Now that the 2014 midterm elections are just around the corner, right-wing media are dragging out some of their favorite attacks on voting rights, despite the fact that these myths have been thoroughly debunked.
One of right-wing media's favorite myths about class action lawsuits -- their supposedly frivolous nature -- is now permeating respectable news sources.
On March 5, the Supreme Court heard oral arguments in Halliburton v. Erica P. John Fund, a case about securities class actions in which the conservative justices could make it practically impossible for average shareholders to effectively sue large corporations who distort the company's stock price through fraud. Plaintiffs in these lawsuits -- increasingly institutional investors like large pension funds -- have traditionally been able to join together as a class action to even the odds against these deep-pocketed corporate defendants.
Right-wing media have steadily pushed the myth that these types of equalizing lawsuits are ineffective or frivolous. For example, The Wall Street Journal editorial board has long stoked fears inaccurately and inconsistently about class actions, and has been highly supportive of the conservative justices' attempts to shut the courthouse doors to this type of collective action. In a recent editorial, the WSJ attacked the shareholder lawsuits at issue in Halliburton as "economically destructive" and beneficial only to plaintiffs lawyers, who have "dined out for years on the windfall of securities class-action suits."
Based on Supreme Court precedent, securities class action plaintiffs can file suits based on the "fraud on the market" theory. This is a 25-year-old legal doctrine that assumes for the purposes of class certification that all publicly available information is reflected in a company's stock price. Rather than forcing plaintiffs at this pre-trial stage to show that they relied on any one fraudulent statement made by a corporate officer, the fraud on the market theory assumes that in a relatively efficient market, those statements affected and unjustly inflated the company's stock price. These presumptions are later rebuttable at trial, where the merits of this alleged fraud can be litigated.
Pro-business groups like the U.S. Chamber of Commerce share the WSJ's point of view that despite these decades of precedent, shareholders should no longer be able to proceed to trial as a class in this fashion. In fact, the Chamber dedicated a day-long event to the Halliburton case, calling lawsuits based on the fraud on the market theory "a situation basically directly out of a Kafka novel" because it makes it too easy for plaintiffs to bring class actions. The Chamber has been clamoring for the Supreme Court to overturn Halliburton, at least in part because it contends securities class actions are meritless and abusive. Right-wing media frequently repeat the Chamber's spin to pretend class actions are an unjustified "cash cow for trial lawyers."
This myth has been pushed so aggressively that it has cropped up in well-respected publications like The American Prospect, which recently wrote that such lawsuits are "now routinely filed by class-action lawyers any time the stock price takes a sudden dive." The Prospect also argued that "most of these [lawsuits] are frivolous," without providing evidence to support that claim.
The Department of Energy's clean energy loan program helped fuel the achievements of electric car company Tesla Motors, yet the major broadcast, cable and print media only mentioned the loan in 20 percent of their coverage of Tesla in 2013 (and in only 7 percent of coverage of Nissan's best-selling electric car, the Leaf). Meanwhile, 84 percent of coverage of Fisker, an electric car company that declared bankruptcy, mentioned its federal loan. This skewed coverage may have misinformed the public about the overwhelmingly positive success rate of the program.
Media reports on the Senate vote to renew long-term unemployment benefits established a false contrast between providing a safety net for unemployed Americans and policies designed to create jobs. In fact, experts note that unemployment benefits boost job creation and economic growth.
According to the Wall Street Journal's Peggy Noonan, if you just ignore the millions of Americans who have gained insurance through the Affordable Care Act, then it's clear that the law is a huge mess.
Over seven million Americans enrolled in health insurance through the ACA's exchanges by the end of the open enrollment period last week, a number that met the Congressional Budget Office's original sign-up estimate.
But if we "put aside" that success and "step back," Noonan argued in her April 3 column, then it becomes clear that the ACA is a "huge, historic mess." In other words, if you pretend that millions haven't been insured by the ACA, it's obvious that the law is an utter failure.
