Notley bringing the pain.

[15444]

Sunday night. Mandatory cut to all oil production across province. Haven't heard a percentage. How many will hit EI on Monday?

[TASFarms]

I thought there was lots of heavy oil production getting turned off just to stop the bleeding

[helmsdale]

I'd like to know who's actually taking the spot price for WCS. Big players are likely hedging well into the future. Anyone have prices for future months on WCS?

[15444]

I thought there was lots of heavy oil production getting turned off just to stop the bleeding

Apparently some. But not ALL players are for this cut in production. Could be interesting news Monday morning. Would suck if she decided too much grain for railways, cutting into oil tanker volume, time to cut grain production.

[poorboy]

The companies such as Cenovus that do not have their own refineries have been asking for forced production cuts. Surprising companies such as suncor who have been really screwing consumers with high gas and diesel prices (and their own service stations) are not wanting the production cuts. Hopefully the next thing Notely does is start looking into the extreme profits the refiners are making.

Perhaps rail cars would be good option for a small percentage of crude oil sales. Rail cars can be sent to a huge number of different locations. A pipeline only serves one location. If we were to cut off Saudi oil imports into eastern Cananda, we could have replacement crude oil there in a matter of days on rail. In no way should this be the main way to move our crude oil, but the flexability that this provides should be looked at for at least 25% of our crude production.

[iceman]

I don’t think Notley realize what pandoras box she is gonna open will this. We will see huge layoffs come out of this. Wells that will need a work over or any type of work that would require a contractor will be shelved short term. Drilling of new wells will stop unless it’s needed to hold mineral rights.

Look at who are the main forces behind this and whats the angle their working? As SF3 would say “Follow the money”

Iceman

[bucket]

Well how about the .....Canadian Oil Board....but that what capitalists do...ask government for help...right????

[the big wheel]

So if there is a production cut are the refineries going to screw the domestic market that much more? How is cutting production going to do anything good for prices? The world importers only by that oil because it's cheap are they going to buy even less if it a price is raised? Will they then go elsewhere for oil?

Sorry but I see us farmers paying for this oil bullshit one way or another. The pipelines are no guarantee at all of higher prices and if they were domestically it would hammer the rest of us is how I see it.

[dmlfarmer]

It is my understanding that the production cuts being talked about are actually the proposal of Jason Kenney and the UPC party is pressuring Notley to pass legislation mandating production cuts. It will be an interesting election out in Alberta next year if people are opposed to both Notley and Kenney.
https://edmontonjournal.com/opinion/columnists/jason-kenney-its-time-to-mandate-emergency-cuts-to-oil-production https://edmontonjournal.com/opinion/columnists/jason-kenney-its-time-to-mandate-emergency-cuts-to-oil-production

[grassfarmer]

Interesting quote from Kenney in that article.

"I have called on Alberta oil producers to voluntarily reduce production to deal with this crisis. Many have acted, cutting production by some 200,000 barrels per day. But a small number of companies are making big profits by shipping super-cheap Alberta oil to U.S. refineries, and are not willing to follow suit."

So if you can make big profits by exporting it super cheap what's the problem? Are the other oil companies lying about how much they are making seeking to get some taxpayer money spent on them or does Kenney just not understand economics?

[ajl]

Supply management for oil. Who would have thunk it? The layoff were and are happening anyways, just now Notley will be blamed for them which is sweet. So far Kenny is proving to be a disappointment as all politicians are. Going to need supply management in grains after the 2019 season unless there is widespread drought. Thankful the 18 drought in OZ. At lest the wheat will move, As far as gas prices are concerned, the Alberta government is in on the collusion as they are in the refining business through the Northwest Refinery in Redwater AB so expect more hosing at the pump.

[bucket]

Supply management for oil. Who would have thunk it? The layoff were and are happening anyways, just now Notley will be blamed for them which is sweet. So far Kenny is proving to be a disappointment as all politicians are. Going to need supply management in grains after the 2019 season unless there is widespread drought. Thankful the 18 drought in OZ. At lest the wheat will move, As far as gas prices are concerned, the Alberta government is in on the collusion as they are in the refining business through the Northwest Refinery in Redwater AB so expect more hosing at the pump.

Good point about the government ownership in the new refinery .....there must be some incredible margins for the government ....and yet nothing is said...Notley and Kenney talking about the low price of oil but that refinery is using that low price feedstock?????

[ajl]

The NWR is a toll processor. Government receives bitumen in kind as a royalty in AB and then it pays NWR and its chinese owners to process it into diesel a rate that help them make the white elephant turn a profit. The AB government needs high pump prices in order to make this work. We have third world levels of corruption right here at home. This is why diesel prices have remained high while gasoline has fallen lately. Finally under $1 per liter locally.

[15444]

8% cut to production. To be maintained over the next year.

[iceman]

8% cut to production. To be maintained over the next year.

The Saskatchewan producers just got a early Xmas gift.