Premier Jason Kenney said the government continues to talk with companies about them taking over crude-by-rail contracts signed by the former NDP government. (Photo by THE CANADIAN PRESS)

Kenney defends oil curtailment program as maximum output inches higher

BANFF, Alta. — Alberta’s United Conservative government is again easing oil production limits for producers, setting a maximum production quota of 3.81 million barrels per day for December, up 250,000 bpd from the original limit set by the previous NDP government for last January.

The province says it will allow large producers to open the taps by another 10,000 bpd in each of November and December.

Outside the Global Business Forum in Banff,alta., Premier Jason Kenney defended continuing the program despite harsh criticism from Calgary-based Imperial Oil Ltd.

He says Alberta actually produced and shipped more oil last month than in November last year, before curtailment started.

In August, Imperial CEO Rich Kruger said the company would severely cut its crude-by-rail shipments because the curtailment program had made them less profitable by reducing the difference between Alberta and U.S. Gulf Coast prices.

He said the curtailments were “no way to run a railroad.”

Earlier this week, the Canada Energy Regulator (formerly the National Energy Board) reported that crude-by-rail exports averaged 313,000 bpd in July, up nine per cent over June but well behind 354,000 bpd in December.

Kenney said the government continues to talk with companies about them taking over crude-by-rail contracts signed by the former NDP government. He said the province is considering rewarding companies that add rail capacity by letting them produce more oil.

“This is headed in the right direction,” he said.

“Industry experts tell me the logistical maximum for crude-by-rail out of Alberta is in the range of 550,000 barrels per day so we can take out probably at least another couple of hundred thousand on rail.”

Just Posted

Rural crime tour hits Sylvan Lake

About 60 people showed up to voice concerns about state of crime and punishment in Alberta

Alberta commits to expanding duties of licensed practical nurses

EDMONTON — Alberta’s 16,000 licensed practical nurses will soon be allowed to… Continue reading

Alberta legislation would unplug NDP plan to change electricity power market

EDMONTON — Alberta has introduced legislation to formally pull the plug on… Continue reading

‘A mess out here:’ Manitoba farmers struggling with wet crops after snowstorm

WINNIPEG — More Manitoba residents saw their electricity restored Thursday — one… Continue reading

Scheer, Trudeau, Singh haggle over potential minority government outcome

OTTAWA — Four days before Canadians go to the polls, the leaders… Continue reading

Your community calendar

Wednesday Red Deer River Naturalists Flower Focus Group Meeting. When: Oct. 16… Continue reading

Meet the candidates running in Red Deer-Lacombe

Each of the candidates running in the Red Deer-Lacombe riding were invited… Continue reading

Kawhi back in Canada, NBA GMs think he’ll go back to finals

Kawhi Leonard was back in Canada, where last season he won a… Continue reading

Saskatchewan Roughriders aim to bring home energy on the road to B.C. Lions

VANCOUVER — The Saskatchewan Roughriders are hoping they can bring the spirit… Continue reading

Alberta commits to expanding duties of licensed practical nurses

EDMONTON — Alberta’s 16,000 licensed practical nurses will soon be allowed to… Continue reading

Alberta legislation would unplug NDP plan to change electricity power market

EDMONTON — Alberta has introduced legislation to formally pull the plug on… Continue reading

‘A mess out here:’ Manitoba farmers struggling with wet crops after snowstorm

WINNIPEG — More Manitoba residents saw their electricity restored Thursday — one… Continue reading

Scheer, Trudeau, Singh haggle over potential minority government outcome

OTTAWA — Four days before Canadians go to the polls, the leaders… Continue reading

Most Read