Friday, November 11, 2011

Shale Gas Subsidies Threaten BC Water Supply

A new report on an industry billed as the province’s “new prosperity driver” warns that subsidies to shale gas companies now threaten provincial water supplies, the reduction of ocean acidifying emissions as well the province’s hydro electric budget.

The comprehensive 53 page report for the Canadian Centre of Policy Alternatives and the Climate Justice Project also warns that shale gas industry has created as many complex liabilities for the owners of the resource (British Columbians) as Alberta’s vast bitumen deposits in the oil sands.

“Shale gas is the natural gas equivalent of Alberta’s tar sands oil. Both require tremendous amounts of water and energy to produce,” says Ben Parfitt, the report’s author and a long-time resource analyst. “Why is B.C. subsidizing a polluting industry instead of developing a true green jobs plan?”

In fact the province’s shale gas industry could produce as many as 22 million tonnes of CO2 a year. In contrast current oil sands production, the nation’s largest growing source of ocean acidifying emissions, produces and vents 49 million tonnes a year.

The province’s shale gas industry currently employs less than one per cent of the population and generates volatile revenue for the provincial government that have fallen from nearly $4-billion a year to less than $500-million due to low natural gas prices.
In fact the government could now be subsidizing the industry with water, energy, roads and low royalties at a public cost much higher than earned public revenues from shale gas production. 

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