Forrest for the Trees

Eagle Ford Shale
Eagle Ford Shale

When I was a kid, the highest spot on our little South Texas ranch was the walkway at the top of our oil well’s tank battery. From there, you could take in a good piece of the gently rolling brush country. For a time, before it all came crashing down in the early 1980s, you could see the drilling rigs, the tank batteries, and the new oil-field roads carved through that patch of DeWitt County. Maybe you could spot men, like my dad, coming home from hard but good-paying jobs offshore or in the oil patch. The well on our ranch never produced much, and it was plugged once the boom turned to bust. And what a bust it was. In 1981, the oil and gas industry accounted for 18 percent of Texas’ economy and one-fifth of state tax revenue. When global oil prices tumbled, the Texas economy went into a deep depression, and workers went into other fields. At our place, the tank battery came down, leaving just a rusting “Christmas tree”—an assembly of valves and pipes—to mark the spot. Oil giveth and oil taketh away.

It seemed like that was the end of the Texas oil business. Of course, no one could’ve foreseen the fortunes awaiting in North Texas’ Barnett Shale, South Texas’ Eagle Ford Shale, East Texas’ Haynesville Shale, the Panhandle’s Granite Wash Shale and West Texas’ Cline Shale. No one foresaw that oil prices would climb to near-historic highs and stay there. No one foresaw that hydraulic fracturing (fracking) would be combined with horizontal drilling to open up gargantuan new domestic reserves.

The boom is back, probably bigger and longer-lasting than any before. The stats tell part of the story: In the past two years, Texas’ oil production has gone up 71 percent. Texas is now home to one-fifth of all drilling rigs worldwide. The Eagle Ford, which stretches 400 miles from Laredo northeast into East Texas, is attracting more capital investment than any other oil field on the planet. Just half a decade ago, the Eagle Ford was little more than a blotch on a geology map.

Last year, there were over 1,000 new wells sunk in the Eagle Ford and more than 352 million barrels of oil produced, far exceeding most analysts’ expectations. You don’t need to stand on top of a tank battery to see the night sky lit up with flares; in the rush to get oil out of the ground and to market, many producers are burning off any natural gas that comes up from their oil wells.

The Permian Basin’s Cline Shale could be bigger still. The Cline, which underlies 10 West Texas counties and is 10-times thicker than the Eagle Ford, could contain as much as 30 billion barrels of oil. Not that long ago, the game in the Permian Basin was tertiary recovery—squeezing the last drops out of dying fields.

Unthinkable as it once seemed, some experts now believe that the U.S. could surpass Saudi Arabia in oil production within eight years and become a net exporter. State Rep. Jim Keffer, the Republican chair of the House Energy Resources Committee, recently called it “a miracle.”

So much for peak oil. So much for the withering away of the carbon-based economy.

The vast energy and wealth generated by this oil renaissance is staggering. But at what cost? Can we afford to continue the carbon emissions that come with an oil-dependent economy? Oil money has a way of virtually silencing debate about climate change. It has a way of blinding us to the connection between Texas’ carbon emissions and its record-breaking heat and drought. It has a way of rendering mute the increasingly urgent warnings from climate scientists, including many in Texas. The planet has undergone just .8 degrees Celsius of warming so far and already the disruptions to the environment, from extreme weather events to a massive reduction in Arctic sea ice, have been greater than expected. Many scientists now believe it is virtually impossible for the planet to avoid 2 degrees Celsius (3.6 F) of warming, a threshold that the world’s governments have decided shouldn’t be crossed. Beyond that, things will get much worse, much faster. To avoid further catastrophe the impossible must be made possible: Texas, and other oil-rich places, will have to leave most of the carbon, the oil, in the ground. Oil markets go up and they go down, they boom and they bust. But we only get one chance to avert catastrophic climate change.

