By Jeromy Corrigan

GPPA: Cut of oil production to be expected

Dec 3, 2018 | 11:02 AM

Last night Premier Rachel Notley announced the Province will be enforcing an 8.7% cut in oil production beginning in January to help fight markedly low oil prices.

Rob Petrone, President of the GP Petroleum Association stated that something had to be done to help against oil the bottleneck.

“It’s to be expected. With a huge discount that we are seeing here in Alberta and the impact on Canadians all across the country, it is just not sustainable for us to sell our product at this huge discount. Anything that can be done to narrow up those margins is good for all Canadians in my mind.”

Petrone added with this news comes plenty of reaction, both for and against the cut.

“It’s a mixed reaction on the producers’ side no doubt. Any of the big integrated companies in the environment we are in where they are able to purchase the commodity at a low price and refine it, they make good margins off of it, but any other company who is not integrated, it’s tough.”

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Petrone said at the end of the day the oil is owned by the residents of Alberta and Canada, and it is not right for them to be selling oil at such a discount when you see the prices of oil on the World market.

“Things seemed to be turning around and then with this huge discount that we’ve seen the last couple of months, it just sets everybody back.  It’s really concerning for all people working in the oil and gas industry as we go forward into 2019 and the potentially devastating impact it could have on businesses, whether it’s on the service side of our industry or even producers.”