Sask. not following Alberta in cutting oil production

Alberta premier announces 8.7 per cent oil production cut to increase prices

"Our country is losing $80 million dollars a day because we can not get tide water access and world prices for Alberta's oil and gas", they say.

The premiers said the problem is costing Canada $80 million a day and the agenda should reflect that.

Executives of upstream oil companies such as Cenovus and Canadian Natural Resources, however, had urged Notley to intervene for weeks, saying they couldn't transfer the oil they were producing without sufficient pipeline space, leading to hundreds of thousands of barrels clogging up warehouses.

Some in the industry say the move is a step in the right direction while others say it undermines investments already made to improve market access.

The mandated cut ends on December 31, 2019.

Oil prices fell 1% on Wednesday, weighed down by swelling United States (US) inventories and a plunge in global stock markets as China's government warned of increasing economic headwinds. This is especially true if companies with their own USA refining capacity, like Husky Energy Inc., Imperial Oil Ltd. and Suncor Energy Inc., decide to squeeze their own workers till the pips squeak to punish the government for reducing their profit expectations for the greater good. In Alberta, the impact could be much higher, between 0.6 per cent and 1.3 per cent over the same period.

The discount between Western Canadian Select bitumen-blend oil and New York-traded West Texas Intermediate was about US$21 per barrel on Monday morning, an improvement of about US$7 per barrel from Friday, according to Net Energy.

Jackie Forrest, senior director at the ARC Energy Research Institute in Calgary, said some companies should have invested in rail capacity sooner in order to ease pipeline shortages. She was steely-eyed and - dare I say it - at some moments evocative of Margaret Thatcher on the eve of that war at the south end of our then-still-chilly planet.

He said he commends the premier for following through on a suggestion he had brought forward, adding he doesn't believe government action will result in the loss of jobs.

Alberta's decision will "clear the supply glut a lot faster than it would have without intervention", Forrest noted.

Part of that concern is because the widening differential between light and heavy crude (now forecasted to average 31.7 per cent over the fiscal year) leads to provincial coffers being reduced with every percentage point increase in the annual differential.

The action is created to prevent job cuts by letting companies keep people on because they can "see a light at the end of the tunnel", Notley said at a news conference. NY time Monday, the tightest it's been since July, data compiled by Bloomberg showed.

Leader of the Official Opposition, Ryan Meili, was skeptical about those consultations, pointing out that in Alberta some companies supported the cuts. The court ordered the country's National Energy Board to redo its review of the pipeline. We need them to toss the half-hearted statements away, we don't actually need Ottawa's sympathy, we need Ottawa's full attention.

Notley's production cut is temporary and will act as a bridge to Canada ramping up crude by rail exports and expanding Enbridge's Line 3 pipeline by the end of 2019 - two further reasons why investors should think that both oil prices and energy stocks will see their growth sustained, Nuttall said.



Latest news

U.S. gives Russian Federation 60 days to comply with nuclear treaty: Pompeo
Three NATO allies on the Black Sea - Bulgaria, Romania and Turkey - are also taking individual measures. The NATO partners on Tuesday also held talks with Ukrainian Foreign Minister Pavlo Klimkin.

Iowa St., Wazzou clash in the Alamo
However, with all the success the Cougars had, they will end the 2018 season by playing in a who cares bowl game. Gardner Minshew and the WSU Cougars will play in the Alamo Bowl on December 28.

Smuggler dropped two children from top of border wall: DHS
A second taller fence past a hill kept them from reaching California, creating an area heavily guarded by border patrols. About two dozen migrants climbed over the border wall separating Mexico from the United States near Tijuana on Monday.

Toddler with rare blood type sparks worldwide search for donor
Zainab Mughal, 2, is missing a common Indian-B antigen, meaning she'll need a rare donor who is also missing that antigen. According to St Jude Children's Research Hospital, neuroblastoma accounts for seven to 10 percent of childhood cancers.

Microsoft May Replace Edge’s Rendering Engine with an Open Source Chromium Fork
Therefore, the future of the web may depend on how Google and Apple continue to develop the Blink and WebKit rendering engines. Despite shipping as the default browser in Windows 10, Edge has never been able to capture a large share of the market.

Other news