Suncor Energy Inc. is assessing the impact of the Alberta government’s move to reduce oil production next year. (Photo by THE CANADIAN PRESS)

Suncor assessing impact of Alberta’s move to cut oil production next year

CALGARY — Suncor Energy Inc. says it’s assessing the impact of the Alberta government’s move to curtail oil production next year.

The company says the specific impact of the production cut will be provided when it issues its 2019 capital and production guidance.

The Alberta government announced a plan Sunday to impose across-the-board oil production cuts to reduce a glut of oil that has helped increase the discount the province’s oil fetches compared with the North American benchmark. The anticipated regulations will require oil producers to reduce their production effective Jan. 1, 2019.

Cenovus Energy Inc. proposed the idea of a production cut last month, however several large players in the oilpatch have been opposed to involuntary cuts.

Suncor, Imperial Oil Ltd. and Husky Energy Inc. whose refining assets and firm pipeline contracts allow them to avoid most local price discounts have opposed the idea of mandatory production curtailments.

Suncor says it believes the market is the most effective means to balance supply and demand and normalize differentials.

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

Just Posted

Still no mandatory masks in Red Deer

While a growing number of Alberta communities have made masks mandatory, the… Continue reading

Maskwacis teen charged in 10-year-old boy’s death

The RCMP Major Crimes Unit have laid a manslaughter charge against a 13-year-old boy from Maskwacis.

134 new cases of COVID-19 on Friday

First day over 100 cases since July 31

Red Deer asking for feedback on new transit routes

The new routes will begin Aug. 23

Rainbow flag raised at Red Deer College to kick off Pride Week

Central Alberta Pride Week runs next week

Cast your votes for Best of Red Deer

The Advocate’s Best of Red Deer Readers’ Choice Awards are back. Community… Continue reading

Red Sox Hold off Blue Jays with Moreland’s Bat and Bullpen

Red Sox Hold off Blue Jays with Moreland’s Bat and Bullpen

Coyotes advance with 4-3 overtime win over Predators

Coyotes advance with 4-3 overtime win over Predators

‘Caught up in the frenzy:’ Oilers 50/50 draw breaking ticket sale records

‘Caught up in the frenzy:’ Oilers 50/50 draw breaking ticket sale records

Nets, Magic grab last two NBA playoff spots in the East

Nets, Magic grab last two NBA playoff spots in the East

Li at his best and builds early lead at PGA Championship

Li at his best and builds early lead at PGA Championship

Swinging hard lifts Champ into contention in PGA

Swinging hard lifts Champ into contention in PGA

Big start, fast finish gives Lydia Ko the lead at Marathon

Big start, fast finish gives Lydia Ko the lead at Marathon

Most Read