Oil patch woes give federal Liberals cold feet on cutting fossil fuel subsidies

[Locutus]

OTTAWA — Now is not the time to phase out fossil fuel subsidies, Natural Resources Minister Jim Carr said Wednesday, despite what a Liberal cabinet colleague is billing as the greenest federal budget ever.

The big-spending fiscal blueprint is dotted with environmental measures, ranging from green infrastructure and transit funding to clean technology research and development, inter-regional electricity co-operation, wastewater treatment and help for remote communities reliant on diesel power generation.

But a campaign promise to "phase out subsidies to the fossil fuel industry over the medium-term" did not make the cut in the first Liberal budget. In fact, the government locked in one recent liquefied natural gas subsidy until 2025.

Carr emerged from a caucus meeting Wednesday to say now is "not the moment" to start ramping back government subsidies for an oil and gas sector hammered by a global glut and price decline.

"You know, there are all kinds of issues that are important in the oil and gas industry right now and the government wants to express its support for the industry in a variety of ways — and in particular, as you will notice, people who are suffering because of the low commodity price," said Carr.

"Those are the priorities the government has chosen."

Prime Minister Justin Trudeau has made combatting climate change a central motif of his government and expectations continue to run extremely high in the environmental community.

However, with a budgetary deficit of almost $30 billion in the coming fiscal year, Finance Minister Bill Morneau's first budget elected to ramp up environmental spending relatively slowly, compared to the lofty Liberal rhetoric.


mo


Oil patch woes give federal Liberals cold feet on cutting fossil fuel subsidies | National Newswatch

 

[mentalfloss]

So petros was wrong again lol

 

[tay]

The G7 leaders have struck a pact to end fossil fuel subsidies by 2025 (link is external). It sounds great, in principle, but do we have any reason to believe them?

In Canada our governments admit to annual subsidies of around 2.5 billion. Is that what will be ending? How much of that is provincial (a lot) and how will Ottawa get the western premiers to go along?

The real problem is that the amount our federal and provincial governments acknowledge is the tip of the iceberg. The IMF ran the numbers of all our direct and indirect subsidies - grants, deferrals, exemptions, the provision of natural capital (public property) either at no cost or below market values - and its total was just under $35 billion each and every year.

So what number are we going to be using? This is the sort of issue that Slick can get pretty weasley on. Until he acknowledges the IMF number there's absolutely no reason to believe that Ottawa will be making much of a dent in the subsidy scam.

There's no reason to think that he'll still be in charge by 2025 in any case and, besides, it's just a promise. We've heard a lot of promises from that fellow and we've learned that he doesn't always come through on his word.

As for America? Dream on.........

 

[mentalfloss]

Oh it's even higher than that.

Oil is basically a publicly funded industry at this point.

 

[MHz]

We could quit the G7 and the G6 1/2 could go their own way and Canada, the rebel she always was will go here own way. Triple the output at 1/3 of the 'profits' and a good portion goes towards R&D to replace oil and the damage that 'we' did by using oil. It is like the Yukon gold miners going through the 'garbage pile' and being able to extract enough gold to pay for that operation and make a profit using modern mining equipment and methods. (ie in Bering Sea Gold the Bluff should be at the nearest creek digging like hell to open that up as a test site and to use it as a harbor during windy weather. You would also have room to build something that is bear proof. Since his old claim is showing a return if suction pumps are used he can build a bucket that rakes the bottom and the silt and fine gravel is sucked up the hose. Continue raking until all that is picked up as that is where the highest concentration of gold is. Along with the suction hose there could be water jets that loosen the material up just in front of the oversized suction hose. With the excavator arm a bucket 8ft wide might be possible and if the scarifying teeth vibrate they are twice as effective and the arm can also move with less jerks.
Since I'm already off-topic the coming winter dives should have all the crews using the suction hoses at full throttle and bypass the tray and dump it back on the floor until the whole area has been 'vacuumed' and the 'pile' is covered and marked and in the spring that is the first place the dredges go for and that is much faster and efficient than their current methods)
Oh yeah, that is what that green pill is supposed to stop, wandering mind syndrome. (enforced by reading the book 'How to Win at Chess by Thinking Only One Move Ahead')

 

[taxslave]

OTTAWA — Now is not the time to phase out fossil fuel subsidies, Natural Resources Minister Jim Carr said Wednesday, despite what a Liberal cabinet colleague is billing as the greenest federal budget ever.

The big-spending fiscal blueprint is dotted with environmental measures, ranging from green infrastructure and transit funding to clean technology research and development, inter-regional electricity co-operation, wastewater treatment and help for remote communities reliant on diesel power generation.

