Today, government announced the October result of its monthly Crown Petroleum and Natural Gas Rights Public Tender. Another blah result from a sale that used to bring in hundreds of millions. October produced $2 million.
Tender proceeds in the preceding three months amounted to $1 million.
Gas royalties are no longer material. Through the province’s royalty reduction programs, natural gas producers have been taking and accruing more credits than royalties.
Partly because rights on gas-producing properties are being administratively renewed without competitive tenders, this source of revenue has almost evaporated.
Here is a look at the first seven months (April to October) of the last dozen years, shown in 3 year blocks.
British Columbia sees itself in competition with Alberta to attract gas exploration and production companies. As a result, both provinces have been in a race to the bottom. By giving away its natural gas resource, BC has reached bottom and through its plan to provide below cost electricity, the Horgan Government policy is to pay producers to remove this natural resource.
Quite a change from the NDP’s promises before the 2017 election.
Real downward shift in collections from natural gas rights and royalties came after Encana founder and Fraser Institue director Gwyn Morgan served as Christy Clark's Liberal transition advisor. Coincidence? I think not. #bcpoli https://t.co/ZXAaZDyD7y
— Norm Farrell, SD44 Board Candidate (@Norm_Farrell) October 12, 2018
Categories: Natural Gas