Category: Natural Gas

The Boren effect

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.

Breaking news broken

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.

Public wealth, private benefit

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.

Something is rotten in the state of…

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.

Gas & petroleum rights sale, Aug/16

The Crown Petroleum and Natural Gas Rights Public Tender brought in $950,121 this week, raising the 2016 eight month total to $5.8 million. 2015 and 2016 are the two worst years among the last 20. It’s another bad result for a Premier who ran the last election on a claim that large natural gas revenues would result in a debt-free, sales tax free BC.

Duped by fossil fuel barons

The following excerpts are from a piece in DeSmog Blog. It is written by Martyn Brown, an articulate commentator on public affairs and, years ago, Premier Gordon Campbell’s Chief of Staff. The linked piece is the fourth of four parts about B.C.’s climate action plan. The entire series is worth the time of anyone seeking a more complete understanding of the intended and unintended directions of BC’s current energy policies. It is excellent work.