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WEST VIRGINIA POLITICAL OUTLOOK: 2012 TRENDS & TENDENCIES & IMPACT Presentation for West Virginia Oil & Natural Gas Association Dr. Robert Rupp West Virginia.

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Presentation on theme: "WEST VIRGINIA POLITICAL OUTLOOK: 2012 TRENDS & TENDENCIES & IMPACT Presentation for West Virginia Oil & Natural Gas Association Dr. Robert Rupp West Virginia."— Presentation transcript:

1 WEST VIRGINIA POLITICAL OUTLOOK: 2012 TRENDS & TENDENCIES & IMPACT Presentation for West Virginia Oil & Natural Gas Association Dr. Robert Rupp West Virginia Wesleyan College rupp_r@wvwc.edu rupp_r@wvwc.edu

2 WV ENERGY/ WV POLITICS ConcreteAbstract

3 LIKE POLITICS, ENERGY IN WEST VIRGINIA IS ALSO IN TRANSITION

4 ENERGY REVOLUTION:EXTRACTION ECONOMICS Oil Boom Coal Boom Marcellus Shale Boom

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6 Characteristics of WV Politics 3 Trends in WV Politics 3 Trends in Energy Balance Sheet of Marcellus Shell Benefits/Concerns Conclusion- Intersection of Energy & Politics

7 WEST VIRGINIA- UNIQUE POLITICS Everything in West Virginia is political, except Politics which is Personal ” We are a state that takes its politics seriously and practices it somewhat differently.

8 COMPARISON OF WEST VIRGINIA & LOUISIANA Louisiana Questions 1-Who is your Mama? 2-Are you Catholic? 3-How do you fix your gumbo? West Virginia Questions 1-Who is your Daddy? 2-Are you Methodist? 3- Food ???

9 WEST VIRGINIA IDENTITY Not South- Carved out of a State Have Statue of Lincoln Not North Not “Mid-Atlantic”- no natural lake

10 KEY: BASED ON TOPOGRAPHY NOT GEOGRAPHY Mountains: Identity + Resources

11 Energy & Politics share 1 thing Our industry is in historic Transition

12 3 STATEWIDE TRENDS & THEIR IMPACT ON POLITICS 1-Geography 2-Commerce 3-Partisanship

13 STATEWIDE TREND- #1 1. Changing GEOGRAPHIC/$ Center ------  Moving North and East Population-Past Decade -Kanawha - 3.5% -Monongalia + 18%/ Jefferson +27% Political Importance The party that recognizes this trend & acts in next decade will control the state

14 Legislature does not reflect this trend Southern counties = disproportionate power

15 STATEWIDE TREND #2 2. Changing face of Commerce -RETAIL  WHOLESALE Political Importance -Personal contact  Robo-calls, ads The party that recognizes this trend & acts in next decade will control the state

16 STATEWIDE TREND- #3 2. Changing PARTISAN TREND ------  More Republican B ut slowed by : 1) #’s = 2 to 1 Democrat registration 2) “Big Tent” of Democratic party 3) Ideology = West Virginia Schizophrenia a. Reliance on Government Program/New Deal b. Suspicion of Government- Libertarian -Suspicious of Obamacare

17 Status Quo-2012 PARTISAN WV = Split-Level State Charleston- Democrat Washington- Republican Presidential since 2000 Congress- Capito-2000/McKinley-2010 Senate- Rockefelle*Manchin*

18 HOW THE 3 STATETRENDS IMPACT ON ENERGY 1-Geography 2-Commerce 3-Partisanship

19 STATEWIDE TREND- #1 1.Changing GEOGRAPHIC/$ Center ------  Moving North and East Implications for ONG & Coal in WV

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21 STATEWIDE TREND #2 2. Changing face of Commerce : RETAIL  WHOLESALE Home Hardware  Walmart ? ENERGY-  Consolidation Local individual --  Big Companies Implications for ONG

22 STATEWIDE TREND- #3 3. Slow evolution in PARTISAN TREND ------  More Republican Implications for ONG For Now: Must deal with Split-level Uncertainty- State/National

23 BALANCE ???? The Economic Promise and The Environmental Concerns

24 BENEFITS FOR WEST VIRGINIA BENEFITS FOR NATION Reduce dependence on Middle East oil Reduce green house gas emissions BENEFITS FOR WEST Virginia Creates Jobs Creates Revenue Creates potential for other industries: Ethane--  “Cracked” into Ethylene.

