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?