{"id":60946,"date":"2021-12-14T07:02:27","date_gmt":"2021-12-14T12:02:27","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60946"},"modified":"2021-12-14T07:02:27","modified_gmt":"2021-12-14T12:02:27","slug":"b-c-s-oil-and-gas-royalty-review-must-take-climate-action-seriously","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60946","title":{"rendered":"B.C.\u2019s oil and gas royalty review must take climate action seriously"},"content":{"rendered":"
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B.C.\u2019s oil and gas royalty review must take climate action seriously<\/a><\/h3>\n

Canada\u2019s carbon tax doesn\u2019t cover most emissions from B.C.\u2019s gas production. The province should adopt a carbon surcharge at the extraction stage.<\/span><\/strong><\/p>\n

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British Columbia\u2019s recently updated climate plan,\u00a0Roadmap to 2030<\/a>, promises to integrate emissions goals into the oil and gas royalty system. But the province\u2019s current\u00a0royalty system review<\/a>\u00a0doesn\u2019t include a design with environmental or climate outcomes in mind.<\/p>\n

The policies proposed in the natural gas royalty\u00a0discussion paper<\/a>\u00a0and the expert panel\u2019s report follow an outdated policy approach that\u2019s out of step with B.C.\u2019s climate goals. The review is supposed to align royalties with the province\u2019s revenue, sustainability and climate goals, but the five design objectives arbitrarily exclude the environment. As well, not one of the proposed royalty reforms addresses environmental objectives.<\/p>\n

The public consultation phase of the natural gas\u00a0royalty review process<\/a>\u00a0ends Dec. 10 and the outcome of the review is to be released in February.<\/p>\n

As an economist studying royalties and emissions from the oil and gas industry in the U.S., I couldn\u2019t help comparing the approaches across the two countries. The U.S. House of Representatives just took a step forward by\u00a0passing a bill<\/a>\u00a0raising oil and gas royalties on public lands from the current\u00a012.5 per cent to 18.75 per cent<\/a>, which is closer to market rates.<\/p>\n

B.C. has stronger climate policies than most American states, so one would expect the province to have a reasonable return for publicly owned oil and gas reserves. I thought 12.5 per cent was a low rate \u2013 private U.S. landowners typically get nearly 20 to 25 per cent \u2013 but B.C.\u2019s rate was just 2.4 per cent last year, as determined by the recent independent\u00a0assessment<\/a> of the natural gas royalty program…<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

B.C.\u2019s oil and gas royalty review must take climate action seriously Canada\u2019s carbon tax doesn\u2019t cover most emissions from B.C.\u2019s gas production. The province should adopt a carbon surcharge at the extraction stage. British Columbia\u2019s recently updated climate plan,\u00a0Roadmap to 2030, promises to integrate emissions goals into the oil and gas royalty system. But the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,4],"tags":[32305,94,141,1729,32304,23038,769],"class_list":["post-60946","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-environment","tag-brian-prest","tag-british-columbia","tag-climate-change","tag-oil-and-gas-industry","tag-policy-options","tag-royalties","tag-sustainability"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=60946"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60946\/revisions"}],"predecessor-version":[{"id":60947,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60946\/revisions\/60947"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}