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

LETTER TO THE EDITOR: Help keep customer service workers safe

Remember that people asking you to respect health guidelines are still people, says retail worker

Paul Manly reacts to Liberal throne speech

Manly says the Liberals need to back up their promises with action

Best of the City: Greek taverna takes top spot

Asteras in the Old City Quarter chosen Nanaimo’s Best Restaurant Overall

Best of the City: Making a house a home

Dodd’s Furniture, voted Best Furniture Store, settles into new location in Nanaimo

MLA in a pandemic, Nanaimo’s Malcolmson looking to be part of B.C.’s recovery

Sheila Malcolmson running for re-election in Nanaimo riding

B.C. records 98 more COVID-19 cases, most in Lower Mainland

One new senior home outbreak, Surrey Memorial outbreak over

Best of the City: This year’s winners

Nanaimo News Bulletin presents full results of our 2020 Best of the City readers’ survey

Vancouver Island Tour de Rock riders roll into Parksville Qualicum Beach

Saturday’s schedule includes Port Alberni, Ucluelet and Tofino, followed by Nanaimo on Sunday

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

Snuneymuxw artist brings aquatic designs to Nanaimo’s Beban Park pool

Work by artist Eliot White-Hill is being installed at the pool this month

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Most Read