Many citizens — although not In-Sights readers — will be shocked to learn that credits owed natural gas producers soared by more than $1 billion from April to November 2018. That increase is two and a half times more than the total gas royalties received by government in the three fiscal years ended March 2018. The $3.2 billion balance owed to producers ensures that royalty revenues will remain at paltry levels throughout the Horgan Government’s present term.
In the fiscal years 2016 and 2017, natural gas royalty payments totalled $291 million. However, credits owed producers increased $748 million so, if the province bothered to record these obligations as was recommended by the Office of the Auditor General, the royalty account had a two-year deficit of $457 million. A decade ago, two fiscal years — 2006 and 2007 — produced gas royalty payments of $3.7 billion (2017 dollars) from substantially less production.
Politicians demand ordinary citizens pay increasing amounts of carbon tax — supposedly to reduce fossil fuel consumption — while at the same time they dish out billions of dollars in subsidies to ensure gas companies produce more fossil fuels.
A series of provincial administrations and the politicians and bureaucrats we-the-people employ have consistently lied to us by both commission and omission. By wilful blindness, they have put and are putting lives at risk…
While BC consumers of carbon pay an ever increasing tax — $10 billion since 2009 — carbon producers are enjoying billions of dollars in subsidies. In the fiscal years 2007 through 2017, natural gas companies quietly received benefit of tax expenditures worth almost $8 billion dollars…
After Canada’s federal government asked its energy regulator to examine broader environmental effects of the Energy East pipeline project by TransCanada Corp, including upstream and downstream emissions, the proponent, a company with substantial […]
The four monthly auctions of gas rights held since John Horgan became Premier indicate the industry accepts it must pay more than it did under Christy Clark. However, the gas industry’s investment in Ms. Clark paid off handsomely while she sat at the head of the Liberal Cabinet table.
When Encana’s founding CEO Gwyn Morgan became Christy Clark’s transition team advisor, natural gas producers knew they’d bet on a good thing.
After six years of Clark, we now see just how good that thing was for gas companies.
When a new government takes office, there is often a significant change at senior levels of the civil service and among OIC political appointments. One person still employed by the Horgan government may surprise more than a few people.
When British Columbia conducts LNG negotiations behind closed doors, without public statements of principles or bargaining frameworks, citizens should worry. I have written about our government’s willingness to provide the gas industry with 9-figure production subsidies and Liberal aversion to collection of natural gas royalties but there is another subject to consider. It is the safety and security of LNG facilities…
The Auditor General’s Office has served British Columbia well but the outgoing government deprived it of resources that would have increased audit effectiveness. Politicians are inclined to inhibit the actions of authorities that might offer criticisms. Christy Clark did that but we can hope Premier Horgan will do the opposite.
Fraser Institute, the taxpayer supported voice of Canada’s billionaires and multimillionaires, uses the Vancouver Sun to raise a question, “Will a Horgan-led government keep the NDP’s election promise to balance the budget, and if so, how?” We provide answers.
There is one comparison that should be remembered by BC voters. It is this: In fiscal year 2001, British Columbia took in $1,249,000,000 in natural gas royalties. According to the Bank of […]
If the liabilities owing producers were recorded routinely, provincial natural gas revenue would be less than zero in two of the last four years. In current dollars, BC’s gas income, including rights sales, declined by more than $2.5 billion, comparing 2016 to 2001. Of course, the volume of production was much higher in 2016.
Government forecasts that four year natural gas royalties total, 2017 through 2020, may be $926 million but that doesn’t deduct any growth in production tax credits that industry is accruing but government is not recording. In the past four years, the liability to producers increased by $1,158 million. If the liability for unrecorded credits – amounts that can be deducted from future royalties – continues to grow at the rate of the past four years, BC will receive no net gas royalties, provided that a more honest government begins to record the liability. There is already $2+ billion owed to producers.
Three months before the 2013 provincial election, Christy Clark’s government issued a Speech from the Throne that made a few grandiloquent asseverations. Today, the 2017 Speech from the Throne was presented to […]
My graphic illustrations of the decline in BC’s natural gas revenues – despite 2013 election promises of up to $100 billion in revenues related to LNG – should be read in conjunction with […]
BC Stats, the province’s statistical agency, reports that in 2016, the oil and gas extraction industry provided 16 out of every 10,000 jobs in British Columbia. That is 0.16%. Fewer people were […]
People who are not profiting – or expecting to profit – from corruption in British Columbia’s political arena, should understand. We all pay. We pay dearly and inescapably. Tens of billions of dollars the Clark gang is gifting to private power producers and billions more paid and payable to foreign owned gas producers might provide for an effective court system, better public education, healthcare, small business support and other citizen priorities.
In 2016, BC started paying gas producers to remove and sell BC gas. By ordinary accounting standards, natural gas cost the province more than $400 million in the fiscal year ended in 2016. With the Liberal plan to provide massive amounts of electricity to gas producers at a fraction of the price BC Hydro pays to acquire power, the gas industry is at the centre of a looming financial disaster like no other before it in BC history.