|  Christine Marie Nielsen

Alberta Mandates Short-Term Reduction in Crude; Continues Fight to Narrow Price Differential

The Alberta provincial government on Sunday mandated a 325,000-barrel-per-day reduction in the production of raw crude oil and bitumen to address a storage glut, representing an 8.7% reduction in its output. This action, following other energy-related measures by the government, has cut the region’s crude oil price discount compared to U.S. crude oil by about half.

According to the Alberta government, Alberta is currently producing 190,000 raw crude oil and bitumen barrels per day more than can be shipped by pipelines, rail or other means. It’s estimated that the high oil price differential has been costing the national economy more than $80 million per day.

After excess storage i...

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