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Energy-hungry China is becoming a big player in the Mountain West

The West's oil, gas, and coal now are shipped more than ever through West Coast ports. China, and other growing countries, are becoming bigger and bigger owners of the energy and raw materials they want.

Energy-hungry China is becoming a big player in the Mountain West
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Ashli Blow

The West's oil, gas, and coal now are shipped more than ever through West Coast ports. China, and other growing countries, are becoming bigger and bigger owners of the energy and raw materials they want.

Douglas, Wyo., population 5,000 and home of the legendary jackalope,  lies in an almost puritanical landscape — beautiful, yet shy about that  beauty, concealing it modestly under a beige blanket of grass and  shrubs. A collection of low-slung stone and brick buildings sits at the  town's center, with tree-shaded residential neighborhoods radiating out  from it. Ford, GM and Chevrolet pickups dominate local traffic, along  with the occasional bus carrying workers from the North Antelope  Rochelle coal mine nearby. After their shifts, miners and roughnecks can  grab a burger and fries at The Koop, a steak at Clementine's Cattle  Company, or a mean enchilada and a beer over at La Costa Restaurant.

Over beers, they might talk about politics, though without a lot of  disagreement: Eight out of 10 voters in Converse County go Republican.  Perhaps they'll speculate as to whether the town's other unlikely  mammalian hybrid, the Bearcats — last year's 3A High School State  football champs — will repeat their triumph.

In the summer, emerald-green fields spread out from the North Platte  River, which quietly slides past town. Come here in June, and you're  likely to breathe in the smell of fresh-cut hay. Any time of year, you  can hear Old Glory snapping loudly in the wind over each fourth or fifth  doublewide on the fringe of town.

There are plenty of words to describe a place like Douglas: Rural,  Western, small-town, typically American. It's the type of place that  country-and-Western singers rhapsodize about and city-folk tend to mock.  Sarah Palin would likely recognize it as one of  "these wonderful  little pockets of what I call the real America. ..." Out here, "Drill,  baby, drill!" is more than just a slogan, it's a way of life, for better  or worse. Locals and politicians will proudly tell you that Wyoming is  the backbone of an energy-independent nation.

But look more closely. On a spring morning, when both snow and dust  whip through the air, a drill rig can be seen just outside of town. The  sign nearby says "Chesapeake Energy," but the rig operates with funding from a Chinese energy company, and it's searching for oil and gas partly owned by the same  Chinese company. In another part of Wyoming, a Japanese firm has  invested in the same play, called the Niobrara. The massive coal mines  to the north ship coal to 25 different states, Europe and Asia. A  Russian company controls nearby uranium mines, and on the other side of  the state, a company from India owns one of Wyoming's biggest soda ash  facilities.

In other words, Douglas and Wyoming are not pure, unadulterated  American after all, at least economically speaking. And if Douglas  isn't, what community is? Not my hometown of Durango, Colo., on the edge  of the San Juan Basin, where British Petroleum has about 3,000 natural  gas wells. Not the mining towns of Arizona and Nevada, where Canadian,  Australian and Mexican companies own gaping copper and gold mines. Not  even the amber fields of Montana, which send wheat to Asia, or the  Navajo Nation, which sells hay to Japan. It's the same all over the  West: The natural resources that built America are no longer  all-American. No matter how many red-white-and-blue flags fly over your  trailer park, you too are tangled up in a global economic web that has  compressed time and space and confused our ideas of place.

My quest to comprehend the most recent surge of globalization led me  to Laramie, then to Douglas, then across the Powder River Basin and  finally to Denver, to talk to Vince Matthews. Since 2004, Matthews has  been the Colorado state geologist and director of the Colorado  Geological Survey. Before that, he worked for three decades in the oil  industry. For much of his career, he's observed the globalization of the  West's natural resource industries. Lately, Matthews has been traveling  around the state telling chambers of commerce, groups of geologists,  community leaders and just about anyone else who will listen that he's  worried.

