Province Increases Limit on Oil Production
In response to new storage data, Alberta is increasing production in February and March to 3.63 million barrels per day, which is a 75,000-barrel per day increase from the January limit of 3.56 million barrels per day. Alberta’s goal has been to match production levels to what can be shipped using existing pipeline and rail capacity, while encouraging a reduction in storage levels. Since the production limit was announced in December 2018, storage levels in Alberta have dropped ahead of schedule, declining by five million barrels to a total of 30 million barrels in storage. Analysis based on independent data suggests storage levels have been decreasing roughly one million barrels per week since the start of 2019 and are on track to continue clearing the storage glut that led to unprecedented discounts for Alberta oil in late 2018. Read the Government of Alberta press release.