‘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

Wet’suwet’en pipeline supporters speak up

“The protesters get one side of the story, and they stand up with their fists in the air”: Skin

Bachrach rejects calls for police action against demonstrators

Skeena-Bulkley Valley MP says only way out of crisis is “true nation-to-nation” talks

Coast Mountain College appoints a new president

The promotion came from within the school

Coastal GasLink pipeline investor committed to closing deal despite protests

Developer TC Energy Corp. — formerly TransCanada Corp. — is to remain the operator of the $6.6-billion pipeline

Prince Rupert launches community review plan

Prince Rupert launches community review plan with online survery

Blair says RCMP have met Wet’suwet’en conditions, calls for end to blockades

The Wet’suwet’en’s hereditary chiefs oppose the Coastal GasLink project

B.C. lawyer, professor look to piloting a mental-health court

In November, Nova Scotia’s mental-health court program marked 10 years of existence

COLUMN: Not an expert on First Nations government structures? Then maybe you should calm down

Consider your knowledge about First Nations governance structures before getting really, really mad

One dead in multi-vehicle collision involving logging truck on northern B.C. highway

DriveBC says highway expected to remain closed until 8 p.m.

B.C. teacher gets 15-year ban after lying about having sex with just-graduated student

Teacher had been dishonest with the B.C. Commissioner for Teacher Regulation

Pipeline talks got B.C. railway open, can work again: Horgan

Premier says protest excesses damage Wet’suwet’en case

Exclusive: Pamela Anderson talks plans for waterfront Ladysmith property after 12-day marriage

Anderson says she can pay her own bills. Peters denies making comments suggesting she can’t

Burger King breaks the mould with new advertising campaign

The company is known for irreverent ad campaigns

Maggie and Tim: B.C. residential school survivor turns to faith, forgiveness in mourning son

A young man’s tragic death and his mother’s survival through hardship

Most Read