Bust to Boom: How can communities thrive after oil and gas?

We shouldn't have to choose between funding essential services—like schools and roads—and protecting the environment. Unfortunately, many communities in the West that rely on revenue from fossil fuels are forced to make this exact choice.

The truth is: fossil fuels are ingrained in state and county revenue.

Fossil fuel drilling and mining on public lands is a major source of funding in many Western states—where some 81 percent of all BLM-administered lands in the Western U.S. remain open to oil and gas leasing. Fossil fuel payments can be lucrative during booms when oil and gas production is especially high, but when these booms eventually go bust, it leaves local communities with massive shortfalls.  

In one Wyoming town, potholes got so bad that entire streets had to be rebuilt from scratch. That’s because coal revenues, once a major funding source for local services, plummeted when demand fell—and with them, the town’s budget for road repairs and other emergency services.

This is a story that’s becoming far too common in rural communities across the West that rely on revenue from oil, gas or coal development on public lands to fund basic public services. Budgets rise and fall at the mercy of the fossil fuel market. Thus, until local communities are able to end their reliance on fossil fuel profits, the country can’t meaningfully reduce drilling on public lands. 

Decoupling means breaking the direct tie between fossil fuel companies and state budgets, especially revenues tied to drilling on public lands.  

Instead of relying on volatile revenue from leasing and drilling, the profits from leasing and drilling should be invested in a permanent federal fund established by Congress that would help communities transition away from fossil fuels. You could think of it like a retirement account: payments from fossil fuel companies would be put in one fund that helps cover the essential services and infrastructure of communities across the country while drilling is scaled down. This builds an off-ramp for communities to get off fossil fuels, delivering reliable support that communities need to thrive, while reducing their long-term reliance on fossil fuels. 

Decoupling helps build a resilient economy around public lands that’s no longer vulnerable to the whims of faraway markets and politicians looking to exploit our shared public lands for a quick buck. It provides time for people to imagine the renewed potential for the places they call home while ensuring, as we move away from drilling and mining on public lands for the sake of our health and our climate, those who rely on these lands for jobs, culture and identity aren't left behind.

Interested in learning more? Check out our analysis by Just Transition expert, Ryanne Pilgeram, Ph.D.