Experts weigh in on the federal investment into Alberta oil and gas
Posted Dec 19, 2018 7:43 am.
Last Updated Dec 19, 2018 11:00 am.
This article is more than 5 years old.
CALGARY (660 NEWS) – The federal government’s move to put a $1.6-billion action plan in place for the Alberta oil and gas industry has drawn the ire of a few critics, yet other experts believe the move will yield positive results.
“Even if Justin Trudeau had announced that he was going to buy locomotives and tanker cars, I am not sure that would have satisfied people. The problem is big and the solutions are much longer term,” said Political Scientist at Mount Royal University Lori Williams.
She added the federal government has waited for so long to make this move that anti-Trudeau sentiments began to fester.
“They waited quite a long time for something that probably could have been put in place earlier. They could have forestalled this growing momentum of anti-federalist sentiment had they been a bit more decisive earlier on.”
But Williams does predict at least some benefits.
“I think it will probably move things in a positive rather than a negative direction.”
Williams argues the federal government is acting like a bank, offering investment with the expectation of return.
READ MORE: Ottawa confirms over $1.6-billion to help the struggling oil and gas sector
She looks at some of the moves already being made to help the price of oil, such as the Alberta government’s curtailment of production as a sign that this type of action could work.
“There’s absolutely no question that it can have significant impacts, certainly in the short-run. A lot of the solutions that both the federal and provincial governments are looking at are a bit longer term.”
Williams believes we won’t know the full effects of this move for a few months.
— With files from CityNews