Province cuts energy war room budget by 90 per cent

EDMONTON The provincially-funded Canadian Energy Centre (CEC) is cutting 90 per cent of its budget amid the COVID -19 pandemic and low oil prices.

The centre, which is aimed at promoting positive news stories around the energy sector, will reduce its annual budget to $2.84 million from $30 million for at least three months or until normal operations can continue, the province announced Monday.

“Global energy demand is down dramatically because of reduced consumption due to the COVID -19 pandemic and the Russia-saudi-initiated price war. But in time, demand will recover. The world still needs reliable energy,” said Energy Minister Sonya Savage in a news release.

Two-thirds of the CEC’S budget was provided through the Technology Innovation and Emissions Reduction Levy, while the rest was reallocated from provincial advertising funds. The majority of that budget was earmarked for paid advertising that won’t proceed during the COVID-19 pandemic.

“While some would like to capitalize on this unprecedented crisis to permanently shut down Canadian oil and gas, we do not believe we should surrender the global energy market to these opponents. The CEC will continue to be required to promote and defend Canadian energy,” said Savage.

The province said the remaining budget will go towards continuing and preparing research and maintaining office infrastructure and administrative support.

Representatives for the CEC were not available for comment.

Oil prices fell Monday, with U.S. crude futures dropping below US$20 a barrel and international benchmark Brent falling to 18-year lows.

NDP energy critic Irfan Sabir said Monday the drop in budget was not enough and said the government needs to shut the centre down permanently.

With files from the National Post