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November 20, 2018

United Conservatives call for temporary, voluntary reduction in oil production

United Conservative Leader Jason Kenney today called for energy firms to voluntarily reduce production temporarily in order to address the current price differential crisis.

“It is preferable for the energy industry to act voluntarily in controlling production to avoid the precedent and potential unintended consequences of government action. I am therefore calling on Canadian upstream oil producers to act in the public interest by voluntarily reducing their production until inventories have been cleared, and the price differential alleviated,” said UCP leader Jason Kenney.

“There appears to be a consensus in the industry that such action would require a total reduction of some 250,000 barrels per day. Several producers have already commendably acted to reduce production voluntarily. These efforts should be matched by all producers.”

“Much of the current price differential is the result of a failure of government policies, a failure which is damaging the public interest by reducing government revenues by billions of dollars. The resource that they are developing belongs to all Albertans, who have a right to expect that producers will not act in a way that makes Alberta poorer. I therefore believe that the Government of Alberta should keep the door open to using statutory tools to control production in the short term,” concluded Kenney.