Premier Rachel Notley, reacting to a proposed $100-million class action lawsuit over Alberta’s beer subsidies, says her government will continue to find ways to support its homegrown industry. Premier Notley updates reporters on the progress of the Kinder Morgan pipeline in Edmonton on Wednesday, May 16, 2018.THE CANADIAN PRESS/Jason Franson

Notley, cabinet set wheels in motion to start cutting oil production

Alberta premier wants to back off production by 8.7 per cent, starting January 1

Alberta Premier Rachel Notley and her cabinet have put the legal wheels in motion to begin cutting oil production.

Notley is meeting with her cabinet to issue the necessary orders to direct oil producers to begin backing off on oil production by 8.7 per cent starting Jan. 1.

The premier announced the cut on Sunday.

The mandatory reductions will be reviewed monthly but are to continue until the end of next year.

She says the glut in reserves driving down prices for Canadian oil to bargain-basement levels needs to be addressed before producers begin taking more drastic steps such as slashing capital projects or laying off workers.

Notley says a lack of pipeline capacity is a big part of the problem and she has once again called on Prime Minister Justin Trudeau’s government to do more than just send sympathy.

The premier announced last week that the Alberta government will purchase rail cars to get more oil moving while the province waits for the Enbridge Line 3 and the Trans Mountain expansion to the B.C. coast to come on line.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UFV to launch Peace and Reconciliation Centre in Abbotsford

Online event on Sept. 24 features keynote speaker Bob Rae and Steven Point

UFV wrestler Jason Bains receives four-year suspension for using banned substance

Surrey native tests positive for oral steroid Turinabol, silver national medal removed for violation

Fraser Valley foursome to hike 70km over mountains in memory of friend

Friends from Abbotsford and Langley to hike from Hope to Tulameen for Brook Morrison

PBR Canada cancels Abbotsford event

COVID-19 concerns end multi-year run for event at Abbotsford Centre

‘Not criminally responsible’ hearing slated for man convicted of Abbotsford school stabbing

Gabriel Klein was found guilty in March of killing Letisha Reimer, 13, in 2016

Record-breaking 165 new COVID-19 cases diagnosed in B.C. in 24-hour period

Fifty-seven people are in hospital battling the novel coronavirus

One injured in South Surrey shooting

Shots reported in area of 194 Street and 34 Avenue

Report raises questions about COVID outbreak that killed 25 seniors at Langley Lodge

CEO defends leaked document that’s igniting queries about BC’s most deadly COVID outbreak

PHOTO: RCMP escort beaver across busy Chilliwack road

Motorists had to exercise patience as the slow-moving creature crossed several lanes of traffic

B.C.’s COVID-19 economic recovery plan: Top 5 things you need to know

Jobs training, tax incentives for employers to hire staff and more

March to protect old growth, stop industrial logging coming to B.C. Legislature

Organizers say they want to give frontline communities a bigger say in nearby logging

B.C. releases details of $1.5B economic recovery plan, $660M in business tax incentives

Economic plan includes support for employers, as well as training for workers

Most Read