Category Archives: Economics

To have impact, the People’s Climate March needs to reach beyond activists

 

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The 2014 People’s Climate March in New York City. Annette Bernhardt/flickr, CC BY-NC-SA

Jill Hopke, DePaul University

Following closely on last week’s March for Science, activists are preparing for the People’s Climate March on Saturday, April 29. This event will mark President Donald Trump’s 100th day in office, and comes as the Trump administration is debating whether the United States should continue to participate in the 2015 Paris Agreement on limiting global carbon emissions. The Conversation

Organizers have worked for over a year to build an intersectional movement that brings together diverse constituencies under the banner of climate justice. They hope to replicate the first People’s Climate March in September 2014, which was the largest climate change mobilization in history. Continue reading

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‘We Reject Politics of Fear’: Groups Urge Congress to Build Schools, Not Wall

Teacher in Milwaukee said six-year-old student “crawled into her lap crying [and] told her, ‘I am so scared that somebody is going to take my daddy away'”

By Nadia Prupis, staff writer for Common Dreams. Published 4-27-2017

“Instead of funding President Trump’s anti-immigrant agenda, we are seeking additional funding for our nation’s public schools.” (Photo: doug turetsky/flickr/cc)

More than 150 advocacy groups sent a letter (pdf) to Congress on Thursday urging lawmakers to reject President Donald Trump’s proposal to build a U.S.-Mexico border wall and spend the money on education instead.

Trump’s “targeting of Muslims, refugees, and undocumented immigrants…are eroding the trust built by educators, parents, law enforcement, and communities over decades,” the letter states.

Its signatories include the Center for Popular Democracy, SEIU, and the National Immigration Law Center, among other community groups and labor unions. Continue reading

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‘Unconscionable’: Trump Looks to Gut Protections for National Monuments

Order instructs Interior Department to review designation of every monument larger than 100,000 acres protected by Antiquities Act since 1996

By Nadia Prupis, staff writer for Common Dreams. Published 4-26-2017

Among the areas now at risk are Bears Ears National Monument in Utah, which protects more than 1.3 million acres of land. (Photo: Bureau of Land Management/flickr/cc)

President Donald Trump on Wednesday ordered federal officials to launch a review of national monument designations, potentially setting the stage to gut environmental protections for public lands and oceans.

The executive order instructs the Department of the Interior to review the designation of every monument larger than 100,00 acres protected by the Antiquities Act since 1996. It could give fossil fuel companies access to millions of acres for new drilling, climate justice advocates warned. Continue reading

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‘Truly Dumb’: Why $2.4 Trillion Corporate Tax Cut Will Not Magically Pay for Itself

Economists and tax experts push back against White House reported plan to slash corporate rate by 60 percent

By Jon Queally, staff writer for Common Dreams. Published 4-25-2017

“Not to put too fine a point on it, this is false” writes Jared Bernstein in response to claims by Trump’s Treasury Secretary claims that $2.4 trillion corporate tax cut will magically pay for itself. (Photo: Timothy Krause/cc/flickr)

With reports that President Donald Trump wants to slash the corporate tax rate by 60 percent and Treasury Secretary Steven Mnuchin claiming widespread cuts for the nation’s wealthy and powerful will magically pay for themselves, progressive economists and tax experts are issuing early warnings that this is simply the latest attempt by Republicans to pull the wool over the eyes of average American taxpayers.

With more details expected during an offical White House announcement on Wednesday, numerous outlets have already reported that Trump will tout cutting the corporate tax rate from its current 35 percent down to an even more paltry 15 percent. As is well known and repeatedly documented, even the 35 percent official rate is largely a mythical number that few U.S. corporations actually pay. Continue reading

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Trump’s Corporate Takeover Detailed 100 Days into ‘For-Profit Presidency’

“The true depth of the administration’s unswerving commitment to an especially savage version of corporate capitalism is now, as we approach the first 100 days under the Trump administration, utterly clear.”

By Lauren McCauley, staff writer for Common Dreams. Published 4-24-2017

President Donald Trump “has gleefully signed measures making it easier for coal companies to pollute streams and rivers; authorizing Big Oil to hide payments to developing country governments; erasing obligations for government contractors to ensure the safety and health of their employees; and making it possible for cable and Internet providers to collect and sell our most personal information,” observed Public Citizen president Robert Weissman. (Photo: Gage Skidmore/cc/flickr)

President Donald Trump approaches his 100th day in office the most unpopular U.S. leader in modern history for a reason.

