ACTIVIST CLAIM: Foreign-funded Stand.earth claims B.C. natural gas royalty credits are a barrier to fighting climate change because it encourages production and decreases tax revenue.
THE FACTS: Canadian natural gas needs to be part of the climate solution. Not only does it helps consumers reduce global emissions, but natural gas firms still generate billions in revenue for the province.
THE SOURCES:
Royalty credit for fracking companies costs more than twice what provincial government estimated
Here are some facts and sources to have a reasoned conversation about natural gas production in B.C:
- By replacing conventional coal with Canadian natural gas, approximately 40–45% and 26%–32% emissions reductions can be obtainable for Chinese textile and chemical industries, respectively. The highest emissions reduction of approximately 60% was observed when coal is replaced with natural gas for district heating
https://www.sciencedirect.com/science/article/abs/pii/S0959652622009210#:~:text=By%20replacing%20conventional%20coal%20with,with%20NG%20for%20district%20heating
- In 2020/21, producers paid $203 million in royalties to the government that would otherwise have not been paid if the wells were not drilled.
https://engage.gov.bc.ca/app/uploads/sites/716/2021/10/BC-Royalty-Review-Independent-Assessment-Sep-2021.pdf
- Royalty credits are just a particular tax treatment that is common to the natural resources sector as a whole and other industries.
https://www.iedm.org/48751-oil-industry-subsidies-a-reality-check/ - 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.
https://www.bcbudget.gov.bc.ca/2021/pdf/2021_Budget%20and%20Fiscal%20Plan.pdf
Stories that get it right
Canada Looks To Fill The Global Oil Supply Gap
With fears of severe oil shortages, if Russia’s exports are further restricted, world leaders are looking elsewhere for their crude supplies. But with many governments reining in oil and gas exploration in favor of renewable energy projects, these supplies are not so easy to find. Now, Canada is stepping up to the task as it says it can ramp up production to fill the gap as worldwide oil demand remains high
Some Canadian oil firms have already stated their intention of increasing production as demand rises.
