In our rush to put blame on politicians for the loss of coal jobs, maybe we need to re-examine some hard economic realities. President Barack Obama has become an easy target, with the coal industry blaming environmental regulations. Issues of clean air aside, let’s take a look at the harsh economic realities, which have a much greater impact on coal jobs.
In an article titled “After the Gas Boom” in the Oct. 21 New York Times, some interesting facts emerge. The number of natural-gas wells and production has exploded in the United States. As expected, the price has also dramatically dropped, with natural gas fetching less than one quarter of its peak cost. Wall Street investment firms (think Romney and Bain Capital) have made a killing, but gas drillers are now taking a bath.
What does the cheap price and abundant supply of natural gas mean for coal jobs? Our free enterprise system has winners and losers. In this case, consumers have benefitted from lower home heating costs and electrical utilities are shifting away from coal generation to run their power plants on natural gas. The bottom line is that there will continue to be a lower demand for coal for the foreseeable future. Lower demand means fewer coal jobs.
The coal companies have conveniently blamed President Obama for these changes in the marketplace. Keep in mind, though, that the biggest threat to coal jobs is the abundance and low price of natural gas. So before you blame Obama for the threat to coal jobs, you may consider blaming your neighbor who has allowed fracking (hydraulic fracturing) for natural gas in their backyard. Remember, more natural-gas supply means less demand for coal, therefore fewer coal jobs.
Maybe we need to stop blaming Obama and think of this as a result of our free enterprise system. Consider that fact before you vote on Nov. 6.
Steve Safran is a professor of teacher education at Ohio University.
