Alberta introduces special production allowances for oil shipped by rail
In this Nov. 6, 2013 photo, a BNSF Railway train hauls crude oil west of Wolf Point, Mont. (AP Photo/Matthew Brown)
Published Thursday, October 31, 2019 7:14AM MDT
Last Updated Thursday, October 31, 2019 10:23AM MDT
CALGARY – The provincial government is offering curtailment relief for oil producers who intend to ship their product by rail.
According to the province, operators who wish to increase oil production with the intent to ship it by rail may apply for the allowance that is scheduled to begin in December.
"The special allowance program will protect the value of our oil by ensuring that operators are only producing what they are able to move to market," said Minister of Energy Sonya Savage in a statement released Thursday morning. "Pipeline delays ultimately have constrained market access and dampened investment in our oil sector."
"This program will lead to more production and increased investment benefitting industry, our province's bottom line, and, ultimately, Alberta taxpayers."
The province say the special production allowance baselines will be based on an operator's first quarter average rail shipment in 2019.