In an interview with the Sun Advocate on Tuesday morning, Utah Gov. Gary Herbert said he is cautiously optimistic for a possible turnaround of the coal industry but also stressed the need for economic diversification in energy country and rural Utah in general.
On the possible return of the coal jobs lost over the years, the governor quoted the 20th Century American philosopher Yogi Berra, who said, “I hate to make predictions, particularly about the future.” However, Herbert said that there are plenty of reasons to renew hope for the coal industry and fossil fuels in general.
First is ongoing research into cleaner technologies such as carbon dioxide capture. There is plenty of such research going in Utah. Also, Utah coal is a relatively cleaner alternative to some of the fuels being burned in developing nations, so there could be a revival of exports. While the state has enough coal for its own uses, production has declined because exports to other states and nations have tapered off.
International trade won’t change
The withdrawal of the United States from the TPP will create a new list of challenges for trading partners around the world, as President Trump has stated throughout his campaign that he believes in “fair trade,” and had continually promised to remove the United States from free trade deals. “Trade is not going to change,” the Governor continued, noting that the state will continue to trade with foreign countries even if the President goes ahead with his promise and removes the United States from the TPP. Utah does not only export energy products such as coal, but also is diversifying its global exports by trying increase manufacturing and other fields of industry. “We have a lot of goods and services to sell,” the governor continued.
Also, since Utahns speak a combined 140 languages, the state has an advantage in securing international trade.
Despite what happens in the coal and other fossil fuels markets, Utah’s energy producing counties must diversify their economies if they are to share in the growth that the Wasatch Front is experiencing, Herbert said.
He pledged last week to bring state help to rural regions to attract new investment in other economic activities.
Countries that would be affected by the United States removing itself from the TPP would include, Brunei, Australia, New Zealand, Canada, Japan, Malaysia, Mexico, Peru and Vietnam. The problem with allowing for countries like China to step into the leadership role is that they have not had the best record when it comes to air pollution, he noted.