Exacerbating his failure to uphold his populist campaign promises, a new report found that Trump spent the majority of his presidency enriching his own business empire while appointing fellow “corporate cronies” at the highest levels of government leading to what Public Citizen describes as “an unprecedented corporate takeover.” Continue reading

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In Latest Populist Betrayal, Trump Executive Order Unchains Wall Street Greed

Orders signed Friday are ‘nothing more than special favors for the same Wall Street banks that crashed our economy in 2008 and put millions of Americans out of work’

By Deirdre Fulton, staff writer for Common Dreams. Published 4-21-2017

Photo: YouTube

In yet another Wall Street giveaway, President Donald Trump on Friday afternoon took executive action to chip away at Dodd-Frank financial regulations and roll back rules aimed at reducing corporate tax avoidance.

Lisa Gilbert, vice president of legislative affairs for watchdog group Public Citizen, described the orders signed Friday at the Treasury Department as “nothing more than special favors for the same Wall Street banks that crashed our economy in 2008 and put millions of Americans out of work.” Continue reading

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How to get elected dictator of Turkey: A ten-step guide

Turkish ‘democracy’ has become two Grey Wolves and a sheep voting on what to have for dinner.

By Dr. Thoreau Redcrow, Published 4-18-2017 by Kurdish Question

It appears that Turkish President Recep Tayyip Erdogan has gotten himself elected dictator of Turkey through 2029, by a conveniently slim margin of 51-49%. So for other autocratic world leaders out there hoping to replicate his feat—who are tired of pesky Constitutions and Executive limitations—here are a few helpful steps he took that you can follow:

(1) Stage a military coup against your authoritarian regime and blame the so-called conspiracy on an America-living cleric (Fethullah Gulen), who you can then accuse of being a shadowy foreign puppet. And don’t worry if you’re actually a member of NATO and host U.S. military bases on your territory, most of your paranoid lumpen supporters will barely notice the disconnect between your words and reality. Continue reading

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‘Payout Time’: Exxon Seeks Waiver From U.S. Sanctions to Drill in Russia

“Exxon applied for waiver from sanctions on Russia. Among departments who must approve: State Department, run by company’s ex-CEO”

By Nika Knight, staff writer for Common Dreams. Published 4-19-2017

Photo: Fox News screenshot/Twitter

Exxon is applying for a waiver from the U.S. Treasury Department to bypass U.S. sanctions against Russia and resume offshore drilling in the Black Sea with the Russian oil company Rosneft, the Wall Street Journal reported Wednesday.

Among those charged with deciding to grant the permit is Secretary of State Rex Tillerson, the former CEO of Exxon who previously oversaw the company’s Russia operations. Continue reading

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As Push for Trump’s Taxes Gains Steam, Promised GOP Tax Overhaul Falters

“If [Trump] doesn’t release his returns, it is going to make it much more difficult to get tax reform done”

By Nika Knight, staff writer for Common Dreams. Published 4-18-2017

Demonstrators at the Tax March on April 15 in New York City. (Photo: Michael Kink/Twitter)

As millions of Americans file their tax returns, and days after tens of thousands of marched to demand that President Donald Trump make his tax returns public, the president is still refusing to release his returns.

On Monday, White House Press Secretary Sean Spicer reiterated the claim that Trump can’t release his taxes because they are under audit, a statement immediately refuted by tax experts. Continue reading

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Fracking comes to the Arctic in a new Alaska oil boom

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Trans-Alaska Pipeline, northern Brooks Range, Alaska. U.S.Geological Survey/Flickr

Scott L. Montgomery, University of Washington

Arctic lands and waters hold irresistible allure for global oil companies. Despite opposition from environmental groups and President Obama’s 2016 ban on drilling in federal Arctic waters, exploration in Alaska has revealed massive new volumes of oil. The Conversation

This comes at a time of low oil prices, when many observers felt the Arctic would remain off limits. Alaska has proved precisely the opposite. Although it has gone largely unnoticed outside the industry, foreign firms are partnering with American companies to pursue these new possibilities. I expect this new wave of Arctic development will help increase U.S. oil production and influence in world oil markets for at least the next several decades.

This is a global story, spurred by continued growth in world oil demand, especially in Asia; the dynamism of the oil industry; and the fact that the United States has become a major new petroleum exporter, something that would have seemed impossible only a few years ago. Such realities imply that decisions made in Washington, D.C. are far from the only forces shaping U.S. energy and climate change policy.

Fracking comes to the Arctic

Over the past year oil companies have discovered volumes on Alaska’s North Slope totaling as much as five billion barrels or more of recoverable oil. This is a 14 percent increase in U.S. proven reserves, based on recent estimates, which is no small thing.

One discovery, “Horseshoe,” made this year by the Spanish company Repsol in partnership with Denver-based Armstrong Oil and Gas, is the largest new U.S. find in more than 30 years. It is estimated at 1.2 billion barrels, and comes just after a find by ConocoPhillips in January, called “Willow,” evaluated at 300 million barrels.

