Tuesday, March 19, 2013

Norm Farrell Is Back...With Numbers And Everything!


This time Norm demonstrates, unequivocally, why all that 'A Sparkle Pony and A Unicorn Under Every Bed' blather from Mr. Clark and her Strate(r)gic Surrogates regarding their 'prosperity fund' is nothing but pure, unadulterated codswallop.

How does Norm do it?

Well, essentially, he demonstrates how the early bulge of the frack-glut has already driven provincial revenues from natural gas to the floor during a period when production has gone up significantly.

And, as Norm's graphs also make clear, this is NOT just a short-term, post-recession thing.


Will, say, Ms. Pamela Martin be retracting her crazy statements about trillion dollar windfall that is supposed to spring forth from LNG sales anytime soon?


Somehow I doubt it.

Even if North Van's Grumps is NOT (quite) right about Ms. Martin's 'real' mission.




Anonymous said...

Booze is taxed at a flat rate by volume when created - up front cost for the producer.

Gas is taxed as a percentage of its sale price - no carry cost to the producer.

Northeast coal is the lesson here. Japan financed coal mines all over the world to drive the price of coal into the dirt - it worked and Tumbler Ridge went bankrupt.

Now we have everybody fracking, the price of gas is tanking from excess demand, and our provincial prorated take is falling through the floor.

RossK said...



And, what's your take....going to get better or worse?


Anonymous said...

As long as our take is tied to the market BC's gas revenues will suffer.

Global demand for gas will easily be met by supply coming online via fracking - we're killing our aquifers with poison.

RossK said...


Good points.