Late last week, the Kenney government announced it will increase Alberta oil production limits in an effort to align with takeaway capacity.
According to a press release from the government, Alberta oil production limits will rise by 10,000 barrels per day in November and December, compared to the October limit.
As a result, the overall production limit will be 3.80 million barrels per day in November, followed by 3.81 million barrels per day in December.
The Alberta government says letters from the Minister of Energy have been issued to each curtailed operator advising of the updated limit.
- Monthly production limits for 2019, in million barrels per day:
- January – 3.56
- February – 3.63
- March – 3.63
- April – 3.66
- May – 3.68
- June – 3.71
- July – 3.71
- August – 3.74
- September – 3.76
- October*- 3.79
- November* – 3.80
- December* – 3.81
Last August, the Kenney government announced an enhanced curtailment policy. Under the updated policy, the first 20,000 barrels per day a company produces are generally exempt from production limits, up from 10,000 under the previous policy.
As a result, 15 of over 300 producers in Alberta are now subject to the updated production limits. This is a decrease from 29 producers under the previous policy.