The B.C. government auctioned off $1.74 million in oil and gas parcels at its November land sale, continuing a weak year for provincial oil and gas revenues.
Land sales have been consistently low in 2015 following a collapse in oil prices, leading to diminished appetite for exploration.
Compared to 2014, this year's land sale results are anemic.
Last November saw $209 million in drilling licence sales, with eight parcels totaling 28,800 hectares. That month, the average price sat at $7,267 per hectare.
This November: five parcels, $666 per hectare, 2,622 hectares.
Total sales this year sit at around $11.84 million compared to $383 million in 2014. The best year in recent history for land sales was 2008, when oil and gas leases added $2.4 billion to the provincial treasury. The previous low came in 1982-83, with just $17 million.
The licences provide the exclusive right to drill for gas on a given parcel, and are issued for terms of three, four or five years. They are considered an economic indicator for future exploration activities.
The market for drilling licences in Alberta remains soft as well. The province sold $2.47 million in its recent land sale—reportedly the lowest collected from a single sale since 1995.
