Alberta premier Rachel Notley has just mandated a nearly 9 per cent production cut for oil -- and some Conservative politicians are going along with it.
THE CANADIAN ECONOMY IS LOSING BIG:
The Alberta NDP is forcing an involuntary production cut on Alberta's oil and gas producers.
Notley's requiring companies to make an 8.7 per cent cut in production, amounting to a decrease of 325,000 barrels of oil per day beginning January 1st, 2019.
According to CBC news, Notley said the daily cuts will remain in place until 35 million barrels of processed oil (currently sitting in storage) are shipped to market, likely by the spring.
WHY THE CUT:
Alberta oil currently sells for $45 per barrel less than West Texas Intermediate in the united states, due to a lack of pipeline capacity to get Alberta's oil to market. The widening price differential is causing Alberta to lose 80 million dollars a day.
The idea of introducing "temporary" production cuts to the oil industry, was first pitched by Cenovus Energy last month and embraced by United Conservative Party leader Jason Kenney last week. Imperial Oil and Husky oppose the measures.
NOTLEY'S ANTI-OIL PLAN:
For decades the NDP have opposed pipelines and energy infrastructure, thus exacerbating the price differential between Canadian and American oil.
Under Justin Trudeau and Rachel Notley, we have seen a recipe for killing the oil and gas sector in Alberta for generations to come.
Here's a list of their "accomplishments":
- *Failing to support the Northern Gateway pipeline and allowing it to die.
- *Hiring every high profile anti-oil left-wing radical in the country to run the energy sector, including the likes of Tzeporah Berman, Graham Mitchell, Zoe Caron, Gerald Butts and Brian Topp.
- *Bringing in carbon taxes to kill investment and drive investment to other jurisdictions.
- *Nationalizing a pipeline claiming it would help get the expansion of it done.
- *Changing the rules for pipelines approvals halfway through the process resulting in the cancellation of another pipeline, the Energy East pipeline.
- *And they brought in legislation to deter any other pipelines from ever being proposed.
And now this, dictating how much oil private companies can produce.
What Notley is doing now is exactly what the radicals in her government have been advocating for years. She has an MLA named Rod Loyola who idolized Venezuelan dictator, Hugo Chavez and even held a vigil for him when he died. Notley is doing exactly what Chavez would have done, and she's doing what with the full support of the "Conservative" establishment.
WHAT SHOULD BE DONE:
One of the first things President Donald Trump did when he took office was signing the permits for the Dakota access pipeline. This came after years of Obama allowing anti-oil protesters and radicals to set the American oil agenda.
Trump threw out the hippies and brought in the Army Corps of Engineers.
Within six months, that pipeline was pumping oil. North Dakota right now has 2.6 per cent unemployment and they share their oil field, the Bakken, with Southern Saskatchewan.
WHAT'S JASON KENNEY DOING?
Conservatives like Jason Kenney are in full support of Notley taking command of the oil and gas economy. That's troubling and unconservative, especially coupled with Kenney's support of the federal government spending $4.5 billion on a Kinder Morgan Trans Mountain pipeline (that wasn't for sale) just to save the expansion part of the project (which isn't getting built).
And federal Conservatives refuse to say if they oppose or support Notley taking command of the economy, although they do lay the blame for this oil and gas disaster at the foot of Justin Trudeau.
We’re used to seeing Notley’s bad policies have a secondary or tertiary impact on private-sector jobs but now she's doing it directly either with the explicit support of (or with no protests from) establishment conservatives.
There is no need for any of this. If oil companies want to cut their production they can do it. They could have done it yesterday. If Rachel Notley is spending more money than she is getting in oil and gas revenues, she can cut her spending and she could have done it yesterday.
The solution isn't more government intervention and it's not more Albertans out of work in the private sector.
The solution isn't putting an embargo on Alberta oil and gas, especially when Saskatchewan isn't cutting production at all, so far. And especially while Canada still imports oil from Venezuela and Saudi Arabia.
According to a report by Tristin Hopper in the National Post, Canada forks over 300 million dollars a month to the house of Saud for their oil. Canada still buys oil from the United States and Algeria an Venezuela.
The solution to our woes is an embargo on imports and to start building pipelines now.
You don't embargo yourselves, you embargo your enemies. When you embargo yourself, you only line the pockets of your enemies, like OPEC producers.
WHAT CAN YOU DO?
That's why I'm calling for a stop to this embargo against ourselves and our own jobs.
If you agree, please sign my petition below. And please share this petition with your friends and family.
We need to save Alberta jobs and send a message that Alberta will be open for business very soon -- May 2019.
Albertans should not be sitting at home while we still import OPEC oil. Let’s embargo Riyadh, not Red Deer.
Sign the petition!
Rachel Notley must stop her involuntary production cuts on Alberta oil.