‘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.

Just Posted

Road conditions concerns ignored by district says Lake Country resident

Beaver Lake Road’s poor conditions have been a large concern for Bruce Williams

Motorcyclist involved in Westside Road crash

Air ambulance assists while motorists face lengthy delays

Kelowna museum highlights city’s amusing past

Ever wonder what happened to your favourite childhood carnival character?

UPDATE: Man in custody after alleged impaired hit-and-run in downtown Kelowna

The victim remains in serious yet stable condition after being struck Saturday night

Festival goers at the 27th annual Roots and Blues Festival

The Observer asked: Where are you from and what brought you to the festival?

Kelowna Share Society celebrates International Thrift Shop Day with BBQ

Event helps society say thank-you for community support

Vancouver man arrested after pregnant woman’s SUV stolen, then crashed

Police are recommending charges against a 22-year-old Vancouver man

Environment groups warned saying climate change is real could be seen as partisan

Talk of climate change could be viewed as advocating against Maxime Bernier, the leader of the People’s Party of Canada

Scheer repeats call on RCMP to investigate Trudeau’s actions in SNC affair

Ethics watchdog Mario Dion found that Trudeau violated the Conflict of Interest Act

Okanagan-Shuswap weather: Sunshine to kick off the week

Your weather report for Monday, August 19th, 2019.

The Offspring and Sum41 ready to rock the South Okanagan

The Offspring and Sum 41 will stop in Penticton to the South Okanagan Events Centre

Most Read