The Globe and Mail reports in its Friday, Nov. 16, edition that Alberta's oil industry is sharply divided over a call for the provincial government to intervene in the market and order production cuts as a means of propping up depressed crude prices.
The Globe's Shawn McCarthy and Justin Giovannetti write that companies such as Cenovus Energy, Canadian Natural Resources and MEG Energy are urging Premier Rachel Notley to take emergency action as the price for heavy crude hit its lowest levels in a decade. Cenovus head Alex Pourbaix says the industry is facing massive market failure that is hurting not only companies but government revenues and the broader economy.
However, companies such as Suncor Energy and Husky Energy oppose intervention, saying it would risk triggering retaliation from the United States, which is reaping the benefit of the low-cost oil.
Husky spokesman Kim Guttormson said Thursday: "The market is working. Pipelines and other transportation solutions are required to clear the market and eliminate bottlenecks, and we believe the best option is to advance pipeline solutions. Market intervention comes with an unacceptably high level of economic and trade risk."
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