Alberta will cut oil production by 8.7 per cent starting in January in an effort to reduce the punishing price differential plaguing energy producers, says Premier Rachel Notley. “We must act immediately, and we must do it together,” she said in a speech Sunday at the Federal Building. About 25 producers are expected to face cuts until the 35 million barrels of oil currently in storage are shipped out of the province. “We have a fairly good sense of what we need to do to clear the market, and clear storage,” Notley said, adding the decision was “very difficult. “When markets aren’t working … then we have a responsibility to act,” she said. “This is a critically important matter for Canada’s economy, not just Alberta’s economy.” The price differential between Western Canadian Select and West Texas Intermediate has fluctuated in recent weeks, peaking at around C$45 a barrel. Western Canadian Select was selling for US$17 per barrel Friday. Tim McMillan, president of the Canadian Association of Petroleum Producers, said the actions announced Sunday underscore a dire situation. “It further reinforces the need for Canada to increase exports of our oil and natural gas to existing and new markets, which […]
