A Faltering Fracking Industry, on the Verge of a Bailout, Mixes Patriotism and Oil in the Permian

Julie-Dermansky-022
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Signs equating patriotism with the oil and gas industry areย abundantย in the Permian Basin, one of the United Statesโ€™ most prolific oil and natural gasย plays.ย 

There, the messages on billboards, trucks, and the sides ofย rest stops suggest that supporting the industry thatโ€™s one of the largest contributors toย the climate crisis is a matter of Americanย pride.ย ย 

Welcome sign in Carlsbad, NM
Welcome sign in Carlsbad, New Mexico, in the Permianย Basin.

Sign glorifying the American West at gas station in Pecos, Texas
Sign at a gas station in Pecos, Texas, in the Permianย Basin.

Some American politicians have celebrated the fracking boom of the past decade for contributing to both the notion of U.S. energyย independenceย and the nationโ€™s transformation into a dominant player in the worldโ€™s oil and gas market. However, Russia andย Saudiย Arabia have shaken those ideas and global markets by waging an oil price war in the shadow of the COVID-19 pandemic. The result is a drop in the price of a barrel of oil to less thanย $30.

Once President Trump acknowledged the pandemic would not spare the United States, he vowed to protect Americaโ€™s industries, and oil and gas is noย exception.

Ad glorifying American West at truck stop in Pecos, TX
Advertisement glorifying the American West on the side of a truck stop in Pecos,ย Texas.

Horses by oil and gas industry site in Pecos
Pecos, Texas, where livestock share the landscape with the oil and gasย industry.

On March 13, Trump proclaimed the federal government would buy oil โ€œat the rightย priceโ€ from domestic producers to top off the countryโ€™sย Strategic Petroleumย Reserve.

According to Reuters,ย the Department of Energy has put the reserveโ€™s additional capacity at 77ย million barrels of crude. Where the money will come from to make the purchase has notย beenย specified.ย 

Theย Washington Postย reported that Trumpโ€™s decision will allow a potential purchase ofย up to โ€œ92 million barrels, enough to buy the entire output of Texasย in approximately 18ย days.โ€

American flag on oil and gas industry truck in Permian Basin
American flag on an oil and gas industry truck in the Permianย Basin.

Dead cow on side of road with oil and gas industry truck in Permian
An oil and gas industry truck passing a dead cow in the Permian Basin, where roadkill isย plentiful.

This move to prop up financially shaky U.S. drillers, deep in debt, amid collapsing oil prices may be the first of many government efforts to bail out the oil and gas industry.ย And the governmentย is already in talks to bail out other carbon-intensiveย industries,ย includingย the cruise and airlineย industries.

Long before the COVID-19 outbreak, fracking firms in the Permian Basin were experiencing a downturn. Now the dramatic devaluation of oil prices will likely bring the already declining drilling boom in the country’s shale regions to a nearย halt.ย 

American flag painted on oil industry truck in Loco Hills, NM
An American flag painted on an oil and gas industry truck passing through Loco Hills, New Mexico, in the Permianย Basin.

Welcome sign in Andrews, Texas, reading 'Andrews loves God, country, and supports free enterprise'
Welcome sign in Andrews, Texas, in the Permianย Basin.

With the price of crude oil teetering under $30 per barrel, most shale operators are unable toย cover their costs, reports Reuters, and drilling projects are likely โ€œto be put on hold relatively quickly,โ€ says Rystad Energy shale researcher Artemย Abramov.ย 

Lee Morton, a former oil and gas industry worker who lives in Pecos, Texas, said in early March that the layoffs have been plentiful and someย of the temporary housing areas known as man campsย areย quicklyย clearingย out.ย 

He noted that some of the recently unemployed will be stuck in the area, as they wonโ€™t have enough money toย relocate.ย 

Oil and gas production site shared with cattle in Loco Hill, NM
Oil and gas production site shared by cattle in Loco Hills, New Mexico, in the Permianย Basin.

'Oil Patch Motel' in Eunice, New Mexico
Hotel in Eunice, New Mexico, one of many hotels in the Permian Basin which already had slashed prices before worries of COVID-19ย arrived.

Oil companies are already announcing major cuts in spending in response to the rapid devaluation of stock prices. The Dallas Morning News reported thatย Pioneer Natural Resources, one of the largest operators in the region,ย is halving its oil rig countย and work crews within the next twoย months.

On March 17, both the White House and Congressย were working on potentially trillion-dollar economic stimulus packages and keeping in mind the negative perceptions that followed the 2008 bank bailouts. According to Politico, โ€œSenior White House officials know that direct aid to airlines in particular may be necessary to avoid crippling bankruptcies, but they are leery of being seen as handing out bailouts and want to be sure that any such aid is dwarfed by proposals that would direct cash toย consumers.โ€

The Trump administration has yet to issue a plan to bail outย oil and gas industry workers or others in shaleย regions battered simultaneously by the pandemic and theย frackingย bust.

Mural in Artesia, New Mexico, showing pride with pumpjacks
Mural in Artesia, New Mexico, at the edge of the Permianย Basin.

American flags on top of Navajo Refinery in Artesia, NM
American flags on top of the Navajo Refinery in Artesia, New Mexico, an industrial site recently identified as a top U.S. emitter of a cancer-causing air pollutant.

Presidential hopeful Sen. Bernie Sanders, who says corporate bailouts are โ€œsocialismโ€ for the rich, emphasized at the last Democratic debateย that the climate crisis, which heโ€™s called an existential threat, should be taken as seriously as the current pandemic.ย ย 

President Trump, who touts his patriotism with showy gestures like hugging the American flag, has been criticized for downplaying or contradicting his federal science and health experts on coronavirus threats to the U.S. He repeatedly has proclaimed that the pandemic was an โ€œunforeseeableโ€ event, despite repeated warnings from global health experts that the โ€œworld is at acute risk for devastating โ€ฆ global disease epidemics or pandemics that not only cause loss of life but upend economies and create socialย chaos.โ€ย 

Some of the same organizations pushing climate science denial have also recently downplayed the risks of the coronavirus, sharing misinformation and conspiracy theories about the virus. Several of these groups have received funding directly or indirectly from the oil and gasย industry.

The oil and gas industry has long made appeals to patriotism in its public relations efforts in America, and the current administration has echoed that.

โ€œPatriotism means making our nation stronger. In our climate crisis, fossil fuels make our nation weaker,โ€ Sharon Wilson, Texas coordinator for Earthworks, told me by email. โ€œAnyone telling you differently is gaslighting you just as Exxon gaslit the world about the reality of climate change. Going forward, every dollar spent to perpetuate fossil fuels instead of renewables is a dollar stolen from a sustainable future to benefit the Exxons of theย world.โ€ย 

These photos were taken between March 4 and March 9, in the Permian Basin region of New Mexico and Texas, an area where oil and gas workers andย executives travel from all over, before cases of COVID-19ย wereย reported.

The view of flares at an oil and gas site en route to Carlsbad Caverns National Park in New Mexico
The view greeting tourists as they make their way to the Carlsbad Caverns National Park in New Mexico, where the landscape is now populated with flaring from oil and gas industryย sites.

Main image: Workerโ€™s hat left behind in Eddy County, New Mexico, in the Permian Basin. Credit: All photos by Julie Dermansky forย DeSmog

Julie-Dermansky-022
Julie Dermansky is a multimedia reporter and artist based in New Orleans. She is an affiliate scholar at Rutgers Universityโ€™s Center for the Study of Genocide and Human Rights. Visit her website at www.jsdart.com.

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