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December 2, 2018

United Conservatives respond to NDP curtailment decision

United Conservatives support today’s announcement from the Government of Alberta for a short-term reduction of production in response to the oil price differential crisis.

Last week, Alberta’s United Conservatives called on the NDP government to save jobs and stop the fire sale of Alberta oil by implementing a short term, temporary reduction in oil output.

“We made clear that the protection of jobs must be paramount. I appreciate that in this instance, the government was willing to listen advice from the UCP, as well industry and experts,” said UCP Leader Jason Kenney. “With 180,000 Albertans out of work and financial and economic catastrophe on the horizon as the result of the oil price differential, action needed to be taken. We support this as an extraordinary, temporary measure and sincerely hope that it does not need to be used long.”

“Today’s situation is the direct result of the failure to build pipelines in recent years – including the cancellation of multiple viable pipeline projects by the Trudeau Liberals. It’s truly outrageous that our province has been brought to the point where such a grave decision must be considered.”

Enbridge’s Northern Gateway pipeline would have provided 525,000 barrels per day capacity and prevented today’s crisis. Two years ago, on November 29, 2016, the federal Liberal government, with no opposition from Alberta’s NDP government, killed the project. Less than a year later, the Liberal government also killed TransCanada’s Energy East pipeline, a 1.1 million barrel per day project. Now, the Trans Mountain pipeline expansion is indefinitely delayed. 

It has been estimated that the oil price differential could cost the Alberta government a further $7 billion, pushing Alberta’s deficit well above the current $8 billion.