Western Canadian oil output still down after restoring some COVID-19 cutbacks: CER

The Canada Energy Regulator says most, but not all, western Canadian oil production has been restored after being cut because of low prices amid the COVID-19 pandemic.

The national agency says western Canadian oil supply had slipped by as much as 972,000 barrels per day by mid-May as demand fell due to pandemic lockdowns and global supply grew because of more output from a loose coalition of other oil-producing countries.

CER says Western Canadian producers had brought back online about 700,000 bpd by early October, leaving cutbacks at about 270,000 bpd. In 2019, Western Canada produced an average of about 4.4 million bpd of oil.

READ MORE: Alberta cuts deal on municipal oilpatch levies; not on unpaid property taxes 

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Sign up for daily National newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Prices rose through the summer thanks to production cuts from OPEC-plus, a coalition that includes Russia, Mexico and Malaysia, and other producers around the world, including in the United States. At the same time, demand for crude oil grew in Canada and globally.

CER says a rebound in the price for Western Canadian Select bitumen-blend oil increased to roughly US$30 per barrel, higher than the operating costs of many western Canadian oil producers, and allowing some of their production to come back online.

READ MORE: Pandemic cuts growth forecast as oil demand set to hit 2030 plateau: IEA report 

It says its numbers are based on crude-by-rail exports, pipeline exports, refinery production and weekly oil storage injections and withdrawals.

Watch below: Some recent Global News videos about Alberta’s oil sector.

2:01 Oil and gas tax changes in Alberta after rural municipality outcry

• Oil and gas tax changes in Alberta after rural municipality outcry
• Alberta government unveils new plan to support oil and gas recovery after rural municipality outcry
• Oil demand expected to decline in the next decade
• Saskatchewan NDP candidate’s past comments on oil and gas draw scrutiny
• Alaska to Alberta rail line could help get Canadian oil to market
• Shell to cut up to 40% from oil and gas production to prepare for energy transition
• Oil demand not expected to return to pre-pandemic levels
• Looking to build on Alberta’s oil and gas industry
• Alberta premier says BP report not concerning, saying report confirms oil demand in the future
• Is oil out as the energy of choice? Dismal predictions for the fossil fuel

Previous Video

Next Video