Alberta to stop setting monthly oil production limits in December
Beginning in December 2020, the Alberta Government will no longer set monthly oil production limits, in the hope that producers will utilize available pipeline capacity and create jobs.
The Government will extend its regulatory authority to curtail oil production through December 2021, though it will not set production limits, and there are no plans to resume production limits at this time. The decision comes as 16 percent of Alberta’s crude oil production remains offline, down from the 22 per cent at the start of the COVID-19 pandemic.
“Maintaining the stability and predictability of Alberta’s resource sector is vital for investor confidence as we navigate the economic conditions brought on by the pandemic, the commodity price crisis and the need for pipelines,” says Minister of Energy, Sonya Savage.
“This purposeful approach serves as an insurance policy, as it will allow Alberta to respond swiftly if there is a risk of storage reaching maximum capacity while enabling industry to produce as the free market intended.”