Lost economic opportunities from energy projects mounting

Recently, the Wall Street Journal pegged the economic value of fossil fuel related projects, which were rejected or withdrawn since 2012 at $33 billion.

But the costs of lost opportunities are much higher nationally if the list includes wind, coal and other energy developments canceled prior to 2011.

The U.S. Chamber of Commerce found that if the 351 projects identified in its “Project No Project” inventory were approved our nation would have a $1.1 trillion short-term boost to the economy and created 1.9 million jobs for construction workers.

Moreover, these facilities, once built, would continue to spawn jobs and economic benefits.

The Chamber estimated that each year they could generate $145 billion in economic benefits and employ 791,000 people.

It is important to note the Chamber study was completed before the fracking added trillions of cubic feet of natural gas and billions of barrels of crude oil to our petroleum inventory.

Suddenly, America has an abundance of gas and oil, and opportunities.

“Many major fossil fuel projects across the U.S., from pipelines to export terminals, have been shelved or significantly delayed because of a confluence of new regulations, grass-roots opposition and a drop in energy prices,” WSJ reporters Amy Harder and Erin Ailworth wrote on June 2.

On the Journal’s list were the $850 million Gateway Pacific coal export terminal at Cherry Point and a pair of liquefied natural gas (LNG) facilities in Oregon. All were terminated in the last three months because they were denied needed permits.

The WSJ report also omitted the $3.6 billion methanol plant at the Port of Tacoma, which was abandoned in April because of regulatory delays.

That project would have added 1,000 construction jobs, employed 260 people and generated $1 billion in economic activities in the nine surrounding counties, if completed.

The WSJ list for Washington also did not include the oil and coal terminals in Vancouver and Longview, which are currently bobbing in troubled regulatory waters. If those projects are not permitted, the lost economic and employment opportunities shoot up dramatically.

The impacts on Longview, a timber-dependent community that has struggled with high unemployment, mill closures and shortfalls in tax collections, are dramatic.

The nearly 3,000 construction and operations jobs created by the Millennium coal project are much needed. So are the annual $5.4 million in tax collections.

While natural gas has been identified as the replacement fuel for coal to generate electricity, siting natural gas pipelines and liquefied natural gas (LNG) terminals met overwhelming opposition in Oregon.

Earlier this spring, the Federal Energy Regulatory Commission denied a key permit for the Jordan Cover LNG terminal at Coos Bay, Oregon.

The $7.5 billion facility would have created 150 permanent jobs provided an ongoing flow of taxes and fees to local government.

The other LNG project at Warrenton near the mouth of the Columbia River hit stumbling blocks when the city denied the building permit and Clatsop County would not give permission for natural gas feeder lines.

The rash of permit denials has not escaped organized labor.

Lee Newgent, Washington State Building and Construction Trades Council leader, wrote: “Vancouver Energy would provide 320 full-time jobs during construction and 1,000 direct and indirect jobs yearly through operations. These family-wage jobs would provide huge economic impacts to our state.”

The Vancouver Energy permit is now in the hands of the state’s Energy Facility Site Evaluation Council (EFSEC). It will make a recommendation to Gov. Jay Inslee later this year.

At the end of the day, oil and coal trains will continue to roll through Washington.

The only question is will they stop here and provide us with the jobs, taxes and economic opportunities.