‘A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy sector

‘A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy sector

A further $150 million is to be used for clean growth and infrastructure projects

Alberta Premier Rachel Notley says Ottawa’s new $1.6-billion aid package for the oilpatch will help, but is essentially tone deaf and won’t fix the pipeline bottleneck crippling the province.

“We don’t need help finding more markets. We need help moving our product, and I don’t know that we could have been much more clear about that,” Notley said Tuesday in Calgary. “Offering Alberta business owners and industry the opportunity to go further in debt is not any kind of long-term solution.

“Especially not when we are a province and we are talking about an industry that is very good at being profitable if given the freedom to do so.”

Federal Natural Resources Minister Amarjeet Sohi announced the package in Edmonton Tuesday. The money, largely in the form of corporate loans, is aimed at helping companies stay afloat, buy new equipment and diversify.

“We understand that when Alberta hurts, so does Canada,” said Sohi. “Together we can build a stronger Alberta (and) a more prosperous Canada.”

Sohi said $1 billion is to be set aside through Export Development Canada for oil and gas companies to make capital investments and purchase new technology.

Another $500 million is to be made available through the Business Development Bank of Canada over the next two years to help smaller oil and gas companies navigate the downturn.

A further $150 million is to be used for clean growth and infrastructure projects.

No one from Notley’s government was at Sohi’s news conference. Notley called the announcement a start.

“We’ve heard from some small producers that this will help them get access to capital in trying times and perhaps tide them over, but it is not entirely what they were looking for, too,” she said.

Tim McMillan, CEO of the Canadian Association of Petroleum Producers, said the industry appreciates federal recognition of the oilpatch problems, but said it didn’t ask for money under federal government programs.

“We’re a job-creating industry and an investment attractive industry if we can get our fundamental building blocks right and that’s what we’ll continue to push for,” said McMillan.

Political opponents dismissed the money as a politically motivated and ultimately ineffective gesture.

“Today’s handout is nothing more than a desperate, election-year attempt to trick western Canadians into thinking (Prime Minister Justin Trudeau) cares,” said federal Conservative Leader Andrew Scheer.

READ MORE: Alberta buying its own rail cars to move oil without feds, Notley says

“He is trying to save a handful of Liberal seats, nothing more.”

Alberta United Conservative Leader Jason Kenney agreed.

“This announcement is too little, too late for those families suffering as the result of the Trudeau government’s anti-oil-and-gas agenda,” he said.

Randy Ollenberger, a financial analyst who covers major oil and gas firms for BMO Capital Markets, said the programs will likely be used only by very small companies and are unlikely to have a meaningful effect on job creation.

“If you can’t physically export (oil or gas), what difference does it make?” said Ollenberger. “This is a globally traded product and we just have to be able to move it to that market.”

Alberta has been roiling of late as the double whammy of pipeline bottlenecks and low prices threaten to further eviscerate its fountainhead industry, which has already endured a prolonged slump.

In recent days, there have been demonstrations and protests around the province, demanding Canada step up to help Alberta’s oil industry given its broader beneficial impact on the national economy.

Demonstrators have also slammed Trudeau’s government for failing to take meaningful action on pipelines, although Ottawa recently purchased the $4.5 billion Trans Mountain pipeline expansion — which would triple its capacity to the B.C. coast — to ensure it gets built.

Those demonstrations have included so-called yellow vest protesters. Some of those demonstrators came to Sohi’s news conference, standing in the back, videotaping the speech, and muttering their displeasure.

“While we understand the (public) frustration … these investments that we are making today will ensure that businesses continue to thrive,” said Sohi.

“The lack of ability to build pipelines in Canada is something we’re trying to fix.”

In recent weeks, Notley has ordered Alberta oil companies to cut production to prop up prices, and has called for Trudeau to help the province buy more rail cars to get oil to market in the short term.

Sohi’s package does not include money for that, and Ollenberger wondered why.

“They would have been better off to say, ‘We’ve got a billion and a half dollars, we’re going to put it to railcars,’” he said.

Dean Bennett, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A map released by the BCCDC on Jan. 15 shows the number of new COVID-19 cases reported for each local health area between Jan. 3 and 9. (BCCDC Image)
Salmon Arm and Vernon see increase in new COVID cases, curve flattening elsewhere

The rate of new cases is levelling off in Kelowna, Penticton and Revelstoke.

The Premier Hotel on Summerland’s Main Street and the taxi were owned by Bill and Lydia Johnston. Today, the building is Sass Fashions in Summerland. H.S. Kenyon, who moved the building to Summerland from Midway, continued with building construction. His family now operates Greyback Construction. (Photo courtesy of the Summerland Museum)
Two former Summerland hotel buildings have been moved over the years

Transport of buildings is part of community’s history

Interior Health update. File photo.
86 new COVID-19 cases, two more deaths in Interior Health

The new deaths are from Heritage Square, a long-term care facility in Vernon

Caroline McKay
COLUMN: Bring books out of hibernation for the new year

Plenty of lesser-known works from famous authors available from the library

Nate Brown photo
Okanagan-Shuswap says goodbye sunshine, hello winter

Temperatures are forecasted to drop by mid-next week

Keith the curious kitten is seen on Nov. 4, 2020 at the Chilliwack SPCA. Friday, Jan. 22, 2021 is Answer Your Cat’s Questions Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Jan. 17 to 23

Answer Your Cat’s Questions Day, Pie Day and International Sweatpants Day are all coming up this week

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targetted shooting Saturday morning

The organizer of a Kelowna protest against COVID-19 restrictions was fined by the RCMP for the third time Saturday, Jan. 16, 2021. (File photo)
COVID-19: Organizer of Kelowna anti-restriction protest ticketed for third time

The individual’s latest ticket for $2,300 was handed out by RCMP at an anti-lockdown rally Saturday

Mount Boucherie Secondary School is one of three Kelowna schools with confirmed cases of COVID-19, according to an update from the school district Saturday, Jan. 16, 2021. (File photo)
COVID-19 confirmed at 3 Kelowna schools

Interior Health has confirmed exposures at Mount Boucherie, Springvalley and South Rutland schools

Half of the most expensive homes are on 2080 Mackenzie Crt, which is across the street from Revelstoke Mountain Resort. (Liam Harrap/Revelstoke Review)
The 10 most valuable homes in Revelstoke for 2020

Combined, the properties are worth more than $35M

Lake Country native Evan-Riley Brown is in the cast for the new film Journey To Royal: A WW II Rescue Mission to be released on video on demand and streaming services on Feb. 2. (Contributed)
Okanagan actor lands role in WW II movie

Evan-Riley Brown, from Lake Country, cast in production labelled as hybrid of a feature film and documentary called Journey To Royal: a WW II Rescue Mission.

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)
More than 20 days have passed since the last case of COVID-19 was confirmed at Lakeside Manor. (File photo)
Salmon Arm retirement facility reopens social areas after COVID-19

More than 20 days have passed since last confirmed case at Lakeside Manor

A unique-looking deer has been visiting a Nanoose Bay property with its mother. (Frieda Van der Ree photo)
A deer with 3 ears? Unique animal routinely visits B.C. property

Experts say interesting look may be result of an injury rather than an odd birth defect

Most Read