(Here is the last of four posts featuring posts on Blue Oklahoma’s companion blog, Okie Funk, published in 2014. All the posts appeared on Blue Oklahoma as well. Click on the title to read the entire post. It was a dismal political year for progressives in Oklahoma, but there IS hope for a coming shift and realignment in 2016, at least on the national level. As always, thanks for following this blog. Best wishes to you this holiday season.)
Some Senate Republicans have issued what they are calling a “report” on the virtues, righteousness and basic overall goodness of hydraulic fracturing, better known as fracking.
Fracking, according to the political manifesto, i.e. report, is not only one of the most wonderful things to ever happen for the economy but has also strengthened our country’s geopolitical position in the world. What’s more, so it goes, fracking is also extremely safe and not harmful to the environment. Don’t listen to those Hollywood elites, people. All is well.
Here’s some language from the document just to show how serious it is:
This report highlights the incontrovertible benefits derived from the domestic production of oil and natural gas through the use of hydraulic fracturing. At the same time, it thoroughly discredits the leading claims made by the Obama Administration and their far-left allies who are rooted firmly in the fight against accessing America’s abundant domestic energy. It subsequently undermines the credibility of those who are seeking to devastate America’s energy security, economic opportunity and the livelihoods of families across the country through a coordinated war on hydraulic fracturing and domestic oil and natural gas.
Real scientific stuff, right? Note “far-left allies” and the hyperbolic “coordinated war.” The idea that there’s a real war of any type of oil and gas production in the country is utter fabrication. The frackers here in Oklahoma, for example, frack with impunity. If there IS a figurative war, then it’s a war against the environment, and the frackers are winning it hands down.
What happens to Oklahoma if the recent boom in oil and gas production propelled by hydraulic fracturing goes bust?
If it’s anything close to the 1980s glut that led to steep price drops for oil, a devastated state economy and an ensuing exodus of people from Oklahoma, then it could be an extremely bad problem. For those of us who lived through the 1980s in Oklahoma as working adults, the sheer thought of another major bust should generate a lot of anxiety if not downright panic.
All this doesn’t even take into account the damage to the environment that would get left behind because of the hydraulic fracturing or fracking extraction process, which environmentalists claim contaminates water supplies and leads to earthquakes caused by wastewater disposal. Who’s going to pay for the clean up? Bankrupt or financially struggling oil and gas companies?
I’m posting about this topic because billionaire oilman and Oklahoma State University alum T. Boone Pickens recently gave a speech here in Oklahoma City in which he said oil production in the United States has doubled in the last 10 years and is creating a glut in the world market, lowering barrel prices. NewsOK.com quoted Pickens as saying, “Now we’re producing too much oil.”
The prices are much higher per barrel than they were in the 1980s and supposedly the state economy is more diversified now, but let there be no mistake that any major slowdown in the oil and gas patch is going to strain the Oklahoma economy and especially state revenues. Crude oil prices have dropped from more than $110 per barrel to approximately $80 per barrel over the last year, and some experts expect the decline to continue.
The Oklahoman editorial board’s take on the oil and gas fracking boom gone bust here is as insanely laughable and ridiculous as it gets. It’s cray cray, people.
Here’s the key point in a recent editorial in the newspaper about dropping oil prices and its impact on the state economy: “. . . populists will join the anti-fossil fuel crowd in cheering the pain awaiting oil company employees and their investors.”
See, it’s all about those crazy “populists” excessively worried, as the editorial notes, about those “obscene profits” made by energy companies, which “has never been matched by reality.” The oil company executives, you know those people with courtside seats at The Thunder games, bless their hearts, have nothing to do with it. They match reality. Populists can’t even match their socks on a good day.
It’s as if the writers and editors at The Oklahoman have never experienced or read about or studied the oil boom and bust cycle that has defined this state, well, basically since its inception by the federal government as one of the last states in the nation. I know 1982, the year Penn Square Bank failed, signaling the symbolic end of a major oil boom, may seem like ancient history to a 20-year-old getting ready to take finals next week, but it isn’t to those of us who lived here as adults that year.