Alberta to cut oil output by 325,000 b/d

[thackney]

Alberta to cut oil output by 325,000 b/d
https://www.ogj.com/articles/2018/12/alberta-to-cut-oil-output-by-325-000-b-d.html
12/03/2018

Saying it is responding “to the historically high oil price differential that is costing the [Canadian] economy more than $80 million/day,” the Alberta government on Dec. 2 announced a curtailment in oil production beginning Jan. 1.

It will require every operator to trim output of more than 10,000 b/d by 8.7% from its highest 6 months of production over the past 12 months.

The Alberta Energy Regulator will regulate the curtailment.

The provincial government said it wants to cut production by 325,000 b/d “until we have enough shipping space to clear the current glut and improve prices. This is expected to take 3 months.”...

[thackney]

Alberta's oil price gap 'directly related to Justin Trudeau's policies,' says Scheer
https://www.cbc.ca/news/politics/tasker-scheer-justin-trudeau-policies-alberta-1.4930286
Dec 03, 2018

Conservative Leader Andrew Scheer said Monday that Prime Minister Justin Trudeau is "directly" responsible for cratering oil prices in Western Canada — pointing the finger at federal energy policies he blames for leaving pipeline capacities constrained and Alberta producers scrambling to sell their product for pennies on the dollar.

With the Trans Mountain expansion and Keystone XL stalled and the Northern Gateway project shelved, Alberta's producers have been forced to accept prices far below world levels for their oil. TransCanada also pulled the plug on Energy East amid shifting demands from Canada's energy regulator, the National Energy Board, and poor market conditions.

"The reason we don't have this energy infrastructure today, the reason why we're bleeding in Western Canada because of this price differential, and the reason why we continue to have to import foreign oil in eastern Canada is directly related to Justin Trudeau's policies," Scheer said at a press conference in Winnipeg....

...While pipeline delays and cancellations have helped to drive down the price of Canadian oil, a number of key refineries in the U.S. — including the largest buyer of Canadian heavy oil in the United States, the BP Whiting refinery in Indiana — have also closed in recent weeks for a series of planned maintenance projects. These closures have reduced temporarily the main market for Canadian crude....

[thackney]

Ottawa warns of dangerously exhausted train crews as Alberta ramps up oil-by-rail
https://www.cbc.ca/news/politics/fatigue-transport-canada-railways-oil-shipments-lac-megantic-safety-board-risks-1.4925734
Dec 02, 2018

An internal Transport Canada document warns of the safety risks posed by exhausted crew members on trains, even as Alberta pursues a plan to ratchet up already-booming shipments of oil-by-rail.

Federal work rules in the rail industry, dating from 2002, "are not effective in preventing fatigue due to work schedules and do not adequately mitigate the risks of fatigue," says the May 2018 memo.

"… fatigue is managed by a patchwork of approaches, most of which are outside TC's [Transport Canada's] control."

The memo, obtained by CBC News under the Access to Information Act, says current regulations on mandatory work-rest periods in the rail industry fail to account for major advances in the science of fatigue over the last 15 years.

And it notes sleep-related fatigue has been cited by the Transportation Safety Board as a contributing factor in 19 major freight train accidents since 1994.

The board said the lone crew member assigned to the oil train that exploded in Lac-Mé​gantic, Que., in July 2013 – killing 47 people – had been awake for over 17 hours when he parked the train, and that fatigue undermined his judgment in dealing with a troublesome locomotive....

[Idiot]

Alberta to cut oil output by 325,000 b/d
https://www.ogj.com/articles/2018/12/alberta-to-cut-oil-output-by-325-000-b-d.html
12/03/2018

Saying it is responding “to the historically high oil price differential that is costing the [Canadian] economy more than $80 million/day,” the Alberta government on Dec. 2 announced a curtailment in oil production beginning Jan. 1.

It will require every operator to trim output of more than 10,000 b/d by 8.7% from its highest 6 months of production over the past 12 months.

The Alberta Energy Regulator will regulate the curtailment.

The provincial government said it wants to cut production by 325,000 b/d “until we have enough shipping space to clear the current glut and improve prices. This is expected to take 3 months.”...

At least this is a start...

[IsailedawayfromFR]

How does it 'cost' Alberta $80 million a day?

Thus seems like liberal logic.

They make money selling and taxing crude.

Are they saying simply they should be making more than what they are?

If so, that is not a cost, but a lower revenue stream.

Hey, Alberta!  Just shut in all production and wait until oil hits $100 again.  Otherwise, it 'costs' you.