Setting the record straight on the day’s top anti-oil and gas media stories
ACTIVIST CLAIM: Anti-natural gas activists in B.C. quoted in CBC article continue to mislead readers on government subsidies.
THE FACTS: B.C. still collected $2.6 billion in carbon and fuel taxes during the 2020/2021 fiscal year even with their drilling royalty credit.
Here are some talking points and sources to have a reasoned conversation about subsidies in B.C.:
- The figure of $1.3 billion comes from a Stand.earth report which misleadingly claims that the B.C. government gave away $1.3 billion in oil and gas subsidies in 2020/2021. However, the report only talks about $545 million of which $421 million are royalty reductions.
- Deep well royalty credits are a royalty reduction to encourage companies to drill wells so the Province can receive more revenue while creating jobs. The companies do not receive money from the government and there is no liability to them. Companies still must pay.
- Natural gas development generates revenues for B.C. in other ways.
The province collected $2.6 billion in carbon and fuel taxes during the 2020/2021 fiscal year.
- Activists make the claim that natural gas and LNG production are incompatible with climate goals, however, this independent study found that switching to Canadian LNG can be 62% cleaner than Chinese coal power in a country that represents 28% of total global emissions. By providing the best in the world Canadian LNG to the global market, we can reduce global emissions.
Stories that get it right
The Canadian government has been met with challenges to its consultation process and many First Nations feel like they have been left out. This comes on the heels of a court decision in favor of the Ermineskin Cree Nation. contest a designation order that the federal Minister of the Environment, Jonathan Wilkinson, had placed on the Phase II expansion of Vista coal mine in July 2020. This subjected the mine to a full federal impact assessment — something the Impact Assessment Agency itself recommended against — which had the practical effect of stopping the activity.