Some Canadian Producers Push Back As Alberta Orders Oil Cuts

Several oil companies in Canada pushed back on Dec. 3 against Alberta’s mandated cuts in crude production, warning about excessive government intervention even as the discount on Canadian crudes narrowed sharply on the curtailment plan.

Alberta Premier Rachel Notley said on Dec. 2 the government would force producers to cut output by 8.7%, or 325,000 barrels per day (bbl/d), until excess crude in storage is reduced.

The move is unusual for a market economy like Canada, in comparison with members of the OPEC whose oil companies are often state-owned.