Op Ed: AERA Project Closure Hurts Local Economy

By Michael G. Lopez, U.A. Plumbers and Pipefitters Local Union 114

Well it appears that AERA energy has thrown in the towel. The reasons given were that the global drop in the price of oil coupled with the ever-increasing regulatory demands from the County. There is little that we can do to control the influence on crude prices, none that compare to the foreign petroleum-producing giants.

While it is easy to ponder the negative impact that these almost predictable “drop in prices” create it seems that their frequency is timed to destroy any projects stuck in the quagmire of our domestic, politicly charged, regulatory permitting process.

Some see yet another failed petroleum project as a great victory for our community. Those at the front of that parade are the individuals that profit from obstructing yet another good paying petroleum project. These zealots sitting up in their ivory towers and would have you believe that this community should rejoice over the corpse of yet another oil permit application. I do believe that this kind of thinking does in fact create casualties in our community, the first of which is good paying jobs.

The second is the loss of massive tax revenues that supports important community services like mental health and our local school districts. Those funds also support hospitals, fire, and other emergency response services as well! I am shocked at the level of ignorance of some of our leaders, those that believe that an electric car is devoid of the need for petroleum products. Are you kidding? Approximately 50% of all cars, yes electric cars as well, are constructed from plastics, hence OIL!

I do not see that changing anytime soon. We have an opportunity here in Santa Barbara to prove to the world that oil can be produced in a highly regulated environment. We must strictly adhere to regulations that protect our water, our people, our jobs, and our economy. But in all endeavors lie risk, this is a fact of life. We must balance all these variables. But when the process comes with a movable goal post it has become almost impossible to successfully bring these projects to fruition.

While another local project goes down in flame rest assured that our foreign providers will fill in the gap. Those with zero regard for their environment. And you call this a victory for the people of Santa Barbara? Hardly….


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17 Comments

  1. ” . . . implementation of safe petroleum projects . . .” Of course, that is Edhat staff’s byline and not the OP’s. But for me it says it all. There is no such thing as a “safe” petroleum project. And, yes, OP, there is “risk” in such projects. Risk upon which we Santa Barbarans would rather not gamble.

  2. You can see why the Unions would love to keep these high pay high benefit jobs that are providing them a good living. And there is some truth to the argument that forcing production to countries with no environmental safeguards doesn’t work out very well for those countries. But the truth is that if we don’t radically change our practices, climate change is going to destroy our way of life for us, our kids, and our grandkids. And steam injection of poor quality petroleum reserves is a foolish way to extract oil. Lastly, why doesn’t our industry pay royalties on what they extract like every other state in the Country? For all these reasons, I’m glad this project is not proceeding.

  3. What happened at Refugio 5 years ago proves there is ‘risk’. Risk as in human error. Risk as in faulty equipment and inadequate communication systems. No amount of regulation will overcome such risks. Those speaking up against these risky projects are your neighbors, not occupants of ivory towers. I have attended several of these hearings and the oil companies pay their workers to fill most of the seats so they can speak in favor or wear their buttons. Not a bad gig.

  4. I must point out that your union endorses Murillo, Williams & Hartmann, who all opposed this and other oil expansion projects in our region. They all support a future where our labor forces are more invested in cleaner energy projects.

  5. There is no shortage of oil. The US is a net exporter. Royal Dutch Shell is building a new factory in Monaca, PA that will produce more than a MILLION TONS of plastic pellets (raw material for various plastics) per year. You can google that. No need for Cat Canyon’s contribution, but thanks for the offer.

  6. I too am shocked at the levels of ignorance, but it is of those that are willing to destroy our planet for the benefit of short term financial gain.
    Petroleum, gas coal, and mining have created many casualties for our community, state and world.
    There is no such thing as “safe” oil and there is no such thing as “clean” coal. Also there is no such thing as the “clean” end of a turd.
    It is my wish to leave my granddaughter a sustainable world to live in, with minimum future degradation to our air, oceans, rivers, forest, and inhabitant species in all of those.
    Do your union members a favor and let them know that the world population has changed, and that we as a people will need commensurate change to be able to exist.
    I am not making this up…

  7. I understand and sympathize with the personal issues behind this op ed. But please, workers and employees and others, understand that sometimes we have to move on. Hydro-carbon products will soon be like horse drawn carriages. Things are moving and you and your union should move with them. Do not defend corporate exploitation and greed. Do not let them use you for their profit.

  8. For all the criticism of oil and claims that we must stop using it, has anyone contemplated what that would actually look like? As the old slogan says, “plastics make it possible.” It is ironic that those who claim to have protected the environment have actually increased the environmental impact of oil production by moving it elsewhere. We will still consume the same petroleum products, but as we shut down local oil production we will cause more environmental harm buying our oil from places that do not maintain the level of environmental standards that we believe is appropriate.

  9. What a fatuous comment. Those who are not brain dead are not consuming the same products, are pushing to eliminate them, as well as legislating to reduce the negative impact of this stuff in the interim. We are not, thankfully, living in the 1950’s when oil could pollute with impunity and brag about it as well. Yes, we are in a transition but we cannot go back to the technology that has almost destroyed our seas and air.

  10. RHS, everything from the carpet under your feet to the roof over your head is made of petroleum products. Even glass, wood, and cotton are made using lots of petroleum. What are you going to replace your home, your clothes, your car, and your food with so we can do away with oil industry once and for all?

  11. Chip you persist and amaze. For your information: The carpet under my feet is made of wool. The roof over my head is made of clay. Just because you want to be helpless in this fight does not mean society should capitulate to the propaganda of the oil people. Get on your hind legs and move us forward.

  12. The transition off oil/gas in favor of less polluting energy sources cannot be stopped, it’s already happening and the populace is increasingly in favor. Partly due to smog and pollutants helping to cause climate change and global warning, partly due to the negative health effects of pollution and partly because we now have increasingly better renewable options (thank you technology).
    Why we might decry the lack of the taxes oil companies pay locally and the relatively high-paying jobs, it is temporary, this is a transition. There are now more jobs in renewables than the petroleum industry. (BTW, close relatives in my family work either directly or indirectly for oil companies; one in the fields, the other a third-party safety company. So I’m not just an uninterested party.)
    What I wish is that the Oil Companies transition to true Energy Companies; they have the money to do it and besides, they are subsidized by the government. SoCal Edison is increasingly moving toward battery storage in order to capture the thousands of solar panels going up on roofs and via other renewable means.
    Oil companies can do similar transitions, and if they don’t, well, we’re in a capitalistic society that will favor public demand and I’m positive oil will lose out if it doesn’t get a stake in the game.
    By the way, I now have a fully electric car, charged by solar panels and the psychological effect of a vehicle that glides, not drives noisily down the street polluting, is a joy that the upcoming generation will have and we can too. One friend’s son who also has electric cars, now 17 or 18, has never driven a gas car and his mom said he wouldn’t know how to fill a car with gas!

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