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

‘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

The realignment of Highway 14 between Connie and Glinz Lake roads in Sooke will take more than a year to complete. (File - Sooke News Mirror)
The realignment of Highway 14 between Connie and Glinz Lake roads in Sooke will take more than a year to complete. (Kevin Laird - Sooke News Mirror)
Patience requested from drivers as work begins on realignment of Highway 14 in Sooke

Construction between Connie and Glinz Lake roads expected to take 1½ years

A spokesperson for the Peninsula Country Market is upset that their third and final Winter Market won’t happen this Saturday in Central Saanich’s Centennial Park following moves by the municipality. (Facebook/Peninsula Country Market)
Central Saanich postpones weekend Winter Market, organizers upset

Lorea Tomsin said municipality’s move runs counter to provincial direction

As cyclists and pedestrians pass by at Humboldt and Government streets, a garden of blooming black-eyed Susans brightens up the northwest corner of the Fairmont Empress Hotel property on a partially sunny November afternoon. (Don Descoteau/News Staff)
Keep your umbrella handy for the next while around Greater Victoria

November has lived up to its reputation as one of the rainiest months of the year

Victoria-Swan Lake MLA Rob Fleming moves to the role of transportation minister in the NDP’s new cabinet. (B.C. government file photo)
Greater Victoria MLAs claim key roles in new cabinet

Transportation, Indigenous relations, children and family development ministries headed by locals

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. sets another COVID-19 record with 887 new cases

Another 13 deaths, ties the highest three days ago

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Nov. 24

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Police in Nanaimo are looking for a suspect who wore a black-and-white striped hoodie and rode a yellow mountain bike when he allegedly stole three children’s backpacks from a daycare facility. (Photo submitted)
VIDEO: Thief steals children’s backpacks from daycare in Nanaimo

Suspect rode a yellow mountain bike and made off with backpacks hanging on fence

Arthur Topham has been sentenced to one month of house arrest and three years of probation after breaching the terms of his probation. Topham was convicted of promoting hate against Jewish people in 2015. (Photo submitted)
Quesnel man convicted for anti-Semitic website sentenced to house arrest for probation breach

Arthur Topham was convicted of breaching probation following his 2017 sentence for promoting hatred

Langley School District's board office. (Langley Advance Times files)
‘Sick Out’ aims to pressure B.C. schools over masks, class sizes

Parents from Langley and Surrey are worried about COVID safety in classrooms

The Klahoose First Nation village on Cortes Island is under lockdown until further notice due to a positive COVID-19 test. Photo courtesy Kevin Peacey.
Cortes Island First Nation community locked down due to positive COVID-19 test

Klahoose First Nation has had one positive test, one other potential case

Ladysmith’s 1st Avenue will be lit up until January 15. (Cole Schisler photo)
Light Up parade a no-go, but Ladysmith’s streets are still all aglow

Although the tradition Light Up this year was cancelled, folks can still enjoy the holiday lights

The baby boy born to Gillian and Dave McIntosh of Abbotsford was released from hospital on Wednesday (Nov. 25) while Gillian continues to fight for her life after being diagnosed with COVID-19.
B.C. mom with COVID-19 still fighting for life while newborn baby now at home

Son was delivered Nov. 10 while Gillian McIntosh was in an induced coma

Gracie couldn’t stop nursing from her previous owner’s goats which was problematic given the goats were trying to be dried out to breed. Gracie now lives at A Home for Hooves. (Sarah Simpson/Citizen)
Cowichan animal sanctuary gets international accreditation

A Home for Hooves farm sanctuary accredited by the Global Federation of Animal Sanctuaries

Most Read