BR100 Decreased By (-0.91%)
BR30 Decreased By (-1.47%)
KSE100 Decreased By (-0.78%)
KSE30 Decreased By (-0.75%)
AGHA 6.67 Decreased By ▼ -0.01 (-0.15%)
BECO 4.35 Decreased By ▼ -0.02 (-0.46%)
BML 56.17 Decreased By ▼ -1.15 (-2.01%)
BOP 30.12 Decreased By ▼ -0.23 (-0.76%)
CNERGY 12.98 Decreased By ▼ -0.14 (-1.07%)
CSIL 5.31 Decreased By ▼ -0.10 (-1.85%)
FCCL 51.65 Decreased By ▼ -1.14 (-2.16%)
FFL 14.49 Decreased By ▼ -0.23 (-1.56%)
FNEL 1.21 Increased By ▲ 0.09 (8.04%)
KEL 6.06 Decreased By ▼ -0.03 (-0.49%)
KOSM 5.84 Increased By ▲ 0.11 (1.92%)
LOTCHEM 26.17 Decreased By ▼ -0.29 (-1.1%)
MLCF 91.23 Decreased By ▼ -1.93 (-2.07%)
NBP 164.19 Decreased By ▼ -0.47 (-0.29%)
NCPL 53.18 Decreased By ▼ -2.48 (-4.46%)
NPL 59.12 Decreased By ▼ -2.04 (-3.34%)
OGDC 313.39 Decreased By ▼ -3.34 (-1.05%)
PACE 9.77 Decreased By ▼ -0.10 (-1.01%)
PAEL 35.24 Decreased By ▼ -0.39 (-1.09%)
PIBTL 14.71 Increased By ▲ 0.03 (0.2%)
PPL 221.36 Decreased By ▼ -5.55 (-2.45%)
PRL 91.22 Decreased By ▼ -1.80 (-1.94%)
PTC 59.19 Decreased By ▼ -1.07 (-1.78%)
SSGC 23.30 Decreased By ▼ -0.51 (-2.14%)
TBL 8.75 No Change ▼ 0.00 (0%)
TELE 7.61 Decreased By ▼ -0.19 (-2.44%)
TPL 22.03 Decreased By ▼ -0.32 (-1.43%)
TPLP 12.56 Decreased By ▼ -0.41 (-3.16%)
TREET 21.73 Decreased By ▼ -0.43 (-1.94%)
TRG 55.79 Decreased By ▼ -0.77 (-1.36%)
Markets

Canada oil sector gets $1.2 bln to diversify away from US

Published Updated

Ottawa: Canada's oil sector, hurt by low prices and a lack of pipeline capacity to get its product to new overseas markets, received Can$1.6 billion (US$1.2 billion) in government aid on Tuesday.

The federal monies include direct aid and export development loans to help the sector "diversify export markets for its resources beyond the United States," according to a statement.

Natural Resources Minister Amarjeet Sohi and Trade Minister Jim Carr at an announcement in Edmonton, Alberta also said additional funding is available to "address bottlenecks in the freight rail system."

"The oil and gas industry is core to Canada's economy," Sohi said.

"These investments will help protect jobs and restore competitiveness during this difficult time," he said.

Sohi added that "getting our resources to non-US markets is the long-term solution to ensuring every barrel of oil gets its full value."

The boost comes amid a particular difficult time in Canada's oil patch.

Canada is the world's fourth largest oil producer and exporter, but almost all of it goes to the United States.

Construction of new pipelines to US Gulf coast refineries and to the Canadian Pacific tidewater for shipping overseas have been held up by environmental protests.

Prices for Western Canadian Select were below US$15 in November before bouncing back slightly after Alberta announced it would cut production, as well as buy tanker cars to move oil by rail until new pipelines can be built.

But at US$25 on Tuesday, Alberta crude oil was still heavily discounted compared to the benchmark West Texas Intermediate at US$47.50.

Alberta lawmakers have warned that Canada is losing tens of millions of dollars per day due to the price differential.

Copyright AFP (Agence France-Press), 2018
 

Comments

Comments are closed for this article.