The Government of Canada has announced economic measures to aid the upstream oil and natural gas industry during the current unprecedented market conditions.
The $1.7 billion package, which includes funding for the closure and reclamation of orphan and inactive wells in Saskatchewan, Alberta, and British Columbia, is welcome news. Reducing environmental liabilities is a priority for the oil and natural gas industry and this initiative will allow important work to accelerate, while supporting thousands of jobs.
The government also announced a $750 million emissions reduction fund that will help companies continue their progress to reduce methane emissions. Canada’s oil and natural gas industry has committed to a 45-per-cent reduction of methane emissions by 2025, and the government is helping ensure innovation and progress in this key area can continue during the economic crisis.
Additionally, the government is working with the Business Development Bank of Canada and Export Development Canada to strengthen support for corporations that are most at risk. Liquidity is a real and immediate challenge for oil and natural gas producers and the industry, including the Canadian Association of Petroleum Producers (CAPP) has been working with the federal government to identify urgent action needed to address the dire situation. The industry anticipates further details about this critically important support.
“We will continue to talk with all levels of government to ensure adequate support is in place to help businesses and jobs survive this unprecedented economic crisis,” says Tim McMillan, CAPP president and CEO. “Survival of the energy sector will be crucial to Canada’s economic recovery.”