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FRONT PAGE CONTRIBUTOR

Energy Policy *IS* Grassroots Politics

Compare and contrast these maps. First, the “undervote” by county in the recent Pennsylvania Democratic Presidential primary. The numbers in each county represent the proportion of voters in a Democratic primary who selected “no candidate” rather than vote for the incumbent, Barack Obama.

“A significant portion of western and central Pennsylvania Democrats declined to vote for Barack Obama in the April primary, an analysis by PoliticsPA has found. The results there resemble those of Arkansas, Kentucky and West Virginia, where the President lost around 40 percent of the primary vote to no-name opponents or “undecided”. … Over 30 percent of voters left the presidential ballot blank rather than select Obama’s name in 27 counties.” (Source.)

Now, the distribution map of the Marcellus Shale:

Geologic map showing the distribution of the gas-bearing Marcellus Shale in Pennsylvania. (Source.)

While we’re at it, a third map shows the locations of active drilling wells in the Keystone State:

Active drilling wells in PA, June 2012. Each symbol represents a new drilling well in progress. A typical Marcellus Shale well costs $8 million to $10 million prior to production. (Source.)

In discussions of energy and politics, the focus is often on the bogeyman, “Big Oil”. But in the energy states, energy policy intersects with electoral politics at a very local grassroots level.

When an oil and gas operator decides to drill, they need a lease; in other words, the company pays cash directly to the landowner, up to thousands of dollars per acre, in return for the right to drill.

In addition to this “lease bonus”, the landowner receives a royalty on production. This is a non-cost-bearing interest in production, maybe 20% or more. “Non-cost-bearing” means the landowner does not pay one cent of the cost to drill or operate the well.

So drilling benefits only the landed gentry? Hardly.

Oil and gas money usually doesn’t end up under a mattress. It gets deposited in local banks. The money ends up with local car dealers, building contractors and furniture stores.

And then there are the oilfield jobs, generally better paying jobs, with better benefits, than previously existed in the community.

Consequently, local folks generally come to like oil and gas. Especially the Chambers of Commerce. Even local pols, local Democratic pols, like oil and gas activity because the increased valuations mean more property tax dollars filling the public coffers and enriching local school boards.

As the maps show, even Democratic voters vote their pocketbooks.

Cross-posted at Maley’s Energy Blog.

COMMENTS

  • audax

    nt

  • bob570

    Some of the Biggest winners with the Gas drilling in the state are in Places like Philadelphia were they use NG to heat their homes. The price of Natural Gas since drilling started in 2008 has dropped significantly over the last 4 years saving some 2.6 million home owners a lot of money.

    • http://stevemaley.com Steve Maley

      … unfortunately, lots of consumers, Republican and Democrat, never make the connection between pro-development policies and their household budgets. To them, reliable availability of affordable energy is a given like gravity.

      • edintexas

        Many people in areas where production, or refining, are verboten are outraged at the lower product prices available in areas where production or refining are present.

  • guidvce

    and other energy producers, to blanket the nation with the facts re: energy production and how it affects everyone’s life when the sources for said energy are curtailed via government regulation and EPA monkey business. A good direct mail and advertising blitz is needed now to stop the left further demonizing of the energy industry.

  • funwithknives

    and the people who write them, that make it a joy to come to this site.

    That said, how do we get this into circulation? Can this get shifted /duplicated on H/E’s website, or farther?

    It’s instructive to the max and screams for advancement.
    Who’s got The Power?

  • ihateliberals

    They either don’t listen, aren’t smart enough or are environmental whacko’s that make production difficult. many people thinkit is the coool thing to be an environmentalist not realizing that this movement is why gasoline cost $ 3 + dollars a gallon, LPG is around $3 per gallon and NG is costly per cubic feet. One thing that is missing in the PA consideration is Coal. There are significant deposits of Coal in PA that can’t be mined becasue of the EPA. PA just one of many states tht could make us energy independent from the rest of teh world. This is a big threat to Big Oil that can drill for oil in the middle east and buy it dirt cheap and then boost to cost as it is refined in the USA. This is one reason you don’t see the Oil companies fighting harder to drill in the USA. As the price drops world wide Big Oil actually wil make more money.

    Another thing to take on consideration for the Obama vote is that the Demcoratic votes come from only three areas of the state and that is Philly, Pittsburgh and Eie. these areas have high populations of minorities and they are always democrat. when you look at the map by country 95% of the counties are Red not Blue. The thing we are hoping for in this coming election is that the discontent from the jobless in the aforesaid three areas wil vote against Obama by voting for Romney. Most people will vote against Obama by voting for Romney. A vote for Romney is a vote against Obama not necessarily for the republicans. this happened for Reagan’s first election in 1980. People were voting against Carter. I don’t care the reasoning in 2012 i just care that Obama will no longer be the President.

    • celador2

      PA looks open to many voters giving Romney a chance.

      The PA electoral college vote often depends on Philly suburbs and minority turnout in Pittsburg an cities, I have heard. Blacks re proud of Obama because of his ethnicity but despite his having little in common with steel workers, coal miners any indusrial worker.

      Romney may offer an end to war on coal and he might offer a path to repopening some closed steel mills or other factories. The drilling is a sign of what can continue without Obama EPA. Steel workers remember years past and may think twice about Obama and his EPA.

      Romney needs to connect to member of minoritiy communities and even unions and form any coalition he can to show energy is the jobs wave of the state’s future prosperity. It is possible PA will not be close once the ethnic pride shackle is busted and jobs , real time industrial jobs takes over as a guiding voter priority.

  • oldpete

    Drilling in the fayetteville shale gas field in Arkansas cranked up in 2006-7 and is now just winding down. The young men that were only able to get work in agriculture, poltry, & timber jobs at $5-6 bucks an hour were able to draw 3 to 4 times that much as truck drivers, heavy equipment operators & a slew of other jobs. It didn’t take long for the extra income to show up in better conditions for their families. Roads are better, Schools are better, local utilities are better. State, County & City governments have had an increase of tax revenues. All this in spite of the dismal national economy.

    As you can expect every time we develope a reasonable solution to our energy problems verbal hell breaks loose. Large Dairy, Poultry, & Timber outfits who had been paying starvation wages now had to compete for workers and didn’t like it one bit. Enviro hawks attack every aspect of drilling, Hostile editorially progressive news outlets magnified any real or imagined negatives, They rarely if ever permitted any positive coverage such as the drilling companies help in tornado cleanup or road & bridge rebuilding efforts.
    Pensylvania will have to deal with all this same clutter as part of the cost of energy independance, Arkansas did & came out a winner, it just took a while.

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