Protecting the Value of Alberta's Resources
Today Alberta produces 190,000 barrels of raw crude and bitumen per day more than we can ship by rail or pipeline. And we now have 35 million barrels of processed oil in storage – 16 million barrels too many.
To address the excess supply, starting in January 2019 Alberta is reducing – or curtailing - production by 325,000 barrels per day until we have enough shipping space to clear the current glut and improve prices. This is expected to take three months.
After that, curtailment will be reduced to a point where production is balanced with export capacity – a reduction of about 95,000 barrels per day on average through the rest of 2019. Under the proposed rules, the government's authority to curtail production will end on December 31, 2019. More information is available on Alberta.ca.
This temporary reduction will be monitored regularly and adjusted as needed, so production isn’t reduced more than is necessary.
- Reduction levels will be set at the operator level and will be based off its highest six months of production over the past year:
- reductions will apply to both oil sands and conventional oil
- the first 10,000 barrels produced by each operator are exempt as there will still be significant oil available, refining operations will be able to access the oil supply required to meet their refining needs.