Wine and Milk vs. Oil and Gas: Existing Industries Go Up Against Fossil Fuel Job Promises

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Ken Stantonโ€™s 400-cow dairy farm lies in the path of the proposed Constitution Pipeline, which would carry fracked natural gas from Pennsylvania to Newย York.

Three generations of Stantonโ€™s family spoke in opposition to the pipeline during a packed public comment session at a hearing at Cobleskill-Richmondville high school on Marchย 31.

โ€œThe pipeline would cut through my land. With eminent domain, thereโ€™s nothing I can do. It doesnโ€™t feel like America anymore,โ€ Stanton told the Daily Gazette.ย ย 

Itโ€™s people like Stanton who stand to lose in the face of new fossil fuel developments, despite the job-creation claims ofย industry.

Until recently, new projects were justified in the name of American energy independence, but with the new push to lift the Jones act to allow for crude oil exports and the big PR effort to ramp up liquid petroleum gas (LPG) exports, the new spin is jobย creation.ย 

The American Petroleum Institute has abandoned the energy independence approach and gone with the new argument about jobs โ€” and the media was happy to broadcast the message.ย  From CNBC:

By lifting restrictions on crude oil exports, the U.S. economy could generate more than a quarter of a million jobs and save consumers billions in energy costs, the American Petroleum Institute saidย Monday.

In addition to the promise of jobs, the institute is claiming exporting more crude oil will lower prices for American consumers. This is a bold claim given that this past year propane prices in the U.S. hit record prices, coinciding with an exports increasing by 75 percent.

In March, Senator Mary Landrieu (D-LA), held a hearing on increasing liquid natural gas exports, touting the job creation benefits.ย  The hearing was called โ€œImporting Energy, Exporting Jobs โ€” Can it beย reversed?โ€ย 

The Wall Street Journal even recently ran an opinion piece saying โ€œNew Yorkโ€™s fracking ban means more inequality.โ€

If the Wall Street Journal is arguing for income equality, you can be pretty sure there is a PR effortย involved.

In New York the jobs argument is being waged on several fronts.ย  There has been an endless supply of articles and advertisements touting the job creation that fracking will provide even though studies show job growth from fracking in other states has been โ€œgreatly exaggerated.โ€ย 

Farmers like Stanton find themselves in the middle of these heated jobs debates. Last week, several hearings about the proposed Constitution Pipeline were held in New York communities by the Federal Energy Regulatory Commission (FERC). The meetings were well attended by union members who were bussed in to lend their support to the pipeline. They wore matching shirts with the phrase โ€œOur jobs are on the lineโ€ printed on theย back.ย 

Attendees at the meetings reported that the union members were trying hard to intimidate speakers at the events.ย  Based on comments submitted to FERC after the events, attendees reported theย following:

Three busloads of boisterous construction workers wearing bright orange shirts, with โ€œConstitution Pipelineโ€ printed on the sleeves, took over the proceedings.ย  They were aggressive and rude; there was loud booing and cat calls; yelling โ€œTimeโ€ and shouting-down those at the speaker’s podium before FERC officials had actually announced,ย โ€œTime.โ€

A videographer at the event recorded a union member telling the videographer to turn his camera off and covered the lens with his hand. The confrontation concluded with the union member saying, โ€œIโ€™ve got news for you, you better hope I donโ€™t follow you out ofย here.โ€

In New Yorkโ€™s Finger Lakes region, Crestwood is proposing a project that would create a major storage and distribution center for liquid propane gas in salt mines on the shore of Seneca Lake.ย  For the past three years, opposition to this project has been led by the group Gas Free Seneca, which has based its opposition on environmental and safety issues, but also the threat it poses to the local economy andย jobs.ย 

Gas Free Seneca has a coalition of more than 200 local small businesses who oppose the Crestwood project.ย  Many of these businesses are directly involved in the local wine-making industry and the tourism business itย supports.

World-renowned winemaker Paul Hobbs, called โ€œThe Steve Jobs of Wineโ€ by Fortune Magazine, recently purchased 60 acres on the shore of Seneca Lake to develop into a vineyard and winery.ย  In a letter Hobbs wrote to New York Governor Andrew Cuomo asking him not to approve the gas storage facility, he states,ย  โ€œThe Finger Lakes and specifically the area near Watkins Glen, is unquestionably one of the premier places in the world for high-quality wineย growing.โ€ย 

And this all means jobs for Newย Yorkers:

โ€œA new report on the grape and wine industry released this month based on 2012 data shows that the industry now contributes $4.8 billion to the New York state economy every year. It also found that the industry supports the equivalent of 25,000 full-time jobs, pays over $408 million in taxes, and generates over 5.2 million wine-related tourismย visits.โ€

Cuomo just held his second summit on the beer, wine, spirits and cider industry in the state, where he acknowledged the success of the industry and its potential forย growth.

โ€œYour industry, we believed in from the get-go. It had tremendous potential for growth. It is a magnificent industry, not only in terms of potential, but also it complements the rest of the state economyย overall.โ€

At a forum organized by Gas Free Seneca in Watkins Glen last month business owners and local elected officials expressed their opposition to the gas storage project because of the threat it posed to a thriving sustainable local economy theyโ€™ve worked hard toย build.

Will Ouweleen of Eagle Cresk Vineyard summed it up by stating, โ€œOne accident here could destroy 150 years of careful brandย building.โ€

Much as it did in the Gulf when the BP Horizon oil spill wiped out the oyster industry and destroyed the local economies that depended on it.ย  As oysterman Bryon Encalade told CNN in 2013:

โ€œThis economy is totally gone in my community.ย  There is no economy. The two construction jobs that are going on โ€” the prison and the school โ€” if it weren’t for those, the grocery store would beย closing.โ€

Last week, when Crestwoodโ€™s CEO Robert Phillips visited the site of the proposed facility in Watkins Glen he told The Odessa File that his company is, โ€œworking with trade unions to get the message out. We have to ratchet up our voice asย well.โ€

In New York, as in many states across the country, existing long-term jobs are being put at risk by the oil and gas industryโ€™s expansion and promise of temporary jobs โ€” all so that more oil and gas can be exported to other countries, like China.ย  As winemaker Ouweleen stated, โ€œBluntly put, this is just one more out-of-state corporate takeover of our American dream.ย  And we will notย abide.โ€

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Justin Mikulka is a research fellow at New Consensus. Prior to joining New Consensus in October 2021, Justin reported for DeSmog, where he began in 2014. Justin has a degree in Civil and Environmental Engineering from Cornell University.

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