And not a penny for NMX... Trudeau announces $1.7B to clean up orphan wells in B.C., Alberta, Saskatchewan
Prime Minister Justin Trudeau said his government is investing $1.7 billion to clean up orphan wells in British Columbia, Alberta and Saskatchewan to keep people working during the COVID-19 pandemic.
Trudeau made the announcement Friday morning and said the goal is to create immediate jobs in these provinces, while helping companies avoid bankruptcy.
"These wells, which are no longer in use, can be detrimental, not only to our environment but to people's health," Trudeau said.
"Cleaning them up will bring people back to work and help many land owners who have had their wells on their property for years but haven't been able to get them taken care of and the land restored."
The prime minister said this investment will help maintain 5,200 jobs in Alberta alone.
"COVID-19 has brought many industries to a halt and workers across the country are struggling as a result," he said.
"Right now, workers and families are struggling because of things beyond their control. Both the devastating effects of the pandemic and the price war driven by foreign interests are a challenge."
In a statement, the Business Council of Alberta said the funding announcement is welcome news for energy companies, working Albertans and the environment.
"This is a win-win, that will keep thousands of Albertans working in some of our hardest hit industries, while also improving the environment. However, additional support is still needed, specifically liquidity, for some of Canada's most significant energy companies."
In addition, Trudeau announced the federal government will establish a $750-million Emission Reduction Fund -- with a focus on methane -- to create and maintain jobs through pollution-reduction efforts.
The fund will include $75 million to help the offshore industry cut emissions in Newfoundland and Labrador, he explained.
The fund will primarily provide repayable contributions to firms to make them more competitive, reduce waste and pollution and protect jobs, according to the prime minister.
"Right now, many energy firms are experiencing a cash crunch so they don't have the funds to invest in technologies to reduce emissions or fix methane leaks," he said.
"Through the wells and methane initiatives, we estimate that we will maintain roughly 10,000 jobs across the country. Just because we're in a health crisis doesn't mean we can neglect the environmental crisis."
The prime minister said the feds are also working with BDC and EDC to expand credit support for at-risk medium-sized energy companies so they can maintain operations and keep employees.