‘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

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
West Shore RCMP continue to investigate targeted shooting in Metchosin

Man killed on Sooke Road Friday night identified by friends

The WHL’s Victoria Royals will compete in a 24-game season starting March 26, <strong></strong>based out of a Kamloops and Kelowna B.C. division bubble (Kevin Light/Courtesy Victoria Royals)
‘Important to cherish every moment’: Victoria Royals not taking bubble season for granted

The Victoria WHL team’s coach and GM calls the season a ‘privilege,’ expects fierce rivalries

The Victoria Fire Department was able to contain a fire to one room after a bed placed directly against a heater ignited. (Black Press Media file photo)
Early morning Victoria balcony fire causes $20,000 in damages

Victoria Fire Department said nobody was injured in the fire on View Street

Ravi Jain, Why Not Theatre’s founding artistic director, will present a Zoom lecture as part of the University of Victoria’s Orion fine art series on March 8. (Photo: University of Victoria).
Award-winning directors highlight coming University of Victoria lecture series

The March 8 and 18 Zoom events are part of the Orion fine arts lecture series

Postmark Group, an Edmonton-based development firm, bought two properties at 6641 and 6643 Sooke Rd. last year, and is reaching out to the community and local groups for feedback before they begin planning the designs for the development. (Photo contributed/Postmark Group)
Waterfront village development eyed for Sooke

Postmark Group development firm bought two properties at 6641 and 6643 Sooke Rd. last year

Const. Nancy Saggar, who has 11 years in policing, offers advice for other women who may pursue both policing and family. (Black Press Media file photo)
Pregnancy prompts sage advice from RCMP officer for women thinking about policing

West Shore constable with 11 years experience heads off on maternity leave

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix provide a regular update on the COVID-19 situation, B.C. legislature, March 2, 2020. (B.C. government)
B.C.’s COVID-19 cases: 545 Saturday, 532 Sunday, 385 Monday

Focus on Prince Rupert, Lower Mainland large workplaces

Rising accident rates and payout costs have contributed to billion-dollar deficits at ICBC. (Comox Valley Record)
B.C. appealing decision keeping ICBC injury cases in court

David Eby vows to ‘clip wings’ of personal injury lawyers

Hannah Ankenmann, who works with k’awat’si Economic Development Corporation, winces as she received her first shot of the Pfizer vaccine administered by a Gwa’sala-‘Nakwaxda’xw Family Health nurse. (Zoe Ducklow photo)
Vancouver Island’s small remote towns to get community-wide vaccine clinics

Island Health to take a wholesale approach to immunization, rather than age-based appointments

Anyone with information is asked to call Nanaimo RCMP at 250-754-2345 or contact Crime Stoppers by calling 1-800-222-8477 or submitting a tip online at www.nanaimocrimestoppers.com.
21-year-old motorbike rider dies after crash with ATV on Nanaimo back road

Incident happened Sunday afternoon near Boomerang Lake

(Black Press Media files)
Hosts charged, attendees facing COVID fines after Vancouver police bust party at condo

Police had previously received 10 complains about that condo

Minister of Families, Children and Social Development Ahmed Hussen takes part in an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. A joint federal and B.C. government housing program announced today aims to help people living in up to 25,000 vulnerable households pay their rent. THE CANADIAN PRESS/Sean Kilpatrick
Federal, B.C. governments announce $517-million rent aid program to help vulnerable

Benefits for those not eligible for B.C.’s Rental Assistance Program or Shelter Aid for Elderly Renters

(BC SPCA)
Is it safe to give your dog some peanut butter? Not always, BC SPCA warns

Some commercial peanut butter ingredients can be harmful to dogs

Most Read