This report, commissioned by the Climate Action Network Canada, identifies and quantifies federal government expenditure on Canada's oil and gas sector. It also investigates both federal and provincial support for oilsands developments. In 1996, total government expenditure on the oil and gas industry was $1,085 million. By 2002, that number had increased by 33% to $1,446 million. Total expenditure over the 1996 to 2002 period was $8,324 million. This increase in expenditure is at odds with the need to reduce greenhouse gas emissions as part of Canada's Kyoto commitment. The report contains a series of recommendations for reforming public expenditure on the oil and gas industry.