• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 22 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 14 hours Uniper is over - Germany (Government) buys the Company
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 12 hours "How BlackRock Conquered the World" by James Corbett (all 3 parts)
  • 1 day "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 7 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 12 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 14 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Alberta Set To Lift Mandatory Oil Production Cuts In December

Alberta is lifting the mandatory curtailment of oil production as of December 2020 since there is enough space on pipelines to allow producers to utilize available pipeline capacity and create jobs, the provincial government said on Friday.

The mandated production limits were set in place by the previous government of Alberta after takeaway capacity constraints in late 2018 led to plummeting prices of Canada’s oil. 

As Canadian oil production was growing, takeaway capacity constraints and maintenance at U.S. refineries in the fall of 2018 drove down the price of Western Canadian Select (WCS)—the benchmark price of oil from Canada’s oil sands—to as low as US$14 a barrel in October and November, with its discount to WTI at around US$50 a barrel.  

In early December 2018, the Alberta government moved in to shore up the price of Canadian heavy oil, and in the most drastic measure yet, the province of Alberta mandated an oil production cut of 325,000 bpd beginning in January 2019.

The cut now ends as of December 2020, although the government will extend its regulatory authority through December 2021 to curtail oil production again, if necessary.

The government “will not set production limits due to 16 per cent of Alberta’s crude oil production remaining offline, down from 22 per cent at the start of the COVID-19 pandemic. At this time the Government of Alberta does not plan to resume production limits,” the government said.  

Production capacity in Alberta continues to exceed pipeline capacity because of delays in major pipeline projects, but due to the pandemic and economic downturn, Alberta’s oil companies have been producing well below the established production limits for several months.

“Current forecasts show that inventories are expected to remain low, with sufficient export capacity to allow the system to operate efficiently on its own well into 2021,” the government said, adding that if crude inventories approach full capacity, it could bring back production limits, giving 30-60 days advance notice to producers.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News