And trying to repeal this mess is comparable to fighting a "manic" sea creature underwater:
Right-wing media champions of voter purges have been quiet in response to a federal appeals court's decision that Florida officials' attempts to remove noncitizens from voter rolls clearly violated federal law, which protects citizens from these overbroad and error-riden challenges.
Shortly before the 2012 election, Florida Governor Rick Scott (R) and his Secretary of State Kenneth Detzner (R) undertook an effort to purportedly purge the state's voter rolls of noncitizens. The Department of Justice challenged the purge in court, arguing that Florida had violated federal law that prohibits states from booting voters off the rolls within 90 days of a federal election. This law is in place to prevent depriving citizens of the vote because of faulty database checks, performed without enough time to correct the state's errors.
At the time, right-wing media outlets like The Wall Street Journal and National Review Online were overwhelmingly supportive of Governor Scott and his attempts to block people from voting. WSJ's senior editorial writer Jason Riley dismissed the DOJ's challenge, since "[t]he Obama Administration sees racial animus and voter-suppression conspiracies in any Republican-led effort to improve ballot integrity." NRO contributor Hans von Spakovsky also dedicated numerous posts to the issue, calling the DOJ's lawsuit "spurious," and evidence of "politics and ideology driving the legal decision-making" at the agency "as opposed to nonpartisan, objective analysis of the facts and the law."
Von Spakovsky had even more to say on the subject. In a different post about the case in 2012, he complained about the DOJ's "lawlessness" in its attempts to restore the voting rights of affected citizens in Florida:
Time and again, the Holder Justice Department has exhibited politically driven law enforcement. But its latest instance of lawlessness is absolutely brazen.
This goes far beyond Holder's previous actions, such as belittling claims of voter fraud and trying to stop voter ID and other reform measures intended to improve the integrity of the election process. This letter would directly abet vote thieves in a key state as Holder's boss seeks reelection [in 2012].
The Wall Street Journal editorial board was quick to support a Supreme Court decision on campaign finance, in which the conservative justices once again ignored legal precedent and usurped the role of Congress to legislate complicated policy.
On April 2, the Supreme Court decided McCutcheon v. FEC (also known as "the next Citizens United"), and held that overall campaign contribution limits -- previously set at $123,200 -- were unconstitutional. Although the Court did not rule on the individual campaign limits of $5,200 per candidate in the two-year election cycle, the conservative justices struck down the aggregate limits, allowing future contributions to be spread among an unlimited amount of candidates, political parties, and PACs. Although Congress had set those overall campaign limits in the wake of the Watergate scandals to guard against institutional corruption or the appearance of corruption -- a goal repeatedly upheld by the Supreme Court -- the Court in McCutcheon ignored this precedent, judicially narrowing future regulation so that "Congress may target only a specific type of corruption -- 'quid pro quo' corruption."
The WSJ, which has been misinforming about this case from the beginning, was predictably pleased with the outcome in McCutcheon. Although the WSJ editorial board lectures about fidelity to the law when it comes to legal decisions that might affect corporate wealth, it was not so bothered at the Court's rejection of precedent in McCutcheon. In an April 2 editorial, it celebrated the decision as a win for "the core promise of American liberty" and applauded the Court for "walking back" a "historic blunder." In fact, the WSJ really only had one complaint about the McCutcheon decision: why didn't conservative Chief Justice John Roberts go even further?
In its original First Amendment sin, Buckley v. Valeo in 1976, the Court said government can regulate political contributions to limit the risk of "quid pro quo" corruption. That is, money in return for a political favor. But Congress has gone well beyond that narrow definition of corruption to include trying to limit some donors but not others or simply the amount of money in politics.
We wish the Court had gone further and overturned all of Buckley, as Justice Clarence Thomas urged in his concurring opinion. As he put it, Buckley is now "a rule without a rationale" given how much the Court has eroded its original logic. But the Justices didn't need to go that far to overturn overall donor limits, and Chief Justice Roberts prefers incremental legal progress. Justice Thomas is nonetheless a John the Baptist on political speech, and the current majority may vindicate his logic in a future case.
