REGINA -- Saskatchewan’s energy sector will be receiving a boost from the federal government.
Prime Minister Justin Trudeau announced a $1.7 billion investment into orphan and inactive well cleanup in Saskatchewan, Alberta and B.C. on Friday morning.
"Right now, workers and families are struggling because of things beyond their control," Trudeau said.
"Our goal is to create immediate jobs in these provinces, while helping companies avoid bankruptcy and supporting our environmental targets."
There are currently 41,235 inactive wells requiring abandonment in Saskatchewan, including 159 orphaned wells in which the owner has become defunct.
An abandoned well is one that has been properly decommissioned in a safe and environmentally benign state. More than 37,000 wells have been successfully abandoned in Saskatchewan, including 2,030 in 2019-20.
Premier Scott Moe says the Government of Saskatchewan has been calling for federal funding to clean up inactive oil and gas wells since 2016.
"The federal government has taken a positive first step in providing much needed supports to a vital industry that has been heavily impacted by the COVID-19 pandemic and global pricing pressures," Moe said in a statement.
Back in 2016, Brad Wall proposed a similar plan to the federal government and estimated that it would create 1,200 jobs in the province.
Estevan mayor Roy Ludwig says any economic development for the area right now is a positive.
"The oil sector is a large part of our economy here in Estevan, so any jobs will be welcome," he said. "We don’t have as many orphan wells as Alberta does, but there definitely will be some economic activity coming off this."
The federal government also announced it is creating a $750 million emissions reduction fund, which will focus on methane pollution. It will be distributed as a repayable contribution to help businesses maintain their competitiveness, staff and climate targets.
Correction:
An earlier version of this article indicated that there were 2,030 abandoned wells in Saskatchewan. This has now been updated to reflect that the Saskatchewan has 157 inactive wells, while 2,030 inactive wells were cleaned up in 2019.
