About Me-email is... grant.go@aol.com

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garden bay, west coast, Canada
persistent digging,never say never

Monday, January 18, 2016

British Columbia LNG Industry Falls Under The Weight of a B.C. Thriving High-Tech Sector







Patti Bacchus@pattibacchus 3 hours ago
Is the push to get students into LNG-related trades now going to shift to tech sector? That was quick. theglobeandmail.com/technology/bc-
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I wrote years ago(may 7th 2013) in this post...



I wrote...

Written by Grant G

            What is going on with LNG for export development in British Columbia, it really is an important question?

For several years at least we have been hearing about our financial saviour in waiting, the LNG industry, in the last year this fledging industry`s rosy forecast have been front in center in expensive ad campaigns, the promise of a need for millions of workers, the promises of $trillions of dollars in revenue, numbers so large, numbers so lucrative that soon our roads will not only get the potholes fixed but be repaved with gold, wealth beyond our dreams, who needs "chump-change" tar sand coinage when British Columbia can start our own mint fueled by natural gas..

Why the delay, why the holdup, for years LNG producers have been talking a good game and they really have spread LNG promotional sauce liberally over the last 18 months, so why is nothing happening, why indeed..

Companies pitting countries against each other, the race to the bottom, who will giveth the most, who will look the other way while corporate corruption skews the books, plays the field and creates another corporate welfare industry......

Let`s look at Australia, $100s of billions of dollars have been and are being invested in LNG export terminals and related facilities, every LNG project from every company doing business in Australia, every single project is and has gone over-budget by 30%..40%..50% even by 100% in some cases...A Chevron LNG plant build, Chevron`s Gorgon LNG plant has ballooned from a $30 billion dollar build cost to now an estimated $60 billion dollars plus..And Chevron isn`t alone, every company building similar facilities have seen similar cost over-runs..Coincidence, bad luck, how about deliberate guile and deception, how about corruption, ingrained systemic corporate corruption..

What if I told you the Australian Government pays 30% of all LNG capital costs, meaning company X building an LNG export terminal in Australia, they budget $30 billion dollars for the build, $10 billion dollars of that money comes back to the company as tax breaks and or subsidies, and just imagine if the corporate petroleum industry and their many partners colluded to bring build costs up, and up, and up, projects all running 40%..50%..60%..100% over budget, with winks and nods and corporate guile company X doesn`t receive $10 billion dollars back from the $30 billion dollar build but receives back from Government(public tax dollars) a sum of $34 billion dollars on an inflated $100 billion dollar build..In a sense, systemic corporate corruption has found a legal loophole to have the general public in Australia pay for the entirety of the LNG plant builds...!

With a wink, with a nod, supplier A doubles his prices, producer Q triples his cost, all
bills flow to the general corporate contractor where this excess gravy is skimmed right back to the general corporate builder.... It`s a ponzi scheme, exactly what is going on in the Alberta tar sands, the more oil production being done the financially poorer the province gets, British Columbia LNG exporters want in on the action,....

http://powellriverpersuader.blogspot.ca/2013/05/christy-clarks-lng-fantasy-reality-check.html

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The reason I posted a snippet from that 2013 article is thus....My crystal ball was correct..

 British Columbia LNG Industry Falls Under The Weight of a B.C. Thriving High-Tech Sector

The article below was  assembled by Grant G

I ran across this article.....Western Australia's LNG aspirations aren`t quite panning out they way Australia's politicians and industry spindoctors envisioned...Imagine that...


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IEA says profits are a pipe dream for $200b worth of Australian LNG projects.


Six liquefied natural gas projects under construction at a cost of $200 billion will struggle to break even because of the oil price slump, the International Energy Agency said, and there is little prospect of three in the planning stage going ahead.

The agency said even if oil prices recovered and averaged $US60 a barrel for the next few years, Australia's LNG industry – one of the world's biggest – will struggle to be profitable.
"In a $US60 oil environment the Australian projects will continue, but you are probably not breaking even," the IEA's senior gas expert, Costanza Jacazio, said in an interview from Paris. "Will anything else in Australia proceed beyond this next portion of projects? I think in this environment it is very unlikely."




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But there is so much more going on in Western Australia...All those operating LNG plants, with even more LNG liquefaction terminals under construction....Surely Western Australia must have their coffers stuffed to the brim...ah, perhaps not.

Western Australia's debt in 2009/2010 was....$9.90 billion...]

