In the face of challenges resulting from the COVID-19 outbreak and declining oil prices due to an international price war, government is taking the first step in implementing a series of energy sector initiatives aimed at enhancing immediate liquidity – and longer-term certainty – of energy companies.
Alberta’s energy sector supports more than 500,000 jobs across Canada. These jobs are currently at risk and government must act to do everything it can to ensure energy sector firms remain operating and employing Albertans.
“In order to keep Albertans employed, our government is taking immediate action to help our energy sector get through these difficult times. By providing industry with more options, in the short-term they are able to maintain operations and protect jobs.”
“These are incredibly challenging times for Albertans and for the energy sector. These steps will provide the province’s oil and gas producers with additional flexibility, increasing their ability to protect their workforce.”
Immediate relief for the energy sector
These actions are the first step in providing short and long-term financial relief to the oil and gas industry.
- Funding the Alberta Energy Regulator levy: $113 million
- Government is funding the industry levy for the Alberta Energy Regulator for a period of six months, achieving $113 million in industry relief.
- Granting extensions for oil and gas tenures
- Extending the term of mineral agreements expiring in 2020 by one year provides increased certainty for industry by allowing additional time to raise capital and plan future activities.
The Government of Alberta has extended a loan to the Orphan Well Association in the amount of $100 million. This loan will bolster the association’s immediate reclamation efforts, decommission about 1,000 wells, and start more than 1,000 environmental assessments, creating up to 500 direct and indirect jobs.
In addition to these actions, government continues to cut unnecessary red tape to reduce the burden of doing business.
These efforts build on the Government of Alberta’s comprehensive response to protect Albertans through a global public health emergency. Measures have been introduced to protect Alberta families, including $50 million in immediate emergency isolation supports and an additional $500 million focused on supporting front-line health-care workers.