• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 2 mins Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 20 mins The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 12 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 9 hours Cost of oil
  • 5 hours Democrats and Gun Views
  • 19 hours Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
  • 2 hours USAvChina.com
  • 19 hours Trump Orders Biofuel Boost
  • 14 hours Iran says tanker oil sold at sea, buyer sets destination
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 1 hour Iran in the world market
  • 23 hours Green New Deal Preview in Texas Town
  • 20 hours “Who’s going to bail out the Central Banks?”

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