CashStore
Jen Reel
A Cash Store location in East Austin

Earlier this legislative session, a chief of staff for a senator noted that the $4 billion Texas payday and auto-title loan industry would soon grow powerful and lucrative enough that the Texas Legislature would be unable to take it on. That time may have already come.

At a legislative hearing this morning, state Sen. John Carona, the Dallas Republican who’s leading the payday “reform” effort in the Senate, basically said the industry had bought off lawmakers. Carona was defending the latest version of his payday loan legislation, which most advocates derided as unacceptably weak. Senate Bill 1247 would scuttle the efforts of most of Texas’ big cities—Austin, San Antonio, Dallas and El Paso—to rein in payday loan excesses and codify the industry’s loan products in statute.

“You have to get the most you can get with the political support that you have,” Carona said. “This industry is in business and this industry has amassed enormous political support at the Capitol.”

He urged opponents to consider that the votes were lacking in both the House and the Senate to pass anything more.

Yesterday, campaign finance watchdog Texans for Public Justice released a report that “loan sharks” had poured almost $4 million into Texas politicians during the past two election cycles.

Carona blamed the industry’s stroke for the hobbled proposal he laid out in committee this morning. In almost every respect it’s weaker than the filed bill.

Many states have dealt with predatory payday lending by imposing a strict cap on interest rates. In Texas there are no limits to the fees that payday and auto-title lenders can charge consumers and it’s not unusual to see APRs climb over 500 percent. Lawmakers could close a loophole that allows lenders to circumvent Texas’ ban on usury. But there’s been no appetite for that at the Legislature. Instead, advocates and faith groups have had to settle for a set of lesser measures that attack the “cycle of debt” problem, whereby borrowers get stuck rolling over loans and paying new fees on a balance they can’t pay off. The industry has been brought to the negotiating table, in part, by the fact that most of Texas’ big cities have passed ordinances regulating payday and title lenders.

Both the filed bill and the one introduced today limit the size of a loan based on a consumer’s monthly income. However, the new version includes significantly higher limits—twice in the case of so-called, multi-payment “installment” payday loans—and allows a borrower to carry more than one loan at time.

The effect is that a borrower who makes $28,000 a year could take out loans that could exceed their monthly income within weeks. Nothing in the bill would limit the fees that the industry could charge.

“None of this will meaningfully change the market,” said Ann Baddour of Texas Appleseed.

The latest version would also allow a one-year, multi-payment auto-title loan that would cost a borrower $5,000 to pay back a $1,000 product. The previous version had capped the length of such a loan at 270 days.

“They’ve basically created new uncapped loan products,” Baddour said.

Bishop Joseph Vazquez said the legislation “offers a few positive measures while it ultimately endorses predatory lending practices.”

“Current industry practice, which would be given state sanction, only rewards borrower failure with lender profit.”

Perhaps most galling to reform advocates is that the legislation would wipe out existing city ordinances, which almost uniformly provide stricter lending regulations. While Carona lamented that legislators had been persuaded by lucre to abandon whatever conscience they might have, a city councilman from San Antonio made a salient observation.

“While they’ve amassed a significant amount of political capital here, outside of Austin there is not anywhere a component of constituents that are on their side.”

Still, Carona said that lawmakers’ hearts are in the right place… even if their pocketbooks aren’t.

“Even those who’ve received significant political support from the industry, and are perhaps apt to vote in the industry’s direction,” Carona said, “most of those people know at its core there are some problems here, at its core it’s not right.”

They’re just not going to do anything about it.

Mary Kelleher’s Fort Worth home is 65 feet from an off-the-books gas pipeline.
Jen Reel
Mary Kelleher’s Fort Worth home is 65 feet from an off-the-books gas pipeline.

Is Texas headed for more pipeline accidents? The state agency charged with overseeing pipeline safety is dangerously underfunded.

Yesterday, the head of the pipeline safety division at the Texas Railroad Commission (which, no, doesn’t have anything to do with railroads but is the chief regulator for intrastate pipelines in the state) told a House committee that she needs twice as many inspectors to do her job. The Railroad Commission oversees 168,000 miles of pipeline—enough to encircle the Earth almost seven times­, but has just 33 inspectors. That’s about 5,000 miles of pipeline per regulator.

