19 Replies to “Subsidies for oil and gas? Really?”

  2. This needs to get out further. The government, eco-commies and Presstitutes have pushed the anti-oil and gas propaganda for a very long time.

  3. I have had arguments with people who claim that allowing O&G to write off expenses at all is a “tax subsidy”.

    These people are allowed to vote. Lots of them live in Toronto. They also believe electricity is made inside their walls, or perhaps in their electric meters.

    1. Fred, I’ve had arguments with the same type of idiots. Some, even, who were businessmen themselves & allowed to write off expenses.

      These people are too stupid to breathe. If it didn’t happen naturally for them, they’d have long been dead.

    3. I think the one that they have the hardest time understanding is “accelerated depreciation” which should be available to all businesses, but isn’t

  4. The NDP have been pushing this lie for as long as I can remember. It’s one thing for their low IQ, public sector union voting base to believe them, but their leadership has to know what they’re doing.

  5. When the O & G industry is the only thing canuckistan has going for it that keeps it out of the third world, many canuckistanians think that it is highly subsidised. By what? There is no other wealth being produced in canuckistan. If only you could export stupid, then canuckistan is the wealthiest country in the world.

  6. A friend way back got lost in the Arctic for a few days during a snow storm. Fortunately he was delivering diesel among other supplies. If he had an electric Cat he’d be dead. For as long as I’ve been alive I’ve heard how disgraceful it was that oil companies got to deduct “depletion allowances” and nobody else did. Every other business in the world deducts depreciation or amortization which is exactly the same thing. It is expensing capital assets over time as they are used up.

  7. We need a new country.

    The current Ottawa federal cliche is beyond stupid and evil.
    And we have decades of experience to cure of us any “Hope things will change”.
    For the current setup serves our Eastern Comrades very well.
    The Likes of Justine and all who enable him,will gloat and brag of their piety,while Western Canadians starve and freeze in the midst of plenty.
    And good old basic maths,should inform all..Can Ah Duh,the confederation of Lies,is bankrupt.

    In oh so many ways.

  9. I will repeat, govt. workers of any kind,don’t pay tax. that includes health workers,firemen and policemen. They are paid by taxes,they just give some back. The only way to tax govt. workers is to pay them less.

  10. The subsidy allegations all come from the socialist think tanks where basic accounting is lacking and central planning is in abundance. Accelerated depreciation (the only allegation, I’ve heard) is just a different form of matching revenue with expenses and all it changes is whether you pay income taxes sooner or later.

    The more critical and fearsome agenda is the whole “transition” BS. As someone who has seen this same BS deployed by governments in the forest industry, it is nothing but grease to slide in an anti-industrial agenda. It’s “teach them to code” with a few bucks thrown at them.

  11. The oil & gas industry does receive preferential tax treatment (it does), and this is referred to as a subsidy (which it is). This treatment is afforded only to oil & gas companies, so it is a preferential, industry directed subsidy. Known as the “Canadian Exploration Expense” (CEE) and “Canadian Development Expense” (CDE), the subsidy is to encourage oil & gas development by reducing the risk to those companies willing to drill in under-explored or new areas or where the chance of discovery is lower or a well is drilled that does not produce economically.

    From the link below…

    “The 2017 federal budget (Budget 2017) introduced on March 22 included proposals to amend the Income Tax Act (Canada) (the Tax Act) that will have a meaningful impact on the Canadian oil and gas industry. The proposals:

    – restrict the types of expenses that oil and gas companies may treat as “Canadian exploration expense” (CEE); and
    – eliminate the ability for certain junior companies to renounce expenses incurred as “Canadian development expense” (CDE) to flow-through share subscribers as CEE.”

    https://www.nortonrosefulbright.com/en-ca/knowledge/publications/6e56cbc0/new-rules-affecting-treatment-of-oil-and-gas-resource-expenses

    If you drill a well and bring it into production, you can deduct 100% of eligible expenses against revenue generated versus the normal 30% write-off afforded to other industries. Such costs include exploration costs, gaining access to the area (road construction) but do not include the costs of drilling the well.

    You can also write-off a well that produced no revenue.

    The important point here is that the oil company is only writing off their expenses against their revenue and not for all wells and not for all revenue. They are not getting money from the government, only lowering their taxable income (actually not even that – just speeding up their write-off, because at 30% the same amount of write-off would occur, just over a longer period of time).

    Imagine a world where this preferential tax benefit is eliminated (which the Liberals are in the process of doing). There will be less investment in new oilfields, less risk taken. This, of course, is exactly how the Federal Government intends to kill the oil & gas industry.

    A greater issue is the belief by many that oil & gas companies are not paying their share for polluting the planet with CO2. This is the other shoe. Make oil & gas production (in Canada at least) unprofitable by inventing a pollution tax that these companies must pay to remain in business.

    I don’t think these people have thought of the consequences of no oil & gas but that’s a different problem. But there are definitely subsidies in the oil & gas industry, and they’re well known.

    1. Oh they have thought of the consequences.
      Hence Blackie and Fat Ford announcing at the GM CAMI Plant today a venture that will , they think, lead to thd replacement of the ICE vehicle with a subsidized electric one.
      The Turd said that the Federal .gov will be banning all new IC engines going forward from 2035.
      What oil company in their right mind would invest resources now , into any oil producing or refining operations, knowing that they may not get their investment back.
      Their shareholders would sack the entire C Suite.
      Hence they will probably run the existing infrastruture into the ground to maximize profits with a dwindling supply pushing up prices beyond what the average Joe can afford.

      Fidels Number One Son has visions of the peasants walking, the former middle class riding a bike and the Elite Overlords using those electric vehicles and oil supplies for jetting around the world plus supplying their private food plantations with all the goodness that comes from said oil.

      Remember you will have nothing and like it, or else.
      Enjoy the Starving Games.

    2. All expenses in all industries are written off against revenue eventually. Inputs immediately and capital expenses according to various schedules depending on weather the asset has a longer or shorter life. On the farm a combine is written off quicker that longer life assets such as a bin or a shop. This is true of all other industries. The O & G industry does this as well with different types of assets. There are no subsidies involved here. Almost all of canuckistans wealth is generated by the O & G industry. Agriculture contributes a little but we do import and export quite a lot. A bit of forestry but what else is there? Ontariowe manufacturing is a joke and totally dependent on subsidies as evidenced in Ingersoll today. Otherwise you have the parasitical banking industry. Finance, insurance and real estate is almost 30% of the economy but will not be much longer as the meltdown continues.

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