We hope it's soon given the pernicious doctrine laid out in the dissent joined by all four liberals. "The First Amendment advances not only the individual's right to engage in political speech, but also the public's interest in preserving a democratic order in which collective speech matters," wrote Justice Stephen Breyer (his italics).
"Collective speech" sounds Orwellian as a legal doctrine that invites government as a leveller of free speech and is alien to the U.S. constitutional tradition. The scary thought is that the Court is only one heart attack away from gutting the core promise of American liberty.
From an April 1 Capitol Hill Hearing recorded on C-SPAN2:
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The Wall Street Journal is so excited about a lawsuit that could gut the Affordable Care Act (ACA) that it has dedicated two editorials to lauding the challenge in the past week.
On March 25, the D.C. Circuit Court of Appeals heard oral arguments in Halbig v. Sebelius, a right-wing lawsuit based on a far-fetched anti-ACA theory that could make it impossible for some consumers to obtain tax credits from the federal government to purchase health insurance. The editorial board of the WSJ considers this counterintuitive goal of a law meant to make insurance affordable the "faithful interpretation of the statute."
The central argument of the suit is that a provision within the ACA can be misread to imply consumers who buy insurance from the federal exchange are not eligible for the tax credits that make health insurance affordable. Most legal experts, as well as those who helped draft the law, agree that this was nothing more than a drafting error, not evidence of Congress' alleged intent to deny subsidies to some consumers. But because many states (particularly those with Republican governors or Republican-led legislatures) refused to set up their own exchanges, conservatives saw an opening to attack this key part of the ACA.
Halbig's legal theory was cooked up by Michael Cannon of the Cato Institute and Jonathan Adler, a contributor to National Review Online and The Washington Post's libertarian legal blog The Volokh Conspiracy. Right-wing media have joined Adler and Cannon in vocally supporting the suit, even though legal experts have soundly rejected the challenge as "an absurd distortion of the law" and lacking merit.
But The Wall Street Journal continues to have a particular affection for Halbig. On March 23, the editorial board celebrated Halbig's potential to "vindicate the rule of law" in an Obama administration it characterized as "willful[ ] in defying limits on executive power."
Its March 30 editorial was more of the same, but with even more misinformation about the legal issues underpinning the Halbig case:
Liberals keep dismissing challenges to ObamaCare, political and legal, so it's no surprise they mostly ignored last week's oral argument at the D.C. Circuit Court of Appeals that could send another case to the Supreme Court. Coming in the week the White House wheeled out its 38th rewrite of the law, Halbig v. Sebelius is even more important for the contours of executive power and the rule of law.
This ought to be a straightforward matter of statutory construction. Democrats put conditions on the subsidies to pressure Governors to join ObamaCare on the familiar U.S. federal-state cooperative model, but they never anticipated lasting unpopularity and opposition. To resolve this political problem, the IRS brushed off the statute and expanded the subsidies to both types of exchanges.
Arguing before a three-judge panel, Assistant Attorney General Stuart Delery pointed up "interpretive tension" among various complex provisions. But he also suggested that reading the text literally would undermine ObamaCare's purpose and structure of a nationwide system of subsidized health care. Try to parse that one: This is a law that its defenders argue will self-destruct if implemented as drafted by its architects.
As Chief Justice John Roberts famously wrote upholding the insurance purchase mandate, "It is not our job to protect the people from the consequences of their political choices." It is also not their job to protect politicians from the consequences of their policy choices.
Billionaire Sheldon Adelson has a history of illegal behavior and controversial comments -- facts that were left out of mainstream print reporting on GOP candidates trying to win his favor last week.
The Republican Jewish Coalition met March 27-29 in Las Vegas, and the event was dubbed the "Adelson Primary" as GOP presidential hopefuls used the meeting to fawn over magnate Sheldon Adelson. Adelson is the chairman and CEO of Las Vegas Sands Corp., a casino and resort operating firm, who reportedly spent nearly $150 million attempting to buy the 2012 election with donations to a super PAC aligned with Mitt Romney and other outside groups (including Karl Rove's American Crossroads). Before switching allegiance to Romney, Adelson had donated millions to Newt Gingrich. He has also given generously in the past to super PACs associated with a variety of Republican politicians, including Scott Walker, John McCain, Rudy Giuliani, George W. Bush, and Eric Cantor.