That’s partly due to Texas’ fracking boom, which has wrought a vast new network of pipelines to carry oil and gas to market. Many of them are located in populated areas near homes, businesses and schools. Citizens and cities have little say over where the pipelines are sited and oversight can be almost comically lacking.

Polly McDonald, the agency’s pipeline safety division director, said the understaffing problem had led to a system of triage. The agency focuses on the segments of pipeline that pose the greatest risk of an explosion, leak or spill.

“Do we have enough inspectors to do what we need to do?,” asked state Rep. Gene Wu (D-Houston).

McDonald replied: “No, we don’t.”

The cost to fully staff her division with another 35 inspectors, McDonald said, would be $2 million to $3 million.

Still, lawmakers peppered her with questions about emerging problems—cyberattacks on pipeline infrastructure, pipelines carrying tar sands from Canada and the agency’s adjustments following high-profile tragedies like the San Bruno, California, natural gas explosion that killed eight people in 2010 and the Enbridge pipeline leak in Michigan that poisoned a watershed. (Oddly, there was little mention of the deadly pipeline accidents that have struck Texas in the past few years.)

McDonald said the Railroad Commission would be hard-pressed to deal with those issues.

Asked about the agency’s tracking how operators were addressing cybersecurity threats, McDonald said, “We certainly could, but I’m not sure that’s in our staffing range at the moment, frankly.”

The hearing also highlighted several vulnerabilities in pipeline oversight.

One problem area, McDonald said, is “control-room error.” In both the San Bruno and Michigan accidents, individuals had failed to follow safety protocols and respond appropriately to warning signs that something had gone wrong. Both incidents have been “eye-opening” for the industry.

“A better understanding [is] needed of how humans interface with these machines,” McDonald said, “which can be really useful but can also malfunction.”

The Railroad Commission will be conducting a special audit on operators’ control room plans.

Although pipeline operators are required to hold meetings with local emergency responders to plan for leaks and accidents, local responders often fail to show up. The companies sometimes have to offer free meals.

“They leave the written information and hope that someone reads it,” McDonald said.

Jeremy Bird

In literature, a deus ex machina is a device used to solve an insoluble dilemma and push the story toward a satisfying conclusion. The sudden death; the alien attack; the miracle cure. The insoluble dilemma for Texas Democrats has long been how to use Texas’ demographic change to break their epically long losing streak. Call it Waiting for Gomez.

It is not news that Latino population growth in Texas affords the moribund Texas Democratic Party at least an opportunity to find its way out of the wilderness. The question has long been, will the Democrats be able to seize it?

That’s why Battleground Texas has made such a big splash. It could be the Democrats’ deus ex machina. Led by Jeremy Bird, former national field director for Obama for America, the organization promises not just to make Democrats more competitive in Texas but to put the state into play in presidential politics by engaging key Democratic constituencies—Latinos, young people, African Americans—on a mass scale. Bird promises to bring fresh blood, national resources and proven organizing techniques to Texas.

We talked to Bird recently about his plans. The interview has been edited for length and clarity.

 

Texas Observer: Why Texas? Why not Battleground Georgia or Battleground Indiana?

Jeremy Bird: One reason is staffers from Texas, whether it’s organizers in battleground states who are from Texas or just the people in our organization who had either worked in Texas during the primary and had experience there or are actually from there, they’ve got a tremendous amount of passion to go back [to Texas] and work. I’ve heard it over and over again. I would talk about Texas in presentations whether we were talking about the maps and the battlegrounds and how we get to 270 as a long-term ambition, and people would come up to me later and say, ‘Hey I want to be a part of that long-term thing’, even though we’d barely mentioned it. It was sort of an aside. So I was struck by that.