But a campaign promise to "phase out subsidies to the fossil fuel industry over the medium-term" did not make the cut in the first Liberal budget. In fact, the government locked in one recent liquefied natural gas subsidy until 2025.

Carr emerged from a caucus meeting Wednesday to say now is "not the moment" to start ramping back government subsidies for an oil and gas sector hammered by a global glut and price decline.

"You know, there are all kinds of issues that are important in the oil and gas industry right now and the government wants to express its support for the industry in a variety of ways — and in particular, as you will notice, people who are suffering because of the low commodity price," said Carr.

"Those are the priorities the government has chosen."

Prime Minister Justin Trudeau has made combatting climate change a central motif of his government and expectations continue to run extremely high in the environmental community.

However, with a budgetary deficit of almost $30 billion in the coming fiscal year, Finance Minister Bill Morneau's first budget elected to ramp up environmental spending relatively slowly, compared to the lofty Liberal rhetoric.


mo


Oil patch woes give federal Liberals cold feet on cutting fossil fuel subsidies | National Newswatch

First I ever heard of a fossil fuel subsidy from the feds. Is it possible whoever wrote this article does not know what a subsidy is?

 

[MHz]

Oh it's even higher than that.

Oil is basically a publicly funded industry at this point.

Don't forget that this one has a pool of shareholders that siphon off most of the difference between gross/net before it come time for taxes to be applied.

 

[taxslave]

The G7 leaders have struck a pact to end fossil fuel subsidies by 2025 (link is external). It sounds great, in principle, but do we have any reason to believe them?

In Canada our governments admit to annual subsidies of around 2.5 billion. Is that what will be ending? How much of that is provincial (a lot) and how will Ottawa get the western premiers to go along?

The real problem is that the amount our federal and provincial governments acknowledge is the tip of the iceberg. The IMF ran the numbers of all our direct and indirect subsidies - grants, deferrals, exemptions, the provision of natural capital (public property) either at no cost or below market values - and its total was just under $35 billion each and every year.

So what number are we going to be using? This is the sort of issue that Slick can get pretty weasley on. Until he acknowledges the IMF number there's absolutely no reason to believe that Ottawa will be making much of a dent in the subsidy scam.

There's no reason to think that he'll still be in charge by 2025 in any case and, besides, it's just a promise. We've heard a lot of promises from that fellow and we've learned that he doesn't always come through on his word.

As for America? Dream on.........

The IMF numbers are a pipe dream. Probably a crack pipe.

 

[Angstrom]

I thought all the investors had already pulled out all their money? **** em. Let's pull out government funding too :lol:

Let's subsidize something we want to phase out :lol:

 

[tay]

First I ever heard of a fossil fuel subsidy from the feds. Is it possible whoever wrote this article does not know what a subsidy is?

Well then there is nothing for the G7 to cut even though the G7 agreed to cut the subsidies.

Now as someone with the handle taxslave I would have thought you would be applauding this move as it may mean your taxes may go down.

Let's roll back to 2010 and see what the discussion was of the G20.....


The Alberta government's production subsidies were worth $1.1 billion, while Saskatchewan helped with $327 million, and Newfoundland and Labrador gave $83 million worth of relief.

At the same time, Canada has committed at the G20 to getting rid of fossil-fuel subsidies, since they distort markets and cause wasteful consumption of energy. It's one of the few commitments the G20 has made to tackle climate change.

The topic will surface again next week when Prime Minister Stephen Harper attends the G20 summit in Seoul.

Last spring, the Finance Department recommended that Harper take a strong stand, as host of the Toronto G20 summit, and unilaterally eliminate federal fossil-fuel subsidies.

Officials argued that the government would save money, be true to its principles of not interfering in the free market, and also show a dedication to fighting climate change.

Harper rejected the advice, and instead has highlighted the fact that his government is phasing out accelerated capital-cost allowances for the oilsands.

The development institute finds 63 remaining subsidy programs in Canada -- mainly a mix of tax breaks and royalty reductions meant to increase exploration and development.

Canada's oilpatch subsidies said to total $2.8B | CTV News


And to a 2015 report

It shows that Canada's total federal and provincial support for the petroleum industry was close to $2.7 billion US ($3.6 billion Cdn at current exchange rates) in the 2013-14 fiscal year, with federal subsidies accounting for roughly $1.6 billion US of that.

The report says at least another $2.5 billion US of taxpayers' money also goes to petroleum companies working in other countries through Export Development Canada "and may be significantly higher."

G20 countries spend $450B a year on fossil fuel subsidies, study says - Politics - CBC News

 

[MHz]

They are still making profits.
Big Oil's most profitable quarter ever: $51.5 billion - ABC News

 

[Retired_Can_Soldier]

So petros was wrong again lol

Try not to cry. You're embarrassing all the Nimby's.