Sask. won’t follow Alberta with cut to oil production
The Saskatchewan government will not be following Alberta’s lead when it comes to cutting oil production in the face of plummeting prices.
Oil from western Canada has been selling at a steep discount due to a lack of pipeline capacity to ship it to buyers outside the U.S. That led Alberta Premier Rachel Notley to announce Sunday that production would be cut by 8.7 per cent in an effort to get prices back up.
Premier Scott Moe said Monday afternoon that he understands and supports the actions taken by the Alberta government to address the glut of oil, but the situation is different in Saskatchewan.
Moe pointed out the market for Saskatchewan oil is different from Alberta’s, because 60 per cent produced here is in the light to medium range, as opposed to the heavier product coming out of the oil sands.