The second group of people are our volunteers in Texas. This really started back during the Two-Step, back in the primary days. The folks there were incredible. The size of our email list in the campaign. The amount of work they did in the primary. What they did in ’08 and then watching their work in 2012, it’s a very motivated group of folks who did a lot of work. Whether they were in El Paso driving up to Las Cruces, New Mexico knocking on doors. Or, in Houston or Dallas or somewhere else making calls into Florida or Colorado, the sheer value of what they were doing was impressive. When we did big days of action on health care or something there’d always be a disproportional number of event happening in Texas versus the size of our staff. I think that led me to believe this was something that was possible.

The third group of people is our donors, whether they’re grassroots donors online who contributed in pretty massive numbers or the great community of donors in this state that are really active. Same thing, I’d be at meetings talking to the national finance committee and there’d be a lot of Texans there and be excited that I’d mentioned Texas in my presentation and want to make that real.

The people in the world where I’d been working really wanted something like this. I also think the sheer size; Texas can play a much bigger role in our national politics. It’s on policy issues and politics. Everybody there knows that.

TO: I guess the size has always been a challenge for progressives and Democrats trying to rebuild after declines over the past couple decades. What is it that Battleground Texas is going to do where other organizations have tried and not have had as much success as they would have liked? Is it scale, a different model?

JB: One is there are some great groups doing great work on the ground and we hope to complement what they’re doing and not replace it. We want to be a partner with groups doing great things. In terms of scale, we want to make sure we’re able to do is run a real statewide operation and that’s going to take, first, a belief that we can do that. And, second, we need to make sure we have the resources to do that, which means we need to have a really strong grassroots presence online we need to be doing all the right things to show that we can move the needle. So I think scale will be one that will make it unique.

Second is that we want to take the best organizing principles and spend the money on organizing. We learned a lot from the last six years of presidential politics that we want to take all those lessons on: How do we use better data? Smarter analytics? How do we make sure our digital and offline programs are fully integrated? There’s a whole approach that we want to take to it that I think it is new in some ways. There are good groups that have done great things in Texas and we want to take the best from them, but then take it to a scale that will actually move the needle.

And be honest with people that this is a long-term process and we’re going to have to show results at the local level and then sort-of build up from that. I think it’s a unique moment where a lot of people are interested in doing this.

TO: Do you have an idea of how you show proof of concept at the local level; do you have particular areas you’re looking at, or particular races or candidates in mind at this point?

JB: We’re going to be figuring that out over the next couple months. One thing I’m really interested in is at the county level. I think there are a lot of counties you’re starting to see shade blue. There are some particularly interesting county races. I mean, you can’t gerrymander a county.

One of the great things about a place like Virginia, 10 years ago if you had said Virginia will be a purple state people would’ve said you’re crazy. But they started to slowly do it and they had some great statewide candidates to help them along the way. But also throughout the process they were building stronger data, which made everyone stronger in terms of the database. And just building on every local thing. Even when they lost, they were stronger when each of those races was over in terms of the long-term vision. And that’s what we’ve got to do.

TO: I think one of the things that has inarguably held back Democrats in a lot of respects is a really low turnout rate, among Latinos especially in certain areas. Is that something y’all are mindful of and what’s the thinking in terms of what to do about that?

JB: That is probably the Number 1 and 2 problems. No. 1 is low registration rates. Two is low turnout rates. They’re both equally important. It’s a full process of how do get people on the rolls and in the electorate. But then you’ve got to turn them out or otherwise it doesn’t matter. We’ve gotta figure out what works and then do some testing of that.

The biggest thing is that if you look at right after the election [Latino Decisions] asked voters all over the Southwest and the West and in the South were you talked to by a campaign, did somebody knock on your door, did somebody call you, was there any interaction. With voters in Colorado it was well over 60 percent of all voters—and you know how hard it is to get to some people—had been communicated with by a campaign.

