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

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

Just Posted

There are currently 15 Kid’s Don’t Float PFD loaner stations located throughout the Shuswap, with three more planned to go up this year. (Shuswap Watershed Council image)
New life-jacket stations planned for Enderby, Eagle Bay

National Lifejacket Day prompts reminder to boaters that accidents can happen

Fate, an American cocker spaniel bred at Lavington’s Aladdin Cockers by Carol and Robin Edwards, is currently the No. 1 ranked cocker spaniel in the U.S. and has drawn an invitation to the world’s most famous dog show, the Westminster Kennel Club event in New York, next month. (Photo submitted)
Lavington-bred cocker spaniel to strut stuff at Westminster Kennel Club

Fate, an American cocker spaniel bred by Carol and Robin Edwards, is the No. 1-ranked cocker spaniel in the U.S.

Armstrong Regional Co-op board members Brett Kirkpatrick (left) and Robbie Hoyte (right) flank Scott John of the Okanagan Screen Arts Society. The co-op donated $2,500 to the society for its Save the Towne Theatre campaign. (ARC photo)
North Okanagan-Shuswap cooperative contributes to Vernon theatre campaign

Armstrong Regional Co-op kicks in $2,500 for Okanagan Screen Arts Society’s Save the Towne Theatre campaign

Geoff Mulligan, left, receives a Ribbons of Green Commendation award from Harold Sellers, Ribbons of Green Trails Society president. (Ribbons of Green photo)
Volunteer puts Vernon trails on the map

Geoff Mulligan earns commendation from Ribbons of Green Trails Society for volunteer work

Coldstream Fire Department is on-scene Sunday, May 16, battling a fire in a Matner Lane orchard just up the hill from the firehall on Aberdeen Road. (Jennifer Smith - Morning Star)
Coldstream fire crew tackles orchard blaze

Fire broke out just before 2 p.m. on Matner Lane, which is just up the hill from the firehall on Aberdeen Road

Conservation Service Officer Kyle Bueckert holds a gold eagle that was revived from acute rodent poisoning Monday, May 12. Photo: Submitted
‘Obviously, he’s a fighter’: Golden eagle, recovered from poisoning, back in Kootenay wild

CSO Kyle Bueckert released the eagle into the wild Thursday, May 13

Capt. Jenn Casey died in a crash just outside of Kamloops, B.C., on May 17, 2020. (CF Snowbirds)
Snowbirds to honour Capt. Casey, who died in B.C. crash, in 2021 tour

Tour will kick off in Ontario in June before heading west

This bird box at the Salmon Arm Foreshore lies broken on May 14, 2021 after someone pulled the pole out of the ground and smashed the formerly occupied nest. It was one of more than 30 that have been wrecked. (Martha Wickett-Salmon Arm Observer)
Destruction of nests, birds at Salmon Arm foreshore described as horrifying

More than 30 bird boxes made by community destroyed, just one was not occupied

Ranchero resident Cody Krabbendam proudly displays the Lifesaving Society awards he recently received for a rescuing another boy while swimming at Sicamous Beach in July 2020. (Contributed)
Shuswap boy receives medal of bravery, scholarship for rescue at Sicamous beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

A pedestrian wearing a mask to curb the spread of COVID-19 is bundled up for the cold weather as snow falls in downtown Vancouver on Saturday, February 13, 2021.THE CANADIAN PRESS/Darryl Dyck
Snow possible in mountain passes as cold front hits southern B.C.

Much of B.C.’s southern interior will see temperatures plunge from highs of 30 C reached over the weekend

File photo (Aaron Hemens/Capital News)
Overturned kayak in Kelowna creek prompts police response

Kelowna RCMP is looking to speak with anyone who may know the individual associated with the kayak

Penticton city parks staff were busy this week using the beach grater to sift through sand, getting the shores ready for beach season. When it comes to beach clean up they are collecting run-off debris, pulling weeds and picking up litter. (Penticton photo)
Hottest day of the year, so far, in the South Okanagan

Penticton city park staff cleaned up the beaches getting ready for the season

Sicamous RCMP Sgt. Murray McNeil and Cpl. Wade Fisher present Cody Krabbendam of Ranchero with an award for bravery on July 22, 2020. (Contributed)
B.C. boy receives medal of bravery, scholarship for rescue of child at Shuswap beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

Most Read