Near the end of 2018, Alberta was seeing a surplus in oil production, resulting in over-stuffed storage and no way to transport the additional oil out of province, leading the Alberta government to implement production cuts to help control the price of oil. Fortunately, it seems to have been working, and Alberta will see an increase in oil production in the future.
Originally, the government implemented the cuts on Demeber 8th. The oil price had been plummeting due to the surplus, and some oil companies had been hoping to see cuts in production being implemented.
The cut came, meaning a decrease of 325,000 barrels a day.
However, as Alberta entered 2019 and saw the cuts working, an increase of 75,000 barrels a day will be coming in February and March.
Alberta will be seeing a production of 3.63 barrels a day.
Premier Rachel Notley says that although it may seem promising, we're not in the clear yet.
"We're not out of the woods yet, but this temporary measure is working. While it hasn't been easy, companies big and small have stepped up to help us work through this short-term crisis while we work on longer-term solutions, like our investments in rail and our continued fight for pipelines. I want to thank Alberta producers for working with us to protect the jobs and the livelihoods of thousands of Alberta families and businesses, and your cooperation has been key to easing these limits ahead of schedule."
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