What happens out west isn’t necessarily happening in Saskatchewan.
That’s exactly the case with cutting oil production, as Premier Scott Moe announced during Question Period Monday Saskatchewan will not be pursuing that course of action.
On Sunday, Alberta Premier Rachel Notley announced the province will begin curtailing production in January 2019 by 8.%, the equivalent of about 325,000 barrels a day, in an attempt to reduce the ever widening price differential plaguing energy producers.
“Through our consultations with the industry, they don’t feel it will actually be effective in narrowing the differential,” said Moe. “And they feel it will also cost jobs here in the province.”
Moe cited the percentage of Saskatchewan heavy oil and Alberta’s and it’s integration being different, as well as lighter products going to other markets as reasons why curtailment won’t have an actual impact.
That’s a position the leader of the Saskatchewan NDP, Ryan Meili, finds interesting, given the passion Moe had displayed for the differential in weeks prior.
Meili said it’s very important for Saskatchewan and Alberta to both get fair value for their products.
“As a result of us not getting involved, we’re somehow undermining the closing of that differential, that’s costing Saskatchewan people. That’s us getting less return on our resources.”