Natural gas overtaking forestry as top contributor to B.C. government’s resource revenue

By Brent Jang
The Globe & Mail
March 6, 2024
Category: Finance & Economics
Region: Canada, Canada West

The natural gas industry is poised to take centre stage in BC’s economy and overtake the forestry sector as the largest contributor to the province’s resource revenue. The provincial government is counting on rising revenue from the royalties paid by producers of natural gas in northeastern B.C. to soften the blow of a stagnant forest industry. …In the current fiscal year, forestry revenue is expected to reach $691-million, while natural gas royalties should come in at about $684-million. …Linda Coady, COFI president, said the annual allowable cut has dropped 42% in recent years. …Forestry consultant David Elstone noted that the B.C. government’s budget released on Feb. 22 is forecasting that tree harvesting could flatten at 32 million cubic metres annually from the current fiscal year until 2026-27. Mr. Elstone said the province’s outlook for the annual allowable cut to become static “seems hard to believe” given the downward trend in harvest levels. [to access the full story a Globe & Mail subscription is required]

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