Tuesday, December 15, 2015

Gas production ↑ 85%, public revenue ↓ 90%



Days ago, Premier Clark averred that meeting needs of children in government care is dependent on new funding from new industrial and commercial activities in British Columbia:
"We don't have the resources to fix those problems unless we grow the economy," Clark said in a year-end interview with CBC legislative reporter Richard Zussman.
That condition was not applied to construction of the Site C dam that will ultimately cost $10-$15 billion. Nor was it applied to about $10 billion of road and bridge construction in the lower mainland or $1 billion spent to deliver subsidized power to Murray Edwards' Red Chris mine. Nor was it a condition precedent when Clark wanted to expand the size of her cabinet or hire yet more government spin doctors. A $200 million tax break for our richest citizens did not depend on new economic activity.

The reality is that Christy Clark uses trick plays in government as Emilio Estevez did for hockey in a Mighty Ducks movie. She was elected in 2013 on a promise that natural gas development would make BC debt free and allow her to eliminate sales taxes while building a $100 billion Prosperity Fund.

However, while she pretended a new affluence for all was just around the corner, her minions were ensuring that government was delivering public resources into private hands, which invariably belonged to generous financial backers of the BC Liberals.

Take, for example, revenues derived from selling petroleum and drilling rights. In the final 12 months of NDP administration, those sales brought in almost $600 million, measured in current dollars. Additionally, natural gas royalties were $1.6 billion. In summary, the natural gas industry paid British Columbia $2.2 billion in a year near the turn of the century. By comparison, in the current year, total natural gas revenues will be well under a tenth of that value. Shockingly, production of gas, measured in millions of cubic metres, increased 85%.

Premier Clark stands before the people, during the Christmas season, and says we cannot afford appropriate care for the province's most vulnerable children. It is hypocrisy that exceeds the most egregious action of a most sanctimonious woman.





Gas Royalties 2001 to 2015



2008 to 2016 BC gas revenues 15 12 16





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16 comments:

  1. During a recent interview by Andrew MacLeod of TheTyee, Christy was asked, “According to Bloomberg the price in Asia for LNG was down 45 percent last year, 27 percent this year and is expected to go down another 23 percent next year. There's also a reported glut of projects globally. Has B.C. already missed the window of opportunity?

    Her answer in part, “I don't think so. Companies are continuing to invest. We've got about $20 billion invested on the ground now…”

    That figure of $20 billion surprised me, and a read of the info at this current BC government link will tell you why. https://www.britishcolumbia.ca/invest/industry-sectors/natural-gas/

    “British Columbia’s stake in the natural gas industry has already grown substantially. Industry investment almost quadrupled between 2000 and 2010, increasing from $1.8 billion to $7.1 billion.”

    If Christy’s statement is accurate there has been a $13.9 billion investment in BC since 2010. Anybody know where that is?

    Other gems:

    “British Columbia currently produces 1.4 trillion cubic feet of natural gas annually. From 2009 to 2010, we experienced a 42 per cent increase in year-end natural gas reserves. This represents our largest yearly increase ever, and continues a 10-year upward trend.”

    “The first commercial LNG export facility in Canada is scheduled to open in Kitimat, on British Columbia’s central coast, by 2015. We have committed to having three facilities in operation by 2020.”

    “Global trade in liquefied natural gas (LNG) doubled between 2000 and 2010 and is expected to increase by another 50 per cent by 2020.”

    Christy should stop reading her own propaganda and start reading Norm’s facts.

    ReplyDelete
    Replies
    1. Somewhere from that great number-crunching room in the heavens, my grade-two math teacher is yelling at me. “Lewis, 20 billion minus 7.1 billion is NOT 13.9 billion. It’s 12.9 billion!!”

      Sorry Mrs. Outerkirk, you’re right of course. But you were wrong about that snowball. Johnny threw it; not me.

      Delete
    2. The investment numbers are part of a shell game. Don't believe them without independent verification. Here's an example of what they count, from the Globe & Mail in 2012:

      "China’s largest oil and gas firm agreed to buy a 20-per-cent stake in Royal Dutch Shell PLC’s shale gas properties in British Columbia... Neither side would release the value of the deal Thursday, but reports in Asia pegged it at $1-billion."

      There you go. Christy's gang counted another billion dollars invested in BC's resource industry. But guess what, it added nothing to BC's wealth. Royal Dutch Shell is headquartered in the Netherlands; China National Petroleum Corporation resides in Beijing. Because they do joint ventures all over the world, CNPC didn't mail a billion dollar cheque to The Hague; they merely adjusted the intercompany accounts. Nevertheless, the BC gas industry says, This 10-figure investment proves we're on the right track.

      Texas based Quicksilver Resources is in liquidation under bankruptcy laws. It's shown by BC Government as the proponent of an LNG project on Vancouver Island and it has had other activities in BC. Rest assured, when someone buys the remains of Quicksilver's Canadian assets, Christy Clark will be announcing another major investment in BC's natural resource industry.

      Delete
    3. After reading the Tyee article, I was shall we say, " intrigued" by her response to the question of the $700 million dollar transfer of funds to Malaysia, by an unknown source and further response to dealing with a so called "corrupt regime", and the "state run" oil company Petronas.
      Her responses reveal a questionable tone of ethics, and indeed either a complete misunderstanding of the implications of such an involvement or being complicit in hiding a truth or truths, in her governments potential involvment in a foreign governments political scandal.
      The interview itself is punctuated with " I don't knows" and " I can't answer that". Answers that speak either to the lack of knowledge of the negotiations involved, or perhaps even more interesting the depth to which "Dark Money" has found its way from the BC Liberal, back rooms, into the political negotiations with corporations and other governments that the BC liberals are engaged with. Answers that a party leader, should have "some" knowledge of, unless of course she truly is just a "puppet" of her "masters".

