Oil company in Sask. happy with no production cuts

The Toronto Stock Exchange Broadcast Centre is shown in Toronto

The Toronto Stock Exchange Broadcast Centre is shown in Toronto

Canada's Federal Court of Appeal halted the contentious Trans Mountain pipeline expansion that would almost triple the flow of oil from the Alberta oil sands to the Pacific Coast - a setback that came just as the federal government bought the project to help ensure it gets built amid strong environmental and aboriginal opposition in British Columbia.

"We must act immediately, and we must do it together", she said in a speech Sunday at the Federal Building.

Dave is joined by Calgary Herald business columnist Chris Varcoe.

This imbalance between production and export capacity has led to a near collapse in the benchmark price for Canadian heavy oil and even steep discounts in the price of Canadian light oil compared with West Texas Intermediate.

This follows a plan to purchase 7,000 rail cars to get Alberta's oil to market. Notley's challenger in next year's election for premier is now trumpeting his support for mandatory production cuts.

David MacNaughton says no one in the US government has raised Alberta Premier Rachel Notley's move with him.

The result has been oil prices for Western Canadian Select so low the province's energy resources are "being sold for pennies on the dollar", she said.

Alex Pourbaix, chief executive officer of oil-sands producer Cenovus, which may have to shut in about 35,000 barrels a day of production, said the industry is not happy to have the government so involved in the industry but realized that the curtailment plan was the only way to avoid "disaster".




Clugston has said in the past that he supports pipelines, but isn't convinced the Trudeau government understand the issue.

When it comes to market failures - which Notley spoke of Sunday and Kenney did recently, too, to justify interfering in the market - the problem is that the biggest market failure of all is climate change. In 1980, then-Premier Peter Lougheed forced cuts to protest a national energy program that he said would have harmed the province's oil industry.

Notley says as of January there will be an 8.7 per cent reduction ordered in oil production. Alberta's Premier Rachel Notley the deal could be concluded within a few weeks and could cost C$350 million (US$263 million).

A weekend 90-day ceasefire between the USA and China on imposing higher tariffs was a catalyst for global markets to rise even though a final resolution is far from certain, Fehr said in an interview. Whitecap Resources Inc. wasn't part of these consultations, but Fagerheim said he admires how much the provincial government does consult with the industry.

While the government isn't helping with the rail vehicle purchase and had no new funds for oil and gas in its fall fiscal update, Natural Resources Minister Amarjeet Sohi did reveal on Friday that he had asked the National Energy Board to evaluate whether Canada's pipelines are being used to their full capacity. The province expects the curtailment to affect about 25 producers.

The province pegs losses due to the oil discount at around $80 million per day, though estimates vary. It has said it is insulated from price discounts because of its Canadian refineries and pipeline contracts.

Oil prices have been sagging, with US crude recently dipping to near $50 a barrel on renewed oversupply fears.

Recommended News

  • Luxembourg to become first country to make all public transport free

    Luxembourg to become first country to make all public transport free

    This summer, the government brought in free transport for every child and young person under the age of 20. A study suggested that drivers in the capital spent an average of 33 hours in traffic jams in 2016.
    Why Meghan and Harry weren't at the Queen's white tie palace reception

    Why Meghan and Harry weren't at the Queen's white tie palace reception

    When Meghan Markle and Prince Harry Wednesday , she was the world's darling, and coverage of her was generally very positive. Sources claimed Meghan was rude to Kate's staff, and Middleton made it clear to Markle that her behavior was "unacceptable".
    China trade war talks will end in March - unless they don't

    China trade war talks will end in March - unless they don't

    The economic agreementTrump said he reached with Chinese leader Xi Jinping on Saturday showed signs of unravelling by Tuesday. Senior Chinese officials did not mention this deal in a news conference. -China trade talks were on track.
  • Trump meets Bush family ahead of funeral

    Trump meets Bush family ahead of funeral

    Trump has often aimed political taunts at the Bush family, long a symbol of the traditional, more moderate wing of the U.S. Bush announced that Sully is heading to his next assignment: Walter Reed National Military Medical Center in Maryland.
    Rosas' overtime FG the winner as Giants stun Bears 30-27

    Rosas' overtime FG the winner as Giants stun Bears 30-27

    Odell Beckham Jr proved once again on Sunday he is pure box office in the NFL! The Giants made many big plays in the second half. Right now, it feels like a missed opportunity as the focus returns to the status of Trubisky's shoulder over the next few days.
    Seattle gets NHL expansion team

    Seattle gets NHL expansion team

    Seattle's hockey history includes the Seattle Metropolitans of the Pacific Coast Hockey Association winning the 1917 Stanley Cup. The NHL's newest franchise will join Major League Baseball's Seattle Mariners and the WNBA's Seattle Storm in the city.
  • Trump asks OPEC not to cut production

    Trump asks OPEC not to cut production

    Oil producers appeared to be coalescing around a plan to remove 1.3 million barrels per day from the market earlier in the week. The Saudi minister pointedly said Washington should back off. "The number that we need is going to be less than 1.3 [million]".
    U.S. Car Makers Losing Billions Due To Trump’s Tariffs

    U.S. Car Makers Losing Billions Due To Trump’s Tariffs

    His " tariff man " declaration also contradicts assertions made by the White House that Trump preferred a deal to tariffs. Su believed that the important consensus reached by Xi and Trump would offer direction for future China-U.S. relations.
    Trump Says His Ex-Lawyer Cohen Should Get Years in Prison

    Trump Says His Ex-Lawyer Cohen Should Get Years in Prison

    Both Stone and Corsi have denied any wrongdoing, and Stone has denied knowing Assange or being a conduit for WikiLeaks. The complaint states that Mueller's office is now "knowingly and deceitfully threatening to charge Dr.
  • Solemn public pays tribute as Bush lies in state in Rotunda

    Solemn public pays tribute as Bush lies in state in Rotunda

    Martin's Episcopal Church until Thursday morning when he will be eulogized during a funeral at the church. There will be a motorcade that transports Bush to Washington National Cathedral for a state funeral.
    New ‘Captain Marvel’ Trailer Further Reveals Brie Larson’s Powerful Superhero

    New ‘Captain Marvel’ Trailer Further Reveals Brie Larson’s Powerful Superhero

    Captain Marvel flies into theaters next year on March 8, 2019 . "Your life began the day it almost ended", she says in the clip. The previous trailer left people wondering if she was completely an invention of the Kree who merely dreamed she was human.
    Verizon, Samsung promise 5G smartphone for next year

    Verizon, Samsung promise 5G smartphone for next year

    The new leak also shows a dedicated Bixby button sitting on the left edge of the device, immediately below a volume rocker. The back of the phone is less exciting-there's a line of three cameras along with a heart rate sensor and flash.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.