Limits on oil production no longer needed, Alberta government says

By: The Canadian Press Posted:

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CALGARY - Alberta will let its oil production curtailment policy expire on Dec. 31.

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Hey there, time traveller!
This article was published 09/12/2021 (1744 days ago), so information in it may no longer be current.

CALGARY – Alberta will let its oil production curtailment policy expire on Dec. 31.

UCP Energy Minister Sonya Savage says the province has not set production limits on the oil industry since December of 2020. She said the government’s power to curtail oil production is no longer needed and will be allowed to expire.

Alberta’s previous NDP government decided to impose limits on the province’s oil producers in late 2018 in an effort to align production with export capacity.

Alberta Energy Minister Sonya Savage at a press conference at SAIT in Calgary, Alberta Wednesday, December 11, 2019. THE CANADIAN PRESS/Greg Fulmes
Alberta Energy Minister Sonya Savage at a press conference at SAIT in Calgary, Alberta Wednesday, December 11, 2019. THE CANADIAN PRESS/Greg Fulmes

At that time, pipeline constraints and a resulting supply bottleneck were causing Canadian crude oil to trade at a steep discount.

However, since then, Enbridge’s Line 3 pipeline replacement has become operational. The Trans Mountain pipeline expansion is expected to come online in early 2023.

Savage says the market is now working as it should and oil companies should feel confident that production will not be limited moving forward.

This report by The Canadian Press was first published Dec. 9, 2021.

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