Pipeline delays extend production limits to end of 2020
The Alberta government says some oil companies will have to limit their production until the end of 2020 as pipeline delays persist.
Energy Minister Sonya Savage told Canadian press the current limit is being extended because there are no new pipeline expansions on the horizon in the near term that could open markets.
Production limits were supposed to last until the end of this year, when Enbridge’s Line 3 pipeline expansion to the U.S. Midwest was set to start up, but that project has been delayed.
The province says that without production limits, there would be 150,000 more barrels produced daily than could be exported.
The government also says it’s trying to minimize the impact on smaller producers by upping the amount not subject to the limit to 20,000 barrels a day from 10,000.
That means of the province’s 300 oil producers, 16 will be affected instead of the current 29.
The changes are to take effect in October.