Saskatchewan’s minister of energy and resources is calling on the federal government to provide more supports for the nation’s energy sector after oil prices took a hit on Monday.
In a release sent out by the government, Minister Bronwyn Eyre seemed surprised by the drop and urgently requested that more assistance is needed during the pandemic.
“The plunge of oil prices today into actual negative territory was not immediately anticipated, and further underlines the urgent need for an immediate and substantial support package for Canada’s energy industry from the federal government,” her statement read.
“In recent years, our government has substantially decreased reliance on oil and gas royalty revenue from about ten per cent of total revenue to five per cent currently. Nevertheless, thousands of jobs continue to depend on the economic health of this important sector.”
According to the ministry, the government estimates that production shut-ins and turndowns this spring will be around 20 and 30 per cent from factors including COVID-19 and the price war between Russia and Saudi Arabia.
Last week, the government announced a short-term oil and gas package as they continue to examine other provincial options.