Morgan.Gwyn

Revenue from natural gas rights hits 23 year low

The December 11 sale of petroleum and natural gas rights realized one of the lowest amounts of any monthly tender since 1996.

Calendar year 2019 yielded below $15 million, the smallest public return from sales of rights in any of the last 23 years.

Gas producers once annually contributed billions of dollars to the provincial treasury by royalties and payments for rights. These are no longer material sources of government revenue.

Royalties have been largely eliminated by more than $10 billion in payment reduction credits taken and accrued by gas producers. Depending on who offers the justification, credits are either intended to increase activity in gas fields of northeast BC, or to make them more profitable for private companies.

Were timber companies offered similar levels of cost relief as gas producers, the province would not have thousands of forestry workers hungry for employment.

Politicians seem to believe that non-renewable resource companies are more deserving of financial support than ones harvesting renewable assets.

Payments for gas exploration and production rights have almost disappeared because large tracts of provincial land are in private hands through administrative assignment, instead of by public tender. This recap drawn from monthly sales reports provides the evidence:

Notice the real change occurred about the time that Gwyn Morgan was an influential advisor to incoming Premier Christy Clark. John Horgan’s administration continues the former government’s energy policies and not a single Liberal MLA objects.

Of course, reducing tenders for rights on public properties has resulted in major revenue declines.

Categories: Morgan.Gwyn, Natural Gas

5 replies »

  1. Gywn Morgan, ex SNC Lavalin CEO has done more damage to BC than any other person in the history of this province.

    Today, SNC Lavalin through its evil spider web of former employees have infected all universities, the civil service and municipal governments.

    The province has a SNC Lavalin satellite state.

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  2. There might be a short burst of nova-like activity in the forest sector, but the subsequently denuded landscapes would soon curtail the last vestiges of what used to be the backbone of BC industry. A lack of leadership has meant that what was once a renewable resource has now been reduced to a rump of soon-to-be endangered species, a process that could only be accelerated by a public toll régime on the order of what’s in place for gas and oil. This, of course, has been highlighted hereabouts for the last decade or so, but to little effect in the sphere of governance. (Going to a meeting with Scott Fraser this afternoon on Privately Managed Forest Lands this afternoon, prepared for a good dose of pettifogging and obfuscation, sadly considering that there really does seem to be no alternative.)

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  3. MERRY CHRISTMAS, HAPPY HANUKKAH, AND HAPPY FESTIVAL TIME.

    Thank you for the work you do and the education you continue to provide us. Take care,

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  4. Our political leaderships at various levels have become so bad, corrupt minded and horribly self serving that they cannot represent the people properly. So the people have to change that. No one else can, or will do it. We either want the country to prosper as a healthy democracy for the people, or just are fine with the status quo of decline. All the bad things that have screwed the people over as was done to British Columbians and continues has been caused by too slimy politicians from both sides of the house who scam their way into power on their craftily scripted campaigns. Merry Christmas and a Happy New Year and good to see all the people commenting and speaking up. I hope it continues to build across BC and the country like a tsunami. It’s the only way to keep what we have… left. God Bless.

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