
Unfortunately, one city that comes to mind is the city of Fort Worth. This city has the largest number of gas exploration activities of any city in the world, yet financially is by far the worst in this area, having a 73 million dollar shortfall this year. Part of this expenditure is a $600,000 air study to determine if the exploration activities is harmful to public health.
Fort Worth is also home to several of the exploration company's headquarters. The downturn has affected everyone, but the city most dependent on the natural gas revenue, is the one doing the worst financially. As Tim Ruggeiro would say, "it does not take a Ph.D in economics to see there is a problem here."
Another thing that this does, is give the industry extreme leverage to demand things like tax breaks and loose regulations. They simply threaten to pack up and move somewhere else, and take the jobs with them.
When it is an oil and gas economy, them leaving makes a ghost town. Although this is only a threat, local officials are held hostage by this threat.
So they give in, and keep cutting the setback requirements like the City of Fort Worth continues to do, or they allow this industry continuously cut corners putting their citizens at risk.
For some here it is too late to build a diverse economy, there will be booms and busts, it will be feast or famine. However, for some of you out there this does not have to be the case. Look ahead and do not let this industry take over your economy and hold you hostage like it is doing in many other parts of the country. Be very careful of what you wish for.
Calvin Tillman is mayor of DISH, Texas.
Guest Column
Drilling won't necessarily bring jobs for locals
- Guest Column
-
-
Home rule laws aren't a radical idea
A lot of discussion and debate has occurred in our area lately over the issue of 'home rule' as it would apply to natural gas drilling. Let me offer some thoughts and my perspective on the issue and on the legislation I have sponsored (S. 5830) to enable local governments to treat natural gas drilling the way zoned communities treat any other commercial, industrial or residential use.
-
Sustainable shouldn't be a dirty word
Sustainable Otsego has been in the news a lot lately. We have been vocal critics of hydrofracking for natural gas both locally and statewide, and we put together with the Democrats a winning slate of pro-sustainability, pro-home rule, anti-fracking candidates in the recent elections.
-
Fracking fears are based on facts
Some recent letters in The Daily Star and other local papers have implied that supporters of candidates for town and county offices who oppose gas drilling are fear-mongering, or that we can rely on the Department of Environmental Conservation (DEC) to protect us.
-
Tea goes well with 'Occupy'
Otsego County supporters of the Tea Party will remember me. In 2009, we marched in outrage against the bi-partisan $800 billion taxpayer bailout of Wall Street.
-
City charter deserves support
Having served as mayors of the City of Oneonta, we write to urge the city’s voters to approve the proposed new city charter on Nov. 8.
- Saturday, October 1, 2011
-
Don't overlook potential of workers with disabilities
American jobs are dominating the national conversation right now, and with good reason. But amid the political debates and pundit analysis, there's one segment of the labor market that's going largely ignored: Workers with disabilities.
- Sunday, September 18, 2011
-
Coventry pipeline could benefit region
Last month, anti-drillers campaigned against a pipeline shipping Coventry gas to Bainbridge and Sidney customers. What's wrong with this picture?
- Monday, August 1, 2011
-
'Gas Wars' entering its second act
Raise the curtain on the second act of Gas Wars. The SGEIS allows access to 85 percent of the shale gas beneath our state. The hardcore environmental lobby has lost to the science and the multi-state research of the three-year study by the state Department of Environmental Conservation. All that is left is the hoopla surrounding the 60-day comment period. The DEC then presents the final document to the governor for release. Then gas development begins in New York.
-
Make affordable birth control a priority
One of the biggest barriers to effective family planning may soon come tumbling down for millions of American women.
- Saturday, July 16, 2011
-
SUNY Oneonta expansion will be bad for city
Recent plans by the State University College at Oneonta to expand its reach into the community have threatened to change the character of several neighborhoods here in the city.
- Saturday, July 9, 2011
-
Health: Take steps to protect your skin this summer
NetSummary
-
The folly of job-training programs
America believes that the solution to every social and economic problem is job training. Outsourcing? Job training. Economically depressed neighborhoods? Job training. Impoverished single mothers? You guessed it.
-
'Change' is the byword for city, region, state
Regardless of the outlook at the federal level, and separate from the glimmer of promise for New York State, we're sure to see changes in the "who" and "how" of handling our local challenges in the year ahead.
- Saturday, June 25, 2011
-
Changes to city charter will be good for Oneonta
The Oneonta Charter Review Commission appreciated the opportunity to present the first full draft of the proposed Oneonta City Charter to the mayor and Common Council on June 7, as well as the questions from Council Members.
- Saturday, June 11, 2011
-
Health column: Take step to prevent and treat urinary tract infections in girls
By Dr. Linda M. Lukose How common are urinary tract infections in girls?
- Saturday, June 4, 2011
-
Take steps to combat illegal dog fights
Dog fighting is a felony in all 50 states. However, because of loopholes in the laws in New York state, many dog fighters go free. This has made New York a haven for these vicious criminals. People come from other states and cities to rural areas like ours to take part in the criminal activity of dog fighting. Otsego and Delaware counties are close to the Pennsylvania border and within an hour of Binghamton and Albany, making us a central location.
- Saturday, May 21, 2011
-
Gas Wars: A play in three acts
Act One: The Prequel. Starts in 2008 and ends with the publication of the Supplemental Generic Impact Statement.
- Saturday, May 14, 2011
-
How fracking made me an activist
My husband and I took a drive one Sunday from Brooklyn to Sharon Springs back in 1999. We were so moved by the tranquil, rural beauty of the land that we suddenly found ourselves buying an abandoned house on 80 acres and moving up here.
-
The Iron Curtain of ideas
A long time ago, and far, far away, I stood on the border of two distinct cultures. The "Wall" was a stone divide between two very different political ideas, but one people.
- Saturday, May 7, 2011
-
HealthWorks helps keep workers safe on the job
As emergency response and local cleanup crews work to respond to accidents, road and property damage resulting from recent flooding, they are exposed to a range of serious hazards. Every year, public employees die during emergency response work, hit by cars, tree limbs, and even via electrocution from live power lines.
-
