Introduced in July 2008, British Columbia’s Carbon Tax cost BC taxpayers $24 billion before it was eliminated at the end of fiscal year 2024-2025. People in BC were encouraged to lower their carbon emissions, but the government provided subsidies worth billions of dollars to encourage increased fossil fuel consumption. That program was successful since the volume of natural gas produced in BC almost tripled after the carbon tax was imposed.

More than a year and a half ago, the BC Government promised to end fossil fuel subsidies. But the second quarter report just issued estimates that royalty credits and infrastructure credits allowed methane gas producers will amount to $495 million in the 2023-2024 fiscal year. More importantly, the province’s report estimates year revenue from bonus bids arising from the sale of petroleum and natural gas rights will be precisely zero dollars in the 12 months ending March 31, 2024.

An examination of revenue the Province of British Columbia has taken in from production of fossil methane gas in the fiscal years 2000 to 2023.

BC’s NDP government promised, “On May 19, 2022, the Province introduced a new oil and gas royalty system that puts the interests of British Columbians first and eliminates outdated and inefficient fossil-fuel subsidies.” More than fifteen months later, we learn from the province’s just released audited financial statements that subsidies by way of royalty credits taken in one year by producers increased by $154 million to $1.7 billion. In addition, another $2.3 is available for producers to reduce or eliminate future royalty payments.

Strategic interventions to cut methane emissions in the natural gas supply chain are relatively simple and cost-effective compared to the complexity and expense of decarbonizing the global economy. Prohibiting venting and routine flaring and incorporating routine equipment fixes and upgrades into maintenance plans can significantly cut methane emissions from production sites.

Proponents tell us that fossil methane gas emits fewer greenhouse gases when burned than coal. “Natural Gas” has long been sold to us as a reliable, environmentally friendly, even classy energy source. But end-use combustion is only part of the story. Total GHG life-cycle emissions from extraction, processing and transport of this fuel reveal this mixture of gaseous hydrocarbons ia a prime cause of global warming and a problematic source of pollution within our homes…

The Narwhal reported on peer-reviewed research that showed Oil and gas facilities in B.C. are producing 1.6 to 2.2 times more methane pollution than current federal estimates. But a wave of new satellite monitoring capability may change things. Soon, fossil gas promoters in industry and governments will have nowhere to hide.

British Columbia’s NDP government issued a press release in May 2022 that promised an end to fossil fuel subsidies. Politicians were concerned that consumers troubled by rising energy prices might also be disturbed to know royalty credit subsidies to natural gas producers soared from $654 million in FY 2021 to $1,517 million in FY 2022. Changes promoted by the NDP government are more smoke and mirrors than a real attempt at reform.