Notley to announce next steps for dealing with oil backlog on Sunday

Notley to announce next steps for dealing with oil backlog on Sunday

Notley to announce next steps for dealing with oil backlog on Sunday

Premier Scott Moe said Monday afternoon that he understands and supports the actions taken by the Alberta government to address the glut of oil, but the situation is different in Saskatchewan. "Should OPEC-plus reinstate cuts at their confab later in the week", she wrote, "we could see further upside in global oil benchmarks, including Canadian grades".

We must act immediately, and we must do it together.

Dave is joined by Calgary Herald business columnist Chris Varcoe.

The steep Western Canada Select-West Texas Intermediate differential, which reached US$52.40 per barrel in October, has driven a wedge between companies in the industry as integrated producers that benefited from cheap feedstock for their refining units pushed back against calls for mandatory cuts.

Above: Price of Central Alberta blend of oil.

She says that a lot of the frustration that Notley has with the federal government shone through the speech on Sunday.

Discounts for upgraded synthetic oil improved to US$13.50 per barrel Monday afternoon from US$18.50 on Friday and Edmonton-priced light oil differentials fell to US$15.25 from US$23.00.

The change in Alberta would affect his company by about 600 barrels of oil a day, said Fagerheim.

Notley said it will be a short-term solution created to be monitored and adjusted monthly as necessary.

But Cenovus consulted experts on the trade issue and believes the cuts are allowed, Pourbaix said. For these reasons, a government-mandated production cut in Saskatchewan could result in a loss of jobs and economic activity in our province, but would have little impact on the price of oil because it would disproportionately impact conventional oil production, which is not the problem.

Canada's main stock index began the week higher as Alberta production cuts helped to lift oil prices to their largest gain since June, while investors felt relief from a preliminary trade truce between the USA and China. Once storage volumes return to more normal levels, the forced cuts will be reduced to 95,000 bpd.

As of December 3, Husky Energy, Saskatchewan's largest heavy oil producer, had the most drilling rigs working in the country, at 16.

However, it was Notley's assurances that a decision on curtailing output was coming soon that helped boost heavy Canadian crude prices by 49 per cent last week. The cut seems to be working, however, and that should be welcome news right now: yesterday Reuters reported weather-related power disruptions had occurred on two major Canada-U.S. pipelines, Keystone and the Mainland system.

Announcing the measure on Sunday, Premier of Alberta Rachel Notley said that the province is "facing a hard challenge", but the move is aimed to reverse an unprecedented price gap that has seen the province's crude sell for significantly less than the global price.

He said the status quo on Canadian oil shipping can not continue, but defended his government's record on pipelines and the oil industry, noting the recent $4.5-billion purchase of the Trans Mountain pipeline in a bid to get it expanded despite political controversy.

The province is directing the Alberta Energy Regulator (AER) to launch the system of curtailment through existing legislation.

Other Canadian crudes also rose on the announcement.

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