Quote:
Originally Posted by Doug
Also, doesn't BC's carbon tax make LNG unattractive? Liquefying natural gas consumes ~20% of the energy in the gas, which is far worse than oil sands production.
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I think the BC carbon tax is good and creates an incentive to be more efficient and cut carbon emissions. Currently it sits at $30/t of emissions, which I have read will result in a carbon tax bill of ~$200 million per year for a typical two-train LNG terminal using natural gas-fired compression. It will be less if they are more efficient (or use Hydro).
The carbon tax collected of course results in a corresponding income/corporate tax cut (the BC carbon tax is revenue neutral and cannot be used to fund government programs).
As far as ERoEI for LNG vs Oil Sands - I doubt the oil sands are any better, they certainly consume massive amounts of natural gas (1.4 to 1.6 bcf/day by 2015 and rising), require a large amount of heavy mining and processing equipment and use lots of water. I think in the end, after being mined, extracted and refined to a usable fuel, oil sands are around 3:1 (energy returned on energy invested) on average for all production. No?