Bloomberg Businessweek - USA (2020-08-10)

5

ILLUSTRATION

BY

LAUREN

MARTIN

Thebillwouldalsomakea startonmendingthebroken

systemforfundingwellcleanups.Pollutersshouldbe held

accountableforcleaninguptheirownmesses.They’relegally

requiredto,andbesides,that’swhatcorporateresponsibility is

allabout.Butmanytrytousebankruptcytoescapetheir obli-

gationstoworkersandshifttheircleanupresponsibilities to

taxpayers.ThebillSpeakerNancyPelosishepherdedthrough

theHousewouldrequirecompaniestosetasideenoughmoney

toretirewellsbeforetheydrillnewones.Atthemoment, states

cantrytoattractbusinessbyminimizingthatrequirement,

whichis howwe’veendedupinthismess.Weneeda national

standardtopreventit fromhappeningagain.

Thebillis stalledintheSenate.Republicansareskeptical

aboutfurtherstimulus,andtheadministrationisn’tconcerned

aboutclimatechange.Butcleaningupwellshelpseverybody.

It fightsclimatechange,createsjobs,andis affordable. Biden

is righttopushforit,buttheideais toogood—andtheneeds of

unemployedgasandoilworkerstoourgent—towaitfor2021. 

Formorecommentary,gotobloomberg.com/opinion

 BLOOMBERG OPINION August 10, 2020

AsCongressdebateshowtoaddresstheeconomiccalamity

wearefacing,wehaveanunprecedentedopportunitytoput

peopletoworkaddressingtheclimatecrisis—andlet’sstartby

hiringlaid-offoilandgasworkerstohelpleadtheway.

Thefactis,theU.S.oilandgassectorwasintroubleeven

beforethepandemicstruck.Lastyearmorethanthreedozen

producersdeclaredbankruptcy,hobbledbydecliningenergy

pricesandrisingdebt.Thepaceoffilingshasquickenedwith

thespreadofthecoronavirus,andevenafterthevirusthreat

subsides—whichis unlikelytobeanytimesoon—cheaprenew-

ableswilldrivemorecompaniesunder.

Thisturmoilhashurtoilandgasworkers—some100,

havebeenlaidoffin2020—andcommunitiesthatdependon

fossilfuelextractionaresuffering.Thebankruptcieshavealso

leftscarsontheenvironment,intheformofabandonedwells.

Some3 millionsuchsitesarescatteredacrossthecountry,

accordingtotheEnvironmentalProtectionAgency,andmost

leakcopiousamountsofmethane,a powerfulgreenhousegas.

ButtheU.S.canmeetbothchallengesinonestroke—bypay-

inglaid-offenergyworkerstocleanupabandonedwells.

Plugginga singlewellcancutitsmethaneemissionsby99%,

accordingtotheEPA,andtheworkrequiresskillsthatoiland

gasworkersalreadypossess.Yetdespitethebesteffortsof

stateregulators,mostabandonedwells—morethan2 million—

remainunplugged.A federalprogramtoplugso-calledorphan

wellscouldcreateasmanyas120,000 well-payingjobs,while

preventinghundredsofthousandsoftonsofgreenhousegases

fromescapingintotheatmosphere.It’sanideathatappealsto

environmentalgroups,fossilfueldependentstates,andeven

somefossilfuelindustryleaders.

Joe Biden has included the idea as part of his green energy

campaign platform. I’ve spoken with him about it, and I know

how strongly he supports it. It’s a perfect example of how

expanding the economy and fighting climate change go hand

in hand. Biden gets it, and this is the kind of practical policy—

one that helps hard-hit communities while also protecting the

environment—that he would lead as president.

However, we need these jobs right now, and the infra-

structure stimulus bill passed by the House would create

a federal well-plugging program. While it could be more

ambitious—it would plug about 60,000 wells, far less than the

500,000 experts have proposed—it’s a step in the right direc-

tion. Its $2 billion price tag should be modest enough to appeal

to Republicans, many of whom represent states such as Texas

and Oklahoma that would see immediate job benefits.

SocialmediagiantTencentreportsearningsonAug.12,

amidmountingpressureonChinesetechnologycompanies

from governments focusing more closely on data security.

AGENDA

 New Zealand’s

central bank sets rates

on Aug. 12. A strong

currency and low

inflation have raised calls

for stimulus, including

negative interest rates.

 Royal Caribbean

Cruises reports second-

quarter earnings on

Aug. 10. The pandemic

has hit the industry

particularly hard.

 J.P. Morgan hosts

a virtual automotive

conference on Aug. 11-

to explore the road to

recovery for the battered

transport sector.

 The USDA World

Agricultural Supply and

Demand Estimates, a

closely watched gauge

of demand for crops

such as soy and wheat,

is due on Aug. 12.

 China provides

economic data on July

industrial production

and retail sales on

Aug. 14. Economists

are looking for signs of

a rebound.

 The U.S. Court of

Appeals in Washington

on Aug. 11 reconsiders

a ruling to dismiss a

criminal case against

former national security

adviser Michael Flynn.

○ By Michael R. Bloomberg

Hire Laid-Off Oil and

Gas Workers to Fight

Climate Change

SocialmediagiantTencentreportsearningsonAug 12

 Will the U.S. Pull Another Plug?