Alberta to ease oil production cut again, cites lower storage levels

The first increase was when Notley announced the province would allow increased production by 75,000 barrels

Premier Rachel Notley says Alberta will again ease mandatory oil production cuts due to lower storage levels.

The province says it will allow increased production by 25,000 barrels per day in April.

This will be the second increase since December when the government ordered production of raw crude oil and bitumen to be cut by 325,000 barrels per day to deal with low prices.

The first increase was on Jan. 30 when Notley announced the province would allow increased production by 75,000 barrels per day.

The government says oil storage levels are trending downward and the price difference between Alberta heavy oil and West Texas Intermediate remains narrow.

The province also says warmer weather in spring could mean less diluent will be needed in pipelines, which helps oil flow easier.

“As we fight to get full value for the resources owned by all Albertans, we know that our plan is working as we continue to reduce the amount of oil we have in storage,” Notley said Thursday in a release.

“The decision to temporarily limit production was applied fairly and equitably, and our plan is working to stop allowing our resource to be sold for pennies on the dollar.”

Notley says the short-term production limit is not ideal or sustainable.

She says that is why the province plans to move more oil by rail as Alberta fights for the long-term solution of building pipelines to new markets.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Ponoka woman wills over $200,000 of life savings to community causes

Among the recipients was the Ponoka Health Foundation, the Wheelchair Van Society and STARS

UPDATE: Wetaskiwin hotel up in flames, high school closed due to smoke

Fire crews have been dealing with a fire at the historic Rose Country Inn

Reflections: The early construction of then Ponoka mental hospital

Looking at the early development of then provincial mental hospital in Ponoka

Wolf Creek Schools superintendent receives contract extension

Jayson Lovell will continue to serve as superintendent through 2024

Five highlights in the 2019 federal budget

Latest budget includes a sprinkling of money for voters across a wide spectrum

Facebook to overhaul ad targeting to prevent discrimination

The company is also paying about $5 million to cover plaintiffs’ legal fees and other costs

2019 BUDGET: As deficit grows, feds spend on job retraining, home incentives

Stronger economy last year delivered unexpected revenue bump of an extra $27.8 billion over six years

Newfoundland man caught after posting photo of himself drinking and driving

The 19-year-old took a photo of himself holding a beer bottle and cigarette while at the wheel

Here are five political leaders campaigning in Alberta’s spring election

Rachel Notley, Jason Kenney, Stephen Mandel, David Khan, and Derek Fildebrandt

UPDATE Leduc RCMP say sexual assault claim was false

UPDATE Leduc RCMP say investigation revealed sexual assault never took place

Fought to unite Alberta conservatives: Former MP Kenney ready to run for premier

Kenney, 50, was born in Oakville, Ont., raised in Saskatchewan, and spent his adult years in Alberta

Alberta Premier Rachel Notley wants chance to ‘finish that job’

Notley, 54, is the daughter of the late Grant Notley, who led the NDP from 1968 to 1984

PHOTOS: Massive fire at Wetaskiwin’s Rigger’s Hotel

Multiple fire departments involved, building badly damaged

Most Read