      Delete
  2. Their reply would be that Site C would grow the economy, supplying jobs and revenues to govt.

    But public spending of $9 billion, to sell un-needed power at a loss, while flooding agricultural land, doesn't make economic sense.

    Neither does fracking for natural gas in BC to sell as LNG into a declining market, while polluting water and spewing GHGs.

    They have this idea that we need infinite GDP growth, every year. That's impossible, when you think about it. But that's how they deal with the endless amount of debt that's building up.

    ReplyDelete
  3. Bingo...okay Christy, show us where the 13.9 billion dollar investment in this province is. Oh and while you at it, where is the return on that investment back into the BC treasury?
    If I were a company shareholder, in this so called BC Inc., as currently run by you and the rest of these so called financial genius's you have in cabinet and in the back room, I'd be knocking on the door of the BC Securities regulator pronto. Something does not add up here...where is the taxpayers investment gone, let alone the returns...especially if we are unable to " fix " the problems of the "Ministry of Children and Families, but can provide all kinds of government resources for "insiders and business associates" of the BC Liberal party and their well healed friends?

    ReplyDelete
    Replies
    1. What we have here in BC is a Ponzi Scheme of orchestrated lies by Christy and Company. The Liberal and industry scripted campaigning of jobs, profits, world class industry and debt free Sparkel ponies is aided by bought CAAP media and the cheerleaders at Post Media and other captured media.

      Despite all the economic evidence highlighted by you Norm and the many industry news studies and analysis from experts outside BC the Libs and their captured press do not report the reality, rather they perpetuate the scheme.

      All Ponzi Schemes end badly. The longer they are promoted the more damaging the results. Given the desperate state of Christy and Pirates gambit they have no choice but to keep pumping the promises and hiding the reality... Same old same of.

      Bill

      Delete
  4. By Douglas Adams' definition, a certain Premier has never given real service to this province.

    ReplyDelete
  5. "The first commercial LNG export facility in Canada is scheduled to open in Kitimat, on British Columbia’s central coast, by 2015."

    Got a few days to "Git 'er done" as Dave Babych would say.

    Did I miss something, or is there a pipeline to Kitimat already in place, to feed this facility?

    Hmm… facile: "appearing neat and comprehensive only by ignoring the true complexities of an issue; superficial." Does that describe anyone we know?

    ReplyDelete
    Replies
    1. The gas pipeline to Kitimat has to overcome opposition of First Nations groups.

      Unist’ot’en Camp

      The new Trudeau Government is going to have to choose which side of the road they really intend to stand upon. Will they run roughshod over First Nations opposition while they promise a new relationship? Moratorium on tankers on the North Coast of BC: does that include Kitimat? Well, it's 150 km from Alaska and 700 km from the 49th parallel so I guess that's north coast.


      Delete
  6. Maybe Christy should start wearing her glasses again. Seems she can't read the writing on the wall. Her math skills are worse than Lew's!

    ReplyDelete
  7. Christy continually tells us we are growing the economy, so where is the money for the Ministry of Children?? Or is the answer more like "Follow the Money". This woman and her government are a disgrace to not only the people of B.C., but to the whole of Canada. I really hope someone in the Federal Government reads this blog.

    ReplyDelete
  8. An excellent thought Wendy. One would hope that someone within the new Trudeau government, is looking at this blog and some of the other more truthful and intelligent blogs on the web.
    As far as "Growing the economy" goes, it depends upon whether it is growing for "all British Columbians" or a select few. My guess, based upon Norm's excellent research and documentation over the past number of years, the majority of British Columbians have seen a severe decline in the economy, relative to BC Liberal insiders, backroom supporters and their corporate friends.
    The situation will continue to deteriorate at an ever increasing rate until the removal of Christy Clark and her malfeasant government. Unfortunately the Liberal coffers, are continually being provided with funding from "various sources" that have no desire to see her and her form of governance end. Sad, that in a "so called" democratic country, that kleptocrats and the corptocracy they serve can continue to manipulate an electorate, all the while ensuring "their economy" grows by leaps and bounds. Personally I'm utterly disgusted with it. A change must come and soon.

    ReplyDelete
  9. This entire continent was home to,peoples with community priorities . When the United States began , it started out as an anti establishment coalition mandated to improve the conditions of the masses which had been suffering under colonial rule . Canada was set up with limited federal power to allow more local control by the provinces. But somehow its all gone back to circa 1750 and politics is under the control of a few very rich . We need to take back our government . Elect representatives of the people and of the land . Rid ourselves from the corporate mandated politicians like Clark . Thankfully the Harper is gone .

    ReplyDelete
  10. P. 60 shows BC's total provincial debt growing by about $2 billion per year, to a planned $69 billion by 2017. At a growth rate of 6.9% annually, meaning total BC provincial debt would double in about 10 years.

    http://www2.gov.bc.ca/assets/gov/british-columbians-and-our-governments/about-the-bc-government/bc-budget/quarterly-reports/2015-q1-report.pdf

    ReplyDelete

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