Sitting in his downtown Denver office, wearing a suit and tie that  would look at home on a Houston oil executive, Matthews says that China and India, with their huge populations and economies growing at rates  not seen since the Industrial Revolution, are ravenous for natural  resources. Handing me graphs and charts to prove it, he says that their  hunger is already washing across the West, driving up the pressure to  develop natural resources. He talks about a Chinese businesswoman he  knows in Denver, who frequently asks him how her relatives and clients  can get hold of a Colorado mine or mineral deposit. And he reminisces  about a visit to the Los Angeles port at Long Beach, where he saw ship  after ship loaded down with scrap metal, headed for China.

Most exports from Western states go to Canada or Mexico, but over the last decade, has emerged as one of our biggest customers; U.S. exports to China have increased 460 percent since 2000. Compared to British, Canadian or  Australian multinational corporations, Asian companies still have a  minuscule investment in Western resources. But over the last year, as  much of Asia scrambles out of the global recession unscathed and the  U.S. continues to wallow, Chinese, Indian and even former Soviet-bloc  companies have bought into American oil and gas fields, molybdenum mines  and more.

Even when these countries aren't directly investing in or buying U.S.  resources, their appetite for them around the globe is raising prices  and spurring new development here in the West, Matthews says. Combine  this with a lingering economic downturn here and an attendant  desperation for jobs; instability in the Middle East; new drilling and  fracking technology that opens up previously inaccessible reservoirs of  shale gas and oil; and an infusion of investment capital from other  countries into the extractive sectors, and you get a tsunami of  globalization that is reshaping the physical and political landscape of  the American West.

"In the '70s, Jimmy Carter wanted to make the West into a national sacrifice zone for energy, because the West is where all the reserves are," says Matthews. "It's going to happen again."

One might say that the economic and political zeitgeist of the '70s was defined by petroleum. But on an even deeper  level, it was about the globalization of natural resources. Beginning  around World War I, the U.S. shifted from getting its resources within  its borders — mostly in the West — to looking abroad for raw  materials, particularly oil. By 1973, the U.S. relied on foreign  producers for 36 percent of the oil that fueled our cars, our economy,  and our lifestyle. That gave OPEC leaders the power to bring us to our  knees by curtailing global oil supplies in retaliation for our support  of Israel.

President Richard Nixon began the effort to pull out of the global  quagmire with his "Project Independence," which had the lofty goal of  weaning the U.S. from foreign energy sources by 1980. Americans traded in muscle cars for fuel-efficient Gremlins, Pacers, and Corollas. Then, President Carter put on a cardigan  and launched a gargantuan effort to shift American energy production back to American soil, ramping up conventional and renewable energy development while also dusting off the long-discarded notion of  squeezing stuff that's not quite oil out of the Interior West's shale  deposits.

If the Carter era was a rejection of globalization, then what  followed was a hasty return to it. Shortly after his election, President  Ronald Reagan ended Carter's bloated synfuels subsidy program, killing  Colorado's burgeoning oil shale industry and devastating the regional  economy. Oil prices crashed and the drill rigs were cut up for scrap.  After 1985, oil imports began increasing again, and the dream of energy independence again receded.

It wasn't just oil. The now-ubiquitous "Made in China" stickers found on nearly every item on shelves from Walmart to IKEA  emerged in the '80s. In 1985, we imported less than $4 billion worth of  goods from China, and had  only a small trade deficit. Today, we spend $364 billion each year on  Chinese goods. Globalization took other forms, too. In the 1970s, American-based multinational corporations had already been spreading  Coca-Cola, capitalism, and consumerism to the rest of the world. In the 1980s, the rest of the world returned the favor, so that by 1990, the U.S. was not only home to the most multinational corporations, but was  also the largest host country for outside investments.

