Setting the record straight on the day’s top anti-oil and gas media stories
ACTIVIST CLAIM: Press release from foreign funded activist group Dogwood on polling about subsidies is full of recycled misinformation about modern natural gas production methods to sway opinion for upcoming royalty review.
THE FACTS: Misleading British Columbians about oil and gas subsidies is disingenuous and diminishes the upcoming royalty review in the province.
Here are some facts and sources to have a reasoned conversation about subsidies and natural gas production:
- Dogwood is a recipient of foreign funding from the Tides Foundation
- The figure of $1.3 billion comes from a report from Stand. earth, another foreign-funded activist group, 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.
- Many of the ‘subsidies’ reported in these types of reports are actually cleantech subsidies being used to reduce emissions and increase energy efficiency
- Deep well royalty credits are a royalty reduction that was created 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.
- The International Energy Agency analysis concludes that 98% of gas consumed today has a lower lifecycle emissions intensity than coal when used for power or heat. On average, coal-to-gas switching reduces emissions by 50% when producing electricity and by 33% when providing heat.
- According to PetroLMI, 13,900 self-identified Indigenous Peoples were directly employed in the oil and gas industry, a rise of 26% from 2014. Some Indigenous groups see these opportunities as a form of reconciliation that allows them to ensure positive benefits for their communities, fight on-reserve poverty, and retain the ability to protect their own land.
Stories that get it right
Last year as oil markets hit the bricks, many were quick to declare the end of oil, including some Canadian politicians who clearly misunderstood the laws of supply and demand. As the world re-opens and demand increases as we head towards winter, prices are increasing due to a lack of supply. This has caused prices to hit a 7 year high. Sensibly, Canada should be able to help supply this demand, but the forces that be have prevented us from getting our oil to market.