‘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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Peace Portal Alliance Church, at the corner of King George Boulevard and 152 Street, is the extreme-weather shelter for South Surrey for the upcoming season. It is to have 14 mats available nightly for those experiencing homelessness, regardless of weather conditions. (Tracy Holmes photo)
14 beds planned for South Surrey extreme-weather shelter

Webinar tonight to field questions, share info on Peace Portal Alliance Church refuge

White Rock Whalers president Ronnie Paterson (inset photo) is hopeful the team and City of White Rock will be able to find a solution that will allow the Whalers and their PJHL opponents to use the dressing rooms at Centennial Arena. (Jody Harris photo)
Whalers waiting to hear on dressing-room availability as PJHL home-opener looms

White Rock team owner ‘confident’ hurdles can be overcome in talks with city

Fraser Health declared an outbreak of COVID-19 at Delta Hospital on Wednesday, Sept. 16, 2020. (Grace Kennedy photo)
Outbreak over at Delta Hospital

In all, 45 cases of COVID-19 were identified and seven patients died during the outbreak

The Sunshine Band Club video posted to Youtube.
VIDEO: Surrey youth band shines light on ‘COVID blues,’ raises money for hospital

Virtual concert from Sunshine Band Club, established last March

Not everybody lined up to vote on Saturday. In Surrey, 68,396 mail-in ballots still need to be counted for the final election tally. (Black Press Media)
North Surrey voters steer left, South Surrey voters steer right

Once again, it’s NDP orange in the city’s north end, Liberal red in the south

FILE – Provincial Health Officer Dr. Bonnie Henry provides the latest update on the COVID-19 pandemic in the province during a press conference in the press theatre at Legislature in Victoria, B.C., on Thursday, October 22, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. shatters COVID-19 records with 817 weekend cases; masks now expected indoors

Three people have died over the past three reporting periods

Graphic on promo material for Best Buy Canada’s Tech Wonderland event.
Drive-through ‘Tech Wonderland’ coming to PNE site a few weeks before Christmas

Best Buy Canada-backed ‘holiday’ event to raise money for charity

Aaliyah Rosa. File photo
Crown says murder of seven-year-old in Langley was planned, deliberate

The trial of KerryAnn Lewis began Monday in New Westminster

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

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. Provincial Health Officer Dr. Bonnie Henry. (B.C. government photo)
Unnamed school in Fraser Health region closed due to COVID-19

Closure announced by Dr. Bonnie Henry during daily briefing

RCMP have released more details regarding what led up to an arrest caught on video in Williams Lake Sunday, Oct. 26. (Facebook video screenshot)
Review launched after ‘high-risk, multi-jurisdictional’ chase, arrest in Williams Lake

RCMP launching a full review and code of conduct investigation

(Pxfuel)
B.C. limits events in private homes to household, plus ‘safe six’ amid COVID-19 surge

Henry issued a public health order limiting private gatherings to one household, plus a group of ‘safe six’ only

Most Read