The flight abroad was good for corporate profits, American consumers,  and the West's environment (if not for workers, whose real wages  flatlined in the '80s). It also fueled Asian economies, most notably China's,  where manufacturing jobs and economic reform have spurred the largest  migration in the history of the world. At a blistering rate, a nation of  land-based farmers is becoming a nation of urban, wage-earning,  capitalistic consumers. Last year, the number of millionaires in China topped 1 million, putting it third after the U.S. and Japan.

Chinese automakers sold 18 million vehicles in 2010, more than any  country in history. In 2005 alone, 70,000 new supermarkets were built in  China. Over the past decade,  hundreds of thousands of kilometers of rail lines and highways have  been constructed, along with dozens of big dams and enough wind power  facilities to make Wyoming's vaunted wind boom look like a child's toy  pinwheel. Per capita energy use remains at about one-fifth of that of the most gluttonous consumers  in the world (the U.S., of course), but the average Chinese person uses  twice as much energy as he did seven years ago. Multiply that by 1.3 billion people, and you've got a dizzyingly steep upward curve; last year, China surpassed the U.S. as the world's biggest consumer of energy.

Starting in the 1990s, China's  internal natural resource production could no longer keep up with its  own demand, so it started shopping in the global market. Today, China gets about 1,000 times more oil from foreign suppliers than it did in  the early 1990s. Ditto for scrap metals and waste paper and pulp. The  country went from supplying copper to the global market to being one of  its biggest customers in the 1990s, and helped drive world copper  consumption from 12 million tons in 1998, to almost 16 million in 2009,  according to the U.S. Geological Survey.

"There is no historical antecedent" for the current emergence of China,  India, and former Soviet-bloc countries as major players in the global  economy, Fed Chairman Ben Bernanke told the Federal Reserve Bank of  Kansas City's economic symposium in 2006. The symposium took place in  Jackson Hole, Wyo., which lies about 200 miles — and many demographic  worlds away — from Douglas. "Columbus' voyage to the New World  ultimately led to enormous economic change, but the full integration of  the New and Old Worlds took centuries," Bernanke said. "In contrast, the  economic opening of China is proceeding rapidly and seems to be accelerating."

The factors influencing global commodity prices are  varied and complex, and direct cause-and-effect relationships are hard  to come by. Weather events, geopolitical tensions, the value of the  dollar, fluctuations in OPEC supplies, and speculation can ripple through  the market chaotically like jiggling flies caught in a huge spider web.  The echo of a popular uprising in the Middle East, for example, can  resonate in the oilfields of Wyoming, despite the fact that the U.S.  gets more oil from Canada than from the Persian Gulf. It would be  foolhardy to claim, then, that any one nation is the prime mover of  commodity prices worldwide. The U.S. remains the web's biggest spider.  But China accounts for 50 percent or more of the increases in global consumption of many commodities over the past two decades,  according to the USGS and the 2011 BP Statistical Review of World Energy.

China's rising influence  became noticeable in the 2000s. Between 2003 and 2008, copper prices  jumped fivefold, and Arizona's mining industry — driven by copper —  added 5,000 jobs. Proposals to open and reopen mines sprouted West-wide.  Vince Matthews pulls up a chart showing a nearly 1,000 percent increase  in molybdenum prices between 2003 and 2008, echoing China's  demand. Then he displays a photo of the people of Leadville, Colo.,  celebrating on the streets as a gargantuan new piece of machinery for  the soon-to-be-reopened Climax molybdenum mine passed through town in  2008.

Asian demand also helped jumpstart a stagnant domestic oil and gas  industry. In 2003, oil prices began their long steep climb, pulling  natural gas prices along for the ride, and drill-rig counts echoed the  upward swing. Once-small Wyoming towns sprawled outward, their hotels  filled with contract workers. Colorado's natural resource sector jumped  from a $2 billion industry in the late 1990s to a $12 billion industry  in 2006, 50 percent larger than the tourism sector.

