Canadian Chamber of Commerce welcomes O&G support, says much more is needed

(OTTAWA, ON) – April 17, 2020 – The Canadian Chamber of Commerce issued the following statement regarding new support for the energy sector announced today:

“The Canadian Chamber of Commerce welcomes the targeted measures to support Canada’s besieged energy sector announced today by the Prime Minister.

The $1.5 billion of targeted relief for oil well reclamation is a positive first step. These funds will help keep Canadians working and in some cases open the door to the capture of geothermal energy that will help power homes and industries.

The demand destruction from COVID-19 has turned the energy sector on its head. For a sector subject to heavy regulations, clarity and commitment from the federal government are crucial in carving a path forward. Today’s announcement will leave many in the sector with mixed feelings.

Canadian energy companies have made significant strides in their environmental performance, but current prices will require further innovation and the development of clean technologies. The $750 million earmarked for developing technologies to manage methane emissions will help the industry comply with new federal standards on methane equivalencies. We hope the federal government will commit to more funds for clean technologies and put these funds into the hands of producers in support of Canadian clean technology workers.

Unfortunately, many challenges remain ahead that will require federal leadership. Though measures like the federal wage subsidy are welcome, they are less relevant because regulatory and capital costs are often the most significant operating costs for the sector. Canadian energy companies need more targeted measures to support existing projects within the regulatory system. They also need a pause on regulatory standards that increase costs.

We remain hopeful for additional measures from the government, especially those that provide much needed liquidity. There is much more that can be done to ensure Canada’s energy sector is positioned not only to recover, but to be leader in kick-starting Canada’s economy.”

About the Canadian Chamber of Commerce – Because Business Matters

The Canadian Chamber of Commerce helps build the businesses that support our families, our communities and our country. We do this by influencing government policy, by providing essential business services and by connecting businesses to information they can use, to opportunities for growth and to a network of local chambers, businesses, decision-makers and peers from across the country, in every sector of the economy and at all levels of government, as well as internationally. We are unapologetic in our support for business and the vital role it plays in building and sustaining our great nation.

For more information, please contact:

Phil Taylor
ptaylor@chamber.ca or text 613-797-1860