Hoping to benefit from Adelson's largesse, potential 2016 Republican candidates including Gov. Chris Christie (R-NJ), Gov. Scott Walker (R-WI), Gov. John Kasich (R-OH), and former Florida Governor Jeb Bush gathered at Adelson's casino to "kiss the ring."
While Republicans' efforts to court Adelson made big news in print media over the past week, none of the articles mentioning Adelson in The New York Times, Washington Post, Politico, or The Wall Street Journal mentioned that he has come under investigation for illegal business practices, including bribery, or his history of extreme remarks.
Right-wing media have been Hobby Lobby's biggest fans in the Supreme Court showdown between the federal government and the company over the health care law's contraception coverage mandate, championing Hobby Lobby as only interested in protecting its religious liberties. But according to new documents obtained by Salon, the company is an active partner to activist groups pushing their Christian agenda into American law.
This week the Supreme Court took on the Affordable Care Act's contraception coverage mandate, hearing arguments in Sebelius v. Hobby Lobby, a case which could allow secular, for-profit corporations an unprecedented religious exemption from the requirement that all health insurance cover preventive services like birth control. The conservative plaintiff, Hobby Lobby, is arguing that some emergency contraceptives covered by the mandate amount to abortion -- even though they don't.
Over at National Review, editor Rich Lowry framed the Green family -- Hobby Lobby's owners -- as "law-abiding people running an arts-and-craft-chain," "minding their own business," until "Uncle Sam showed up to make an offer that the Greens couldn't refuse -- literally." Jonah Goldberg, in an op-ed in USA Today, claimed that all Hobby Lobby is asking is to leave birth control decisions up to women and their doctors.
The conservative media sphere has repeatedly characterized Hobby Lobby as merely seeking "religious freedom." As Fox News host Eric Bolling described the case, "your religious freedom, guaranteed to you by the constitution, hangs in the balance." He added that the mandate "feels like political ideology trumping small business." The network has even given Hobby Lobby's attorney the platform to champion the company's small town virtues.
It turns out that the company right-wing media have worked so hard to champion has a significant hidden political agenda. On March 27 Salon broke the story that it had obtained a document revealing Hobby Lobby's political funding ties to a network of activist groups "deeply engaged in pushing a Christian agenda into American law."
According to Salon, a 2009 Tax Filing Form revealed that Crafts Etc., a Hobby Lobby affiliate company, and Jon Cargill, the CFO of Hobby Lobby, contributed a total of nearly $65 million in 2009 alone to the National Christian Charitable Foundation -- one of the biggest contributors to the Alliance Defending Freedom and the Center for Arizona Policy.
These organizations pushed SB 1062 -- the anti-gay legislation recently vetoed by AZ Governor Jan Brewer -- to the AZ Statehouse, and their agendas include many other discriminatory and dangerous policies including legislation that forces women to have invasive ultrasounds before abortions.
The National Christian Charitable Foundation also contributed over $90,000 in 2012 to the Becket Fund, the legal group representing Hobby Lobby in its current Supreme Court battle over Obamacare's contraception mandate. As Salon explained the relationship:
Seen in this light, the ideological connection between the Hobby Lobby suit and Arizona's recently vetoed legislation becomes clearer: One seeks to allow companies the right to deny contraceptive coverage while the other would permit businesses to deny services to LGBT people. "There are really close legal connections between [Arizona's anti-gay SB 1062 bill] and the [Hobby Lobby] Supreme Court case," Emily Martin, vice president and general counsel at the National Women's Law Center, told Salon. "Ideologically, the thing that unites the two efforts is an attempt to use religious exercise as a sword to impose religious belief on others, even if it harms others, which would be a radical expansion of free exercise law," said Martin.
