You will find evidence at In-Sights proving government policies and subsidies have cut public revenue from petroleum and natural gas producers to a tiny fraction of what it once was. This despite substantial increases in natural gas production.
But, gas producers have hands in our pockets in less obvious ways.
Three projects of BC Hydro are intended to deliver below-cost power to gas producers and processors.
According to British Columbia’s recently released Budget and Fiscal Plan, electrical transmission projects worth $680 million have been identified.
BC Hydro will be selling electricity to the gas industry for roughly $60 a MWh. At the same time, the utility will be buying from independent power producers for around $100 a MWh. Site C power will cost BC Hydro even more.
When politicians confer massive benefits to an industry that scientists believe is damaging the world, there is little discussion by those responsible for approving the subsidies.
A few years ago, BC Hydro spent the better part of a billion dollars on the Northwest Transmission Line. The main beneficiaries were AltaGas and Imperial Metals, both material sponsors of the BC Liberals. AltaGas to connect their power stations to the provincial grid and sell electricity to BC Hydro under 60-year inflation-protected contracts. Imperial Metals to power their Red Chris mine.
Without the public expenditure, neither of those private projects would have been viable and the two companies would not have profited by selling large shares of the projects to other private companies.
Officers of large enterprises that readily feed at the public trough are guided by words credited to Jules Verne:
You’re never rich enough if you can be richer.
We’re left to hope that elected politicians and senior bureaucrats don’t offer undue assistance.