A federal financing relief package for large Canadian companies was applauded by the oil and gas sector and the Alberta government on Monday despite conditions that could link the aid to an individual companyB次元官网网址檚 climate change goals.
In Edmonton, Alberta Finance Minister Travis Toews welcomed the announcement, saying that the provinceB次元官网网址檚 large companies, particularly in oil and gas and aviation, need relief quickly.
B次元官网网址淲e know that the (financial) need could be great. WeB次元官网网址檝e seen some recovery in energy prices, thatB次元官网网址檚 very welcome, but these prices that weB次元官网网址檙e seeing today are by no means close to profitable for the industry,B次元官网网址� said Toews.
While the province still needs to see the details of the federal plan, he said he is pleased there is no cap on the bridge financing offer.
He added oil and gas companies shouldnB次元官网网址檛 face problems with the requirement to help meet federal climate change commitments.
Oilsands producer Cenovus Energy Inc. is pleased that Ottawa recognizes large corporations need help as well as the small and medium-sized ones, said spokeswoman Sonja Franklin.
B次元官网网址淭odayB次元官网网址檚 announcement is an important signal for the markets that the government will stand behind viable businesses in this country,B次元官网网址� she said in an email.
B次元官网网址淭he federal government recognizes which sectors contribute most significantly to its revenues and needs to ensure these sectors B次元官网网址� like oil and gas B次元官网网址� will be there to help it pay off the massive debt itB次元官网网址檚 accumulating as part of the COVID-19 relief.B次元官网网址�
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The company is in a strong financial position with access to more than $6 billion in liquidity, she added, but government support is important because thereB次元官网网址檚 no way to know when low oil prices will recover.
Cenovus has set targets of 30 per cent greenhouse gas emissions intensity reduction and flat overall emissions by 2030, as well as achieving net zero GHG emissions by 2050, and therefore should have no problem meeting federal climate change requirements, she said.
The federal program goes a long way to addressing the industryB次元官网网址檚 request for short-term financial liquidity help and will likely be well used as long as there are no issues with accessing the funds, said Tim McMillan, CEO of the Canadian Association of Petroleum Producers.
B次元官网网址淚 think this is essential. Not all companies are going to need to tap into this sort of liquidity B次元官网网址� but some that are normally high-quality, stable companies likely will be looking for this program to provide a certain amount of liquidity for them,B次元官网网址� he said.
Environmental and climate change reporting by oil and gas companies is extensive, both voluntary and as required by regulators, he added, which means most companies should be able to meet OttawaB次元官网网址檚 requirements.
B次元官网网址淭his is a non-sector-specific program and when we compare what weB次元官网网址檝e been doing for the last several years compared to other industries in Canada, I think weB次元官网网址檙e probably one or two steps ahead,B次元官网网址� he said.
B次元官网网址淭his would be a requirement that may be a challenge for some industries B次元官网网址� I think for our larger oil and gas companies, this is the kind of stuff weB次元官网网址檝e been reporting on for a period of time already.B次元官网网址�
Companies that apply for public support should be willing to say how they will adapt to new rules with regard to climate change, said Greenpeace Canada senior energy strategist Keith Stewart.
B次元官网网址淭here have to be some real teeth in how this is implemented, but it makes sense that companies seeking public support agree to limit dividends and executive pay, forgo tax havens and start aligning their business model with CanadaB次元官网网址檚 climate change targets,B次元官网网址� he said.
B次元官网网址淐ompanies funding campaigns to oppose action on climate change should be excluded from the program.B次元官网网址�
With a file from Dean Bennett in Edmonton.
Dan Healing, The Canadian Press
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