Put oil 'crisis' on first ministers' agenda: Alberta, Saskatchewan premiers

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"We need to do more and do it now", Notley writes. "And a high-value era must begin", Notley said in a statement.

Saskatchewan Premier Scott Moe says his province won't be following Alberta's lead in curtailing oil production, though he plans to work with industry so the 8.7 per cent cuts in Alberta aren't undermined.

Premier Rachel Notley said output will be lowered 325,000 barrels a day in January because of shipment problems that she blames on a lack of pipelines. The mandated cut ends on December 31, 2019.

"We continue to believe that relief from additional pipeline capacity is the most viable (and sustaining) method of getting Albertan (Canadian) production to market, but that this will help in the near term", it added, citing the rail deal.

The production cuts are an attempt to address the difference in the price of Western Canadian Select oil relative to the benchmark West Texas Intermediate (WTI).

"We've got challenges with respect to pipelines, we've got challenges with respect to rail and now we've got challenges with respect to our demand market", Allan Fogwill, CEO of the Canadian Energy Research Institute said at a presentation in Calgary Wednesday.

"By saying they will maintain all of their commitments to the USA they have, I think, covered their exposure".

It also hasn't been much affected by the price differential. It's about jobs there. "However, they have to play the game".

Moe said Saskatchewan's oil industry differs from Alberta. The change may dampen the long-term impact of a mandatory production curtailment in Alberta Sunday, and lessen the benefit of plans to ease the region's transport bottleneck.

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If there is a cut back, he says, gasoline prices will inch up.

Canada's oil production is at a record 4.6 million barrels a day, but producers can not get oil to market because the pipelines that cross into the United States are full.

Watch below: (From Dec. 3, 2018) For the first time in a generation, the Alberta government will impose a cap on the amount of oil that industry is allowed to produce.

"We have a fairly good sense of what we need to do to clear the market, and clear storage", Notley said, adding the decision was "very hard".

"With the government stepping in the way they did, companies are going to be far more inclined to have significant capital programs in 2019 so they can be ready to move that oil in 2020", said Alex Pourbaix, chief executive of Canada's third largest oil producer, Cenovus Energy. Sohi said he shares Alberta's frustration about the oil-price crisis and has asked the NEB to report as soon as possible.

"Many of these policies (were) supported either by acquiescence or actively by the NDP government", said Kenney.

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.

"Today's situation is the direct result of the failure to build pipelines in recent years - including the cancellation of multiple viable pipeline projects by the Trudeau Liberals", said Kenney".

Meanwhile, Suncor Energy Inc.(SU.TO) said that it also would have preferred to avoid government intervention.