The number was in the mid-20s, I think, in Texas. Part of it is people aren’t asking, people aren’t going out. If you look at what Andy Brown did with the 21-precinct project, they actually went out and talked to people and saw a difference. We know from every study we did in the campaign and every election I’ve been involved in, you see bigger turnout when people are actually asked for their vote… And so we know that works. The question is can you do that on a scale enough to move the needle.

TO: And you obviously think the answer to that is yes?

JB: I think it is. I think it absolutely yes. And I think there’s even a bigger upside in Texas because increasing turnout in a place like Ohio, you can do it, we found that it can work, but that’s a place where people had been working those neighborhoods for years, spending 100s of millions on TV and everything else. In Texas, you have a bigger upside because people haven’t been worked as much.

TO: When you talk long-term, how many election cycles — because that’s what everyone wants to know. It’s a bit of a parlor game but everyone wants to know when is the election cycle where we’re going to see a turning point. So when you talk long-term what exactly does that mean?

JB: There are so many factors. Who runs, what happens at the local level with local politics. I think what the Republicans are trying to do is put a year on it and say, ‘If they don’t win in 2014 or 2016 they’re a failure’. We’re not going to let them paint that. Like I said with Virginia it’s a really long-term project and every cycle we have to show success and keep moving forward, but we’re not going to let the Republicans put a year on it for us and say if we don’t have a Democratic senator or governor or presidential election that moves our way we’re a failure. That’s the problem. It’s been measured so much and people have put resources so much into a two-year span or a four-year span. National groups too aren’t willing to do it because if I’ve got a budget and I have to put 30 percent of my money into Texas for a national project no one’s going to do that.

It’s a long haul for us. We know it’s a long journey. My big thing is we have to have patience but we also have to work with a fierce urgency. You’re only going to get there if every cycle you maximize potential. Saying long-term doesn’t mean we’re going to go slow or not be aggressive with how we approach the next two years.

TO: There’s plenty of Republicans in Texas or at least a good number who understand that they’ve got to win over more Latinos to stay in power. You’ve got Steve Munisteri going around and George P. Bush’s name being bandied about. How much do you think it’s going to be toe-to-toe with the Republicans, or are they fighting a battle they can’t win b/c of the larger politics around immigration, the economy, etc?

JB: I think all of this can play in. They like to over-emphasize their outreach to Hispanics in Texas by saying they have a couple of candidates that are Latino. But the question is when you talk to Latinos in the Valley and when you look at the budget from the statehouse and form the governor and you look at his inability to take federal funds for Medicaid expansion, when you look at cuts to education, these are the issues that Latino voters in Texas care about. Trying to say you’ve got one in the Senate and you’ve done some work with elected leaders doesn’t change your policies toward Latinos in the Valley or Harris County or anywhere in the state.”

TO: I’m sure you’ve seen the Republican reaction including from Rick Perry when Battleground Texas was first announced, basically that these are a bunch of outsiders, and they don’t understand that Texas is essentially a conservative state. Back when the Democrats ran the state they were by and large conservative Democrats, like Rick Perry, and that they’re missing a fundamental miscalculation.

JB: We welcome that kind of dismissal of what we’re going to do. If you look at the Republican’s welcome letter to us yesterday, a lot of bluster especially from Rick Perry. What we look at is 50 percent of the electorate is turning out. That’s a huge problem. When Rick Perry talks about Texans voting he’s talking about half of Texans. We’re going to change that.

Josh Treviño at a Texas Public Policy Foundation event in Austin.
Patrick Michels
Josh Treviño at a Texas Public Policy Foundation event in Austin.

Updated below with statement from Treviño at 4:52 PM, March 1.

Some folks in Texas took notice today when Buzzfeed reported that Josh Treviño, a conservative pundit employed by the influential Texas Public Policy Foundation, had been paid $389,000 to produce propaganda for the Malaysian government, including attacks on a pro-democracy leader.

Although it was known that Treviño had ties to Malaysian interests, he apparently lied about the full extent of his relationship when directly questioned by Politico‘s Ben Smith.

