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COVID-19 has plunged Canada into a “deep fiscal hole” and the only way out is to trigger the oil and gas sector, Prime Minister Jason Kenney said Friday.
Noting Wednesday that the federal government is announcing a $ 343 billion deficit, Kenney expressed optimism that demand for oil in Alberta will pick up.
“When the world economy returns from COVID, when demand for oil and gas returns, we will see a kind of supply shortage, due to the upstream exploration that has been canceled,” he said. said at a press conference on Friday.
“So we will see prices go up, and it will be a great opportunity for Alberta, especially as we progress on the pipelines,” said Kenney.
At the close of the market on Friday, West Texas Intermediate crude was valued at just over US $ 40.
TC Energy’s Keystone XL pipeline, which the Alberta government committed $ 7 billion in financial support, faced a legal hurdle this week when the United States Supreme Court refused to let construction begin on the project.