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Oil and Gas in British Columbia
The Government of British Columbia is committed to promoting the
development and exploration of resources in all regions of the province.
Petroleum industry activities are vital to the provincial economy,
generating significant economic wealth each year and employing thousands
of British Columbians.
The 2003 calendar year was exceptional for the province: $703.8 million in
Crown revenue was collected from sales of oil and gas rights, fees and
rentals -- 44% higher than the last record set in 2001; a record 1041
wells were drilled; total revenue collected was $2.1 billion, 70% more
than 2002; and industry expenditures in the province hit an all-time high
of $5.6 billion. Production of natural gas remained the same as in
2002 at 1.1 trillion cubic feet (Tcf). The sales value of the oil and gas
production is estimated at $6.2 billion compared to $4.2 billion in 2002.
Investing in British Columbia
Under
the leadership of Premier Gordon Campbell, over the past several years
the Province has taken steps to make investing in oil and gas more
efficient and cost effective. BC has: cut corporate income
taxes to 13.5%; eliminated the Corporate Capital Tax; eliminated the
sales tax on production machinery and equipment for the oil and gas
sector; and introduced the Oil and Gas Development Strategy for the
Heartlands (OGDS) including:
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Roads:
Promoting better access to resources through Public Private Partnerships,
royalty credits and direct government investment
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Service
Sector Strategy: Supporting business growth through a marketing
strategy and skills development. $500,000 in skills development
funding from government has been matched by industry.
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Royalties:
Targeted royalties focused on drilling deep, marginal and summer wells;
and unconventional and new basins.
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Regulation:
BC Oil and Gas Regulatory Improvement Initiative (OGRII) will
consolidate, integrate and harmonize regulations, creating the world's
best regulatory environment for oil and gas. The Regulatory Best
Practices Working Group, comprised of government and industry
representatives, is also focused on regulatory reduction, streamlining
and harmonization.
BC is also working to make more information available about BC's
resources through resource assessments pertaining to shale, shallow,
tight, deep and coalbed gas; and interior basins.
Coalbed Gas
The Provincial government is facilitating the
development of coalbed gas (CBG) throughout the province. New
legislation creates greater certainty for CBG ownership; a new coalbed
gas royalty will address the unique economic characteristics of
developing coalbed gas resources; and environmental and community
information projects are ongoing.
Last Updated:
June 30, 2006
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