-Some not unexpected news from the Premier last night–as Rachel Notley announced a mandatory 8.7–percent curtail in oil production. It kicks in next month—and means production will be chopped by 325-thousand barrels a day.
This will be in effect until December 31st of next year.
“Over many years, successive governments in Ottawa have failed to build new pipelines. This is resulting in an historically low price for our oil. We are giving it away for next to nothing. This is hurting jobs and Alberta’s economic recovery. In the short term, we are curtailing production to raise the price and protect jobs. In the medium term, we are also buying new rail cars to clear the backlog and stabilize the market.”
The UCP say they’re in support of the NDP government’s decision. The UCP also says its the federal government’s fault that this is needed—because they’ve done nothing to alleviate the problem.
-So what do the feds have to say? Natural Resources Minister Amarjeet Sohi issued a news release in which he said the Liberals have inherited a flawed system that had projects going before the courts instead of putting shovels to the ground. He also says he’s written to the National Energy Board to “look for guidance” on maximizing current pipeline capacity.