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Oil production cut would lead to job losses in Sask., Moe says
Published Monday, December 3, 2018 1:26PM CST
Last Updated Monday, December 3, 2018 6:43PM CST
Premier Scott Moe says Saskatchewan’s oil market is different than Alberta’s and a government-mandated cut in oil production could result in job losses.
“This crisis has cost Western Canada's energy industry billions in lost growth, and far too many families their livelihoods,” Moe said in statement.
“Saskatchewan will continue to work with our provincial counterparts and advocate for the federal government to create a long-term solution to this crisis by getting pipelines built so we can sell our oil for what it is worth.”
Moe made the comments after Alberta Premier Rachel Notley announced on Sunday that production would be cut by 8.7 per cent because the province can’t ship out oil as fast as it is being produced, and storage is reaching capacity.
“Owing to decades of failure and inaction by successive federal governments, Albertans are unable to transport much of the oil that we produce to market through modern, well-regulated pipelines. As a result we must sell our oil at a discounted price,” said Notley.
“While Saskatchewan understands the action taken by our neighbours in Alberta to reduce the oil glut that is depressing the Western Canada Select oil price, the impact of the differential and how it is spread across our energy sector represents a different challenge to our province,” Moe said in the statement.
Alberta will start cutting oil production in January.