The payments to conservative American opinion writers — whose work appeared in outlets from the Huffington Post and San Francisco Examiner to the Washington Times to National Review and RedState — emerged in a filing this week to the Department of Justice. The filing under the Foreign Agent Registration Act outlines a campaign spanning May 2008 to April 2011 and led by Joshua Trevino, a conservative pundit, who received $389,724.70 under the contract and paid smaller sums to a series of conservative writers.

Trevino lost his column at the Guardian last year after allegations that his relationship with Malaysian business interests wasn’t being disclosed in columns dealing with Malaysia. Trevino told Politico in 2011 that “I was never on any ‘Malaysian entity’s payroll,’ and I resent your assumption that I was.”

[…]

Trevino acknowledged that he shouldn’t have lied to BuzzFeed editor Ben Smith, then at Politico, when this first came up in 2011.

“When Ben Smith contacted me in July 2011, I ought to have come clean with him at the time,” he said.

The article reveals that Treviño: a) Worked for a foreign government with a sketchy human-rights record; b) produced paid propaganda for that government; c) failed to disclose his dealings with the Malaysian government; d) lied about his involvement to a reporter when directly questioned.

Treviño is no stranger to controversy. Last year he was hired separately by the Guardian and Texas Monthly to write a column. His Guardian position attracted widespread condemnation when comments he’d made about Palestinians and peace activists resurfaced. (His greatest hit may been cavalierly calling for the murder of Americans he disagrees with: “Dear IDF: If you end up shooting any Americans on the new Gaza flotilla – well, most Americans are cool with that. Including me.”)

With pressure mounting, the Guardian severed its ties with Treviño; the Monthly followed suit, citinghis need to pursue other professional opportunities that will preclude him from writing for Texas Monthly.” In fact, Treviño went back to work for the Texas Public Policy Foundation, where he had worked before his brief stint as a journalist. In Texas, Treviño merely resumed what he was doing before: enjoying a plum spot in the political and media mainstream. His pieces still appear on the Texas Monthly website. Just today he was on a right-wing radio show in Dallas. Last week, he was interviewed by Evan Smith at a Texas Lyceum event about conservative bloggers.

Treviño told Buzzfeed that he “terminated his relationship with Malaysian interests when he joined the Texas Public Policy Foundation.” However, according to his LinkedIn profile, Treviño began working for TPPF in January 2011 as “Senior Projects Director” followed by his appointment as “Vice President for Communications” in March of that year. His federal disclosure reports that he collected his Malaysian paycheck through April 2011. In other words, it appears that there were four months in which Treviño worked for both the Malaysian government and TPPF. (See Treviño’s statement below. I asked TPPF to explain the discrepancy. The foundation’s Chuck DeVore, who incidentally was one of the people Treviño hired to write pro-Malaysian articles, said he “had no idea” but would forward my question to Treviño.)

Why does this matter? Well, it suggests that Treviño’s relationship to the truth is tenuous at best. Second, TPPF is arguably one of the most successful and influential state-level think tanks in the nation. Its budget tops $5 million, with contributions from many of the state’s most powerful corporations. The foundation is close with the state’s top Republican elected officials, including Attorney General Greg Abbott and Rick Perry, who donated the proceeds of his book Fed Up! to the organization.

One of their key employees is a paid propagandist and an admitted fabulist. Does all that end when he punches the clock at TPPF?

Updated: Here’s Treviño’s explanation in full: You’ll note that my LinkedIn profile lists me as “Senior Projects Director” from January through March 2011. This was a contract position that did not preclude my engagement with other clients. In late February 2011, I was offered the position of Vice President for Communications, which is a full-time employee position with the Foundation. I therefore initiated the winding-down of my client engagements, as required by Foundation policy, which does now allow FTEs to have non-Foundation sources of income. I assumed the Vice Presidency for Communications in March 2011; and that client disengagement and handoff was fully complete by April 2011.