  • 2010/2011 Western Australia's debt rose to ...$12.03 billion..
  • 2011/2012 Western Australia's debt rose to....$14.52 billion
  • 2012/2013 Western Australia's debt rose to....$18.19 billion
  • 2013/2014 Western Australia's debt rose to....$27.75 billion
  • 2015/2016 Western Australia's debt rose to....$31.00 billion
And guess what....

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Western Australia's Debt to peak in 2017-18 at $36.2 billion

Debt remains a major challenge for the Government and will peak in 2017-18 at $36.2 billion, before easing slightly the following year to $35.7 billion.
Rating agency Standard and Poor's said the budget had not changed its WA credit rating of AA+ with a negative watch.



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Look fellow British Columbian's...Christy Clark, Rich Coleman and the entire BC Liberal team of scofflaws sold BCers a bill of goods...A 2013 election gambit where Christy Clark told BCers we would receive this from LNG...

Let Norm MacDonald tell us what Christy Clark promised British Columbia voters in 2013(election year).....Norm MacDonald wrote the below factual statement on January 14th/2016...A couple of days ago..

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MLA Report, by Norm Macdonald


The New Year is always a time to reflect and re-evaluate, and as your representative to the Legislature, I’ve been thinking a lot about public policy and public spending.


The BC Liberals promised a Liquefied Natural Gas (LNG) industry that would create 100,000 jobs, an end to sales tax in B.C., a trillion dollars in economic activity, the elimination of the provincial debt and a $100 billion Prosperity Fund, with up to 17 LNG plants, the first to be up and running in 2015.

Turns out that none of those promises were real; the BC Liberals have failed to deliver on every count.

Instead of debt elimination, or even reduction, our debt under the BC Liberals has grown from $30 billion up to $165 billion, with more debt to be accrued.

And now with LNG stalled, Premier Christy Clark is placing all our economic hopes on the Site C dam project, which likely will cost more than $10 billion to build.

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Western Australia, the home of all those LNG liquefaction terminals are racking up big public debt..

Perhaps Western Autralia's politicians are lavishing gifts upon the local populous....

Perhaps not!

Let's talk about all the Western Australia asset sales..you got it, just like the BC Liberals western Australia is selling public assets to help keep the ballooning debt under control...Ain`t working too well is it..

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The West Australian Government will unveil a new round of public asset sales in the state budget on Thursday.


Premier Colin Barnett has indicated there would be some "unexpected" asset sales as the state seeks to fund ongoing capital works and claw back its rising debt levels.

Ports in Kwinana and Port Hedland, along with 20 parcels of government land had already been marked for sale.
It has also talked up its intention to sell WA's TAB, the government-owned betting agency.

But with returns from those sales likely to be lower than expected, and a continuing program of capital works, the Government has cast the net wider.

"I think perhaps a little unexpected but clearly we do need to sell some assets for two reasons; one, to have the funds to invest in further government assets, we are a growing state, and also to reduce some of the debt levels," Mr Barnett said.

He said the Government would add new assets to the sales list, but he did not expect any significant impact on the public.

"I don't think the public would be greatly concerned," he said.
"If they have a concern, it's to ensure that any money raised from asset sales is well spent on further assets that only the Government can build and also used to retire debt."

http://www.abc.net.au/news/2015-05-12/premier-flags-further-asset-sales-ahead-of-budget/6463178

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Let me see if I have this correct...The Western Australia Government claims it is selling Government/public assets so it can fund the building and creation of MORE Government assets..

Amazing, I wonder if Christy Clark and Mike De Jong have relatives working in the Western Australia Government...We`ve seen this play before right here in B.C....Public assets sold for pennies on the $dollar..

Ok...So who needs to own those cumbersome assets...they are really a hassle to take care of..

At least the Western Australia Government isn`t raising every fee like the BC Liberals..You know..

ICBC rates being raised again..Ferry rates being raised again..BC Hydro rates being raised again..MSP premiums being raised again..Liquor taxes..Sin taxes..Wheelchair fees..Tuition increases.. ...Christy Clark...What a sweetheart..remember her 2013 election slogan, I do, and I quote..

"Families First"

For the life of me I don`t see British Columbia families getting anything first except the shaft...All the while the family of BC Liberal operatives, cronies and party donators are scoring big, big assets for the price of pennies...

But what about the land of Oz..Dat downunder place, is the Western Australia Government hammering Western Australia families with fee increases too...Indeed they are..

