Canadian oil & gas companies strive for Ottawa aid amid twin shock

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Canadian oil & gas companies strive for Ottawa aid amid twin shock

On Wednesday, the 25th of March 2020, an energy industry body representing Canadian oil drilling and natgas mining operations had urged Ottawa to proffer credit and cash to help them survive a double whammy of a supply glut due to a crude oil price war alongside the coronavirus-led demand concerns, while the industry body had asked the Canadian Government of PM Justine Trudeau to incline a swathe of measures in a near-term outlook ranging from backstopping bank loans to tax deferrals, an industry source had revealed on condition of anonymity as the source was not authorized to speak over the subject-matter on public.

If truth is to be told, Canadian oil and natgas industry has barely been breathing amid a multi-year low crude oil price following the Saudi-Russ crude oil price war over market share alongside the coronavirus pandemic which had dented demand outlook significantly.

On top of that, latest move from the Canadian energy industry body came forth days after the International Energy Agency (IEA) was quoted saying that a majority of Northern American Shale operators would likely to become bankrupt over the coming weeks without any Government bailout package.

Besides, the source was also quoted saying that the Canadian Government had been exploring an option on whether to expand a C$10 billion credit support, which it had pledged earlier this month to battle past the coronavirus outbreak, in order to offer a breathing space for a slew of Canadian oil and gas companies.