On Friday, Canada’s Energy Minister Sonya Savage said that the country’s main oil region Alberta would stop the crude output cut at the beginning of December, ahead of schedule.
The curbs on oil production in the province were imposed in 2019 to ease an oil storage glut affected by congested pipelines. The Canadian Premier Jason Kenney’s government has been gradually easing the curtailments since then.
At the peak of production cuts, Alberta’s oil output fell by up to 22% or 880,000 bpd. At the moment, close to 16% of the province’s crude output is currently offline.
The curbs were originally scheduled to expire on December 31, but according to analyst Phil Skolnick of Eight Capital, production had been coming in significantly below the provincial limits.
However, Savage said that the provincial government would prolong its regulatory authority to curtail production through December 2021, even with no production limits being set.
