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Alberta reduces oil production



EDMONTON – Days after Edmonton Journal's editor pointed to the curtailment of oil exploration, Alberta's Prime Minister Rachel Notley has officially announced that the province will limit Alberta's key engine of the economy for next year. [19659002] Notley said the province would cut oil production by 325,000 barrels per day – an 8.7 percent reduction – to cope with overcrowding. The restriction will enter into force in January and apply until 31 December 2018.

The price differential imposed by government measures is due to the fact that the federal government can not build pipelines for decades. [19659002] "Ottawa's failure in this area has given Alberta's energy producers few options for relocating their products, leading to serious risks to jobs in the energy industry and Alberta," a release from the province said ,

It is expected that the restriction reduces market volatility and "limits the difference by at least $ 4 per barrel compared to where else it would have been, adding an estimated $ 1.1 billion in government revenue in 2019-2020 – Money paid for roads, schools and hospitals. "

The price differential for Western Canadian Select (WCS) compared to West Texas Intermediate (WTI) was last between $ 30 and $ 50, in October it's $ 52. Notley said the government has a duty to protect resources as they belong to every Albertan.

"But right now they are selling for a penny on the dollar. We have to act immediately and have to do it together. I can not promise the coming weeks and months will be easy, but I can promise that we will never fall behind to protect the jobs and resources of all the Albertans. I'll never stop fighting for Alberta, "she said. The low-price era must end, "says Notley re: oil exploration.

– Kayla Butler (@ ButlerKayla) December 3, 2018

Notley told reporters at its announcement that it was not on the size of the oil company What matters is that large and small producers will be affected.

"We have set an exemption of 10,000 barrels [a day] for all producers, of course, if you are a small manufacturer, the value of this exemption will be greater for them However, we believe that this is a good way to create the necessary flexibility that exists in the industry to accommodate these changes. "


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