{"id":40498,"date":"2018-11-14T07:13:40","date_gmt":"2018-11-14T12:13:40","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40498"},"modified":"2018-11-14T07:13:40","modified_gmt":"2018-11-14T12:13:40","slug":"canadian-oil-producer-calls-for-production-cap-amid-record-low-prices","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40498","title":{"rendered":"Canadian Oil Producer Calls For Production Cap Amid Record Low Prices"},"content":{"rendered":"

Canadian Oil Producer Calls For Production Cap Amid Record Low Prices<\/a><\/h3>\n
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One of the large Canadian oil producers, Cenovus Energy, is calling upon<\/a> the government of Alberta to mandate temporary production cuts at all drillers in a bid to ease Canadian bottlenecks that have resulted in Canada\u2019s heavy oil prices tumbling to a record-low discount of US$50 to WTI.<\/p>\n

The province of Alberta, the heart of Canada\u2019s oil sands production, has the necessary legislation to have all producers agree to production cuts and it needs to use it now, Cenovus said in an emailed statement to Bloomberg<\/a>.<\/p>\n

\u201cThis is an extraordinary situation brought on by extraordinary circumstances,\u201d Cenovus says.<\/p>\n

\u201cThe government needs to take this immediate temporary action — which is completely within the law — to protect the interests of Albertans,\u201d the company\u2019s email to Bloomberg reads.<\/p>\n

Western Canadian Select (WCS)<\/a>\u2014the benchmark price of oil from Canada\u2019s oil sands delivered at Hardisty, Alberta\u2014has dropped to a record low discount of US$50 to WTI in recent weeks, due to rising oil production and not enough pipeline capacity to ship the crude out of Alberta.<\/p>\n

Due to the record low heavy oil prices<\/a>, Cenovus Energy is currently operating its Foster Creek and Christina Lake projects at reduced volumes, it said in its Q3 earnings release. On the earnings call<\/a>, Cenovus Energy\u2019s President and CEO Alex Pourbaix urged the whole Canadian industry to slow down production to ease bottlenecks.<\/p>\n

\u201cAnd I want to be clear on this, the industry right now has a production problem. We\u2019re going to do our part but we are not going to carry the industry on our back. I think this is something that has to be dealt with on an industry wide basis,\u201d Pourbaix said.<\/p>\n

Alberta\u2019s Energy Department spokesman Mike McKinnon told Bloomberg in an email, responding to Cenovus\u2019s call for province-wide production cuts:<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Canadian Oil Producer Calls For Production Cap Amid Record Low Prices One of the large Canadian oil producers, Cenovus Energy, is calling upon the government of Alberta to mandate temporary production cuts at all drillers in a bid to ease Canadian bottlenecks that have resulted in Canada\u2019s heavy oil prices tumbling to a record-low discount […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[1082,83,103,12727,22954,21134,22955,595,22956,22953,4523,14603],"class_list":["post-40498","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-alberta","tag-bloomberg","tag-canada","tag-canadian-oil","tag-cenovus-energy","tag-heavy-oil","tag-heavy-oil-price","tag-oil-production","tag-oil-production-bottleneck","tag-oil-production-cap","tag-oil-sands","tag-tsvetana-paraskova"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40498"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40498\/revisions"}],"predecessor-version":[{"id":40499,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40498\/revisions\/40499"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}