Jason Kenney calls for temporary cap on oil production amid ongoing price slump

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Jason Kenney calls for temporary cap on oil production amid ongoing price slump


EDMONTON—Opposition leader Jason Kenney is calling for the provincial government to enforce a 10 per cent production curtailment in Alberta to deal with the ongoing oil price differential.

The United Conservative Party leader said at a news conference Wednesday that he doesn’t take the decision lightly.

“After all, I am a free market conservative,” he said.

Kenney said the industry leaders he has met with recently have told him the industry is facing massive layoffs and that they’re losing money.

“They tell me they’re unable to raise equity and are burning through cash because the cost of extracting and shipping our oil is higher than the price they get for it,” he said.

Kenney said the price of Western Canadian Select is sitting at around $12 per barrel and that Texas oil is going for about $40 more.

“That means that our oil is worth about 10 cents a litre, a fraction of the cost of a bottle of water,” he said.

The oil differential is costing Alberta’s economy upwards of $100 million per day, he said.

More to come.

Kieran Leavitt is an Edmonton-based reporter. Follow him on Twitter: @kieranleavitt





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