For a time, the "New West" amenities/growth economy that had emerged  in the 1980s kept pace with the reborn Old West extraction economy,  competing with it for housing and workers. (Fast-food joints near the  gas patch had to fork out $300 bonuses just to get people to flip  burgers.) It was a moment in history when not only real estate agents,  construction workers, and roughnecks could get rich, but also peddlers  and thieves of scrap metal, which had become one of the region's hottest  exports, most of it going to China.

Sometime in late 2006, though, the overblown housing market started  to collapse: By mid-2008, the West's real estate agents were going back  to waiting tables, only to find that those jobs were disappearing, too.  During the early stages of the crash, Chinese demand and commodity  prices remained high. This kept the West's mines and rigs running even  as the rest of the economy nosedived, but ultimately, even China's  economy stalled out. Commodity prices plummeted at Great  Depression-esque rates. Drill rigs were idled and mining expansion plans  put on hold. The New West was dead, and the new Old West had expired  along with it. Or so it seemed.

In late 2008, as the Great Recession swamped the  planet, the Chinese government launched a stimulus package that, as a  portion of total GDP, may have been the largest such infusion of cash  into an economy, ever. It kicked in quickly, and by the middle of 2009, China's  manufacturing machine and infrastructure buildup were back on the  upswing, taking commodity prices along for the ride. After reaching a  record high this February, copper is now trading for about what it was  during the 2008 boom. Oil prices continue to fluctuate for a variety of  reasons (including fears that China's  too-rapid growth will result in unmanageable inflation), but generally  have followed the same trajectory as copper, hovering around and above  $100 per barrel for months.

"Sharply higher prices for many raw materials are driving up the  prices ... of consumer goods and services, including gas and food," said  John Williams, the president of the Federal Reserve Bank of San  Francisco, in a speech this May. The culprit, he said, is "the rapid  rebound in the global economy in the past year and a half, led by robust  growth in emerging market economies (namely China and India), which display a ravenous appetite for raw materials."

Just as Matthews predicted, it's all feeling a bit like the 1970s all  over again, what with rising prices at the pump and an unstable Middle  East. Oil shale is back, as is Dallas, the television series about frisky Texas oil barons. Everyone from President Obama on down is invoking energy independence; mothballed mining plans are being dusted off and drill  rigs are rising again like American flags on the Fourth of July.

This boom, though, has some new twists that may ultimately have  bigger ramifications for the West. During the last buildup, Western coal  remained a domestic product, rarely if ever venturing overseas. (U.S.  demand was strong enough to keep it at home.) Now, even Powder River  Basin coal is becoming a global commodity, frustrating environmentalists  and helping keep coal companies in the black.

Many of the West's biggest mines and gasfields have long flown  foreign flags, particularly those of Australia, England, and Canada. Huge  corporations set up shop in other countries as if borders didn't exist:  U.S. companies have $4 trillion in foreign direct investment assets  abroad, while foreign companies have $2.3 trillion such assets in the  U.S. Now, a new wave of foreign investment is coming in from a new crop  of countries.

China tried to get into  the game in 2005, when the Chinese National Offshore Oil Company (CNOOC)  bid on Unocal, an American petroleum company. But after a major  congressional contingent opposed the deal, citing national security  concerns, CNOOC backed off. Chinese mining and energy firms have since focused their investments elsewhere, setting up or buying up energy and mineral operations in Africa, Latin America, and the rest of Asia in  ways that echo past colonizing efforts by European countries and the  U.S. Australia, too, has responded to China's  appetite, kicking up its extraction industries by several notches,  sparking concerns that the nation is becoming Asia's mineral colony.

Meanwhile, back in the U.S., with the country still drowning in the  economic doldrums, the political tide has turned. Western politicians  have practically tripped over each other in their rush to attract  foreign, especially Chinese, investment. In 2008, three months after  visiting China to look for  trade opportunities, Wyoming Gov. Dave Freudenthal told visiting Chinese  officials that Wyoming is "America's best-kept secret as to being a  good place to do business." (Freudenthal has since become a director at  Arch Coal, which is making a multi-pronged attempt to break into the  Chinese market.) Idaho Gov. Butch Otter led his own trade delegation to China,  as did Senate Majority Leader Harry Reid, who's now promising that a  Chinese company is going to make a huge investment — possibly in the  form of a wind-turbine factory — in his home state of Nevada. And in  June, Montana Gov. Brian Schweitzer gave the keynote address at a coal  industry conference in Beijing.

