The Globe and Mail reports in its Thursday edition that the Alberta government is pulling back on oil production limits it imposed earlier this year, after complaints that job cuts were imminent.
The Globe's James Keller writes that the province cut production in January by 325,000 barrels a day. On Wednesday, the government announced it was increasing production for February and March by 75,000 b/d, bringing the overall limit to 3.63 million b/d.
Premier Rachel Notley announced the production cuts in December as part of a plan to address a glut of oil that had far exceeded pipeline capacity and contributed to a significant discount on the price of Alberta oil. The Premier has said the differential was costing the Canadian economy $80-million a day, although prices for Alberta crude have increased substantially in the past month.
Integrated producers that also own refineries and benefit from low oil prices, such as Suncor, Imperial Oil and Husky, have objected to the curtailment policy and insisted the government should not be trying to manipulate the market. Ms. Notley defended the curtailment policy on Wednesday and stressed it is not a permanent solution to the problems facing the province's energy industry.
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