And the common thread is the much bigger trend across the country. "Individuals and entities with religious objections to certain laws that protect others are seeking to use their religion to trump others," Brigitte Amiri, senior staff attorney at the American Civil Liberties Union's Reproductive Freedom Project, told Salon.
After the Supreme Court heard arguments in the legal challenge to contraceptive coverage under the Affordable Care Act (ACA), The Wall Street Journal's editorial board was quick to celebrate by pushing tired myths about the case and encouraging the judicial creation of new rights for corporations.
On March 25, the Supreme Court heard Sebelius v. Hobby Lobby, a case that could allow secular, for-profit corporate employers the ability to deny their employees preventive health insurance coverage based on their owners' religious objections. The owners of Hobby Lobby, the Green family, identify as conservative Christians who oppose some forms of birth control that they have decided -- in the face of scientific evidence to the contrary -- cause abortions.
Right-wing media have relished this opportunity to reject reproductive rights and come out in support of the Green family and Hobby Lobby. In their first editorial since oral arguments, the WSJ's editors were predictably pro-Hobby Lobby, calling the Obama administration's argument that a for-profit, secular corporation is incapable of religious belief "remarkable":
[T]he Administration's remarkable argument is that if a business is incorporated and for-profit, it forfeits normal constitutional rights. Hobby Lobby is a chain of craft stores that is a closely held, family-run corporation that tries to operate in accord with biblical principles.
Trying to distinguish between for-profit and nonprofit corporate forms for this regulatory purpose is constitutionally unprecedented. Corporations are often treated as "persons" for legal purposes, such as protecting free speech, and prosecutors can indict entire corporations for breaking laws. As Chief Justice John Roberts observed, minority-owned businesses can bring racial discrimination lawsuits. So why can't Christian- or Muslim-owned businesses exercise religion? Solicitor General Donald Verrilli had no good answer.
Liberal Justices rolled out a parade of dubious hypotheticals, arguing that if a business can invoke religion to refuse to pay for abortifacients, couldn't it also refuse to pay for blood transfusions or vaccinations? "Could an employer preclude the use of those items as well?" asked Justice Sonia Sotomayor in the day's first question.
Yet no one is "precluding" anything. Contraception is cheap, plentiful and covered by most health plans. Most corporations are run for profit, not piety. Mr. Verrilli claimed the mandate is necessary to promote public health and gender equality, but HHS could have aided those goals without forcing a minority of business owners with moral aims to implicate themselves in what they consider to be grave moral wrongs.
But the fact that "most health plans" cover contraception is precisely the point, just not in the way the WSJ thinks.
On the same day the Supreme Court heard oral arguments in Sebelius v. Hobby Lobby, a significant reproductive rights case under the Affordable Care Act (ACA), right-wing media continued to push discredited misinformation about a different ACA case that could do even more damage to health care reform.
On March 25, the D.C. Circuit Court of Appeals (finally fully-staffed) heard oral arguments in Halbig v. Sebelius. Unlike Hobby Lobby, Halbig has the potential to undermine the ACA as a whole by rendering the new federal health insurance marketplaces of the exchanges useless.
Since 2012, right-wing media have engaged in a loud campaign to push this challenge all the way to the conservative justices of the Supreme Court, even though legal experts agree this lawsuit is far-fetched and a distortion of the text, history, and purpose of the ACA. In the wake of yesterday's appellate arguments, conservative media is continuing to lecture Congress that legislators really meant to counter-intuitively destroy the ACA when they passed it, a bizarre argument that the editors of the National Review Online claimed "Democrats might have anticipated if they'd bothered reading the law." The Wall Street Journal took it as an opportunity to again accuse Obama of executive overreach, and invited the judiciary to "check on those abuses" and "vindicate the rule of law" by rewriting history to pretend Congress never intended tax credits in the federal exchanges.
A federal district court has already ruled against this unlikely argument, holding their "unpersuasive" legal theory about Congress' true intention contrary to common sense, because it would lead to "strange or absurd results."
Right-wing media have spent nearly a decade making false claims about birth control -- and now those falsehoods have found their way into the mouths of Supreme Court justices.
