CAODC Reacts to Federal Funding Announcement
For Immediate Release: December 18, 2018
The Canadian Association of Oilwell Drilling Contractors (CAODC) supportive of federal funding announcement, but indicate more is needed to address industry challenges.
Today, Natural Resources Minister Amarjeet Sohi and International Trade Diversification Minister Jim Carr announced a funding initiative designed to support the Canadian oil and gas sector. The details of the announcement include: $1 billion in commercial financial support from Export Development Canada to be made available to exporters of all sizes to assist companies looking to invest in innovative technologies, address working capital needs or explore new markets; and a new $500 million Energy Diversification commercial financing envelope over three years from the Business Development Bank of Canada to help higher risk but viable oil and gas small business enterprises weather the current market uncertainty.
The impact of such a long standing downturn has been devastating to women, men, and families in the Canadian oil and gas industry. Additional support from government in this time of need is greatly appreciated, and will help many businesses in the sector stabilize, and re-structure debt and finances.
Access to unsecured loans however, does not address the underlying issues at the heart of the industry’s problem. “While we are grateful for help in any capacity at this point, all we have ever asked for is the opportunity to compete in global markets with our world class products,” explains CAODC President Mark A. Scholz. “Market access and the acknowledgement that our industry is the best in the world, an environmental leader, and important to our country would also be a welcome Christmas gift this year.”
In light of today's announcement, CAODC looks forward to working with the federal government to maximize the benefits of this program for its members. While a step in the right direction, the challenges facing Canadian oil and gas remain substantial. “As Canadians saw recently in Whistler Mayor Jack Crompton’s letter to Canadian Natural Resources Ltd., a fundamental component of the predicament Canadian oil and gas currently finds itself in, is the misinformed idea that we are poorly regulated, responsible for catastrophic global climate change, and bad for Canada,” asserts Scholz. “Until Canadian governments at all levels stop indulging in this rhetoric, we will continue to experience difficulties, require loans, endure inter-provincial conflict, and the men, women, and families in our industry will continue to suffer.”
The Canadian Association of Oilwell Drilling Contractors (CAODC) represents Canada’s drilling and service rig industry.
For more information, contact:
John Bayko – Vice President, Communications
Canadian Association of Oilwell Drilling Contractors
Phone: (403) 264-4311 ext. 120