Into this new climate, and with a more subtle approach (investing in  firms rather than buying them outright), CNOOC is back, buying portions  of Chesapeake Energy's  holdings in shale gas plays in the East, in Texas, and one-third of the  firm's 800,000-acre share of the Niobrara Formation in Colorado and  Wyoming. The Niobrara became a hotspot after new drilling and fracking  techniques hit the modern equivalent of an oil gusher in Weld County,  Colo., in 2009. The deal with China gave Chesapeake the capital to get in on the action, and in the months  following the transaction, nearly half of more than 100 horizontal well-drilling permits issued in Wyoming's Converse County, home of Douglas,  went to Chesapeake. This type of partnership "is understandable," says  Mark Northam, director of the School of Energy Resources at the University of Wyoming. "They (CNOOC) are using their  abundant cash to help the U.S. companies carry out their drilling  activities. There are few better places for Chinese investment than  Wyoming because our business environment is so robust."

Similar scenarios are happening all over the West, from a gold mine  in Idaho financed by an investment-for-visa scheme, to a Chinese-owned  solar panel factory in Goodyear, Ariz. A Chinese bank is financing a  proposed molybdenum mine in Nevada, with the loan secured by a Chinese  mining company. A Korean company holds a 20 percent stake in the  project, and the molybdenum from the mine is committed to Korean,  Japanese, Chinese and European companies.

And this spring, Eesti Energia — based in the former Soviet-bloc  country of Estonia — bought the Oil Shale Exploration Company, getting a  federal oil shale research lease in Utah in the bargain. Utah Gov. Gary  Herbert, who made a trade mission of his own to China just this spring, had nothing but praise for the deal: "Today's action falls in line with our policy of responsible energy development and allowing the free market to drive a more secure energy future for Utah and the nation."

A stimulus package has arrived in the West's mines and gasfields, and  it's coming from abroad. "Under the current circumstances, this is a  win-win," says Northam. "I think it's a necessity. Billions of dollars  are coming into the U.S. to pay for U.S. rigs and employ U.S. workers."

How truly entangled are we in this global web? In  March, U.S. Rep. Cynthia Lummis, a Wyoming Republican, introduced  legislation to keep the royalty rate on soda ash mining at 2 percent  rather than the 6 percent rate set back in 1995. Her reasoning: To allow  American companies to compete with Chinese soda ash producers.  "Although our proud tradition of soda ash production continues to be a  force of economic strength for Wyoming and our country," said Lummis,  "overseas competition and rising energy costs have undercut Wyoming's status as the largest producer."

Wyoming's Sweetwater County provides about 90 percent of the nation's  soda ash, which is used in glass and other industrial applications.  Four manufacturers operate there. One of them is Solvay Chemicals, owned  by a Belgium company. Another is Tata Chemicals, whose parent company  is based in India. Tata says it exports half of its Wyoming soda ash  back home, helping make soda ash the state's number-one export product.

The logic of a Wyoming congresswoman shorting U.S. taxpayers to  protect an Indian company operating in her state from Chinese  competition so that it can cheaply export its product back to India may  border on the bizarre. But these days, it's business as usual. As often  as not, political efforts to block mining law reform or bills such as  the American Energy and  Western Jobs Act, forwarded by conservative Western lawmakers this year  to fast-track oil and gas development, benefit foreign-owned companies  operating in the U.S.

Few people even noticed Lummis and her Tata connection. But the  Chinese invasion, as it were, has been popping up on many a  right-winger's radar. "China's  corporations ... serve as forward troops in Beijing's global strategic  economic warfare," writes William F. Jasper, in the May issue of New American,  the John Birch Society's publication. "And the line between economic  warfare and the more traditional concept of military warfare can be very  thin." The article echoes many of the comments on stories and blogs  about these issues.

