Even with layoffs and government spending cuts, billions of dollars continue to flow into Alberta’s oilpatch.
When the COVID pandemic started, both crude prices and company shares hit rock bottom. Many economic programs were rolled out to help both the oilpatch and other programs gain their footing.
In the last few months since the pandemic, a much clearer picture is evolving: the billions of dollars pouring into the sector did little to curtail layoffs and bring stability. In fact, this year has been one of the most stagnant drilling years to date. Next year’s activity is expected to be the same.
industry leaders urge critics to understand that despite some setbacks, the carnage was still slowed by the influx of federal dollars. The price war coupled with the pandemic created historic lows due to the decrease in demand for fuel.
The Canada Emergency Wage Subsidy (CEWS) has made a valiant effort in helping drilling companies retain key employees.
CBC News has also gathered information showing the financial assistance oilpatch companies have received. Of the 23 companies, the lion’s share of the funding went to Clear Stream Energy Services ($23 million) and Precision Drilling ($16 million).
This past spring, the Alberta government made many calls to help the struggling oil and drilling sector. Many officials expressed concerns over whether the federal government was performing its duties with urgency.
Overall, the pandemic recovery efforts for the oilpatch is as follows:
- $6.8 billion in Alberta wage subsidies
- $4.3 billion for Alberta businesses
- $1.7 billion in oil and well cleanup
- $750 million for emission reduction
- $68 million for CEBA loans
Despite harsh criticism from environmentalists regarding climate change, Ottowa is doing everything to ensure the importance of the oilpatch. Parliamentary Natural Resources Secretary Paul Lefebvre made it very clear to critics: “The recovery of the Canadian oil and gas industry is a must if Canada is expected to recover. One cannot exist without the other.
The struggles do not end in 2020. Things are not expected to change much in 2021, according to industry insiders. Critics should be aware that another influx of money is highly possible for the next year. Because of the pandemic, the industry must be given time to bounce back.
While administrators of the oil and gas sector is appreciative of the support, they say more needs to be done.
President of the Canadian Association of Petroleum Producers, Ben Brunnen, says he hopes net-zero emissions can be achieved by 2050.
