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Alberta Oil-Output Cuts Extended as Glut Persists

  • Alberta doubles curtailment exemption to 20,000 barrels a day
  • Province sees production exceeding takeaway by 150,000 barrels
Flames shoot from a flare at the Suncor Energy Inc. Millennium upgrader plant in this aerial photograph taken above the Athabasca oil sands near Fort McMurray, Alberta, Canada.
Photographer: Ben Nelms/Bloomberg
Updated on

Canada’s oil-rich province of Alberta is extending its output cuts by a year as delays to key pipelines threaten to prolong a glut of crude in the region.

The curtailment program, which will now end in December 2020, had been slated to wrap up at the end of this year as Enbridge Inc.’s expansion of the Line 3 pipeline began moving oil. But that project was set back by a year because of permitting delays in Minnesota, leaving the province’s drillers churning out more oil than they could ship to refineries. TC Energy Corp.’s planned Keystone XL line and the Canadian government’s expansion of the Trans Mountain conduit also have been bogged down by legal challenges.