Limitations on oil production no longer required, Alberta government declares

Key takeaways: 

• Alberta will allow its oil production curtailment guideline to pass on Dec. 31.
• UCP Energy Minister Sonya Savage speaks the region has not placed production limitations on the oil enterprise since December of 2020.
• She stated the government’s ability to trim oil production is no longer required and will be permitted to pass.

Boundaries on oil production are no longer required as per the declaration by the Alberta government : 

Alberta will allow its oil production curtailment guideline to expire on Dec. 31.

UCP Energy Minister Sonya Savage states the region has not placed production boundaries on the oil enterprise since December of 2020. She told the government’s ability to curtail oil production is no longer required and will be permitted to expire.

Alberta’s earlier NDP government chose to set limitations on the region’s oil producers in late 2018 to align production with export capability.

Read more: Edmonton police official accused with a physical attack, violation of faith

At that moment, pipeline restrictions and a resultant supply jam were pushing Canadian crude oil to sell at an abrupt discount.

Yet, since then, Enbridge’s Line 3 pipeline substitute has become functional. The Trans Mountain pipeline growth is anticipated to come online in earlier 2023.

Savage states the market is now operating as it should and oil firms should feel convinced that production will not be restricted driving ahead.