‘A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy sector

‘A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy sector

A further $150 million is to be used for clean growth and infrastructure projects

Alberta Premier Rachel Notley says Ottawa’s new $1.6-billion aid package for the oilpatch will help, but is essentially tone deaf and won’t fix the pipeline bottleneck crippling the province.

“We don’t need help finding more markets. We need help moving our product, and I don’t know that we could have been much more clear about that,” Notley said Tuesday in Calgary. “Offering Alberta business owners and industry the opportunity to go further in debt is not any kind of long-term solution.

“Especially not when we are a province and we are talking about an industry that is very good at being profitable if given the freedom to do so.”

Federal Natural Resources Minister Amarjeet Sohi announced the package in Edmonton Tuesday. The money, largely in the form of corporate loans, is aimed at helping companies stay afloat, buy new equipment and diversify.

“We understand that when Alberta hurts, so does Canada,” said Sohi. “Together we can build a stronger Alberta (and) a more prosperous Canada.”

Sohi said $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.

A further $150 million is to be used for clean growth and infrastructure projects.

No one from Notley’s government was at Sohi’s news conference. Notley called the announcement a start.

“We’ve heard from some small producers that this will help them get access to capital in trying times and perhaps tide them over, but it is not entirely what they were looking for, too,” she said.

Tim McMillan, CEO of the Canadian Association of Petroleum Producers, said the industry appreciates federal recognition of the oilpatch problems, but said it didn’t ask for money under federal government programs.

“We’re a job-creating industry and an investment attractive industry if we can get our fundamental building blocks right and that’s what we’ll continue to push for,” said McMillan.

Political opponents dismissed the money as a politically motivated and ultimately ineffective gesture.

“Today’s handout is nothing more than a desperate, election-year attempt to trick western Canadians into thinking (Prime Minister Justin Trudeau) cares,” said federal Conservative Leader Andrew Scheer.

READ MORE: Alberta buying its own rail cars to move oil without feds, Notley says

“He is trying to save a handful of Liberal seats, nothing more.”

Alberta United Conservative Leader Jason Kenney agreed.

“This announcement is too little, too late for those families suffering as the result of the Trudeau government’s anti-oil-and-gas agenda,” he said.

Randy Ollenberger, a financial analyst who covers major oil and gas firms for BMO Capital Markets, said the programs will likely be used only by very small companies and are unlikely to have a meaningful effect on job creation.

“If you can’t physically export (oil or gas), what difference does it make?” said Ollenberger. “This is a globally traded product and we just have to be able to move it to that market.”

Alberta has been roiling of late as the double whammy of pipeline bottlenecks and low prices threaten to further eviscerate its fountainhead industry, which has already endured a prolonged slump.

In recent days, there have been demonstrations and protests around the province, demanding Canada step up to help Alberta’s oil industry given its broader beneficial impact on the national economy.

Demonstrators have also slammed Trudeau’s government for failing to take meaningful action on pipelines, although Ottawa recently purchased the $4.5 billion Trans Mountain pipeline expansion — which would triple its capacity to the B.C. coast — to ensure it gets built.

Those demonstrations have included so-called yellow vest protesters. Some of those demonstrators came to Sohi’s news conference, standing in the back, videotaping the speech, and muttering their displeasure.

“While we understand the (public) frustration … these investments that we are making today will ensure that businesses continue to thrive,” said Sohi.

“The lack of ability to build pipelines in Canada is something we’re trying to fix.”

In recent weeks, Notley has ordered Alberta oil companies to cut production to prop up prices, and has called for Trudeau to help the province buy more rail cars to get oil to market in the short term.

Sohi’s package does not include money for that, and Ollenberger wondered why.

“They would have been better off to say, ‘We’ve got a billion and a half dollars, we’re going to put it to railcars,’” he said.

Dean Bennett, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

CVRD to increase enforcement after audits reveal that curb-side recycling contamination in the district is well above acceptable limits. (File photo)
CVRD reports contamination in recyclables well above acceptable levels

Increased enforcement planned starting this summer

Municipality of North Cowichan.
Council acknowledges National Indigenous Peoples Day

Recommendations received for prioritization of the updated Climate Action and Energy Plan

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

North Cowichan’s committee of the whole have rejected staff’s recommendation to limit the use of fireworks to Halloween. (File photo)
North Cowichan rejects limiting fireworks to Halloween

Municipality decides staff recommendation would be unpopular

Flag exhibit is now set up in the Chemainus Valley Museum. (Photo by Val Galvin)
Fibre artists put their unique twists on climate change exhibit

Red Flag warning label affixed to collection now on display at the Chemainus Valley Museum

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

A Lotto 6/49 ticket purchased in Parksville for the June 19, 2021 draw is a $3M winner. (Submitted photo)
Winning Lotto 6/49 ticket worth $3M purchased on Vancouver Island

Lottery prize winners have 52 weeks to claim jackpot

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

Most Read