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As international market forces cause oil prices to plummet, communities in the West will feel the effects. Oil companies in the S&P 500 are down between 10 and 40 percent, and companies are already scaling back production in the Permian Basin. The crash will likely lead to bankruptcies among small producers, resulting in additional abandoned wells on public lands. Previous analysis by ECONorthwest found that cleanup for wells on federal lands could cost up to $6.1 billion, far exceeding the $162 million in reclamation bonds provided by operators. Taxpayers could be left on the hook for cleanup costs, highlighting the risks of depending on a boom and bust extraction economy.
The potential significant effects highlight the need for diversified economies in the West. The boom-bust cycle of energy production leaves communities vulnerable when prices drop due to factors out of their control. Both outdoor recreation and renewable energy development provide options for moving beyond sole reliance on oil and gas production to a more stable and clean economy.
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It's unconstitutional, because the Constitution requires that the Senate play a role in consenting or not consenting to the president's nominees... Major federal dollars being spent by these people. And we don't even know who they are.”
