Rail strike, pipeline spill prompt Alberta to extend oil curtailment levels

Shipping delayed by CN Rail strike, temporary shutdown of Keystone pipeline after North Dakota leak

Minister of Energy Sonya Savage listens while Premier Jason Kenney responds to the federal approval of the Trans Mountain Pipeline in Edmonton, Tuesday, June 18, 2019. THE CANADIAN PRESS/Amber Bracken

The Alberta government says it will leave its oil production quotas unchanged in January to deal with the lingering consequences after oil shipping was delayed by CN Rail strike and the temporary shutdown of the Keystone pipeline following a leak in North Dakota.

A spokesman for Energy Minister Sonya Savage says producers were informed Tuesday that the production limit for January will remain at 3.81 million barrels per day, the same as December, after several consecutive months of easing quotas.

Production limits were enacted by the previous NDP government starting in January to better match supply levels with pipeline capacity and alleviate wider-than-usual local price discounts for Alberta oil blamed on high inventory levels.

The curtailment program was to expire at the end of 2019, but the United Conservative government extended it through 2020 while gradually increasing the amount that can be produced. The quotas now affect only the top 16 producers.

READ MORE: ‘No excitement at all’ as oilpatch interest wanes for drilling rights auctions

The province recently announced oil production from new conventional wells won’t be subject to curtailment and producers who add crude-by-rail shipping capacity can also produce more.

Crude-by-rail exports from Canada rose to 310,600 bpd in September but remained short of the record 353,800 bpd set in December 2018.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Reeve: Development needs a reminder about public spaces

Ponoka County discusses promises of public access at Meridian Beach

COVID-19: One more death reported in central zone

Number of active cases has decreased by more than 200 since last week

Sylvan Lake welcomes three new family doctors

The three doctors are practicing at the Sylvan Family Health Centre and are accepting new patients

Rimbey RCMP respond to 44 calls for service last week

The files include three assault investigations and one assault with a weapon occurrence

TikTok sale puts Canada between Trump and China, again, experts say

TikTok sale puts Canada between Trump and China, again, experts say

Alberta, Ottawa reduce oilsands environmental monitoring budget due to pandemic

Alberta, Ottawa reduce oilsands environmental monitoring budget due to pandemic

Husky targets 25% GHG emissions intensity cut, vows to hire more female leaders

Husky targets 25% GHG emissions intensity cut, vows to hire more female leaders

Oilfield services rival makes alternative plan to restructure Calfrac debt

Oilfield services rival makes alternative plan to restructure Calfrac debt

TSX moves up as Mideast blast lifts commodities, markets catch up after holiday

TSX moves up as Mideast blast lifts commodities, markets catch up after holiday

NHL hit with criticism over English-only version of “O Canada” on Saturday

NHL hit with criticism over English-only version of “O Canada” on Saturday

Blackhawks’ Caggiula suspended for Game 2 vs. Oilers

Blackhawks’ Caggiula suspended for Game 2 vs. Oilers

Jets rebound with 3-2 win over Flames, even qualifying series 1-1

Jets rebound with 3-2 win over Flames, even qualifying series 1-1

Most Read