The Supreme Court on March 25 heard consolidated arguments in Sebelius v. Hobby Lobby and Conestoga Wood Specialties Corp. v. Sebelius, which examine whether for-profit businesses can deny employees health insurance coverage based on the owners' personal religious beliefs, a radical revision of First Amendment and corporate law. The owners of Hobby Lobby and Conestoga argue they should not be forced by the government to provide their employees insurance which covers certain forms of contraception, because they believe those types of birth control can cause abortions.
The owners are wrong. Medical experts have confirmed they are wrong, repeatedly and strenuously, including experts at the National Institute of Health, the Mayo Clinic and the International Federation of Gynecology. The contraceptives Hobby Lobby objects to -- which include emergency contraceptives like Plan B and long-term contraceptives like Intrauterine Devices (IUDs) -- delay an egg from being fertilized, and as the former assistant commissioner for women's health at the FDA noted, "their only connection to abortion is that they can prevent the need for one."
Despite this overwhelming medical evidence, the myth that some of the contested forms of birth control are "abortifacients" has gone all the way to the Supreme Court -- and now has been repeated by some of the justices themselves. During the oral arguments in the Hobby Lobby case, Justice Antonin Scalia responded to a point made by Solicitor General Donald Verrilli, the lawyer for the government, by referring to "birth controls ... that are abortifacient."
JUSTICE SCALIA: You're talking about, what, three or four birth controls, not all of them, just those that are abortifacient. That's not terribly expensive stuff, is it?
GENERAL VERRILLI: Well, to the contrary. And two points to make about that. First, of course the -- one of the methods of contraception they object to here is the IUD. And that is by far and away the method of contraception that is most effective, but has the highest upfront cost and creates precisely the kind of cost barrier that the preventive services provision is trying to break down.
Justice Stephen Breyer, while describing the position of the Hobby Lobby owners, also referred to "abortifacient contraceptives."
This misunderstanding matters because it could determine the outcome of the case. In order to win, a majority of justices may have to understand there is a compelling government interest in facilitating equal access to contraceptives across health insurance plans. It is an entirely different and more difficult question if the justices examine whether there is a compelling interest in the government facilitating access to abortion. Even though federal law explicitly prohibits federal funding of abortion and these birth control methods are not abortifacients, if the justices mistakenly think abortion is involved, this case becomes far more dangerous.
So whether the employees of for-profit companies like Hobby Lobby are guaranteed access to basic preventative health care could ultimately come down to whether the justices act on the reality that these forms of birth control do not cause abortions. Whether for-profit companies are considered religious persons, a drastic change to constitutional corporate law, could come down to whether the justices act on the reality that these forms of birth control do not cause abortions. Whether the rights of gay and lesbian employees are respected, and whether taxes, vaccines requirements, minimum wage, overtime laws are all upheld could come down to whether the justices act on the reality that these forms of birth control do not cause abortions.
This simple lie about birth control could set up a chain of events that drastically alter health care by rewriting First Amendment and corporate law in this country -- and it's a lie that comes straight from the media, who have been pushing it for almost a decade.
Studies came out as early as 2004 pushing back on the idea that Plan B caused abortions, but Media Matters has repeatedly noted the tendency of journalists to get their facts wrong when addressing the issue. In 2005, CNN host Carol Costello gave a platform to a pharmacist who refused to fill a prescription for birth control pills because she thought they were equivalent to "chemical abortion." In 2007, Time magazine called the morning-after pill "abortion-inducing," while an AP article pushed the false Republican claims that emergency contraception destroys "developing human fetuses." In 2010, The Washington Times repeatedly equated emergency contraception to abortion.
And there was Lila Rose, the anti-abortion activist who in 2011 released videos heavily edited to deceptively portray practices at Planned Parenthood clinics, and who has equated contraception to "abortion-inducing drugs" which she claims exploit women. Rose and her mentor, James O'Keefe, defended their manipulation and falsification of evidence as "tactics" against the "genocide" of abortion, and she was supported and promoted on The O'Reilly Factor, Hannity's America, The Glenn Beck Show, The Laura Ingraham Show, while her work was been featured by Reuters, the Los Angeles Times, The Wall Street Journal, Washington Times, and National Review.
