The federal government will invest $1.7 billion to clean up abandoned and inactive natural gas and oil wells in Alberta, Saskatchewan, and British Columbia, Prime Minister Justin Trudeau announced Friday.
Trudeau announced the measure during his daily briefing in Ottawa, saying it is aimed at creating immediate jobs in these energy-producing provinces, while helping companies avoid bankruptcy, and supporting Canada’s environmental targets.
“These wells, which are no longer in use, can be detrimental not only to our environment, but to people’s health,” Trudeau said.
“Think of the farmer who can’t grow anything on his land because of an abandoned well a few steps away from her home.
“Think of the small town or Indigenous community struggling with this issue that has been festering for years or even decades.”
Supporting 5,200 jobs in Alberta
A pumpjack works at a well head on an oil and gas installation near Cremona, Alta. Saturday, Oct. 29, 2016. (Jeff McIntosh/THE CANADIAN PRESS)
Cleaning up these abandoned and old wells, will bring people back to work and help many landowners who have had these wells on their property for years, but haven’t been able to get them taken care of and the land restored, Trudeau said.
These investments are expected to maintain 5,200 jobs in Alberta alone, Trudeau said.
“We have listened to the concerns of landowners, municipalities, and Indigenous communities who want to make sure that the polluter pay principle is strengthened and that their voices are heard,” he added.
$750 million to reduce methane emissions
The Suncor oil sands facility seen from a helicopter near Fort McMurray, Alta., Tuesday, July 10, 2012. (Jeff McIntosh/THE CANADIAN PRESS)
The federal government will also establish a $750 million Emission Reduction Fund, with a focus on methane, to create and maintain jobs through pollution reduction efforts, Trudeau said.
Many energy firms are experiencing a cash crunch and don’t have the funds to invest in technologies to reduce emissions or fix methane leaks, Trudeau said.
The announcement will allow for this kind of work to be done and the federal government estimates that it will help the energy industry 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,” Trudeau said.
The federal government is also working with the Business Development Bank of Canada and Export Development Canada to expand credit support for at-risk medium-sized energy companies, so they can maintain operations and keep their employees, Trudeau said.
Alberta Premier Jason Kenney thanked the federal for the investment of $1.7 billion to accelerate the cleanup of orphaned and abandoned wells.
“This is critical to getting thousands of people in the energy sector back to work immediately,” Kenney tweeted.
“Also encouraging to hear of new measures to enhance credit support for mid-sized energy companies. We look forward to reviewing the details of this support in the days ahead.”
Thank you to the Prime Minister and the fed govt for announcing $1.7 billion to accelerate cleanup of orphaned and abandoned wells in Canada’s energy sector.
This is critical to getting thousands of people in the energy sector back to work immediately.https://t.co/FMW6RYX4FG
— Jason Kenney (@jkenney) April 17, 2020
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