There’s a brand-new buzzword in the ever-evolving debate over America’s energy policy: Blue jobs. Those are jobs associated with the oil and natural gas industries, named for the azure hue of the burning gas flame, and part of the gas industry’s latest push to keep old energy relevant in Washington.

wellhead_art_257_20090115103455.jpg

A new contestant in the jobs debate (AP)

The Natural Gas Supply Association is trying to make sure policy makers keep it in mind as they craft a slew of new energy and environmental policies, including programs to create so-called green jobs, or employment in environmentally-friendly areas like renewable energy and energy efficiency. The gas lobby wants Congress to “make more natural gas available.”

The natural gas lobby says blue jobs total 5.8 million nationwide. Of course, that includes both the direct employment in the oil and natural gas industries—1.8 million—and another 4 million indirect jobs the lobby says depend on natural-gas related activities. Some of those jobs are really, really indirect:

“One-third of America’s natural gas is used by American manufacturers to create everything from trash bags and pantyhose to antifreeze and detergent. Those manufacturing jobs are all natural gas related,” NGSA president R. Skip Horvath said.
“We fully support the creation of more green jobs, but we’ll be wearing our ‘Blue Jobs’ buttons when we meet with political leaders in Washington this year. We want them to better understand how vital our industry is.”

It’s all part of wider push to mesh energy policy and job creation in the middle of the slowdown. The idea of “green-collar” jobs enthralls President-elect Barack Obama, his transition advisers, Labor Secretary designate Hilda Solis, and even Secretary of State nominee Hillary Clinton.

But the jury is still out on the true job-creation potential of the green sector. A new study out by the conservative Institute for Energy Research parses four of the most widely-quoted green jobs studies. It concluded that they all suffer from the same, over-optimistic flaws. Namely, green jobs programs won’t create the millions of jobs proponents claim, the jobs won’t be sustainable in the long run, and since some green jobs will attract existing workers, rather than drawing just from the ranks of the unemployed, won’t mean that many net new jobs.

Whether it’s green jobs or blue jobs, the overall state of the economy matters, too (just ask states that can no longer afford to subsidize solar power). With natural gas prices at a two-year low and potentially headed lower, even blue jobs could be at risk. More on that later.