Oil and Gas Division
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.
In 2006, 1416 wells were drilled in British Columbia. Total Crown revenue collected from oil and gas royalties, sales of gas rights, fees and rentals was $2.14 billion. Production of natural gas was 1.16 Tcf - the same high level as 2005. The sales value of oil and gas production was $7 billion. Industry investment was $6.1 billion.
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:
- Roads: Promoting better access to resources through Public Private Partnerships, royalty credits and direct government investment
- 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.
- Royalties: Targeted royalties focused on drilling deep, marginal and summer wells; and unconventional and new basins.
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.
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.
