Rail strike, pipeline spill prompt Alberta to extend oil curtailment levels

Shipping delayed by CN Rail strike, temporary shutdown of Keystone pipeline after North Dakota leak

Minister of Energy Sonya Savage listens while Premier Jason Kenney responds to the federal approval of the Trans Mountain Pipeline in Edmonton, Tuesday, June 18, 2019. THE CANADIAN PRESS/Amber Bracken

The Alberta government says it will leave its oil production quotas unchanged in January to deal with the lingering consequences after oil shipping was delayed by CN Rail strike and the temporary shutdown of the Keystone pipeline following a leak in North Dakota.

A spokesman for Energy Minister Sonya Savage says producers were informed Tuesday that the production limit for January will remain at 3.81 million barrels per day, the same as December, after several consecutive months of easing quotas.

Production limits were enacted by the previous NDP government starting in January to better match supply levels with pipeline capacity and alleviate wider-than-usual local price discounts for Alberta oil blamed on high inventory levels.

The curtailment program was to expire at the end of 2019, but the United Conservative government extended it through 2020 while gradually increasing the amount that can be produced. The quotas now affect only the top 16 producers.

READ MORE: ‘No excitement at all’ as oilpatch interest wanes for drilling rights auctions

The province recently announced oil production from new conventional wells won’t be subject to curtailment and producers who add crude-by-rail shipping capacity can also produce more.

Crude-by-rail exports from Canada rose to 310,600 bpd in September but remained short of the record 353,800 bpd set in December 2018.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta discussing early Stage 2 economic relaunch

Nineteen new COVID-19 cases confirmed by government Wednesday

Sylvan Lake-based Family Resource Network servicing Eckville, Benalto

Due to COVID-19 supports are being delivered through phone calls, texts, online platforms and emails

Documentary about a Sylvan Lake man and his team to be featured at Okotoks Film Festival

Living the Warrior Code documents Scott Mcdermott and his team’s journey back to the Ultraman race

Israeli, Chinese policies ‘concern’ Canada, undermine freedom, says Trudeau

Israeli, Chinese policies ‘concern’ Canada, undermine freedom, says Trudeau

House of Commons can manage virtual voting securely if MPs want it, Speaker says

House of Commons can manage virtual voting securely if MPs want it, Speaker says

Facing changes together: Your community, your journalists

Sylvan Lake News is firmly committed to seeing you through the changes ahead, but we need your help

Facing changes together: Your community, your journalists

Sylvan Lake News is firmly committed to seeing you through the changes ahead, but we need your help

Hydroxychloroquine does not prevent COVID after exposure to the virus: study

Hydroxychloroquine does not prevent COVID after exposure to the virus: study

Nunavut RCMP to consider body cameras as tension between police, Inuit grows

Nunavut RCMP to consider body cameras as tension between police, Inuit grows

Stockwell Day steps down from several roles after comments about racism

Stockwell Day steps down from several roles after comments about racism

Trudeau to join global COVID-19 vaccine fundraiser amid calls for fair access

Trudeau to join global COVID-19 vaccine fundraiser amid calls for fair access

Joint inquiry or review of mass killing taking shape, N.S. justice minister says

Joint inquiry or review of mass killing taking shape, N.S. justice minister says

Greens likely to hold virtual leadership convention due to pandemic: May

Greens likely to hold virtual leadership convention due to pandemic: May

Meng hearing schedule to expand; lawyers ask for ‘referee’ in case

Meng hearing schedule to expand; lawyers ask for ‘referee’ in case

Most Read