A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. Federal financing relief for large Canadian companies announced Monday was welcomed by the oil and gas sector and the Alberta government despite conditions that linked the aid to climate change goals. THE CANADIAN PRESS/Jeff McIntosh

Oilpatch welcomes federal aid for large firms despite climate change conditions

Trudeau unveiled aid and financial package on Monday

A federal financing relief package for large Canadian companies was applauded by the oil and gas sector and the Alberta government on Monday despite conditions that could link the aid to an individual company’s climate change goals.

In Edmonton, Alberta Finance Minister Travis Toews welcomed the announcement, saying that the province’s large companies, particularly in oil and gas and aviation, need relief quickly.

“We know that the (financial) need could be great. We’ve seen some recovery in energy prices, that’s very welcome, but these prices that we’re seeing today are by no means close to profitable for the industry,” said Toews.

While the province still needs to see the details of the federal plan, he said he is pleased there is no cap on the bridge financing offer.

He added oil and gas companies shouldn’t face problems with the requirement to help meet federal climate change commitments.

Oilsands producer Cenovus Energy Inc. is pleased that Ottawa recognizes large corporations need help as well as the small and medium-sized ones, said spokeswoman Sonja Franklin.

“Today’s announcement is an important signal for the markets that the government will stand behind viable businesses in this country,” she said in an email.

“The federal government recognizes which sectors contribute most significantly to its revenues and needs to ensure these sectors — like oil and gas — will be there to help it pay off the massive debt it’s accumulating as part of the COVID-19 relief.”

READ MORE: Feds pledge aid, financing for large and medium sized businesses affected by COVID-19

The company is in a strong financial position with access to more than $6 billion in liquidity, she added, but government support is important because there’s no way to know when low oil prices will recover.

Cenovus has set targets of 30 per cent greenhouse gas emissions intensity reduction and flat overall emissions by 2030, as well as achieving net zero GHG emissions by 2050, and therefore should have no problem meeting federal climate change requirements, she said.

The federal program goes a long way to addressing the industry’s request for short-term financial liquidity help and will likely be well used as long as there are no issues with accessing the funds, said Tim McMillan, CEO of the Canadian Association of Petroleum Producers.

“I think this is essential. Not all companies are going to need to tap into this sort of liquidity … but some that are normally high-quality, stable companies likely will be looking for this program to provide a certain amount of liquidity for them,” he said.

Environmental and climate change reporting by oil and gas companies is extensive, both voluntary and as required by regulators, he added, which means most companies should be able to meet Ottawa’s requirements.

“This is a non-sector-specific program and when we compare what we’ve been doing for the last several years compared to other industries in Canada, I think we’re probably one or two steps ahead,” he said.

“This would be a requirement that may be a challenge for some industries — I think for our larger oil and gas companies, this is the kind of stuff we’ve been reporting on for a period of time already.”

Companies that apply for public support should be willing to say how they will adapt to new rules with regard to climate change, said Greenpeace Canada senior energy strategist Keith Stewart.

“There have to be some real teeth in how this is implemented, but it makes sense that companies seeking public support agree to limit dividends and executive pay, forgo tax havens and start aligning their business model with Canada’s climate change targets,” he said.

“Companies funding campaigns to oppose action on climate change should be excluded from the program.”

With a file from Dean Bennett in Edmonton.

Dan Healing, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronavirusoil and gas

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

Just Posted

PJHL delays start of season as teams struggle to secure facilities

The junior B hockey league was hoping to start Sept. 29 but is now targeting mid-October

Missing Chilliwack woman last seen on Wednesday

Friends and family concerned for Joy-Lynn Leon, 42, who was last seen Sept. 23 on Mary Street

VIDEO: Mounties looking to catch Chilliwack bike-riding teen groper

Man caught on video slapping the backside of girl near CSS riding a bicycle

Abbotsford has a COVID-19 rate 10 times higher than Chilliwack

Abbotsford has been much harder hit by COVID-19 than its neighbour to the east

Chilliwack illusionist Chris Funk brings live magic, music to Cultural Centre

‘You’ll see some creations that have made appearances on some of the largest television shows in the world’

B.C.’s top doctor thanks supporters after revealing threats over COVID-19 measures

Dr. Bonnie Henry says COVID-19 has caused some people to lash out in anger and frustration out of fear

Money laundering inquiry delayed over of B.C. election: commissioner

Austin Cullen says the hearings will start again on Oct. 26

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

Lumber hitting record high prices due to low supply and high demand

B.C.’s forest industry hasn’t been able to keep pace with the COVID-19 building boom

‘Monkey Beach’ supernatural film adaptation premiers at VIFF

Based on Kitamaat author Eden Robinson’s debut, mystical novel

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

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

B.C.-born Trybe social media app’s award system connects with Nickelback singer

Rock stars, jet planes, scooter tricks and the creation of a new platform ready for launch

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

Most Read