Liberals have their own spin on the foreign invasion story. In  response to a new wave of uranium mining, dominated in the U.S. by  Canadian companies, environmentalists are pushing once again to reform  the 1872 Mining Law, which allows minerals to be extracted  royalty-free. They are playing up the fact that so many of these mining  companies are foreign-owned. Some greens also joined conservative lawmakers in opposition to the Russian company ARMZ's purchase of a  controlling stake in Uranium One, a Canadian company with some 10,000  acres of uranium claims in the West, including two mines north of  Douglas. They worry that the Russians could route American uranium to  Iran.

For the most part, though, politicians and economists, and even many  environmentalists, told me that the fact that this new wave of  globalization is coming from China or even Russia rather than say, Japan or Britain, is neither here nor  there: A hole in the ground is a hole in the ground, no matter who's  getting the stuff from it; a skilled job in the oil field is good for  the economy, no matter who's forking out the payroll; and an oil spill  is an environmental disaster, whether it's BP or Exxon doing the  spilling. Princeton economist (and now a New York Times columnist) Paul Krugman, in a 1995 book on foreign  direct investment, suggested the same, saying that multinational firms — regardless of where they're based — sprawl across national  boundaries, and therefore tend to lack national identity, and aren't  rooted in any place.

Besides, say many economists, it's good to have China in particular as a big investor and customer, because it takes a bite — however small — out of the gargantuan trade deficit the U.S. has  with them. Even Matthews, for all his alarming statistics, seems  resigned to it: "If they keep making stuff for us and keep lending us  money so we can buy it, I guess it will be OK."

Yet, even if we put aside our xenophobia and  leftover Cold War nightmares about the Red Army infiltrating Idaho  potato patches, the West still has reason to be concerned about the  Asian "invasion." The Asian stimulus package may have lifted up the  mining and gas drilling sectors, but it's left the rest of the economy  in the dust. And that could throw our regional economy back to its old  lopsided ways.

In its fourth-quarter report for last year, Wyoming's economic  analysis division noted: "After a short, but severe recession, Wyoming's  economy has turned around ... thanks to the robust rebound of the energy industries." Attributing the boost to Chinese demand, the report noted  that unemployment dropped to 6 percent, compared to 9.6 percent  nationwide, and the mining industry in Wyoming added 2,130 jobs. But the  picture isn't as rosy as it seems. "You look at wages and employment in  Wyoming: Wages are higher, income per capita is higher than average  U.S., and employment is higher," says Ed Barbier, a University of  Wyoming economist and author of the book Scarcity and Frontiers, a  history of the world through a natural resource economics lens. "But  it's distorted," because just about every non-extractive sector of the  economy — even in the oil and gas boomtowns — remains sluggish, at  best. As a result, a deep schism has opened between the state's  fossil-fuel-centric economies, and everything else. Teton County, for  example, home of Jackson and archetype of the high-end amenity economy  of the New West, has a 12.8 percent unemployment rate. That's three to  four points higher than the national rate, and three to four times  higher than the gas and coal counties of Sublette, Converse and  Campbell.

This divergence appears across the region. In Arizona, mines are  ramping up again, and Freeport-McMoRan, the Phoenix-based company that  owns copper mines in Arizona and molybdenum mines in Colorado, posted a  $1.5 billion profit during its first quarter of 2011. Meanwhile, the  construction industry has lost more than 100,000 jobs in the last five  years in Phoenix, where hundreds of thousands of homes sit vacant.  Nevada's mines more than doubled their shipments to China over the course of just one year, while housing values have dropped by  60 percent in the last five. North American timber and lumber exports to  China increased fivefold  between 2008 and 2010, yet the unemployment rate in the Pacific  Northwest remains higher than 9 percent. The scrap-metal barons are  back, scraping the Navajo Nation of its junked cars and sending them to China.  But those fast-food signing bonuses of yore? They're history: Nearly 1  million people showed up in April for 62,000 jobs offered at McDonalds'  first-ever national hiring day — no signing bonus offered.

