Source: Amanda Coletta, CTV News, December 2, 2018
Alberta’s premier announced on Sunday that the province will temporarily cut its oil production in an attempt to shore up prices and reverse a historic price gap that has seen Alberta crude sell for significantly less than the world price.
Premier Rachel Notley said the province will mandate a temporary oil production cut of 325,000 barrels of oil per day, or 8.7 per cent, starting in January 2019. She added that the reduction will be subject to a monthly evaluation and that the curtailment amount will decrease over the year.
“In Alberta, we believe that markets are the best way to set prices,” Notley said. “But when markets aren’t working, when companies are forced to sell our resources for pennies on the dollar, then we have a responsibility to act, to defend our province and to defend our resources.”
Image Source: THE CANADIAN PRESS/Jason Franson
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