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ARTICLE · 20 MAY 2020

Federal Aid Package For Energy Sector And Alberta's Plan To Spend It

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The Federal Government released details of the long-awaited aid package to help the oil and gas industry, which has been hit hard by all-time low oil prices caused by a surge in global crude oil supply.

CanadaEnergy and Natural Resources
Jody Wivcharuk
Jody Wivcharuk
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Federal Aid Package to Oil and Gas Industry

On April 17, 2020, the Federal Government released details of the long-awaited aid package to help the oil and gas industry, which has been hit hard by all-time low oil prices caused by a surge in global crude oil supply with no available storage and a decline in demand due to the economic effects of the COVID-19 pandemic.

The relief measures include:

1. Clean-up Funds

Providing up to $1.72 billion in funding to the governments of Alberta, Saskatchewan and British Columbia and the Alberta Orphan Well Association ("OWA") to clean-up orphan and/or inactive oil and gas wells.

Of this amount, up to $1 billion will be given to the Alberta Government and the government's plans for these funds are discussed in more detail below.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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