Insight
Alberta government enacts production cuts of 325 kbd while pipelines languish
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The Alberta Government has acted to reduce price discounts for its barrels facing insufficient market access. The government has mandated a production cut of 325 kbd starting in 2019 for the largest producers. That curtailment amount will reduce to 95 kbd for the rest of the year once 16 mmbbls of inventory are cleared. The long term solution remains more pipeline and rail capacity to move Alberta barrels out. This report investigates the motivation for the production cut, looks at how it will be rolled out, who it will impact most and updates our price view.
Table of contents
- Why is government intervention needed?
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How will the curtailment be enacted?
- Company impact and non-operator producers
- Production vs. supply impact
- Production cut is also a production cap
- Corporate reaction
- What is the market impact?
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Other outstanding questions
- What about hedged barrels?
Tables and charts
This report includes the following images and tables:
- Canadian price discounts
- Alberta oil and bitumen producers >10kbd
- WCS differential before and after curtailment
- Company impact
What's included
This report contains:
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