Beginning in Gordon Campbell’s years as Premier, natural gas producers lobbied mightily for reductions in the public share of revenues derived from exploiting the natural resource.
The fossil fuel industry’s lobbying and public relations campaigns paid off handsomely. These charts demonstrate the facts. BC Liberals were receptive to the idea. Surprisingly, when the formerly centre-left New Democrats came to power, they accelerated the reductions.
In February 2020, the Horgan Government suspended monthly tenders and reports of Crown Dispositions of Petroleum and Natural Gas Rights. 2020 revenue from rights is reported as $74,052.
The average annual revenue in the years 2005 to 2009 was almost 20,000 times higher.
Instead of competitive public tenders, government is now using administrative awards to assign rights, almost wiping out this revenue source.
But, of course that’s not the only benefit given the fossil fuel industry.
Royalty reductions programs have crashed those revenues. The credits taken and accrued since 2007 amount to more than $10 billion. In addition, the gas industry is being offered electricity for production and processing at around half the unit cost BC Hydro is paying for private power. In addition, other expenditures and tax credits increase profits for the industry.
Revenue reductions might be understandable if natural gas production were in severe decline. In fact, the opposite is happening. It has been increasing steadily over the years.
Other both Liberals and NDP, British Columbia’s fight against climate change is conducted by falsifying spin doctors, not by government officers and scientists.
Categories: Natural Gas