‘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

VIDEO: Late-night Highway 11 crash in Abbotsford sends 2 to hospital

SUV crashes through concrete dividers on Aug. 5, 1 person airlifted out

UPDATE w/ VIDEO: Reported stabbing at Killer Cove in Harrison Hot Springs

Three suspects apprehended by Agassiz RCMP at the scene

Abbotsford girl, 5, hopes to raise $50k for Crystal Gala Foundation

Charlotte Charles is collecting cans and bottles to help local charity

Former Matsqui Mayor Dave Kandal dies

Kandal was key in the amalgamation of District of Matsqui and District of Abbotsford

Fraser Valley Bandits clinch first round bye with win

Bandits defeat Guelph 84-70, advance to the CEBL semifinals on Saturday

‘Do our lives count for less?’: COVID-19 exposes cracks in disability aid

In July, Parliament approved a $600 payment for people with disabilities facing additional expenses during COVID-19

Agreement between province, BC Hydro, First Nation, ends legal fight over Site C

B.C. will work to improve land management and restore traditional place names in areas of cultural significance

VIDEO: B.C. conservation officers free not-so-wily coyote with head stuck in jar

Poor pup was found with a glass jar stuck on its head in Maple Ridge

B.C. doctors, dentists call on province for mandatory mask rule

Open letter says masks should be worn in indoor public spaces, public transportation or in crowds

Dwindling B.C. bamboo supply leaves Calgary Zoo biologists worried about pandas

Zoo has been trying to send pandas back to China since May

Facebook launches its new TikTok clone, Instagram Reels

Facebook has a long tradition of cloning competitive services

Maple Ridge firefighting camp empowers young women

Camp Ignite to take place at Justice Institute on Sunday, Aug. 9

B.C. Appeal Court prevents Victoria woman from using the term ‘death midwife’ in her job

Pashta MaryMoon claimed she had been providing “death-care services” for more than 40 years

Most Read