This is a news compilation setting the record straight on the day’s top anti-oil and gas stories and providing research and facts to counter misinformation about the oil and gas industry.
Open letter from foreign-funded anti-oil and gas activists ignores the reality of the natural gas market to targe royalty regime.
Anti-oil and gas activists don’t understand B.C.’s natural gas royalty regime.
- Even though natural gas production has increased, natural gas prices have remained low over the last few years. B.C.’s natural gas royalty regime is based on the price of natural gas and can be up to 27% of the value. Naturally, when prices are low, the royalties will also be lower. This is all available online.
- According to the Montreal Economic Institute, anti-oil and gas organizations are redefining the meaning of subsidy. Most are just a particular tax treatment common to the natural resources sector and many other sectors. Developing natural resources is a financially intensive process and these measures level the playing field across the sector to ensure they remain competitive. Some of these subsidies are actually cleantech subsidies being used to reduce emissions and increase energy efficiency.
- Despite criticism of the royalty system, producers still pay hundreds of millions in royalties. In 2018/19 producers paid $196 million in royalties to the government of B.C. that would otherwise have not been paid if the wells were not drilled. This doesn’t include the nearly $200 million paid in carbon taxes by the upstream natural gas industry.
- According to the B.C. Budget, the government expected to receive $575 million in royalties and land sales from the oil and gas industry in 2020. This doesn’t include corporate income taxes.
Here is a story that gets it right.
The name change for the CAODC is a good sign of the oil and gas industry continuing to recognize the need for responsible energy. Oil and gas companies have the expertise and know-how to continue driving clean tech innovation to produce responsible energy. CAODC members have skills that translate very well to new energy projects that the future might bring, technologies like lithium extraction, geothermal, CCS, and hydrogen.