CAPP applauds $1.7B federal aid package for oil sector
The Canadian Association of Petroleum Producers (CAPP) has given the thumbs-up to initiatives announced today by Ottawa, which will protect about 10,000 oil and natural gas-related jobs across the country.
The $1.7 billion announced today, for the closure and reclamation of orphan and inactive wells in Saskatchewan, Alberta, and British Columbia, is welcome news, as 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.
“We are also encouraged by news that the government is working with the Business Development Bank of Canada and Export Development Canada to strengthen support for corporations who are most at risk. Liquidity is a real and immediate challenge for oil and natural gas producers and CAPP has been working with the federal government to identify urgent action needed to address the dire situation. We are awaiting additional details on the expansion of support — a critically important matter as companies try to weather the current crisis,” says Tim McMillan, president and CEO of CAPP. “CAPP 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. Survival of the energy sector will be crucial to Canada’s economic recovery.”
Ottawa also announced a $750 million emissions reduction fund which 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.