25 MARCH 16.2012 Ethane cracker plant might come to Institute CHARLESTON, W.Va. -- South Charleston-based Aither Chemicals is expected to announce plans next week to build a $300 million ethane catalytic "cracker" plant that would employ up to 200 workers at the Institute Industrial Park by 2015,

26 CONCERNS OF WEST VIRGINIANS The Economic Promise and he Environmental Concerns The economic promise and environmental questions have invited comparisons to West Virginia’s coal industry. Mining has brought much-valued jobs and revenues to the Mountain State, but its long history has also included incidents of ruined land, poisoned water and mistreated workers.

27 Fool me once shame on you, Fool me twice, _________ 2012 is not 1882 Knowledge is Different- i.e. Incomplete Communication is Different Players are Different-land owners, environmentalists, government, business,etc.

28 CONCERNS Landowners Water Roads Worker

29 Horizontal Drilling +/- 3,000–4,000 ft of horizontal drilling length

30 FOOTPRINT ON LAND: Landowner rights ? Mineral rights/surface rights Watch Test case-Wheeling Landowner Land KEY: Selective Impact--  Localized Regulation-Buffer Landowner’s Neighbor- Notification

31 FOOTPRINT ON WATER Not new- 1940 2000-take off Product is safe - 99.51% water Amount of it -Chemicals in kitchen Amount & Control Record - never, none Little research - Lisa Jackson quote

32 May 2, 2012 Drilling chemicals could move quickly to aquifers, study says CHARLESTON, W.Va. -- Chemicals injected into the ground by natural gas drillers could migrate toward drinking water supplies much more quickly than previously thought, according to a new study that raises questions about West Virginia's ongoing Marcellus Shale boom. Industry officials argue that fracking chemicals cannot possibly pollute drinking water, because fracking occurs far below aquifers used for wells and chemicals would take far too long to ever possibly migrate through thick layers of rock. The new study by Myers is the first scientific paper to strongly question that thesis.

33 FOOTPRINT ON ROADS Marshall County Sheriff told U.S. Senate committee : "We were never prepared for the onslaught of heavy trucks that would monopolize our roads, damage our property, and destroy our roads.” " The drivers are not from here so they do not care what happens as a result of their reckless operations.“ Versus: Chesapeake plans to spend another $93 million this year

34 WORKER S Rockefeller pressed Randy Albert, chief operating officer for CONSOL Energy's gas operations, about why the industry doesn't improve trucking safety by hiring more West Virginia drivers who know the local roads. Albert said that CONSOL tries to employ West Virginians, but added, "I can't mandate to my subcontractors that they hire West Virginians." Rockefeller shot back, "You know, I think you can. And I think most of them aren't West Virginians. I would think that you probably could do that."

35 CONCLUSION Understand 3 Things about Energy in West Virginia and its relation with Politics 1-Revolutionary Dimension Historic Time 2-Dynamic Tension- Jobs v. Environment Cost of v. Need for regulation 3- Political Intersection Government= Arena  Your Voices heard

36 WEST VIRGINIA POLITICAL OUTLOOK: 2012 TRENDS & TENDENCIES & IMPACT Presentation for West Virginia Oil & Natural Gas Association Dr. Robert Rupp West Virginia Wesleyan College rupp_r@wvwc.edu rupp_r@wvwc.edu


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