An update of our June report on the results of monthly petroleum and natural gas rights sales.
We have July 13 results of the monthly Crown Petroleum and Natural Gas Rights Public Rights Tender. Revenues were $510,661 so proceeds for the calendar year-to-date are less than $5 million. In the year before Christy Clark became Premier, the same seven months brought in $735 million. (Amounts in 2016 dollars)
In 64 months of her Premiership, Christy Clark’s government brought in $1 billion from gas and petroleum rights sales. In the last 64 months of his leadership, Gordon Campbell’s brought in $7 billion. If we rank revenues in the first seven months of 2014, 2015 and 2016 against the last 20 years, they rank 18th, 19th and 20th.
This is not a statistic you will see repeated in Postmedia newspapers. A consequence of news media entering partnerships with industry groups is a restriction of what news can be reported. However, those of us not funded by industry can report whatever facts are there to be reported. As usual, simple charts illustrate the information:
Keep in mind that rights sales are only part of the potential revenue streams from oil and gas. Another involves royalties, payments based on profitability of gas producers. In 2001, those amounted to $1.63 billion in current dollars. In the last four years, they have averaged less that 10% of that amount, despite huge increases in production volumes.
When Gordon Campbell announced his resignation in 2010, the underlying reasons were never clearly reported. Bad approval ratings played a part but Campbell was pushed strongly toward the door by natural resource producers who were jealous of sweetheart deals made for private producers of electricity. Mining and gas companies wanted to end large payments into the provincial treasury. Campbell was not sufficiently responsive to their demands.
Special interests knew their treatment would improve under Christy Clark and the numbers prove they were correct.
Categories: Natural Gas