January 16, 2013
The question of whether we should leave our natural gas in the ground for future
generations or dump it on world markets has already been decided.
Dig it up and ship it out says B.C. Premier Christy Clark. Her government has
approved numerous Liquefied Natural Gas projects that will send gas to
energy-starved Asia. The sooner the better says Rich Coleman, BC's Minister of
Energy and Mines, who warns that we are in a "foot race" with Australia to get
into these lucrative markets.
Not so fast says the Canadian Centre for Policy Alternatives. Don't forget that
by law, B.C. is required to reduce overall carbon emissions by 33 per cent by
2020. While the burning of natural gas is relatively clean, the drilling,
compression, and shipping of it is not. If just three of the proposed LNG
projects go ahead, B.C.'s emissions will go up by nine per cent - - exactly in
the wrong direction.
Ben Parfait of the CCPA laments "As disquieting as it is to see our government
apparently abandoning B.C.'s climate change, equally alarming is that their
boosterish stance on LNG exports also ignores some troubling economic
realities."
One of those economic realities is that Australia has already left the starting
line in our so-called foot race. As latecomers, the only effect our arrival will
have will be to drive down the price of LNG.
Then there is the problem of fracking. This cheap B.C. gas comes from hydraulic
fracturing; the dangers thereof I listed in 2011. In brief, the water used to
extract the gas becomes toxic and unusable for generations; poor construction of
wellheads can contaminate surrounding ground water; and much more land has to be
dug up compared to conventional gas wells.
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Before this foolish venture proceeds, our carbon tax should be doubled to
match Australia's, says Matt Horne in The Tyee. Money from that tax could go
towards the development of alternative energy sources but it would also
increase the price of our gas on international markets. Would B.C. companies
still be as eager to dig up our gas if the market price is higher due to
taxes?
And if your head is still not swimming with visions of climate change,
fracking and carbon taxes, consider the complications of accounting says
Connor Curson.
Failure of realistic accounting has left B.C. blissfully ignorant says
Curson in the Vancouver Sun. Traditional accounting practices have arranged
an impression of fiscal surplus. It's wishful thinking to include revenues
from non-renewable resources. It's as mistaken as including lottery winnings
into household finances would be. Once the winnings dry up, spending is no
longer sustainable. When non-renewable fossil fuels are gone, government
programs have to be drastically cut.
A better idea would be to put aside revenues from non-renewable resources
into a special fund for future investment in human and physical capital:
education, health, infrastructure. Don't look to Alberta. While they do have
a Heritage Fund, less that 10 per cent of Alberta's resource revenue went
into it. Better to look at Norway, which is only slightly bigger than B.C.
and has a fund worth $575 billion from which they withdraw a modest 4 per
cent a year.
Rather than dumping our natural gas on world markets, wait for the
inevitable rise in price that always follows the scarcity of a non-renewable
resource. Rather than generating an artificial surplus, squirrel it away in
a rainy-day fund.
David Charbonneau is the owner of Thompson Studio
He can be reached at
dcharbonneau13@shaw.ca
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