Natural Resources Minister Amarjeet Sohi says $1 billion will be set aside for oil and gas companies to make capital investments and purchase new technology. (Photo by THE CANADIAN PRESS)

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

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.

“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.

Just Posted

Yearbook photo surfaces of Trudeau wearing ‘brownface’ costume in 2001

Yearbook photo surfaces of Trudeau wearing ‘brownface’ costume in 2001 HALIFAX —… Continue reading

Rural communities could face policing bills

Province considering getting smaller and rural communities to pick up a portion of policing costs

Random Acts of Green Canadian tour comes to Red Deer

Red Deerians are being encouraged to lessen their impact on the environment.… Continue reading

Free blood testing for HIV, Hep C, syphilis offered Thursday in Red Deer

Anyone can drop by from 10 a.m. to 4 p.m. at Bower Ponds pavilion

Red Deer economy bouncing back but slowly: report

While Red Deer’s economy has been in recovery mode for the past… Continue reading

WATCH: 2019 Canada Winter Games will leave a lasting legacy, say organizers

It leaves Red Deer with the infrastructure and confidence to host future such events

Your community calendar

Wednesday Central Alberta Historical Society annual general meeting is 6 p.m. at… Continue reading

Yearbook photo surfaces of Trudeau wearing ‘brownface’ costume in 2001

Yearbook photo surfaces of Trudeau wearing ‘brownface’ costume in 2001 HALIFAX —… Continue reading

CFL rushing leader Andrew Harris returns to Winnipeg offence versus Alouettes

Andrew Harris returns to anchor the CFL’s top-ranked ground attack this weekend.… Continue reading

Humphries declines Bobsleigh Canada Skeleton’s invitation to return to bob team

CALGARY — Olympic bobsled champion Kaillie Humphries says she won’t race for… Continue reading

Retired Canadians Virtue and Moir leave ice dancing in a better place

TORONTO — Tessa Virtue and Scott Moir knew they were taking a… Continue reading

Cheryl Bernard to play as a substitute on Team Scheidegger at three events

Sometimes when curling analyst Cheryl Bernard makes the walk from the broadcast… Continue reading

Couche-Tard wants to be a player in the sale of cannabis

LAVAL, Que. — Alimentation Couche-Tard Inc. wants to be one of the… Continue reading

Michael Dawe: A safe supply of water has long been a priority for Red Deer

The oldest part of the Red Deer water treatment plant on 54th… Continue reading

Most Read