Canada's energy sector supports hundreds of thousands of middle class families and their communities. COVID-19 and global price instability have caused unprecedented challenges for workers and companies in the offshore energy sector in Newfoundlandand Labrador.
In response to the significant economic and financial distress facing the province's energy sector, the Honourable Seamus O'Regan, Canada's Minister of Natural Resources, on behalf of the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, today announced $320 million in funding, towards an agreement with the provincial government, to support Canadians with offshore energy jobs. This agreement will allow the province to support workers through activities such as safety improvements, maintenance and upgrades of existing facilities, and research and development.
This aligns with the $1.72 billion investment that was announced in April 2020 to clean up orphan and/or inactive wells in British Columbia, Alberta and Saskatchewan. An additional $750 million was provided to establish an Emissions Reduction Fund to reduce emissions in Canada's oil and gas sector, with a focus on methane. Of this amount, $75 million was allocated to the offshore sector.
Today's announcement is in addition to the government's intent to extend the Canada Emergency Wage Subsidy (CEWS), recently announced in the Speech from the Throne. Since being unveiled, the CEWS - together with other elements of the government's Economic Response Plan -- has helped Canadians in the natural resources sectors, and all sectors, be able to keep their jobs and keep putting food on the table during the economic downturn. The CEWS has been helping protect more than 3.5 million jobs at businesses of every size, in every corner of this country.
The agreement between the Government of Canada and the Government of Newfoundland and Labrador will work to re-affirm Newfoundland and Labrador's commitment to achieve net zero carbon emissions.
Quotes
"Our Government knows that resource- based provinces are facing a double hit from the pandemic and historically low commodity prices and that workers are facing real challenges. Today's financial support for Newfoundland and Labrador's energy sector will help stimulate employment and support middle class families and their communities."
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
"We believe in our workers. We believe in this industry. And we believe in its future. This is about jobs. This is about ensuring a prosperous future for our offshore."
- The Honourable Seamus O'Regan, Canada's Minister of Natural Resources
Quick facts
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The amount reflects the approximate value of the average revenue the Government of Canada received per year between 2009 and 2018 from net profits interests and indirect net profits interest flowing from its involvement in Hibernia.