When the Affordable Care Act was passed in 2010, and medical experts including the Institute of Medicine recommended including comprehensive coverage for contraception as part of the preventative care provisions, right-wing media freaked out, calling it "immoral" and "a way to eradicate the poor." Fox News ignored the overwhelming support for the resulting contraception policy, instead pretending that Catholic hospitals and employers were being victimized -- even as exemptions and accommodations were included for churches and religious nonprofits. By 2012, Fox News' Michelle Malkin was referring to the contraception regulations as an "abortion mandate." Now, right-wing media figures have used the Hobby Lobby case and others to bring back this lie, from Fox News to the Wall Street Journal, while Rush Limbaugh and Laura Ingraham have become particularly fond of discussing these "abortifacients."
As Media Matters has previously explained, right-wing talking points demonizing birth control made their way into the amicus briefs presented to the court before the case was even argued, and Justice Scalia in particular has been known to repeat verbatim right-wing myths, such as the dubious idea that if the Supreme Court upheld the ACA the federal government could ultimately require consumers to purchase broccoli.
But the presence of the "abortifacient" lie during oral arguments takes this worrying tendency to a new level, raising the prospect that right-wing media's lies could potentially determine the outcome of a crucial case for religious and corporate law, hugely damaging reproductive rights in the process. If women lose the guarantee for their basic preventative health care, and corporations are granted even more flexibility as "persons" with religious rights, right-wing media will be partly to blame.
An editorial from The Wall Street Journal is blaming environmentalists for slowing down a controversial process to export natural gas, overlooking the fact that members of the gas industry have condemned the procedure.
The Wall Street Journal Editorial Board has been calling for the the U.S. to export more natural gas, which would need to be condensed, liquefied, and shipped out of specialized liquefied natural gas (LNG) terminals. On March 24, the seventh LNG export facility, to be constructed in Oregon's Jordan Cove, was approved by the Department of Energy (DOE), a move widely criticized by environmental groups. The Wall Street Journal Editorial Board dismissed the approval as well, but only because these export terminals aren't coming fast enough, with 24 projects still waiting for approval. The Board blamed "President Obama's green donors" for the "slow-roll process."
But members of the natural gas industry are critical of the controversial export terminals. America's Energy Advantage (AEA), a trade coalition of businesses and organizations that support the natural gas industry, released a statement denouncing the approval of the new export terminal. The group, which includes Dow Chemical and Alcoa Inc., wrote that the DOE's approval of the Jordan Cove facility is "a grievous error" that will "harm U.S. consumers and economy." From the AEA statement:
This is a grievous error that puts billions of dollars of investment and millions of jobs at risk. Stable and affordable natural gas is powering an American manufacturing comeback. According to IHS Chemical, more than $125 billion of new manufacturing investments are planned. This latest export approval will raise domestic natural gas, electricity, home-heating and propane prices for every American, undermine our manufacturing competiveness and cost the nation good-paying jobs. America's Energy Advantage renews its call for the Administration to take an immediate 'time out' from further LNG export approvals until a new, comprehensive review of current market conditions is completed."
Other studies and energy experts have warned of the economic dangers that may result from approving too many LNG export terminals, pointing out that it could lead to immense oversupply. As reported by Bloomberg, a Rice University analysis found that with "plans for dozens of the multibillion-dollar export terminals in North America alone, the industry is headed toward an overbuild that may depress Asian prices for a decade."
Sen. Ed Markey (D-MA) cited a 2012 study from the DOE itself, saying it found that a "high export scenario" of LNG could increase domestic gas prices by more than 50 percent. According to Markey, approval of the Jordan Cove facility would cause the nation's LNG exports to cross the threshold for that very scenario. Energy analyst Chris Nelder wrote in an email to Media Matters that export terminals might not even be able to fulfill their contracts if natural gas prices don't remain as low as they are today.