In 2004, the BC Government reported that wellhead production of natural gas in northern BC was 31 billion cubic meters.
In 2017, wellhead production of natural gas in northern BC was 51 billion cubic meters.
In 2004, royalties received were $1.54 billion in 2017 dollars.
In 2017, royalties, net of the year’s increased liability for drilling credits owed producers, were a negative $58 million.
In the noted interval, the quantity of natural gas produced increased 64% and the royalties, which once measured over $1.5 billion annually, disappeared.
The elimination of the public’s gas royalties came after BC Liberals “reformed” the method of calculating royalties and introduced a generous program of drilling subsidies. It’s worth remembering that plutocrat Gwyn Morgan was Christy Clark’s transition team advisor in 2011. He had been the founding President and CEO of gas giant Encana and was Chair of SNC-Lavalin until departing after the company was caught in a bribery and kickback scandal.
Unfortunately, under Michelle Mungall, the NDP Minister of Energy, Mines and Petroleum Resources, earnings from natural gas seem to have fallen deeper into the hole.
Ms. Mungall reported to the BC Legislature that credits owed producers had grown by over $1 billion in the first eight months of fiscal year 2018.
BC taxpayers are paying generous rewards to corporations that extract natural gas, even though the NDP’s 2017 platform contained this promise on page 78:
The people of BC must get a fair return for our resources.
That promise turned out to be as hollow as the ones John Horgan made while standing on the Peace River farmlands that he now intends to flood.
Categories: Natural Gas