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Alberta increases oil production limit for September

Pumpjacks are shown pumping crude oil near Halkirk, Alta., on June 20, 2007.
Pumpjacks are shown pumping crude oil near Halkirk, Alta., on June 20, 2007. Larry MacDougal, The Canadian Press

The Alberta government says it will again ease its crude oil curtailment program for September.

In a news release, it says it will allow the maximum amount to be produced by the province’s senior oil companies to rise to 3.76 million barrels per day, an increase of 25,000 barrels per day over the August limit, in recognition of lower oil storage levels and more volumes shipped by rail and pipeline.

READ MORE: Slow summer causes drilling forecast to go from bad to worse

That’s about 200,000 barrels per day higher than the initial quota allowed under the curtailment program when it began in January.

Watch below: A new energy forecast doesn’t show much improvement for the oil and gas industry in the years ahead. As Global’s Tomasia DaSilva reports, that has some energy companies looking elsewhere for business. (Filed June 2019).

Alberta oil well service company looks to make a go of it despite sluggish energy report
Alberta oil well service company looks to make a go of it despite sluggish energy report

The release makes no mention of a recent call by several producers to ease curtailments for companies that improve export market access from Alberta by adding crude-by-rail capacity.

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READ MORE: Oil producers call for oil curtailment easing in return for rail commitments

Producers have indicated they would be more interested in buying 120,000 barrels per day of crude-by-rail contracts negotiated by the previous NDP government and put on the block by the current United Conservative government if they were allowed to produce more oil.

The first 10,000 barrels per day a company produces are exempt from production limits, meaning they affect only 29 of more than 300 producers in Alberta.