This next bit below was reported some time ago in this Straight Goods posting..

http://powellriverpersuader.blogspot.ca/2013/12/british-columbias-lng-nightmare-devil.html


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WA Budget: Premier Colin Barnett says state government has 'no choice' but to raise taxes



WA Government denies broken promises in budget










The WA Government concedes the state has a 'problem with debt', in handing down its first budget since the state election in March.

The Barnett Government expects to post a surplus of $386 million over the 2013/14 financial year, with debt predicted to rise to $22 billion. By the 2016/17 financial year, debt is expected to blow-out to $28.4 billion.

The Government has confirmed it will break two of its big-ticket election promises by not delivering its MAX light rail and airport rail link in time by its self-imposed 2018 deadline.
Instead, it has now given both projects an 'anticipated completion' in 2019.


As part of the Government's so-called Fiscal Action Plan,
there will be a 12.5 per cent across-the board increase in land tax rates from 2013/14. This is expected to raise a total of $338 million over the four years to 2016/17.

The plan also includes the introduction of an ongoing program evaluation in the public sector, with targeted savings of $350 million over the next four years.


 
Private motor vehicle registration fees will also jump a further $36 a year from January next year, after Mr Buswell revealed the Government will halve the $72 concession it currently provides. This is expected to raise an estimated $155 million over the forward years.


In a bid to save money, the Government will also target the popular solar feed-in tariff scheme, with Mr Buswell describing the current 40 cent per kilowatt customer payment rate as "overly generous".
From 1 October, the rate will drop to 30 cents and by 1 July next year it will reduce to 20 cents.

Mr Buswell also confirmed there will be changes to the State's first homebuyers' grant scheme.
Currently the Government provides $7,000 for purchases of both new and established properties. Under the changes, the grant for established homes will drop to $3000...

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Western Australia credit rating downgraded..
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WA loses its AAA credit rating as revenue declines and debt blows out



http://www.abc.net.au/news/2013-09-18/wa-loses-aaa-credit-rating/4965982

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Ok, credit rating downgrades after 10`s of $billions in LNG investment, Western Australia has been exporting natural gas for decades, Western Australia is the petro-state of Australia..

We need to see and learn the lesson of this Dutch Diseased petro state, ...

Back in 2008 a "
Royalties for Regions" program was created...25% of the state`s mining and petroleum royalties would be set aside for the rural areas, ...

One might consider Christy Clark and the BC Liberals proposed "
prosperity Fund"  with promises of hundreds of $billions of dollars for future generations, all that money to come from LNG revenue..

Well eat my shorts...Western Australian Government is reneging on its commitment to the fund and is actually raiding the fund to try and get a handle on its ballooning debt..

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WA’s Royalties for Regions in the firing line


The fund was for regional spending above and beyond traditional government expenditure. Royalties for Regions is now enshrined in legislation.

But Mr Grylls, who is Regional Development Minister, said on Wednesday:

 “You will see changes to the [Royalties for Regions] program in our budget that recognises that the debt levels are pushing to a level we are concerned about.”


Mr Barnett told ABC Radio that Thursday’s state budget would be a “responsible budget fitting the timesand hinted there could be further increases in charges, after utility charges, motor vehicle fees and public transport fares had already risen.


Since its inception Royalties for Regions has paid for everything from a $250,000 talking-musical public toilet to a $1 billion promise to convert Karratha and Port Hedland into advanced regional cities. Last financial year $1.2 billion was allocated to Royalties for Regions, with a further $4.7 billion expected in the coming four years.

But the program is yet to spend its 25 per cent royalty allocation entirely because it has succumbed to an “efficiency dividend” since 2009, hiving off a portion of expenditure.

The government may look to use Royalty for Regions funds, or funding previously quarantined under the “efficiency dividend”, to finance agricultural election promises.

The Nationals promised $300 million over five years to improve infrastructure, and for research and development and marketing. The Liberal government committed more modest expenditure, including $20 million for a biosecurity fund and a similar R&D fund.


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So not only is the Western Australia Government despite massive LNG investment and record natural gas exports drowning in debt, they are assaulting and scooping back royalties that were promised to rural areas as an appeasement for fracking and major industry, Western Australia has had their credit rating downgraded...Taxes have been raised on home-owners, car insurance, grants taken away, taxes taxes and more taxes and now the Government is dipping into the once shielded royalty monies promised to rural areas..

The Western Australian recently elected Government has also reneged on almost every election promise made...Check out this shocking list of WA Government`s broken election promises..



 http://www.brokenpromises.org.au/


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Again, all that was reported and documented in this Straight Good's posting..


