Luke Morrison comments in Canadian Lawyer on why force majeure relief is not common in energy sector, despite the oil downturn and COVID-19 pandemic.
“There is still a recognition here with energy companies, across the board, in Western Canada that no one in the production-to-consumer chain is immune or unaffected,” Morrison says. “There still is an undercurrent of a longer-term, pragmatic view and collaboration occurring between producers, suppliers, joint-venture partners. If parties start invoking force majeure and other relief clauses across the board, I think there's recognition that that has a ripple effect and is going to be counterproductive to longer-term health and getting over the current situation.”
From the last month or so of calls I've been getting and meetings I've been having, there's a streak of resiliency along with the anxiety and I think still a lot of collaboration and optimism happening.”
Bennett Jones