Alberta Premier Jason Kenney has called for more federal support in the face of oil prices that tumbled below $0 on Monday.
On Monday afternoon, Kenney said while the help the feds have provided so far for Alberta’s energy sector is welcome, more help is needed to help support an industry facing negative oil prices.
Last week, the federal government announced a multibillion-dollar oilpatch bailout package, much of it dedicated to cleaning up inactive or "orphan" oil and gas wells.
Oil prices bottomed out on Monday, with Western Texas Intermediate (WTI) trading at -$36.20 per barrel and Western Canadian Select trading below zero.
“The implications for this industry are very serious – could not be more serious,” Kenney said.
“We simply cannot afford to see that industry permanently impaired.”
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The premier said the low oil price “further underscores the devastation” of the impact of recent events on Alberta’s largest industry.
Kenney said across Canada, some 500,000 jobs are connected to the oil industry.
“We need to understand hundreds of thousands of Canadian jobs are on the line.”
The premier said this is not an Albertan issue, but it strikes right at the heart of the Canadian economy.
“We appreciate the measures that were announced by the government of Canada ... but much more action is needed”
Kenney said the banking sector, financial services industry, pension funds and government revenues could all be jeopardized by the devastation to the oil industry.
