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 Bantam B Lakers score Tier 5 championship

The Lakers drowned Chestermere when they swept the playoff series for the league title

PHOTOS: Hockey Central Midget Panthers fight for league title

The Panthers are in a best-of-five series against St. Albert for the REMHL title.

Sylvan Lake Curling Club’s season comes to an end with mixed bonspiel

The Mixed Bonspiel was held at the NexSource Centre, March 15-17.

Photo Gallery: Royalty and heroes let loose in Sylvan Lake

The second annual Capes and Crown Ball raised funds for Sylvan Lake’s kcs.

Town of Sylvan Lake reviews its snow and ice control policy

At Monday’s meeting Council approved changes to the policy and asked for a public open house

The good, bad and the unknown of Apple’s new services

The announcements lacked some key details, such as pricing of the TV service

Study: Why Canadian police should have a dedicated animal cruelty unit

People view fighting animal cruelty as a public responsibility

One person dead in head-on collision near Stettler

Stettler RCMP investigate fatal collision

One Maskwacis man arrested after gun seized on reserve

Maskwacis RCMP locate loaded handgun during search warrant

Military officer accused of sexual misconduct, drunkenness in B.C., Alberta

Warrant Officer Jarvis Kevin Malone is charged under the National Defence Act

Morneau unveils principles for Indigenous ownership in Trans Mountain pipeline

The controversial pipeline was bought by Ottawa last year

Refugee who sheltered Edward Snowden in Hong Kong arrives in Canada

Vanessa Rodel and her seven-year-old daughter Keana arrived in Toronto this week

New UMSCA trade deal getting a boost from Trump, business groups

The trade deal is designed to supplant the North American Free Trade Agreement

Trudeau says he, Wilson-Raybould had cordial conversation last week

Trudeau denies anything improper occurred regarding SNC-Lavalin and the PMO

Most Read