Alberta eases oil curtailment further for coming months
Oil production limits in the province will be increased slightly in each of the coming months, the Alberta government says.
Alberta has been curtailing production since January with the goal of reducing oil in storage, and thus, improve the oil price differential.
On Monday, the government set out the limits for the coming months, which reduce as time goes on, in part to account for warmer weather.
"Limits are based on monitoring a number of indicators and recognizing that less diluent is needed in warmer weather for bitumen to flow in pipelines, meaning more capacity," the provincial government said in the announcement release.
The monthly production limits include:
March – 3.63 million barrels per day.
April – 3.66 million barrels per day.
May – 3.68 million barrels per day.
June – 3.71 million barrels per day.
The first 10,000 barrels each day per company are exempt, meaning the cap applies to 28 Alberta producers.
