On April 17, 2020, the Government of Canada announced financial initiatives to help support the oil and natural gas industry, which has been hit hard by the combined effects of the COVID-19 pandemic and record low prices caused by a glut of oil on international markets.
Included in the federal stimulus package is a $750 million emissions reduction fund, aimed at helping companies continue their progress toward reducing methane emissions. This funding is in the form of a repayable loan program through Natural Resources Canada; $75 million of that fund is slated specifically for the offshore sector.
Canada’s oil and natural gas producers are committed to reducing methane emissions by 45 per cent by 2025 and have been working steadily on improvements and technologies to achieve this milestone. Federal funding ensures that innovation and progress in this key area can continue during the current economic crisis.
Tim McMillan, president and CEO of the Canadian Association of Petroleum Producers (CAPP), notes, “We are encouraged by the news that the government is working to support and strengthen companies that are most at risk at this difficult time, while advancing work that will improve the sector’s environmental performance.”
The oil and natural gas sector continues to provide an essential service to Canadians and is maintaining critical infrastructure during the COVID-19 crisis, safely and reliably providing the energy that Canadians and customers need. The industry’s front-line workforce and products are critical to supporting health care, communities, personal isolation efforts and Canada’s supply chain, and the industry will be a crucial part of Canada’s economic recovery.