Gov. Mark Gordon recently made news with a pair of statements that received national attention. In the first, Gordon participated in a discussion involving Wyoming’s economy and future at the Institute of Politics at the Kennedy School of Government at Harvard. At that forum, the governor discussed Wyoming’s economic challenges and opportunities, including developing industries that are not based solely on resource extraction, developing additional methods of energy production based in Wyoming and the need for Wyoming to attract a workforce that is willing and able to fill the jobs in our state.
Opinion
Not long after, the governor was featured in a “60 Minutes” profile, where he again talked about Wyoming’s future. In that interview, he articulated an “all-of-the-above” energy policy, where Wyoming should take advantage of its inherent strengths in providing nuclear, geothermal, and wind energy to outside markets. Wyoming has the uranium reserves, access to geothermal energy and certainly the wind to be a major player in all of those markets.
The response from the far right in Wyoming was as expected. They attacked, criticizing the governor for his “all-of-the-above” approach. In their attacks, however, the one thing missing was any hint of an alternative. They appear content to keep riding forward, regardless of whether they are riding off the edge of a cliff.
This opposition is also difficult to understand. Nowhere did the governor advocate for shuttering or limiting existing industries. If California wants to pay Wyoming a premium for wind or geothermal or any other type of energy, why should we not take advantage of it?
While I may not agree with everything about the governor’s approach, the central premise was correct. Wyoming must take advantage of its opportunities in the face of changing market forces. Natural resources will always be a part of Wyoming’s economy, and likely a significant part of it. However, that does not mean that global demands will stay the same and we will not have to adapt.
The coal, oil and natural gas industries are different today than 30 years ago, and they were different 30 years ago than 100 years ago. Wyoming’s coal production is about half of what it was just 15 years ago, and current projections show that we should expect even further decline moving forward. We have no control over global markets, and anyone who tells you that the governor or Wyoming Legislature can change the coal industry is either naïve or lying.
At the same time, we have relied on those industries to build up our state. They have provided funding for our schools and governments and allowed us to keep the rest of our taxes very low. However, with market and revenue changes, our dependence on these industries is unsustainable. If we do not develop alternative industries, we risk economic collapse.
This is where Gov. Gordon’s approach is the right one. We must do something to develop additional industries, and we should start with the easy pickings. Leaning into our background as a natural resource and energy-producing state is a good first step in trying to rebalance some of Wyoming’s economic output. This doesn’t mean abandoning coal, oil and gas, but adding to it.
One of the challenges for Wyoming is that industries often develop in a pattern. One type of industry leads to development of another and progress along a generally predictable pattern. However, resource extraction economies do not tend to have a typical next step. Resources get played out or markets change and the economies in those areas often fizzle.
To combat this, Wyoming has to take some risks. We need to encourage industries that are not already here to develop, and we must accept the fact that some of these experiments will not work. We made a solid first step in that direction by building an environment designed to attract blockchain and cryptocurrency companies to Wyoming. That should not be the only thing we do.
If we are going to accomplish this, we need leaders who are willing to take those risks. We need them to recognize that our markets are changing without any way for us to stop them. Rather than plant our heels in the ground, we must be nimble. We need to try new things in the hopes that some stick. We also need an electorate who understands the same thing and is willing to recognize that success and failures are both part of the process. The last thing we need, however, are politicians with no plan trying to tear down those who are trying.
Ever since Wyoming attained state hood the two major exports we have are the mineral exports and our children. If the road the legislators choose to take is to pander to the extraction industries and not raise the severance tax on those minerals we see our health care, infrastructure, the loss of state employees, and a slow decline of capital funds, along with how to adequately pay for education will continue to decline. For those of us and those who will have been born, raised and will die here taking solace in solitude is our comfort and joy. The status quo has served the lowest populated state since 1890 needs to be revised. Whether fate or destiny comes into play, to enhance the flow of revenue into the state coffers the current tax structure needs to be changed.
That change will not only help us now but well into the future.
It is the case of the proverbial ‘house-of-cards’ for my home state. A failure to establish a well endowed version of a soverign wealth fund, like Norway, when times were good for fossil fuel extraction that would have provided the financial wherewithall to support public services and make a transition to a more diversified and sustainable economy. This is what happens when the dominate political party advocates a single economic model for so long.
Thank you for your thoughtful, common sense take on this issue, Mr. Lenhart. There are several issues that I disagree with Governor Gordon on, but I will give him this, he tries. That’s not easy when his party has been hijacked by right-wing extremists. With some luck, maybe common sense and consensus, something Wyoming was once known for, will return.
Someone once said the biggest difference between today’s Republicans and Democrats is that Democrats want to govern, ie. create laws/policies that benefit everyone, while Republicans want to rule, ie. you will do this, you will NOT do that. Since Wyoming has few Democrats, and none in positions of power, Wyoming ‘s economic future is going to be a long and bumpy road. MHO.
Mr. Lenhart says “We must do something to develop additional industries, and we should start with the easy pickings.” To me, the easy pickings are our wide open spaces and our public lands. In an increasingly crowded world, these are valuable commodities. We should manage them so they will continue to be attractive to tourists and outdoor recreationists. Yet, many of our leaders want to develop them in a way that will diminish their natural values.