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Western Australia' "royalties for regions" program is their version of a "prosperity fund"..

The WA Government reneged on those promises and with the LNG industry in the dumper don`t expect any contributions in the near future...Guess what else is coming due in Western Australia..?

That`s right...All those expensive LNG liquefaction terminals get to write-off their build costs against taxes owed...But but but...Since those operations will be losing money not only will they be paying zero tax they will also be claiming tax credits and....And they`ll be deferring future tax liabilities against their present financial losses...

In other words, all Western Australia gained with those LNG terminals being constructed was short term employment....

Those down-under folk will now be paying through the nose with new taxes and fees, and they`ll be seeing public assets sold....Sold for the stated purpose of raising money for new assets...

Christy Clark...Are you sure you aren`t advising the Western Australia`s Government on how to sell the public bafflegab?....  

I'm not too sure how much longer the BC Liberals can keep the LNG spin and bafflegab going...However..

It looks a new BC Liberal 2017 gambit is being created...Bring on the high-tech industry $100 billion dollar prosperity fund..

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The B.C. government will unveil plans Monday to introduce computer coding in its school curriculum, addressing a chronic skills shortage in one of the few areas of the Canadian economy that is doing well – technology.

Premier Christy Clark will announce the change as part of a broader strategy to deliver more support to the province’s tech sector. It’s a shift for a government whose economic agenda has largely focused on natural resources, though B.C.’s flourishing tech sector employs 86,000 people – more than forestry, mining and oil and gas combined. The government unveiled the first piece of the strategy last month, creating a $100-million venture fund to finance startups.

 http://www.theglobeandmail.com/technology/bc-government-adds-computer-coding-to-school-curriculum/article28234097/

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Read this again...

"though B.C.’s flourishing tech sector employs 86,000 people – more than forestry, mining and oil and gas combined"

So, BC`s high-tech industry employs more people than mining, forestry and oil n gas industry combined..

I have a sneaking suspicion that LNG is about to fall off the BC Liberal's talking points cheat sheet..

The real story on the future of BC`s LNG industry is here..





The Straight Goods

Cheers Eyes Wide Open 






6 comments:

Anonymous said...

"The Western Australia Government claims it is selling Government/public assets so it can fund the building and creation of MORE Government assets."

Sad, but true.

We are seeing the same thing here in Penticton where the local council is madly selling/leasing public parks that took over a 100 years to assemble piecemeal. Waterslides, restaurants and casinos are fine and nobody is against them, but there is NO need to for public land to be used when there are acres and hectares of suitable brownfield sites. O0opz, that would cost real money.

Now we find our public electrical utility has been starved of upkeep and will be sold for a song like Kelowna's was.

Anonymous said...

with dollar over 1.40 reducing tax deduction for media tv/movie production worth condsidering.

and a home empty tax

http://www.theglobeandmail.com/news/british-columbia/bc-professors-call-for-property-surtax-on-vacant-vancouver-housing/article28235302/

Hugh said...

If exporting LNG would supposedly eliminate BC's debt, one would expect Australia's debt to be shrinking, not growing, since Australia is now a major exporter of LNG.

Anonymous said...

Maybe it's just me... but every time I see that image of "her highness" she reminds me of an inflatable 'adult party doll'

(with apologies to real, adult inflatable party dolls everywhere for this unfair comparison)

Hugh said...

"Clark turned down the plan, saying using taxes to drive down prices could hurt current homeowners by reducing their equity."

Um, yeah, isn't that the plan, to drive down real estate prices?

http://www.cbc.ca/news/canada/british-columbia/bc-real-estate-tax-housing-prices-1.3409587

Grant G said...


This picture

http://static1.1.sqspcdn.com/static/f/896709/12525586/1307076748443/blow-up-doll.jpg?token=Sd%2BmF7GFOFMARsgpilx1Xa4kbFQ%3D


is dedicated to the 10:36 pm anonymous commenter....May I add this....personally speaking, I believe the blow-up sex doll would make better judgement calls and definitely govern our province better than Christy Clark!

@Hugh...

Did you really think Christy Clark was going to shut down the Chinese money laundering?

BC Government is raking in tons of cash...

You Hugh, and every other lower mainland resident...Vancouver..Burnaby..Richmond is gone..And it ain`t coming back..

Local British Columbia people(whitey) gets to keep the interior, the north and Vancouver Island..

Deal with it...

Cheers