LNG!! LNG!! Trillions of dollars - but for who?

[flamingfingers]

Something is rotten in the state of…
BY NORMAN FARRELL ON NOVEMBER 6, 2016 • ( 8 COMMENTS )
According to a BC Government website, “When you produce and sell oil or natural gas resources in B.C. you need to pay royalties and taxes.”

Payments for rights to use renewable and nonrenewable natural resources are fairly equivalent to rents we pay routinely for homes, offices, work sites, cars, hotel rooms and even the interest when we borrow money from the bank. We pay for using someone else’s stuff.

However, Christy Clark’s Liberal Government turned the resource royalty and rights program upside down. 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 fiscal year 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.

unrecorded-creditsIn FY 2016, natural gas royalties were calculated to be $487 million but producers took advantage of royalty deduction credits and reduced the amounts paid to $139 million. However, the balance of credits owed producers grew by $538 million. That left the actual net royalty amount for the year at a deficit of $399 million.

The total of credits that producers can use to reduce future royalties has almost tripled to $2 billion during Christy Clark’s time as Premier. These numbers are never discussed by government officials and they are only disclosed within footnotes of audited financial statements issued annually. With 8 months now complete in FY 2017, the liability may already be close to $2.5 billion. We’ll probably not learn the actual number until next summer.

Read the rest and the comments here:

https://in-sights.ca/2016/11/06/somethi ... /#comments

[bob vernon]

Next summer? But that will be after the election. Oh....... I get it now.

[nepal]

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Australia sure blundered with their LNG royalties!!!
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Probably a good thing for BC and Alta., that the gas is still in the ground for now(money in the bank for future generations).

When the gas does eventually get used, make sure we get good value for it, rather than a knee-jerk short-term job creator. Singapore is an example of a country with no natural resources, but they are wealthy from refining cheap raw resources, from big dumb countries squandering their currently vast resources.

[maryjane48]

not for taxpayers . infact it will cost us 40 miilion a year .

On Nov. 4, the Woodfibre LNG project in Squamish became the first LNG proposal to move forward to a final investment decision. At the same time, the government and B.C. Hydro announced that in order to entice a final investment decision from Woodfibre LNG, a reduced electricity rate — called the “eDrive rate” — would be provided to LNG proponents who use B.C. Hydro electricity to power their liquefaction


but hey your rates will be going up. . kinda cool how that works

[MCB]

I can guarantee that most of the workers hired won't be from BC either, and especially not anyone looking to get into apprenticeships of some form or another. *sigh*

[maryjane48]

yea exactly . instead of making it canadian job creator and training provider we instead bribe offshore companies to rape us

[Tony]

I can guarantee that most of the workers hired won't be from BC either, and especially not anyone looking to get into apprenticeships of some form or another. *sigh*

Where do you think they'll come from?

[Gone_Fishin]

I can guarantee that most of the workers hired won't be from BC either, and especially not anyone looking to get into apprenticeships of some form or another. *sigh*

Really? You can guarantee that, eh? No, you have no idea where the workers will come from, and you have no idea about the fact that Canadian workers have first right of refusal before a TFW is hired (under Harper's rules). Of course, Trudeau is opening the floodgates for TFWs by reversing the restrictions brought in by Harper, so if you don't get out there and grab the job, somebody from Trudeau's offshore darling countries will.

[nepal]

LNG is a big money maker, but massive competition. Supplying Japan from Canada has merits.

[Rwede]

The OP should get the admins to correct the egregious grammatical error in her alarmist, misleading headline.

The last time LNG came up, Horgan said he supported it. That was with a crapload of NDP conditions, of course, which would likely make LNG completely non-viable.

I wonder if the OP knows that her party has some conditional support for the very thing she's trashing?

[maryjane48]

*removed*

[christopher]

In the U S while we have been talking about LNG with meetings and approvals and fish and rivers and tax and power and what ever else they have built two large LNG plants and are ready to start two more. Just saying

[nepal]

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Feb-2018. Here's an American's pragmatic assessment of Canadian LNG value (and heavy oil):

[Snman]

Here's another American assessment. "Man, Canadians are a bunch of suckers controlled by enviro nuts."

[Urban Cowboy]

Here's another American assessment. "Man, Canadians are a bunch of suckers controlled by enviro nuts."

I think you mean controlled by American business interests, who pay for and encourage the resident enviro nuts up here, many of whom live nowhere near the places they are protesting, and some I'd venture not even Canadians.