Wednesday, November 10, 2010

Taxpayers Paying Half the Tab for Natural Gas to Process Tar Sands

You couldn't even dream of a cozier deal - let alone ask for one.

Big oil is running roughshod over Canadian and Alberta taxpayers, as well as the environment, with sweetheart natural gas deals that amount to a massive disincentive to use more environmentally friendly energy, says an article in the Tyee. The oil sands burn through 20% of the natural gas used in Canada. Why? Because we practically give it away to them.

The oil companies get to deduct the cost of fuel from their provincial and federal taxes. Then they get to "double dip" and deduct the same fuel costs from the royalties paid to Alberta.

Easy to see why there is zero incentive for any of these companies to use sustainable energy sources for processing the bitumen. Another reason why it's called "dirty oil" despite the promotional campaigns to the contrary.

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