By Charles Lefebvre

Federal government announces $1.6 billion in funding to aid oil and gas industry

Dec 18, 2018 | 10:24 AM

EDMONTON, AB — The federal government has announced $1.6 billion to help support Canada’s oil industry.

Federal Minister of Natural Resources Amarjeet Sohi made the announcement at NAIT in Edmonton Tuesday morning.

“We understand that when Alberta hurts, so does Canada,” Sohi told gathered media at the event

The announcement, according to a news release, includes $1 billion from Export Development Canada. This funding will be made available to oil exporters of all sizes, and will assist companies looking to invest in innovative technologies, address needs for working capital and explore new markets for their products.

The announcement also includes a $500-million Energy Diversification commercial financing envelope over three years from the Business Development Bank of Canada. The money will be used to help small oil and gas companies weather the current market uncertainty.

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A total of $50 million is also being made available for Natural Resources Canada’s Clean Growth Program in oil and gas projects, as well as $100 million through Innovation, Science and Economic Development Canada’s Strategic Innovation Fund for energy and economic diversification-related projects.

“The oil and gas industry is core to Canada’s economy,” said Sohi in a statement. “These investments will help protect jobs and restore competitiveness during this difficult time. We know that getting our resources to non-U.S. markets is the long-term solution to ensuring every barrel of oil gets its full value. That remains our focus, and we will continue to work hard to deliver results.”

Sohi says companies are being encouraged to apply for the funding.

The announcement did not include any money for rail cars, which Alberta Premier Rachel Notley has said the province is planning to purchase to help move oil.

Sohi adds the federal government remains focused on getting pipelines built to transport oil to new markets, including the Trans Mountain Pipeline.