• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 8 hours EU has already lost the Trump vs. EU Trade War
  • 5 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 17 hours Judge Orders Trump To Release Tax Returns
  • 4 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 6 hours World oil demand will keep growing until 2030, climate-damaging emissions longer, says IEA
  • 12 hours Shale Gas News – November 9, 2019
  • 1 hour Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 14 hours ''Err ... but Trump ...?'' #thedonkeystays
  • 8 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 1 hour Iran's Master Plan?
  • 3 mins Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 16 hours The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 15 hours CHK Trading @ 90 Cents
  • 7 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans

Breaking News:

The One Fuel To Watch This Winter

Nuclear Energy Is Not The Enemy

Nuclear Energy Is Not The Enemy

As the cry to curb…

Why One Analyst Thinks Tesla's Stock Could Soar To $400

Why One Analyst Thinks Tesla's Stock Could Soar To $400

While many analysts remain skeptical…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Alberta Slashes Economic Growth Forecast As Oil Prices Bite

Calgary

Canada’s Top Oil Province on Friday lowered its 2019 economic growth forecast as oil prices continue to flounder according to a government statement cited by Reuters.

Crude oil production in Alberta, which vacillates between serving as its lifeblood and bane of its existence,  accounts for more than 80 percent of Canada’s total crude oil production, and has been hit the hardest of all Canada’s provinces by the widening spread between the Western Canadian Select and WTI benchmarks, which reached a crescendo last month around $50—a spread nearly inconceivable.

Under pressure from falling WCS prices that are now around $15 per barrel and zero spare takeaway capacity to ship oil to its largest purchaser, the United States, Alberta revised downward its economic growth forecasts for 2019 from 2.5 percent to 2.0 percent.

“The oil price differential is a crisis for Alberta and a crisis for Canada,” said Finance Minister Joe Ceci at a news conference Friday, according to the Edmonton Sun.

Faced with no end in sight to the constrained pipeline capacity, a desperate Alberta announced yesterday that it plans to purchase oil trains to move the oil that is now stuck in province, although it is expected to shore up only $4 per barrel of that $50 gap between WTI and WCS.

“We have already engaged a third-party to negotiate and work is well under way. We anticipate conclusion of the deal within weeks,” Premier Rachel Notley said at a recent meeting with business executives.

Despite its best laid plans, Alberta does not expect the first additional rail cars—and only enough to move an additional 15,000 bpd at that—to be ready to move until the end of next year.

Canada is expected to average 4.59 million bpd of crude oil production this year, despite its takeaway capacity constraints.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • John Brown on December 02 2018 said:
    I’m assuming most Canadians are happy w the lost jobs & income? They voted Trudeau into power & everybody knew he wanted to destroy or greatly shrink the Canadian energy industry. He’s succeeded! Seems Canadians got the list jobs & lower standard of living they voted for!

Leave a comment

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