Due to lower storage levels, Premier Rachel Notley of Alberta announced the province would ease the mandatory oil production cuts and allow an increase in production of 25,000 barrels per day in April. In December of last year, the government ordered production of crude oil and bitumen to be cut 325,000 barrels per day as a strategy to throttle lowering prices.
Previously, on January 30, 2019, the government announced increased production of 75,000 per day. The reasoning is that storage levels are dropping.
“As we fight to get full value for the resources owned by all Albertans, we know that our plan is working as we continue to reduce the amount of oil we have in storage,” Notley said. “The decision to temporarily limit production was applied fairly and equitably, and our plan is working to stop allowing our resource to be sold for pennies on the dollar.”