Sunday , December 5 2021

Alberta Premier to announce measures to deal with the price differential oil



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The NDP Award & # 39; Alberta Rachel Notley will announce tonight what many expect will be mandatory reductions across the industry in oil production to tackle price reduction stating that is costing the provincial treasury $ 80 million a day in & # 39; & # 39 loss; income.

The announcement & # 39; Notley is aimed at addressing the difference in the price of Canadian Canadian Select, type & # 39; oil produced in & # 39; Altra, relative to the benchmark West Texas Intermediate (WTI).

That deficit hit nearly $ 50 US per barrel in & # 39; late October. Analysts attribute the difference to non & # 39; pipeline capacity to get oil & # 39; Alberta market and other factors such as refinery bottlenecks in the United States.

Notley will make his announcement at 6 p.m. MT. Jason Kenney, Conservative leader of the United Party, the official opposition & # 39; Alberta, will provide a response after about 30 minutes.

CBC undergoing the conference & # 39; of Notley news on CBC.ca and Facebook. The conference & # 39; news & # 39; Kenney will run live on Facebook.

Any change in the oil price has profound effects on the economy & # 39; Alberta depending on resources.

"The fire sale prices"

Notley faced pressure to take action, particularly in the light of & # 39; judgment of the Federal Court of Canada in & # 39; August which stopped construction on the expansion of & # 39; Trans Mountain pipeline to the west coast.

The so-called small price differentials began its boom in & # 39; in September, increased to as much as $ 47 US per barrel in the last 10 days & # 39; October.

The gap was & # 39; $ 28.50 US per barrel when the markets closed Friday.

The problem is caused by overproduction and lack of & # 39; & # 39 capability; pipeline to get oil market, according to the government & # 39; Alberta. Notley said in & # 39; opera piece this week that there are 35 million barrels & # 39; oil sales in & # 39; what she called "prices & # 39; sales & # 39; fire".

production cut was the first proposed by the party & # 39; Alberta on 17 & # 39; November. Kenney initially asked for voluntary counters on production industry, but changed his thinking and proposed reduction & # 39; 10 percent last week.

F & # 39; speech to the Board of Commerce & # 39; Toronto Thursday, Notley said Alberta was looking to buy 80 locomotives, b & # 39; each train drew 100 to 120 car to get oil in market.

However, it is a solution in the medium & # 39; time for the current delay in storage, because it takes time to buy or rent the necessary equipment rail.

On Friday, Notley use the operation to draw the advantages and disadvantages of & # 39; decline in production across the industry.

Allowing the status quo to continue to harm the producers also have & # 39; refinery operations, but it hurts & # 39; smaller companies, leading to failures and loss of & # 39; jobs, wrote.

If you cut & # 39; temporary production is introduced, Notley said that you & # 39; help reduce oil stocks and reduce price difference between Canadian Canadian Select and West Texas Intermediate.

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