• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 5 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 4 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 2 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 26 mins Used Thin Film Solar Panels at 15 Cents per Watt
  • 3 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 12 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 5 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 12 hours US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 12 hours Iran Is Winning Big In The Middle East
  • 14 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 9 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 10 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 11 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 12 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
The Anti-Iran Alliance Is Cracking

The Anti-Iran Alliance Is Cracking

The anti-Iran alliance in the…

A Very Fragile Balance In Oil Markets

A Very Fragile Balance In Oil Markets

Intra-day volatility spiked in August…

Alberta Enforces 8.7% Oil Production Cut

oil train

Alberta’s Premier Rachel Notley announced that the government of the province will enact an 8.7-percent crude oil production cut to clear excess stockpiles as pipeline bottlenecks have plunged the selling price of Western Canadian grades to deep discounts against West Texas Intermediate.

Reuters reports the cut will remove 325,000 bpd from Alberta’s average daily production rate but it will only be in place for a short while, until the glut clears. Once this happens, the cut will be reduced to 95,000 bpd, to remain in place until the end of next year.

Canada’s biggest oil producer has been struggling to get its crude to markets, and last month the chief executive of Cenovus called on the provincial government to intervene and institute a production cut as a last resort.

“We’re probably producing about 200,000 or 300,000 barrels per day of oil in excess of our ability to get that oil out of the province, either by pipelines or by rail,” Cenovus’ CEO Alex Pourbaix told Global News at the time.

Not all were on board with the idea, however. “Our position is that government intervention in the market would send the wrong signals to the investment community regarding doing business in Alberta and Canada. And we really do need to take a long-term view and allow the market to operate as it should,” was the statement of peer Suncor.

Premier Notley last week described the situation as “fiscal and economic insanity.” Alberta now has to buy more oil trains—a more dangerous way to transport oil than pipelines—because production is rising inexorably while pipeline capacity remains the same in the face of fierce opposition from environmentalist groups and First Nations against new pipeline projects. The National Energy Board recently said crude oil production in Canada this year will average 4.59 million bpd, up by 22,000 bpd from earlier forecasts.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play