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

Sylvan Lake Council reallocates over $1 million for intersection upgrades

The intersection at Erickson Drive and Hwy 20 will see improvements this construction season

Adopted woman discovers biological roots in Sylvan Lake

Corinne Mielnichuk, 53, discovered her biological relatives settled in Sylvan Lake in the 1800s

Murder charges laid in incident near Rimbey

Rimbey RCMP working with crime unit

Sylvan Lake has a full day of fun slated to celebrate Canada

Canada Day events begin at 10 a.m. and run until 11 p.m. on July 1

Glass recycling to make a return in Sylvan Lake

Sylvan Lake has entered an agreement with a company in B.C. to collect glass items

VIDEO: Stop-motion artist recreates Kawhi Leonard’s famous buzzer-beater

It took Jared Jacobs about 40 hours to make the video, on top of the research

Lower youth minimum wage won’t apply at this year’s Calgary Stampede

A new minimum wage of $13/hr is now in effect for Alberta workers aged 13 to 17

Local cowboys take the Stampede lead on opening night

Bareback, team roping has Ponoka sitting pretty in race to the finals

Rock slide in B.C. river may hinder salmon passage

DFO says it is aware that the slide occurred in a narrow portion of the Fraser River

Four-hour tarmac delay violates charter rights of Canadians with a disability: lawsuit

Bob Brown says new rules reduce the distance he can travel by air without putting his health at risk

Accused mother cries at Alberta trial over boy who died of meningitis

Parents charged with failing to provide necessaries of life for their son who died in 2012

Ponoka County receives update from energy lobby group

CAPP hopes to work with municipalities on property tax issues

Air Canada reviewing how crew left sleeping passenger on parked plane

In a Facebook post, the woman said she woke up ‘all alone’ on a ‘cold dark’ aircraft

Most Read