The Canadian Association of Oilwell Drilling Contractors (CAODC) is calling the federal government’s decision to finally green light the Trans Mountain expansion “trivial” as the industry is five years into the worst recession in its history.
If shovels hit the ground today, Canadian producers must still wait years for additional capacity, and with bills C-48 and C-69 appearing to be all but final, industry and investor sentiment suggests the writing is on the wall for Canadian oil and gas.
While commodity prices have recovered since 2014 lows, oil and gas families and oilfield businesses remain decimated. Hundreds of thousands of people remain unemployed or underemployed, businesses can no longer obtain credit, investment is gone, and energy companies on the Toronto Stock Exchange are at all-time lows.
“This industry is on life support. Today’s announcement does little to provide future certainty to drilling and service rig contractors as they continue to exit the Canadian market at an alarming rate,” asserts Scholz. The Association expects further challenges with the passing of bills C-48 and C-69 and does not foresee any additional pipelines proposed under the new legislation.
Rather than promote the exceptional record of Canada’s oil and gas industry to help balance the conversation about the environment and the economy, the federal government instead continues to pursue regulations seemingly designed to put it out of business. The result has been multiple cancellations or delays for several major pipeline projects, and an exodus of investment.
“The federal government’s agenda is clear, to cause irreparable damage to the oil and gas industry and its workers,” observes Scholz. “There is absolutely no reason for this type of approach given our environmental and operational track record, and the women and men in this industry don’t deserve to be treated in this way. The federal government should reconsider the way it has politicized and marginalized one of Canada’s greatest assets.”
For further information, please contact:
John Bayko, Vice President, Communications
Canadian Association of Oilwell Drilling Contractors
Suite 2050, 717-7 Avenue SW Calgary, AB T2P 0Z3
Phone: (403) 264-4311