Out on the western edge of the Powder River Basin, about 60 miles as the magpie flies from Douglas, the little town of  Midwest sits mostly forgotten by the rest of the world. Its small houses  are crammed together along bumpy streets. Some of the yards have been  cared for, but others are cluttered with the detritus common in the  rural West: an old stove here, a car up on blocks there, a torn-up sofa  perched on a weathered plywood porch. On a windy day in April, when the  sky is gray and the light flat, the town seems empty, despite all the  cars parked haphazardly before the homes. The distinct aroma of burnt  oil lingers in the air.

Midwest exists for only one reason: the Salt Creek Oilfield. A Dutch  company drilled its first gusher in 1907. Then the place went crazy. The  Midwest Refining Company took over the field and ran the company town.  Midwest got its own hospital, held one of the first night-lit football  games in the U.S. — Casper beat Midwest, 20-0 — and had a tennis  court, a clubhouse, a theater, and a hotel. Back then, money gushed out  of the field like water, and the company gave a little bit of it back.

Then, beginning in the 1930s, it shriveled up. Standard Oil, based in  Indiana, bought the field and took over its operation. The hospital  closed, the theater was torn down, the company offices were moved to  Casper. Today, the Salt Creek Field's owner is based in Houston, where  decisions are swayed by the need to please shareholders, i.e. short-term  profit, and driven by oil prices determined by forces emanating from  far away.

The wealth never really stopped flowing out of the Salt Creek field.  With the help of CO2 injections and high oil prices, its wells still  produce hundreds of thousands of dollars worth of oil each day.  Anadarko, the field's operator, reported $363 million in post-tax  profits for the first quarter of this year, and the guys working in the  field probably make pretty good money. But it hasn't added up to what  one might consider a prosperous community.

There was a time when the mine and oilfield managers and bosses, if  not the owners themselves, lived alongside the workers in the local  community. The bosses witnessed the needs of their communities  firsthand, and they had the power to influence the company to do  something about it. If they didn't, the workers and the unions had the  clout and access to make certain demands, and have them met.

In today's world, we're not even sure who the bosses are or where  they live. How can we expect a firm that's based in another state, or  another country, to build a new library or school, or to pay for  economic diversification efforts and new roads? How can we demand that  it set up a safety net to catch the roughneck who gets his arm ripped  off on the rig, or the single mom who's fallen on hard times, or the  entire community when the oilfield finally does dry up?

Not that we even try that hard. We've long surrendered these sorts of  demands in return for a few high-paying jobs, for the distant prospect  of a Hummer in the gravel yard of the factory-built home and a Walmart  close by. We have blindly handed over our own sovereignty to the  corporate giants in the name of energy independence. We have watched our bounty slide along the rails and the  interstates to the East without complaint, comforting ourselves with the  illusion that it would make our nation stronger and our nation would  return the favor by lifting us up with it. Today, the centers of control  are drifting even farther away, and, in our desperation for jobs, we  hardly even notice.

A couple days after driving around the Powder River Basin, looking  unsuccessfully for Russian uranium smugglers, I sit in the Denver office  of Jeremy Nichols, climate and energy program director for WildEarth Guardians, an environmental group that  is fighting plans to expand mining in the Powder River Basin of Wyoming.  Nichols sees the latest invasion as nothing more than another iteration  of the story our region seems doomed to repeat: "This is the constant  struggle of the West," he says. "We try to have this independent face,  but our future is always tied up with someone far, far away. We're  always sending our value somewhere else."

This story originally appeared in the July 25, 2011 issue of High Country News (hcn.org).

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Ashli Blow

By Ashli Blow

Ashli Blow is a Seattle-based freelance writer who talks with people — in places from urban watersheds to remote wildernesses — about the environment around them. She’s been working in journal