Both of these are dwarfed by “Tulimaniq,” a spectacular discovery drilled by Dallas-based Caelus Energy in the shallow state waters of Smith Bay, about 120 miles northwest of Prudhoe Bay, in October 2016. Caelus has confirmed a total accumulation of as much as 10 billion barrels of light, mobile oil, with 3-4 billion barrels possibly recoverable at current prices of about US$50 per barrel.

Alaska’s North Slope region, including the National Petroleum Reserve (NPRA), Arctic National Wildlife Refuge (ANWR) and Trans-Alaska Pipeline (TAPS). U.S. Geological Survey/Wikipedia

These new finds may only be the beginning. Tulimaniq will produce from reservoirs of the same age as Horseshoe and Willow, 75 miles to the southeast. This strongly suggests that a large new stretch of the North Slope, mostly on federal land and in state waters (within three miles of shore), has been defined for further exploration. Burgundy Xploration of Houston and Australia-based 88 Energy also have another new drilling program underway to test shale intervals known to have sourced some of the oil at Prudhoe Bay, a supergiant field that has produced some 13 billion barrels to date.

A number of these new wells will be fracked – the first use of this technique in the Arctic. One or more of the oil-bearing rock units at sites being explored on the North Slope have low permeability, meaning that oil can’t flow within them very well or at all. Company engineers expect that hydraulic fracturing will be able to free such oil so it can be produced. Such has been the result for other shales and low-permeability reservoirs in places like North Dakota and Texas.

The logistics of finding large quantities of water and sand needed for fracking in the Arctic will be challenging, and probably more expensive than similar operations in the lower 48 states. It remains to be seen whether operators will clean, reuse and carefully contain frack water.

Green lights from the Trump administration

In another significant find, Italian company Eni has developed an oil field that lies in state waters, and so is not affected by Obama’s drilling ban. But the oil reservoir extends into federal waters of the Beaufort Sea. Called the Nikaitchuq Unit, it lies just west of Prudhoe Bay and is producing around 25,000 barrels per day.

Eni developed this field between 2005 and 2015 using an artificial island to drill horizontal wells in various directions from a single site. The company stopped activity in 2015 when prices collapsed, but intends to drill up to six wells this year. Its leases, which continue north into federal waters, were not automatically canceled by the federal ban, but Eni needs a federal drilling permit and has submitted an application to the Interior Department. The company plans to run a long horizontal well to access the additional oil, thereby avoiding any need for a rig in federal waters.

The Interior Department is now reviewing Eni’s application, which I expect it will approve. Geologic studies indicate that the oil continues across the state/federal boundary, and Eni’s proposal to use a horizontal lateral from an existing drill site appears to be aimed at minimizing environmental impacts.

Moreover, the Trump administration has pledged to promote fossil fuel development. Interior Secretary Ryan Zinke is a former congressman from Montana, which produces oil, gas and coal, and Alaska senators Lisa Murkowski and Dan Sullivan are strong proponents of oil and gas development.

The oil industry’s new dynamics

Why is all of this new Arctic drilling happening at a time when oil prices are low and in a place where production costs are high? The oil price collapse that has occurred since mid-2014 is the deepest slump since 1986.

Oil companies have ways of being nimble in hard times, such as selling assets, adjusting production levels and seeking mergers. Now rapid innovations in drilling, seismic imaging and data processing enable well-run companies to cut costs in multiple areas. Some firms can make money today at prices as low as $35 to $40 per barrel or even lower. This includes drilling offshore and fracking onshore.

Innovation and cost-cutting have made U.S. firms a potent global force and eroded OPEC’s dominance by keeping oil supplies high, despite a significant production cut by the cartel and many non-OPEC producers, including Russia. In this new era, smaller companies are making inroads in areas once reserved for giants like BP and Exxon. This shift is significant because smaller, independent companies, for whom new discoveries are especially important, tend to be aggressive explorers.

Oil remains our one unreplaceable energy source. Global mobility and a modern military are, as yet, inconceivable without it. Growth in global demand, centered in developing Asia, will continue for some time, as it did even from 2010 through 2014 when prices were above $90 per barrel.

The United States now exports around 5.7 million barrels per day of crude oil and refined petroleum products, double the level of five years ago and by far the largest volume in our nation’s history, thanks to major increases in sales to Japan, South Korea, India, Taiwan, Singapore and China. In short, we would be expanding fossil fuel production even without a Trump administration.

If these new discoveries become producing fields, the Alaskan Arctic will write a new chapter in the U.S. oil industry’s dramatic ascent. It will increase our leverage over OPEC and may help to counter Russia’s geopolitical influence. This prospect raises a new question: How will we will use our clout as the world’s most important new oil power?

Scott L. Montgomery, Affiliate Faculty, Jackson School of International Studies, University of Washington

This article was originally published on The Conversation. Read the original article.

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