• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 6 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 1 hour Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 2 hours Pepe Escobar: “How The Houthis Overturned The Chessboard”
  • 12 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 18 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 1 day Hong Kong protesters appeal to Trump for support.
  • 1 day Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 14 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 9 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 14 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
Oil Price Explosion – Brent Crude Jumps 20%

Oil Price Explosion – Brent Crude Jumps 20%

Brent crude rocketed on Sunday…

Trump Clashes With California Over Fuel Regulations

Trump Clashes With California Over Fuel Regulations

The Trump administration is moving…

Ottawa Loans Alberta $22.5M To Clean Up Orphan Wells

Oil Rig

The central Canadian government has allocated US$22.5 million (C$30 million) in financial aid for the province of Alberta in its new budget, in a bid to stimulate its economy, which is heavily reliant on the oil industry. The provincial PM, Rachel Notle,y said that most of the money will be spent on the cleanup of the so-called orphan wells – wells whose owners have gone bankrupt and are now sitting idle.

At the moment, there are 82,000 orphan wells across Alberta, and their cleanup will re-employ some of the industry workers who were laid off during the downturn.

A representative of the Petroleum Services Association of Canada said that the organization had asked Ottawa for US$375 million (C$500 million) to clean up the orphan wells, as a loan, adding that the actual amount received was 10 percent of what aerospace company Bombardier received in loans from the government. “Ironically, those airplanes won’t fly without oil and gas,” he said.

PM Notley said that the money would “leveraged” in a way that will generate more money, without going into further details.

In other budget news, Alberta drillers were disgruntled by tax changes that will increase the burden of drilling new wells. Until now, the Calgary Herald notes, drillers’ expenses related to new wells were deductible during the first year from discovery. Now, the budget stipulates that only 30 percent of new well costs will be deductible annually, on a declining basis. This is likely to affect Alberta oil producers’ competitiveness, especially among smaller ones, one industry insider said.

Related: Can Big Oil Survive A CO2 Crackdown?

The budget news comes as the province, which is Canada’s biggest supplier of oil and gas, still grapples with the fallout of the price rout and with the prospects of a “phase-out” of the oil sands industry, as pledged by federal PM Justin Trudeau. The pledge caused outrage in Alberta as many livelihoods depend on the oil industry, and there are no specific suggestions about what will replace it as a source of income.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play