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

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

Just Posted

Revelstoke Search and Rescue is one of the busiest teams in B.C. (Submitted)
Busy day for Revelstoke SAR with 3 rescue calls on Boulder Mountain

The organisation is reminding people to dail it back and play safe

Revelstoke competing last year in Mont St Anne, Quebec. (Submitted)
Revelstoke Nordic skiers head to Finland for World Championships

It’s the first race of the season for the Canadian athletes

Kootenay-Columbia MP Rob Morrison speaks during Question Period in the House of Commons. File photo.
MP Morrison calls Keystone XL permit cancellation ‘devastating news’

Kootenay-Columbia MP reacts to the Conservative Party’s removal of a controversial Ontario MP

Interior Health reported 91 new COVID-19 cases in the region Jan. 20, 2021 and three additional deaths. (Jennifer Smith - Morning Star)
95 new COVID-19 cases in Interior Health, two deaths

Another member of Vernon’s Noric House has passed

(Pixabay photo)
Black Press Weekly Roundup: Top headlines of the week

In case you missed it, here’s what made waves throughout the week

Chief Public Health Officer Theresa Tam speaks during a daily briefing in Ottawa. (THE CANADIAN PRESS/Adrian Wyld)
31 cases of COVID-19 variants detected in Canada: Health officials

Dr. Theresa Tam made announces 13 more variant COVID-19 cases in Canada

Administrative headquarters for the Regional District of Central Okanagan in Kelowna. (File photo)
Tempers fly over a pricey picnic shelter in the North Westside

Lack of detail on $121,000 shelter expenditure further incites self-govenance wishes

Big White Village on Dec. 16. (Big White photo)
11 more COVID-19 cases linked to Big White cluster

Interior Health provided an update on the cluster on Friday

Royal Inland Hospital in Kamloops. (Dave Eagles/Kamloops This Week file photo)
COVID-19 outbreak declared at Kamloops’ Royal Inland Hospital surgical unit

Despite 6 South being a surgical unit, RIH said surgeries are continuing at the hospital

Daily COVID-19 cases reported to each B.C. health region, to Jan. 20, 2021. Island Health in blue, Northern Health green, Interior Health orange, Vancouver Coastal in red and Fraser Health in purple. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infection rate stays stable with 508 cases Friday

Vaccine delivered to more than 110,000 high-risk people

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

(Phil McLachlan - Capital News)
‘It’s incredibly upsetting’: Kelowna health care worker demands WestJet ticket refund

Kelowna woman has been waiting almost a year for a refund on her Kelowna to Edmonton flight

The District of Saanich’s communications team decided to take part in a viral trend on Thursday and photoshopped U.S. Senator Bernie Sanders into a staff meeting photo. (District of Saanich/Twitter)
Bernie Sanders makes guest appearance municipal staff meeting in B.C.

Vancouver Island firefighters jump on viral trend of photoshopped U.S. senator

Most Read