‘A stronger Alberta:’ Ottawa announces $1.6B for Canada’s oil and gas sector

Price of Alberta oil plummeted so low that Alberta’s Premier said Canada was practically giving it away

Ottawa is spending $1.6 billion to help struggling energy companies stay afloat, buy new equipment and diversify as Alberta grapples with bargain basement oil prices.

Natural Resources Minister Amarjeet Sohi says $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.

Sohi says a further $150 million is to be used for clean growth and infrastructure projects.

The package does not include money for more rail cars that Alberta is planning to purchase to help move a glut of oil behind the low price of Canadian oil.

Sohi says the money, largely in the form of commercial loans, is available immediately.

READ MORE: Speaker at rally says Alberta oil ‘puts tofu on the table in Toronto!’

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

The price of Alberta oil plummeted so low last month that Alberta Premier Rachel Notley said Canada was practically giving it away. While the world sells its oil at about $50 a barrel, Alberta’s oil at one point fetched only $11 a barrel.

Notley plans to buy as many as 80 locomotives and 7,000 rail tankers — expected to cost hundreds of millions of dollars — and has announced an oil production cut to begin next year. That has helped push the price back up.

She has said Canada’s economy is still losing as much as $80 million a day because of the discount.

“We understand that for the long-term success and growth of the oil sector, nothing is more important than building the pipeline capacity to expand our non-U.S. global markets,” Sohi said.

The Trans Mountain expansion project, which would triple the flow of oil to the British Columbia coast, is in limbo despite being approved two years ago. Ottawa is revisiting the potential impacts on First Nations and B.C.’s marine environment.

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

Summerland parks remain open for passive use

Users urged to maintain physical distancing to slow spread of COVID-19

Central Okanagan property crime map released

Crime Stoppers releases a report of property crimes across the Central Okanagan for March

Opinion: Thank you, together we can get through

Thanks for staying at home as much as possible, thinking of others as we combat this terrible virus

West Kelowna man charged in relation to cannabis grow robbery in Sicamous

Two suspects remain at large; police believe they left the robbery scene in a white hatchback

Cougar caught on camera in Lake Country

A Lake Country resident caught a cougar prowling near their home

Okanagan Indian Band asks visitors to ‘stay away’ during COVID-19

Chief and council asks non-residents not to visit OKIB reserve lands during the pandemic

Would-be visitors to Shuswap over the long weekend asked to stay home

Regional district follows provincial health officer’s lead in telling citizens to stay put this Easter

Shuswap’s Salty Dog Enduro mountain bike race postponed to 2021

Organizers follow direction from provincial/national bodies to cancel May event

B.C.’s COVID-19 rent supplement starts taking applications

$300 to $500 to landlords for April, May and June if eligible

Central Okanagan School District provides nearly 7,000 meals to students

Families collect the entire week’s supply of breakfasts and lunches at once to minimize contact

Kelowna cannabis company moves to hand sanitizer production

The Valens Company plans to distribute 40,000 sanitizer bottles to frontline workers across Canada

B.C. unveils $5M for mental health supports during the COVID-19 pandemic

Will include virtual clinics and resources for British Columbians, including front-line workers

B.C. First Nations Health Authority launches virtual doctor program

Program to provide primary health care through COVID-19 pandemic

Most Read