On December 1, the government of Alberta will officially end its nearly two-year-old policy of curtailing crude oil production to help shrink the massive price discounts that producers had been enduring. It would hardly be an overstatement to say that North American oil markets have changed dramatically since the production cap was implemented by Canada’s largest oil-producing province in January 2019. A short-but-bruising oil price war and a pandemic that slashed demand for crude resulted in Alberta producers making supply cuts even bigger than their government had mandated. Today, we look back at the provincial government’s policy and what has changed to motivate its suspension.
Livin’ on a Prayer – How Alberta’s Oil Production Cap Became Redundant in Crazy Times
