‘Not going to do anything:’ Oil executives say federal abandoned well program comes too late – By Jesse Snyder (National Post) / April 17 2020
Trudeau said Ottawa would spend $1.7B to clean up abandoned oil and gas wells as part of an effort cushion firms against the economic fallout from COVID-19
OTTAWA — Energy executives panned a new well reclamation program unveiled by the Liberal government on Friday, saying it comes weeks too late and fails to provide much-needed liquidity to companies pummelled by a monumental shock to oil demand.
Prime Minister Justin Trudeau said Ottawa would spend $1.7 billion to clean up abandoned oil and gas wells in oil-producing provinces as part of an effort cushion firms against the economic fallout from COVID-19. Environmental advocacy groups applauded the move, while official industry sources and provincial leaders also supported the new spending.
But several oil executives said the program falls woefully short of needs and expectations.
“This is not going to do anything,” said Grant Fagerheim, chief executive of Calgary-based Whitecap Resources. “If this is as good as it gets, it will do very little or nothing to assist with operations for companies.”
The industry had for weeks been calling on Ottawa to introduce new lines of credit specific to oil and gas companies, which are fending off an historic drop in oil prices as governments shut down their economies in a bid to stem the spread of the virus. Prices for Canadian crude recently plunged as low as US$4, placing intense strain on an oil industry that was only beginning to climb back from the market collapse of 2014.
“I don’t think there’s a full appreciation and understanding of the severity of what we’re dealing with,” Fagerheim said of the Liberal measures.
Trudeau also announced a $750-million fund aimed at reducing methane emissions. He said the funds would allow Canada to “continue to fight climate change and reduce emissions while keeping people at work.”
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