Monday , May 16 2022

The Alberta Prime Minister has cut oil production by 8.7% to increase prices


Alberta Premier Rachel Notley has temporarily announced a 8.7% increase in production oil, or 325,000 barrels per day reduction in crude oil and bitumen production from January 1 to 2019.

Last Sunday in an advertisement, Notley said the daily cuts will continue to be on sale at 35 million barrels of processed oils per day, depending on the spring.

The restriction will exceed 95,000 barrels per day by the end of 2019, when Enbridge's new Line 3 pipeline is in operation.

The government of Alberta also expects to purchase current locomotives and railcars to transport 120,000 barrels a day.

The cuts will affect 25 bigger bits and regular producers. Increased producers will exclude 10,000 barrels every day. Products with less than 10,000 barrels per day will not cause daily cuts.

Notley's announcement aims to address West Texas External Oil (WTI)'s inequality in the price of overseas oil prices. This gap lasted around $ 50 in October, with the lack of pipeline capacity to market Alberta oil.

The government estimates that Alberta is losing $ 80 million per day and is lost. These measures are expected to reduce the gap with $ 4 U.S and add $ 1.1 million to the Alberta Finance this year.

The government has said that the industries do not want to make these cuts voluntarily, after sending three senders and talking about large and large producers.

The Minister of Energy of Alberta has the power to establish by the current legislation the amount of restriction by order of monthly ministry.

Jason Kenney, Head of the Conservative Party Party, will be reacting 30 minutes later to the official Alberta opposition.

Kenney's press conference will be made live on Facebook.

Changes in oil prices have a major impact on the Alberta resource-dependent economy.

& # 39; Su-sale prices & # 39;

Alberd's NDP Premier Rachel Notley has tried on Sunday night that forced oil production cuts will be announced. (Adrian Wyld / Canadian Press)

Notley has pressured to take action, especially since the Canadian Federal Court has ruled in August that Trans Mountain Pipeline has spread from the west coast.

The so-called Price Inequalities began to grow in September and, in the last 10 days of October, rose to $ 47 billion.

The Ensanche was 28.50 US dollars per barrel, closed on Fridays markets.

The problem is excessive production and has no access to the oil market, according to the Alberta government. Notley has said in a week's gift that 35 million barrels of oil are sold at "sales prices".

Homemade production cuts made the first proposal by Alberta on June 17. Kenney was first involved in the fight against industrial production, but changed himself and cut 10 percent last week.

For the Board of Directors of the Toronto Council, Notley said that it intends to buy Alberta 80 locomotives, to exchange 100 to 120 cars for the oil market.

However, it is a medium-term solution in the current storage warehouse, as it would take time to buy or rent the necessary equipment.

On Friday, Notley supplied them with pros and cons of cut-out production for the industry.

The status quo below will not hurt the producers also have refinery operations, but companies are smaller, they cause bankruptcies and job losses.

If there were profits for temporary production, Notley said it would reduce the reduction of oil deposits and reduce minority differences between Western Canada and the West Texas Intermediate.

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